Document:

Exhibit 10.6(c)

 

THE
MANITOWOC COMPANY, INC.

 

SUPPLEMENTAL
EXECUTIVE 

RETIREMENT PLAN

 

Effective January 1,
2000

 

and

 

Amended and Restated Through December 31,
2008

 

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  1

  	
  PLAN PURPOSE

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  2

  	
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3

  	
  ANNUAL
  CONTRIBUTION CREDIT

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  4

  	
  ACCOUNT BALANCE

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  5

  	
  BENEFIT
  ELIGIBILITY AND PAYMENT

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6

  	
  GENERAL
  PROVISIONS

  	
  11

  

 

i

 

The Manitowoc Company, Inc.

Supplemental
Executive Retirement Plan

 

Whereas, the
Manitowoc Company, Inc., a Wisconsin corporation (the “Company”), deems it
desirable to adopt a supplemental executive retirement plan for its key
employees.

 

Now,
therefore, the Company hereby establishes this amended and restated version of
The Manitowoc Company, Inc. Supplemental Executive Retirement Plan (the “Plan”)
as follows:

 

ARTICLE 1

Plan Purpose

 

The purpose of
this Plan is to attract and retain key management employees by supplementing
their retirement income. The key management employees of the Company who
participate in this Plan (“Participants”) will be selected by and designated in
writing by the Compensation Committee of the Board.

 

This Plan is
an unfunded target benefit plan. A target benefit plan is similar to a defined
contribution plan. An annual contribution credit is calculated for each
Participant as a level percent of pay. Such accumulated Annual Contribution
Credit, accumulated at the Plan’s assumed rate of investment return, is
expected to fund a life annuity in an amount equal to a target benefit payable
as a life annuity under assumptions defined in this Plan. A Participant’s
benefit is the Account Balance maintained for a Participant by the Company.
Distributions from this Plan shall be processed as set forth in Article 5.

 

The Plan is hereby amended and restated to reflect the requirements of
Code Section 409A as of January 1, 2005, the Company’s good faith
compliance with Code Section 409A between October 3, 2004 and December 31,
2008 and other interim Plan amendments. 
All benefits that were earned and vested on or before December 31,
2004 are “grandfathered” within the meaning of IRS Notice 2005-1 and any
provision in this restated Plan document that would otherwise cause such
grandfathered amounts to be “materially modified” at anytime after October 3,
2004 shall be deemed amended or deleted to the extent necessary to ensure that
those amounts do not become subject to Code Section 409A

 

1

 

ARTICLE 2

Definitions

 

2.1.          “Account
Balance” is an account maintained for each Participant which reflects the
accumulation of the Annual Contribution Credits and the Investment Credits
earned under the Plan.

 

2.2.          “Actuarial
Equivalent” shall mean a single payment or a series of payments that have the
same value as another single payment or series of payments. For purposes of
this Plan, any Actuarial Equivalence for payments made shall reflect a 9.0%
interest rate and life annuity values shall reflect mortality based upon the
1994 Uninsured Pensioners Mortality Table.

 

2.3.          “Actuary”
is an enrolled actuary hired by the Plan Administrator to calculate the Annual
Contribution Credit under the Plan.

 

2.4.          “Administrator”
shall mean the Plan’s administrator, as defined in Article 6.

 

2.5.          “Annual
Contribution Credit” is the amount calculated under Article 3 and credited
to each Participant’s Account Balance.

 

2.6.          “Board”
refers to the board of directors of the Company.

 

2.7.          “Change
in Control” means: (a) the acquisition by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934) of the ownership of 25% or more of either (i) the
then outstanding shares of common stock of the Company or (ii) the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors; (b) a 

 

2

 

change in the
majority of the Board; or (d) a major corporate transaction, such as a
merger, sale of substantially all of the Company’s assets or a liquidation,
which results in a change in the majority of the Board or a majority of
stockholders. For Non-Grandfathered Accounts, a “Change of Control” means the
first event that would be a “Change of Control” under the preceding
definition  and which would also satisfy
the requirements of Code Section 409A(a)(2)(A)(v).

 

2.8.          “Code”
means the Internal Revenue Code of 1986, as interpreted by regulations and
rulings issued pursuant thereto, all as amended and in effect from time to
time.     .

 

2.9.          “Company”
shall mean The Manitowoc Company, Inc. a Wisconsin corporation and its
successors.

 

2.10.        “Compensation”
shall mean, for any Plan Year, a Participant’s regular base salary established
by the Company as of December 31 (including elective deferrals that are
excluded from gross income and are payable to a plan described in Section 401(k) or
Section 125 of the Internal Revenue Code) plus actual bonus awards earned
for the Plan Year. Compensation shall not include commissions, the value of
fringe benefits and other special awards or payments.

 

2.11.        “Final
Average Compensation Target” shall mean the average of the Participant’s
projected Compensation for the five consecutive calendar year period when the
Participant receives or is projected to receive his highest average
Compensation prior to the Participant’s Target Retirement Date.  Projected Compensation will be determined by
increasing the current Compensation for each year in the future by 6.0%,
compounded annually, until the Plan Year preceding the Participant’s Target
Retirement Date.  To the 

 

3

 

extent that a
Participant works past his Target Retirement Date, his Final Average
Compensation Target will continue to be adjusted for increases in Compensation
after the Target Retirement Date.

 

2.12.        “Grandfathered
Account” refers to all or any part of a Participant’s Account Balance that was
earned and fully vested as of December 31, 2004, calculated based upon the
terms of the Plan in effect on October 3, 2004.   If, at any time, this Plan, any agreement,
any form or any other administrative policy is amended or interpreted to cause
a “material modification” that would cause a Grandfathered Account to be
subject to Code Section 409A, such amendment, interpretation or change
shall be deemed amended or modified to the extent that no Grandfathered Amount
will be subject to Code Section 409A. 
If necessary to avoid the application of Code Section 409A or to
provide guidance as the result of the application of the preceding provisions,
the terms of the Plan, as in effect on October 3, 2004, shall apply to all
Grandfathered Accounts.

 

2.13.        “Investment
Credit” is the annual increase in a Participant’s Account Balance on December 31
equal to 9.0% of the Account Balance as of January 1 of the same Plan
Year.

 

2.14.        “Non-Grandfathered
Account” refers to all or any part of a Participant’s Account Balance that was
not earned and fully vested as of December 31, 2004, according to the
terms of the Plan in effect on October 3, 2004.  Non-Grandfathered Accounts are subject to
Code Section 409A and the provisions of this Plan shall be interpreted and
applied with the intent to ensure that no benefits are subject to taxation
before the date when such benefits are paid to a Participant or
Beneficiary.  Nothing in this Plan, any
agreement, any form or 

 

4

 

related
document shall be construed or interpreted as a guarantee of any particular tax
consequences.

 

2.15.        “Normal
Retirement Date” is the first day of the month following age 65.

 

2.16.        “Plan”
means The Manitowoc Company, Inc. Supplemental Executive Retirement Plan
established January 1, 2000, restated effective January 1, 2009 and
set forth herein, as amended from time to time.

 

2.17.        “Plan
Year” shall be the calendar year.

 

2.18.        “Substantial
Employment Change” shall mean following a Change in Control: (a) a
Participant’s employment is terminated without cause; (b) a negative,
fundamental or material change is made in a Participant’s duties or
responsibilities; (c) a Participant’s salary or other material
compensation or benefits are reduced and such decrease is not related to
Company or individual performance; (d) a Participant is required to
materially relocate his or her residence or principal office location against
his or her will; or (e) a Participant is not offered a comparable position
with a successor entity.

 

2.19.        “Target
Retirement Benefit” is fifty-five percent (55%) of a Participant’s Final
Average Compensation Target.  For any
executive who becomes a Participant after December 31, 2008 and whose
projected total service at his Target Retirement Date is less than 25 years,
his Target Retirement Benefit will be 55% of the Participant’s Final Average
Compensation Target times the 
Participant’s projected total service with the Company at his Target
Retirement Date divided by 25.  If a
Participant whose Target Retirement Benefit was reduced under the preceding
provision works past his Target Retirement 

 

5

 

Date, then his
Target Retirement Benefit will be 55% of the Participant’s Final Average
Compensation Target times the Participant’s actual years of service with the
Company, not to exceed 25, divided by 25. 
Total service is all service as an employee of the Company and will be
based upon complete months and years of projected or actual service.  If the Company adopts any other
employer-provided defined benefit retirement plan, the actuarial equivalent of
such benefit payable as a level life annuity will be subtracted from the Target
Retirement Benefit.

 

2.20.        “Target
Retirement Date” is the earlier of the Normal Retirement Date and the first of
the month following the date on which the Participant’s attained age plus years
of service with the Company equals 80. Attained age and years of service will
be calculated in years and complete months.

 

ARTICLE 3

Annual Contribution Credit

 

3.1.          The
Company shall have an Actuary calculate the Annual Contribution Credit in
accordance with this Article 3. Such Annual Contribution Credit shall be
credited to a Participant’s Account Balance as of December 31 of each Plan
Year prior to the Participant’s Target Retirement Date, provided the
Participant is an employee on December 31 of the Plan Year.

 

3.2.          The
Annual Contribution Credit shall be calculated at the end of each Plan Year as
follows:

 

(a)   Calculate the Target Retirement
Benefit.

 

6

 

(b)   Calculate the lump sum
Actuarial Equivalent of the Target Benefit payable as a life annuity beginning
at the Target Retirement Date.

 

(c)   Calculate the present value of
the lump sum Actuarial Equivalent to the Target Benefit for the Plan Year.

 

(d)   Calculate the Participant’s
Account Balance as of December 31 of the Plan Year after the Account
Balance has been increased by the 9.0% Investment Credit.

 

(e)   The Annual Contribution Credit
shall equal the annual amount required to fund the difference in (c) and (d) by
the Target Retirement Date assuming the contribution increases 6.0% a year and
earns 9.0% a year.  In no event can the
Annual Contribution Credit be less than zero.

 

ARTICLE 4

Account Balance

 

The
Administrator shall cause an Account Balance to be maintained for each Plan
Participant. The Account Balance on January 1 of the first year that a
Participant commences participation is zero. On December 31 of each Plan
Year, the Account Balance at the beginning of the Plan Year will be increased
by a 9.0% Investment Credit. Following the Investment Credit the Account
Balance will be credited with the Annual Contribution Credit calculated for a
Participant. No Annual Contribution Credit will be provided if the Participant has
reached his or her Target Retirement Date. However, the Account Balance will
continue to be increased annually by the 9.0% Investment Credit. In addition,
the Account Balance will be reviewed periodically after the Target Retirement
Date to ensure that the Account Balance is not less than the Actuarial
Equivalent of the Target Retirement Benefit reflecting changes in Compensation
and actual service. If after the Target Retirement Date the Account Balance is
less than the Actuarial Equivalent of the Target Retirement Benefit the
Administrator will notify the Compensation Committee of the shortfall and
credit the Participant’s Account Balance annually 

 

7

 

with the entire amount of such shortfall
until the Account Balance is at least Actuarially Equivalent to the Target
Benefit.

 

ARTICLE 5

Benefit Eligibility and Payment

 

5.1.          Voluntary
Termination of Employment or Retirement. 
If a Participant terminates employment or retirees from the Company the
Participant is eligible to receive his Account Balance.

 

5.2.          Death.
A Participant’s spouse will be the designated beneficiary under this Plan. If
the Participant is not married, the Participant may designate anyone else as
his or her designated beneficiary. Such designated beneficiary will be entitled
to receive as a death benefit the Participant’s Account Balance.

 

5.3.          Disability.
If a Participant shall become permanently and totally disabled the Participant
will be eligible to receive his Account Balance.  For Non-Grandfathered Accounts, a disability
will only include a situation that would allow a distribution under Code Section 409A(a)(2)(A)(ii).  Code Sections 409A(a)(2)(A)(ii) and
409A(a)(2)(C) provide that a Participant shall be considered “disabled”
only when he or she: (a) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months; or (b) is, by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months, receiving income replacement benefits for a period of not less
than 3 months under an accident and health plan covering employees of the
Employer.  Except as noted above with
respect to

 

8

 

Non-Grandfathered
Accounts, the Administrator will have the authority to determine if the
Participant is totally and permanently disabled. The Administrator shall have
the right to request any information the Administrator deems necessary so as to
determine if the if Participant is permanently and totally disabled. The
Participant must submit the information requested by the Administrator in order
to be eligible for a distribution.

 

5.4.          Payment
of Benefits.

 

(a)   If the Participant or the
designated survivor of a Participant is entitled to a Grandfathered Account, it
shall be paid in a single lump sum within 60 days following termination of
employment, death or disability.

 

(b)   With respect to
Non-Grandfathered Accounts: (i) a distribution may only commence as a
result of a termination of employment or service if such termination is also a
separation from service within the meaning of Code Section 409A(2)(a)(1) (“Separation”);
and (ii) to the extent that the Participant is a “key employee,” as
defined in Code Section 416(i), a distribution from any Non-Grandfathered
Account that is made as a result of a Separation may not commence until at
least 6 months after such Separation.

 

(c)   In lieu of a single payment the
Participant may elect to receive his Account Balance over a fixed number of
years not to exceed 10 years. To the extent that all or any portion of a
Participant’s Account Balance is paid in installments, each payment will equal
the Account Balance divided by the remaining number of years elected for payment.
During this payout period the Account Balance will continue to be credited with
a 9.0% Investment Credit for each year adjusting for the timing of the payments

 

9

 

made.

 

(i)    With respect to Grandfathered
Accounts, a Participant may make such an election at any time prior to the
first day of the calendar year when payments commence.

 

(ii)   With respect to
Non-Grandfathered Accounts, a Participant must make such an election before the
first day of the calendar year when the Participant provides any services
associated with such additional benefit. 
Notwithstanding the preceding limitation, Participants were allowed to
make, revoke and/or modify elections for Non-Grandfathered Benefits between October 3,
2004 and December 31, 2008, in accordance with transitional guidance
issued by the Internal Revenue Service, including IRS Notice 2005-1, Notice
2006-79, Notice 2007-86 and the proposed regulations issued under Code Section 409A.

 

5.5.          Change
in Control. If a Participant experiences a Substantial Employment Change
following a Change in Control, the Participant’s Account Balance will be
immediately increased so that the Account Balance is not less than the lump sum
Actuarial Equivalent of the present value of the Target Retirement Benefit. The
Participant will be eligible for a distribution of his or her revised Account
Balance as any other terminated Participant.

 

5.6.          Termination
for Cause. Notwithstanding anything in this Plan to the contrary, if the Company
terminates a Participant’s employment for Cause, then the Company shall have no
obligation to such Participant or his or her spouse pursuant to this Plan, and
no payments of any kind shall thereafter be made by the Company to the
Participant hereunder.

 

10

 

For purposes
of the foregoing, “Cause” means:

 

(a)   any act or acts of the
Participant constituting a felony (or its equivalent) under the laws of the
United States, any state thereof or any foreign jurisdiction;

 

(b)   any material breach, as
determined by the Company, by the Participant of any employment agreement with
the Company or the policies of the Company or any of its subsidiaries or the
willful and persistent (after written notice to the Participant) failure or
refusal, as determined by the Company, of the Participant to perform his duties
or employment or comply with any lawful directives of the Board.

 

(c)   Conduct which the Company
determines amounts to gross neglect, willful misconduct or dishonesty; or

 

(d)   Any misappropriation of
material property of the Company by the Participant or any misappropriation of
a corporate or business opportunity of the Company by the Participant, all as
determined by the Company.

 

ARTICLE 6

General Provisions

 

6.1.          Administration.
The Administrator of the Plan shall be the Company, which shall be the named
fiduciary responsible for the administration of the Plan. The Vice President
Employee of Human Resources of the Company or his delegate shall perform the responsibilities
for the Administrator. All decisions and determinations made by the
Administrator, the Compensation Committee or their delegates pursuant to their
duties and powers described in the Plan shall be conclusive and binding upon
all parties, The 

 

11

 

Administrator,
the Compensation Committee and their delegates shall have sole discretion in
carrying out their responsibilities.

 

6.2.          Claims.

 

(a)   A Participant or the designated
survivor of a Participant shall make an application for benefits to the
Administrator.

 

(b)   In the event that the
Administrator denies, in whole or part, a claim for benefits by a Participant
or his designated survivor, the Administrator shall furnish notice of the
denial to the claimant, setting forth:

 

(1)   the specific reasons for the
denial,

 

(2)   specific reference to the
pertinent Plan provisions on which the denial is based,

 

(3)   a description of any additional
information necessary for the claimant to perfect the claim and an explanation
of why such information is necessary, and

 

(4)   appropriate information as to
the steps to be taken if the claimant wishes to submit his claim for review.

 

Such notice shall be forwarded to the claimant within 90 days of the
Administrator’s receipt of the claim; provided, however, that in special
circumstances the Administrator may extend the response period for up to an
additional 90 days, in which event it shall notify the claimant in writing of
the extension and shall specify the reason or reasons for the extension.

 

6.3.          Payment
to Guardian. If an amount is payable under this Plan to a minor or a person
declared incompetent or to a person incapable of handling the disposition of
property, the 

 

12

 

Administrator
may direct payment of such amount to the guardian, legal representative or
person having the care and custody of such minor or incompetent person. The
Administrator may require proof of incompetency, minority, incapacity or
guardianship as it may deem appropriate prior to the distribution of the
amount. Such distribution shall completely discharge the Company from all
liability with respect to such amount.

 

6.4.          Withholding,
Payroll Taxes. A Company shall withhold from payments made under the Plan
any taxes required to be withheld from a Participant’s wages for the federal or
any state or local government.

 

6.5.          Source
of Funds. This Plan shall be unfunded, and payment of benefits hereunder
shall be made from the general assets of the Company. Any such asset that may
be set aside, earmarked or identified as being intended for the provision of
benefits hereunder shall remain an asset of the Company and shall be subject to
the claims of its general creditors. Each Participant shall be a general
creditor of the Company to the extent of the value of his benefit accrued
hereunder, but he shall have no right, title, or interest in any specific asset
that the Company may set aside or designate as intended to be applied to the
payment of benefits under this Plan. The Company’s obligation under the Plan
shall be merely that of an unfunded and unsecured promise of the Company to pay
money in the future.

 

6.6.          Nonalienation
of Benefits. Except as hereinafter provided with respect to marital
disputes, none of the benefits or rights of a Participant or any beneficiary of
a Participant shall be subject to the claim of any creditor, and in particular,
to the fullest extent permitted by law, all such benefits and rights shall be
free from attachment, garnishment 

 

13

 

or any other
legal or equitable process available to any creditor of the Participant and the
beneficiary. Neither the Participant nor the beneficiary shall have the right
to alienate, anticipate, commute, pledge, encumber, or assign any of the
benefit or payments which he may expect to receive, contingency or otherwise,
under this Plan, except insofar as the form in which benefits are paid under Article 4
involves the Participant’s designation of a beneficiary to received payments
after the Participant’s death. In cases of marital dispute, the Administrator
will observe the terms of the Plan unless and until ordered to do otherwise by
a state or federal court. As a condition of participation, a Participant agrees
to hold the Company harmless from any harm that arises out of the Company’s
obeying the final order of any state or federal court, whether such order
effects a judgment of such court or is issued to enforce a judgment or order of
another court.

 

6.7.          Amendment
and Termination.

 

(a)   The Company reserves the right
to amend this Plan at any time and from time to time in any fashion and to
terminate it at will, by or pursuant to action of the Board or other governing
body. The Company reserves the right to terminate its participation in this
Plan at any time, by or pursuant to action of its Board or other governing
body.

 

(b)   No amendment or termination of
the Plan shall (without the Participant’s or beneficiary’s consent) alter the
Participant’s right to monthly payments that have commenced prior to the
effective date of such termination or amendment. The Company specifically
reserves the right to terminate or amend this Plan to eliminate the right of
any Participant to receive payment hereunder prior to the time when payments
are in pay status under this Plan. Notwithstanding the above, if the 

 

14

 

Company is
liquidated, the Administrator shall have the right to determine any amounts
payable to a Participant or a beneficiary and to cause the amount so determined
to be paid in one or more installments or upon such other terms and conditions
and at such other time as the Administrator determines to be just and
equitable.

 

6.8.          No
Contract of Employment. Nothing contained herein shall be construed as
conferring upon any person the right to be employed or continue in the employ
of the Company.

 

6.9.          Applicable
Law. The provisions of this Plan shall be construed and interpreted
according to the laws of the State of Wisconsin.

 

6.10.        Successors.
The provisions of this Plan shall bind and inure to the benefit of each Company
and its successors and assigns. The term successors as used herein shall
include any corporate or other business entity which shall, whether by merger,
consolidation, purchase or otherwise acquire all or substantially all of the
business and assets of the Company, and successors of any such corporation or
other business entity

 

6.11.        409A
Compliance. To the extent applicable, the Company intends that this Plan
and any payments or benefits due hereunder comply with the provisions of Code Section 409A.  This Plan shall be administered by the
Company in a manner consistent with this intent, and any provision that would
cause this Plan to fail to satisfy Code Section 409A shall have no force
or effect until amended to comply with Code Section 409A (which amendment
may be retroactive to the extent permitted by Code Section 409A).

 

15

 

IN WITNESS WHEREOF,
and as evidence to the adoption of the foregoing Plan, the Company has caused
the same to be executed by its duly authorized officer.

 

	
   

  	
  THE
  MANITOWOC COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
					

 

16

 

The:
Manitowoc Company, Inc.

Supplemental
Executive Retirement Plan

 

Appendix A

 

As of December 31,
2008, the following employees are Participants in the Manitowoc Company, Inc.
Supplemental Executive Retirement Plan.

 

Terry Growcock

 

Maurice Jones

 

Timothy Kraus

 

Carl Laurino

 

Thomas Musial

 

Glen TellockExhibit 10.7(c)

 

THE MANITOWOC COMPANY, INC.

2003 INCENTIVE STOCK AND AWARDS PLAN

Amended December 17, 2008, Effective January 1, 2005

 

1.            Purpose and Construction.

 

(a)           Purpose.  The Manitowoc Company, Inc. 2003
Incentive Stock and Awards Plan has two complementary purposes: (i) to
attract and retain outstanding people as officers, employees, consultants and
advisors and (ii) to increase shareholder value.  The Plan will provide participants incentives
to increase shareholder value by offering the opportunity to acquire shares of
the Company’s common stock, receive monetary payments based on the value of
such common stock, or receive other incentive compensation, on the potentially
favorable terms that this Plan provides.

 

(b)           Definitions.  All capitalized terms used in this Plan have
the meanings given in Section 13.

 

2.             Administration.

 

(a)           Committee
Administration.  The Committee has
full authority to administer this Plan, including the authority to (i) interpret
the provisions of this Plan, (ii) prescribe, amend and rescind rules and
regulations relating to this Plan, (iii) correct any defect, supply any
omission, or reconcile any inconsistency in any Award or agreement covering an
Award in the manner and to the extent it deems desirable to carry this Plan
into effect, and (iv) make all other determinations necessary or advisable
for the administration of this Plan.  A
majority of the members of the Committee will constitute a quorum, and a
majority of the Committee’s members present at a meeting at which a quorum is
present must make all determinations of the Committee.  The Committee may make any determination
under this Plan without notice or meeting of the Committee by a writing that a
majority of the Committee members have signed. 
All Committee determinations are final and binding.

 

(b)           Delegation
to Other Committees or Officers.  To
the extent applicable law permits, the Board may delegate to another committee
of the Board or to one or more officers of the Company any or all of the
authority and responsibility of the Committee. 
However, no such delegation is permitted with respect to individuals who
are Section 16 Participants at the time any such delegated authority or
responsibility is exercised.  The Board
also may delegate to another committee of the Board consisting entirely of
Non-Employee Directors any or all of the authority and responsibility of the
Committee with respect to individuals who are Section 16
Participants.  If the Board has made such
a delegation, then all references to the Committee in this Plan include such
other committee or one or more officers to the extent of such delegation.

 

(c)           No
Liability.  No member of the
Committee, and no officer to whom a delegation under subsection (b) has
been made, will be liable for any act done, or determination made, by the
individual in good faith with respect to the Plan or any Award.  The Company will indemnify and hold harmless
such individual to the maximum extent that the law and the Company’s bylaws
permit.

 

 

3.             Eligibility.  The Committee may designate from time to time
the Participants to receive Awards under this Plan.  The Committee’s designation of a Participant
in any year will not require the Committee to designate such person to receive
an Award in any other year.  The
Committee may consider such factors as it deems pertinent in selecting a
Participant and in determining the types and amounts of Awards.  In making such selection and determination,
factors the Committee may consider include: (a) the Company’s financial
condition; (b) anticipated profits for the current or future years; (c) the
Participant’s contributions to the profitability and development of the
Company; and (d) other compensation provided to the Participant.

 

4.             Discretionary
Grants of Awards.

 

(a)           Terms
and Conditions of Awards.  Subject to
the terms of this Plan, the Committee has full power and authority to
determine: (i) the type or types of Awards to be granted to each
Participant; (ii) the number of Shares with respect to which an Award is
granted to a Participant, if applicable; and (iii) any other terms and
conditions of any Award granted to a Participant.  If the employment of a Participant shall
terminate by reason of death or Disability, as to Awards held by the
Participant as of the effective date of such termination of employment, all
Options and SARs which are not yet vested shall be fully and immediately vested
and exercisable, all restrictions on Restricted Stock shall be accelerated and
deemed to have lapsed, and all 
Performance Goals applicable to Performance Shares or Performance Units
shall be deemed to have been achieved. 
If the employment of a Participant shall terminate for any reason other
than death or Disability, as to Awards held by the Participant of the effective
date of such termination of employment, unless the Committee, in its sole
discretion, shall otherwise determine, all nonvested Options and SARs,
Restricted Stock as to which all restrictions have not lapsed, and all
Performance Shares and Performance Units for which the Performance Goals have
not been fully satisfied shall be immediately forfeited.  If the Committee determines not to require
such immediate forfeiture, then the maximum exercise period which may be
permitted for Options and SARs following such employment termination shall be
the shorter of one year or the scheduled expiration date of the Award.

 

(b)           Single
or Tandem Awards.  Awards under this
Plan may be granted either alone or in addition to, in tandem with, or in
substitution for any other Award (or any other award granted under another plan
of the Company or any Affiliate).  Tandem
Awards may be granted either at the same time as, or at different times from,
the grant of the other Awards (or awards) to which they relate.

 

5.             Shares
Reserved under this Plan.

 

(a)           Plan
Reserve.  An aggregate of 3,000,000
Shares are reserved for issuance under this Plan.  As to Awards that are (i) Restricted
Stock, (ii) Performance Shares, or (iii) Performance Units that are
paid in Shares or the value of which is based on the Fair Market Value of
Shares, the Company may not issue, or make payments as to, more than 1,000,000
Shares in the aggregate.  The limitations
of this subsection are subject to adjustments as provided in Section 11.

 

2

 

(b)           Replenishment
of Shares Under this Plan.  The
number of Shares reserved for issuance under this Plan shall be reduced only by
the number of Shares delivered in payment or settlement of Awards.  If an Award lapses, expires, terminates or is
cancelled without the issuance of Shares under the Award, then the Shares
subject to, reserved for or delivered in payment in respect of such Award may
again be used for new Awards under this Plan as determined under subsection
(a), including issuance as Restricted Stock or pursuant to incentive stock
options.  If Shares are issued under any
Award and the Company subsequently reacquires them pursuant to rights reserved
upon the issuance of the Shares, if Shares are used in connection with the
satisfaction of tax obligations relating to an Award, or if previously owned
Shares are delivered to the Company in payment of the exercise price of an
Award, then the Shares subject to, reserved for or delivered in payment in
respect of such Award may again be used for new Awards under this Plan as
determined under subsection (a), including issuance as Restricted Stock, but
such shares may not be issued pursuant to incentive stock options.

 

(c)           Addition
of Shares from Predecessor Plan. 
After the Effective Date of this Plan, if any Shares subject to awards
granted under The Manitowoc Company, Inc. 1995 Stock Plan would again
become available for new grants under the terms of such prior plan if the prior
plan were still in effect, then those Shares will be available for the purpose
of granting Awards under this Plan, thereby increasing the Shares available
under this Plan as determined under the first sentence of subsection (a).  Any such Shares will not be available for
future awards under the terms of such prior plan.

 

(d)           Participant
Limitations.  Subject to adjustment
as provided in Section 11, no Participant may be granted Awards under this
Plan that could result in such Participant: (i) receiving in any single
fiscal year of the Company Options, with or without any related Stock
Appreciation Rights, or Stock Appreciation Rights not related to Options, for
more than 300,000 Shares, (ii) receiving Awards of Restricted Stock in any
single fiscal year of the Company relating to more than 200,000 Shares, (iii) receiving
Performance Shares in any single fiscal year of the Company relating to more
than 200,000 Shares; (iv) receiving Awards of Performance Units in any
single fiscal year of the Company with a designated dollar value that exceeds
$3,000,000 and/or receiving Awards of Performance Units in any single fiscal
year of the Company, the value of which is based on the Fair Market Value of
Shares, relating to more than 200,000 Shares. 
In all cases, determinations under this Section 5 shall be made in
a manner that is consistent with the exemption for performance-based
compensation that Code Section 162(m) provides.

 

6.             Options
and Stock Appreciation Rights.

 

(a)           Eligibility
for Options.  The Committee may grant
Options to any Participant it selects. 
The Committee must specify whether the Option is an incentive stock
option or a nonqualified stock option, but only employees of the Company or a
Subsidiary may receive grants of incentive stock options.

 

(b)           Exercise
Price of Options.  For each Option,
the Committee will establish the exercise price, which may not be less than the
Fair Market Value of the Shares subject to the Option as determined on the date
of grant.  The Committee shall also
determine the method or methods by which, and the forms or forms, including,
without limitation, cash, Shares, other 

 

3

 

securities, other Awards,
or other property, or any combination thereof, having a Fair Market Value on
the exercise date equal to the relevant exercise price, in which payment of the
exercise price with respect to any Option may be made or deemed to have been
made.

 

(c)           Terms
and Conditions of Options.  Subject
to the terms of the Plan, an Option will be exercisable at such times and
subject to such conditions as the Committee specifies, except that the Option
must terminate no later than ten (10) years after the date of grant.  In all other respects, the terms of any
incentive stock option should comply with the provisions of Code Section 422
except to the extent the Committee determines otherwise.

 

(d)           Eligibility
and Exercise Price for Stock Appreciation Rights.  The Committee may grant Stock Appreciation
Rights to any Participant it selects. 
Each Stock Appreciation Right may relate to all or a portion of a
specific Option granted under the Plan and may be granted concurrently with the
Option to which it relates or at any time prior to the exercise, termination or
expiration of such Option (a “Tandem SAR”), or may be granted independently of
any Option, as determined by the Committee. 
If the Stock Appreciation Right is granted independently of an Option,
the exercise price of such Stock Appreciation Right shall be the Fair Market
Value of a Share on the date of grant; provided, however, that the Committee
may, in its discretion, fix an exercise price in excess of the Fair Market
Value of a Share on such grant date.

 

(e)           Upon
Exercise of a Stock Appreciation Right. 
Upon exercise of a Stock Appreciation Right, the Participant shall be
entitled to receive, without payment to the Company, either (A) that
number of Shares determined by dividing (i) the total number of Shares
subject to the Stock Appreciation Right being exercised by the Participant,
multiplied by the amount by which the Fair Market Value of a Share on the day
the right is exercised exceeds the exercise price (such amount being
hereinafter referred to as the “Spread”), by (ii) the Fair Market Value of
a Share on the exercise date; or (B) cash in an amount determined by
multiplying (i) the total number of Shares subject to the Stock
Appreciation Right being exercised by the Participant, by (ii) the amount
of the Spread; or (C) a combination of Shares and cash, in amounts
determined as set forth in clauses (A) and (B) above, as determined
by the Committee in its sole discretion; provided, however, that, in the case
of a Tandem SAR, the total number of Shares which may be received upon exercise
of a Stock Appreciation Right for Common Stock shall not exceed the total
number of Shares subject to the related Option or portion thereof, and the
total amount of cash which may be received upon exercise of a Stock
Appreciation Right for cash shall not exceed the Fair Market Value on the date
of exercise of the total number of Shares subject to the related Option or
portion thereof.

 

(f)            Terms and Conditions of Stock
Appreciation Rights.  Subject to the
terms of the Plan, a Stock Appreciation
Right will be exercisable at such times and subject to such conditions as the
Committee specifies; provided, however, that a Tandem SAR shall not be
exercisable prior to or later than the time the related Option could be
exercised; and provided, further, that in any event a Stock Appreciation Right
shall terminate no later than ten (10) years after the date of grant.

 

(g)           Tandem
SARs and Options.  With respect to
Options issued with Tandem SARs, the right of a Participant to exercise the
Tandem SAR shall be cancelled if and to the

 

4

 

extent the related Option is
exercised, and the right of a Participant to exercise an Option shall be
cancelled if and to the extent that Shares covered by such Option are used to
calculate shares or cash received upon exercise of the Tandem SAR.

 

7.             Restricted
Stock, Performance Shares and Performance Units.

 

(a)           Eligibility
for Restricted Stock, Performance Shares and Performance Units.  The Committee may grant awards of Restricted
Stock, Performance Shares or Performance Units to Participants the Committee
selects.

 

(b)           Terms
and Conditions.  Subject to the terms
of the Plan, each award of Restricted Stock, Performance Shares or Performance
Units may be subject to such terms and conditions as the Committee determines
appropriate, including, without limitation, a condition that one or more
Performance Goals be achieved for the Participant to realize all or a portion
of the benefit provided under the Award. 
However, an award of Restricted Stock that requires the achievement of
Performance Goals must have a restriction period of at least one year, and an
award of Restricted Stock that is not subject to Performance Goals must have a
restriction period of at least three years. 
The Committee may determine to pay Performance Units in cash, in Shares,
or in a combination of cash and Shares. Any Award of Performance Units must be
paid before March 15 of the calendar year after the calendar year in which
the recipient has a fully vested right to such Performance Stock Units.

 

8.             Transferability.  Except as otherwise provided in this Section,
or as the Committee otherwise provides, each Award granted under this Plan is
not transferable by a Participant other than by will or the laws of descent and
distribution, and during the lifetime of the Participant such Awards may be
exercised only by the Participant or the Participant’s legal representative or
by the permitted transferee of such Participant as hereinafter provided (or by
the legal representative of such permitted transferee).  A Participant may transfer Awards to (i) his
or her spouse, children or grandchildren (“Immediate Family Members”); (ii) a
trust or trusts for the exclusive benefit of such Immediate Family Members; or (iii) a
partnership in which such Immediate Family Members are the only partners.  The transfer will be effective only if the
Participant receives no consideration for such transfer.  Subsequent transfers of transferred Awards
are prohibited except transfers to those persons or entities to which the
Participant could have transferred such Awards, or transfers otherwise in
accordance with this Section.

 

9.             Termination
and Amendment of Plan; Amendment, Modification or Cancellation of Awards.

 

(a)           Term
of Plan.  This Plan will terminate
on, and no Award may be granted after, the ten (10) year anniversary of
the Effective Date, unless the Board earlier terminates this Plan pursuant to
subsection (b).

 

(b)           Termination
and Amendment.  The Board may amend,
alter, suspend, discontinue or terminate this Plan at any time, subject to the
following limitations:

 

(i)            shareholders must approve any
amendment of this Plan if required by: (A) the rules and/or
regulations promulgated under Section 16 of the Exchange Act (for this
Plan to remain qualified under Rule 16b-3), (B) the Code

 

5

 

or any rules promulgated thereunder (to allow for
incentive stock options to be granted under this Plan or to enable the Company
to comply with the provisions of Code Section 162(m) so that the
Company can deduct compensation in excess of the limitation set forth in that
section), or (C) the listing requirements of the New York Stock Exchange
or any principal securities exchange or market on which the Shares are then
traded (to maintain the listing or quotation of the Shares on that exchange);
and

 

(ii)           shareholders must approve any of the
following Plan amendments: (A) an amendment to materially increase any
number of Shares specified in Section 5(a) or 5(d) (except as
permitted by Section 11); (B) an amendment to shorten the restriction
periods specified in Section 7(b); or (C) an amendment to the
provisions of Section 9(e).

 

(c)           Amendment,
Modification or Cancellation of Awards. 
Except as provided in subsection (e) and subject to the
requirements of this Plan, the Committee may waive any restrictions or
conditions applicable to any Award or the exercise of the Award, and the
Committee may modify, amend, or cancel any of the other terms and conditions
applicable to any Awards by mutual agreement between the Committee and the
Participant or any other persons as may then have an interest in the Award, so
long as any amendment or modification does not increase the number of Shares
issuable under this Plan (except as permitted by Section 11), but the
Committee need not obtain Participant (or other interested party) consent for
the cancellation of an Award pursuant to the provisions of Section 11(a).  Notwithstanding anything to the contrary in
this Plan, the Committee shall have sole discretion to alter the selected
Performance Goals subject to shareholder approval, to the extent required to
qualify an Award for the performance-based exemption provided by Code Section 162(m) (or
any successor provision thereto). 
Notwithstanding the foregoing, in the event the Committee determines it
is advisable to grant an Award which does not qualify for the performance-based
exemption under Code Section 162(m) (or any successor thereto), the
Committee may make such grants without satisfying the requirements therefor.

 

(d)           Survival
of Committee Authority and Awards. 
Notwithstanding the foregoing, the authority of the Committee to
administer this Plan and modify or amend an Award may extend beyond the date of
this Plan’s termination.  In addition,
termination of this Plan will not affect the rights of Participants with
respect to Awards previously granted to them, and all unexpired Awards will
continue in force and effect after termination of this Plan except as they may
lapse or be terminated by their own terms and conditions.

 

(e)           Repricing
Prohibited.  Notwithstanding anything
in this Plan to the contrary, and except for the adjustments provided in Section 11,
neither the Committee nor any other person may decrease the exercise price for
any outstanding Option or Stock Appreciation Right granted under this Plan
after the date of grant nor allow a Participant to surrender an outstanding
Option or Stock Appreciation Right granted under this Plan to the Company as
consideration for the grant of a new Option or Stock Appreciation Right with a
lower exercise price.

 

6

 

(f)            Foreign
Participation.  To assure the
viability of Awards granted to Participants employed in foreign countries, the
Committee may provide for such special terms as it may consider necessary or
appropriate to accommodate differences in local law, tax policy or custom.  Moreover, the Committee may approve such
supplements to, or amendments, restatements or alternative versions of this
Plan as it determines is necessary or appropriate for such purposes.  Any such amendment, restatement or
alternative versions that the Committee approves for purposes of using this
Plan in a foreign country will not affect the terms of this Plan for any other
country.  In addition, all such
supplements, amendments, restatements or alternative versions must comply with
the provisions of Section 9(b)(ii).

 

10.           Taxes.  The Company is entitled to withhold the
amount of any tax attributable to any amount payable or Shares deliverable
under this Plan after giving the person entitled to receive such amount or
Shares notice as far in advance as practicable, and the Company may defer
making payment or delivery if any such tax may be pending unless and until
indemnified to its satisfaction.  The
Committee may permit a Participant to pay all or a portion of the federal,
state and local withholding taxes arising in connection with (a) the
exercise of a nonqualified stock option, (b) a disqualifying disposition
of Shares received upon the exercise of an incentive stock option, or (c) the
lapse of restrictions on Restricted Stock, by electing to (i) have the
Company withhold Shares otherwise issuable under the Award, (ii) tender
back Shares received in connection with such Award or (iii) deliver other
previously owned Shares which have been beneficially owned by the Participant
for at least six (6) months, in each case having a Fair Market Value equal
to the amount to be withheld.  However,
the amount to be withheld may not exceed the total minimum federal, state and
local tax withholding obligations associated with the transaction.  The election must be made on or before the
date as of which the amount of tax to be withheld is determined and otherwise
as the Committee requires.  The Fair
Market Value of fractional Shares remaining after payment of the withholding
taxes may be paid to the Participant in cash.

 

11.           Adjustment
Provisions; Change of Control.

 

(a)           Stock
Split, Stock Dividend or Reverse Stock Split.  In the event of a stock split, stock dividend
or reverse stock split, of Shares, the number of Shares subject to this Plan
(including the number and type of Shares that may be granted as Restricted
Stock or issued pursuant to incentive stock options, to a Participant in any
fiscal year, and that may after the event be made the subject of Awards under
this Plan) and the number Shares subject to outstanding Awards, and the grant,
purchase and exercise price with respect to any outstanding Awards, shall
thereupon automatically be adjusted proportionately in a manner consistent with
such stock split, stock dividend or reverse stock split to prevent dilution or
enlargement of the benefits or potential benefits intended to be made under
this Plan; provided, however, that the number of Shares subject to any Award
payable or denominated in Shares must always be a whole number.  In the event that any such stock split, stock
dividend or reverse stock split would result in an outstanding Award consisting
of any fractional Share(s), the Committee may cancel such fractional amount or
grant an Award of an additional fractional amount so that there is no fraction
amount or may make provision for a cash payment, in an amount determined by the
Committee to the holder of the Award that would include a fractional Share, in
exchange for the cancellation of such factional Share(s) (without any consent
of the holder of any such fractional

 

7

 

Share), effective
as of the time the Committee specifies (which may be the time such stock split,
stock dividend or reverse stock split, is effective).

 

(b)           Other
Adjustment of Shares.  In addition to
the non-discretionary adjustment provisions of Section 11(a), if the
Committee determines that any dividend or other distribution (whether in the
form of cash, other securities, or other property, but not including a dividend
of Shares which is governed by Section 11(a)), recapitalization,
reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Shares or other securities of the Company, issuance
of warrants or other rights to purchase Shares or other securities of the
Company, or other similar corporate transaction or event affects the Shares
such that the Committee determines an adjustment to be appropriate to prevent
dilution or enlargement of the benefits or potential benefits intended to be
made available under this Plan, then, subject to Participants’ rights under
subsection (c), the Committee may, in such manner as it may deem equitable,
adjust any or all of (i) the number and type of Shares subject to this
Plan (including the number and type of Shares that may be granted as Restricted
Stock or issued pursuant to incentive stock options, that may be granted to a
Participant in any fiscal year, and that may after the event be made the
subject of Awards under this Plan), (ii) the number and type of Shares
subject to outstanding Awards, and (iii) the grant, purchase, or exercise
price with respect to any Award.  In any
such case, the Committee may also make provision for a cash payment in an
amount determined by the Committee to the holder of an outstanding Award in
exchange for the cancellation of all or a portion of the Award (without the
consent of the holder of an Award) effective at such time as the Committee
specifies (which may be the time such transaction or event is effective), but
if such transaction or event constitutes a Change of Control, then (A) such
payment shall be at least as favorable to the holder as the greatest amount the
holder could have received in respect of such Award under subsection (c) and
(B) from and after the Change of Control, the Committee may make such a
provision only if the Committee determines that doing so is necessary to
substitute, for each Share then subject to an Award, the number and kind of
shares of stock, other securities, cash or other property to which holders of
Common Stock are or will be entitled in respect of each Share pursuant to the
transaction or event in accordance with the last sentence of this subsection
(a).  However, in each case, with respect
to Awards of incentive stock options, no such adjustment may be authorized to
the extent that such authority would cause this Plan to violate Code Section 422(b).  Further, the number of Shares subject to any
Award payable or denominated in Shares must always be a whole number.  Without limitation, subject to Participants’
rights under subsection (c), in the event of any reorganization, merger,
consolidation, combination or other similar corporate transaction or event,
whether or not constituting a Change of Control, other than any such
transaction in which the Company is the continuing corporation and in which the
outstanding Common Stock is not being converted into or exchanged for different
securities, cash or other property, or any combination thereof, the Committee
may substitute, on an equitable basis as the Committee determines, for each
Share then subject to an Award, the number and kind of shares of stock, other
securities, cash or other property to which holders of Common Stock are or will
be entitled in respect of each Share pursuant to the transaction.

 

(c)           Issuance
or Assumption.  Notwithstanding any
other provision of this Plan, and without affecting the number of Shares
otherwise reserved or available under this Plan, in connection with any merger,
consolidation, acquisition of property or stock, or reorganization,

 

8

 

the Committee may
authorize the issuance or assumption of awards upon such terms and conditions
as it may deem appropriate.

 

(d)           Change
of Control.  Except to the extent the
Committee provides a result more favorable to holders of Awards or as otherwise
set forth in an Agreement covering an Award, in the event of a Change of
Control:

 

(i)            each holder of an Option (A) shall
have the right at any time thereafter to exercise the Option in full whether or
not the Option was theretofore exercisable; and (B) shall have the right,
exercisable by written notice to the Company within sixty (60) days after
the Change of Control, to receive, in exchange for the surrender of the Option,
an amount of cash equal to the excess of the Change of Control Price of the
Shares covered by the Option that is so surrendered over the exercise price of
such Shares under the Award;

 

(ii)           Restricted Stock that is not then
vested shall vest upon the date of the Change of Control and each holder of
such Restricted Stock shall have the right, exercisable by written notice to
the Company within sixty (60) days after the Change of Control, to
receive, in exchange for the surrender of such Restricted Stock, an amount of cash
equal to the Change of Control Price of such Restricted Stock;

 

(iii)          each holder of a Performance Share
and/or Performance Unit for which the performance period has not expired shall
have the right, exercisable by written notice to the Company within sixty
(60) days after the Change of Control, to receive, in exchange for the
surrender of the Performance Share and/or Performance Unit, an amount of cash
equal to the product of the value of the Performance Share and/or Performance
Unit and a fraction the numerator of which is the number of whole months which
have elapsed from the beginning of the performance period to the date of the
Change of Control and the denominator of which is the number of whole months in
the performance period;

 

(iv)          each holder of a Performance Share
and/or Performance Unit that has been earned but not yet paid shall receive an
amount of cash equal to the value of the Performance Share and/or Performance
Unit; and

 

(v)           all annual incentive awards that are
earned but not yet paid shall be paid, and all annual incentive awards that are
not yet earned shall be deemed to have been earned pro rata, as if the
Performance Goals are attained as of the effective date of the Change of
Control, by taking the product of (A) the Participant’s maximum award
opportunity for the fiscal year, and (B) a fraction, the numerator of
which is the number of full or partial months that have elapsed from the
beginning of the fiscal year to the date of the Change of Control and the
denominator of which is twelve (12).

 

9

 

For purposes of this Section 11, the “value” of a
Performance Share shall be equal to, and the “value” of a Performance Unit for
which the value is equal to the Fair Market Value of Shares shall be based on,
the Change of Control Price.

 

12.          Miscellaneous.

 

(a)           Other
Terms and Conditions.  The grant of
any Award under this Plan may also be subject to other provisions (whether or
not applicable to the Award awarded to any other Participant) as the Committee
determines appropriate, including, without limitation, provisions for:

 

(i)            one or more means to enable
Participants to defer the delivery of Shares or recognition of taxable income
relating to Awards or cash payments derived from the Awards on such terms and
conditions as the Committee determines, including, by way of example, the form
and manner of the deferral election, the treatment of dividends paid on the
Shares during the deferral period or a means for providing a return to a
Participant on amounts deferred, and the permitted distribution dates or events
(provided that no such deferral means may result in an increase in the number
of Shares issuable under this Plan);

 

(ii)           the purchase of Shares under Options
in installments;

 

(iii)          the payment of the purchase price of
Options by delivery of cash or other Shares or other securities of the Company
(including by attestation) having a then Fair Market Value equal to the
purchase price of such Shares, or by delivery (including by fax) to the Company
or its designated agent of an executed irrevocable option exercise form
together with irrevocable instructions to a broker-dealer to sell or margin a
sufficient portion of the Shares and deliver the sale or margin loan proceeds
directly to the Company to pay for the exercise price;

 

(iv)          giving the Participant the right to
receive dividend payments or dividend equivalent payments with respect to the
Shares subject to the Award (both before and after the Shares subject to the
Award are earned, vested or acquired), which payments may be either made
currently or credited to an account for the Participant, and may be settled in
cash or Shares, as the Committee determines;

 

(v)           restrictions on resale or other
disposition; and

 

(vi)          compliance with federal or state
securities laws and stock exchange requirements.

 

(b)           No
Fractional Shares.  No fractional
Shares or other securities may be issued or delivered pursuant to this Plan,
and the Committee may determine whether cash, other securities or other
property will be paid or transferred in lieu of any fractional Shares or other
securities, or whether such fractional Shares or other securities or any rights
to fractional Shares or other securities will be canceled, terminated or
otherwise eliminated.

 

10

 

(c)           Unfunded Plan.  This Plan is unfunded and does not create,
and should not be construed to create, a trust or separate fund with respect to
this Plan’s benefits.  This Plan does not
establish any fiduciary relationship between the Company and any Participant or
other person.  To the extent any person
holds any rights by virtue of an Award granted under this Plan, such rights are
no greater than the rights of the Company’s general unsecured creditors.

 

(d)           Requirements of
Law.  The granting of Awards under
this Plan and the issuance of Shares in connection with an Award are subject to
all applicable laws, rules and regulations and to such approvals by any
governmental agencies or national securities exchanges as may be required.  Notwithstanding any other provision of this
Plan or any Award Agreement, the Company has no liability to deliver any Shares
under this Plan or make any payment unless such delivery or payment would
comply with all applicable laws and the applicable requirements of any
securities exchange or similar entity.

 

(e)           Governing Law.  This Plan, and all agreements under this
Plan, should be construed in accordance with and governed by the laws of the
State of Wisconsin, without reference to any conflict of law principles.  Any legal action or proceeding with respect
to this Plan, any Award or any Award Agreement, or for recognition and
enforcement of any judgment in respect of this Plan, any Award or any Award
Agreement, may only be brought and determined in a court sitting in the County of
Manitowoc, or the Federal District Court for the Eastern District of Wisconsin
sitting in the County of Milwaukee, in the State of Wisconsin.

 

(f)            Severability.  If any provision of this Plan or any Award
Agreement or any Award (i) is or becomes or is deemed to be invalid,
illegal or unenforceable in any jurisdiction, or as to any person or Award, or (ii) would
disqualify this Plan, any Award Agreement or any Award under any law the
Committee deems applicable, then such provision should be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or
deemed amended without, in the determination of the Committee, materially
altering the intent of this Plan, Award Agreement or Award, then such provision
should be stricken as to such jurisdiction, person or Award, and the remainder
of this Plan, such Award Agreement and such Award will remain in full force and
effect.

 

(g)           409A Compliance.  Notwithstanding anything to the contrary in
this Plan document, any Award or any accompanying forms or related material,
the Plan is designed and intended to operate such that all benefits hereunder
are exempt from the application of Code Section 409A.  Any provisions of this Plan document, any
Award, or any related material which conflict with or would be deemed to
violate the preceding stated intent shall be deemed limited, as determined by
the Committee in order to ensure the results contemplated in this Section.  Notwithstanding the preceding statements,
nothing in this Plan or any related document is intended to provide individual
participants or beneficiaries with any guaranty, warranty or assurance of
particular tax treatment for benefits hereunder.

 

13.           Definitions.  Capitalized terms used in this Plan have the
following meanings:

 

(a)           “Affiliates” means
any corporation, partnership, joint venture, or other entity during any period
in which the Company owns, directly or indirectly, at least twenty 

 

11

 

percent (20%) of
the equity, voting or profits interest, and any other business venture that the
Committee designates in which the Company has a significant interest, as the
Committee determines in its discretion.

 

(b)           “Award” means grants
of Options, Stock Appreciation Rights, Restricted Stock, Performance Shares, or
Performance Units under this Plan.  “Award
Agreement” means an agreement covering an Award in such form (consistent with
the terms of the Plan) as shall have been approved by the Committee.

 

(c)           “Board” means the
Board of Directors of the Company.

 

(d)           “Change of Control”
means the first to occur of the following with respect to the Company or any
upstream holding company:

 

(i)            any “Person,” as that term is
defined in Sections 13(d) and 14(d) of the Exchange Act, but
excluding the Company, any trustee or other fiduciary holding securities under
an employee benefit plan of the Company, or any corporation owned, directly or
indirectly, by the shareholders of the Company in substantially the same
proportions as their ownership of stock of the Company, is or becomes the “Beneficial
Owner” (as that term is defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing thirty
percent (30%) or more of the combined voting power of the Company’s then
outstanding securities; or

 

(ii)           The Company is merged or consolidated
with any other corporation or other entity, other than:  (A) a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) more than
eighty percent (80%) of the combined voting power of the voting securities of
the Company or such surviving entity outstanding immediately after such merger
or consolidation; or (B) the Company engages in a merger or consolidation
effected to implement a recapitalization of the Company (or similar
transaction) in which no “Person” (as defined above) acquires more than thirty
percent (30%) of the combined voting power of the Company’s then outstanding
securities.  Notwithstanding the
foregoing, a merger or consolidation involving the Company shall not be
considered a “Change of Control” if the Company is the surviving corporation
and shares of the Company’s Common Stock are not converted into or exchanged
for stock or securities of any other corporation, cash or any other thing of
value, unless persons who beneficially owned shares of the Company’s Common
Stock outstanding immediately prior to such transaction own beneficially less
than a majority of the outstanding voting securities of the Company immediately
following the merger or consolidation;

 

(iii)          The Company or any Subsidiary sells,
assigns or otherwise transfers assets in a transaction or series of related
transactions, if the aggregate market value of the assets so transferred
exceeds fifty percent (50%) of the 

 

12

 

Company’s consolidated book value, determined by the
Company in accordance with generally accepted accounting principles, measured
at the time at which such transaction occurs or the first of such series of
related transactions occurs; provided, however, that such a transfer effected
pursuant to a spin-off or split-up where shareholders of the Company retain
ownership of the transferred assets proportionate to their pro rata ownership
interest in the Company shall not be deemed a “Change of Control”;

 

(iv)          The Company dissolves and liquidates
substantially all of its assets;

 

(v)           At any time after the Effective Date
when the “Continuing Directors” cease to constitute a majority of the
Board.  For this purpose, a “Continuing
Director” shall mean:  (A) the
individuals who, at the Effective Date, constitute the Board; and (B) any
new Directors (other than Directors designated by a person who has entered into
an agreement with the Company to effect a transaction described in clause (i),
(ii), or (iii) of this definition) whose appointment to the Board or nomination
for election by Company shareholders was approved by a vote of at least
two-thirds of the then-serving Continuous Directors; or

 

(vi)          A determination by the Board, in view
of then current circumstances or impending events, that a Change of Control of
the Company has occurred, which determination shall be made for the specific
purpose of triggering operative provisions of this Plan.

 

(e)           “Change of Control
Price” means the highest of the following: (i) the Fair Market Value of
the Shares, as determined on the date of the Change of Control; (ii) the
highest price per Share paid in the Change of Control transaction; or (iii) the
Fair Market Value of the Shares, calculated on the date of surrender of the
relevant Award in accordance with Section 11(c), but this clause (iii) shall
not apply if in the Change of Control transaction, or pursuant to an agreement
to which the Company is a party governing the Change of Control transaction,
all of the Shares are purchased for and/or converted into the right to receive
a current payment of cash and no other securities or other property.

 

(f)            “Code” means the
Internal Revenue Code of 1986, as amended. 
Any reference to a specific provision of the Code includes any successor
provision and the regulations promulgated under such provision.

 

(g)           “Committee” means
the Compensation and Benefits Committee of the Board (or such successor
committee with the same or similar authority), which must be composed of not
less than two (2) Directors, each of whom must qualify as an “outside
director” within the meaning of Code Section 162(m) and as a “non-employee
director” within the meaning of Rule 16b-3.

 

(h)           “Common Stock” means
the common stock of the Company.

 

13

 

(i)            “Company” means The
Manitowoc Company, Inc., a Wisconsin corporation, or any successor to The
Manitowoc Company, Inc., a Wisconsin corporation.

 

(j)            “Director” means a
member of the Board.

 

(k)           “Disability” means
disability as defined in the Company’s long-term disability plan covering
exempt salaried employees.

 

(l)            “Effective Date”
means the date the Company’s shareholders approve this Plan.

 

(m)          “Exchange Act” means
the Securities Exchange Act of 1934, as amended.  Any reference to a specific provision of the
Exchange Act includes any successor provision and the regulations and rules promulgated
under such provision.

 

(n)           “Fair Market Value”
means, per Share on a particular date, the last sales price on such date on the
national securities exchange on which the Common Stock is then traded, as
reported in The Wall Street Journal, or if no sales of Common Stock occur on
the date in question, on the last preceding date on which there was a sale on
such exchange.  If the Shares are not
listed on a national securities exchange, but are traded in an over-the-counter
market, the last sales price (or, if there is no last sales price reported, the
average of the closing bid and asked prices) for the Shares on the particular
date, or on the last preceding date on which there was a sale of Shares on that
market, will be used.  If the Shares are
neither listed on a national securities exchange nor traded in an
over-the-counter market, the price determined by the Committee, in its
discretion, will be used.

 

(o)           “Non-Employee Director”
means any Director who is not an employee of the Company or any Affiliate.

 

(p)           “Option” means the
right to purchase Shares at a stated price. 
“Options” may either be “incentive stock options” which meet the
requirements of Code Section 422, or “nonqualified stock options” which do
not meet the requirements of Code Section 422.

 

(q)           “Participant” means
an officer or other employee of the Company or its Affiliates, or an individual
that the Company or an Affiliate has engaged to become an officer or employee,
or a consultant or advisor who provides services to the Company or its
Affiliates, who the Committee designates to receive an Award under this
Plan.  No Non-Employee Director is
entitled to receive Awards under this Plan.

 

(r)            “Performance Goals”
means any goals the Committee establishes that relate to one or more of the
following with respect to the Company or any one or more Subsidiaries or other
business units: revenue; cash flow; net cash provided by operating activities;
net cash provided by operating activities less net cash used in investing
activities; cost of goods sold; ratio of debt to debt plus equity; profit
before tax; gross profit; net profit; net sales; earnings before interest and
taxes; earnings before interest, taxes, depreciation and amortization; Fair
Market Value of Shares; basic earnings per share; diluted earnings per share;
return on shareholder equity; average accounts receivable (calculated by taking
the average of accounts receivable at the end of each month); average inventories
(calculated by taking the 

 

14

 

average of
inventories at the end of each month); return on average total capital
employed; return on net assets employed before interest and taxes; economic
value added; return on year-end equity; and/or in the case of Awards that the
Committee determines will not be considered “performance-based compensation”
under Code Section 162(m), such other goals as the Committee may establish
in its discretion.

 

(s)           “Performance Shares”
means the right to receive Shares to the extent the Company or Participant
achieves certain goals that the Committee establishes over a period of time the
Committee designates consisting of one or more full fiscal years of the
Company, but not in any event more than five years.

 

(t)            “Performance Units”
means the right to receive monetary units with a designated dollar value or
monetary units the value of which is equal to the Fair Market Value of one or
more Shares, to the extent the Company or Participant achieves certain goals
that the Committee establishes over a period of time the Committee designates
consisting of one or more full fiscal years of the Company, but in any event
not more than five years.

 

(u)           “Plan” means The
Manitowoc Company, Inc. 2003 Incentive Stock and Awards Plan, as amended
from time to time.

 

(v)           “Restricted Stock”
means Shares that are subject to a risk of forfeiture and/or restrictions on
transfer, which may lapse upon the achievement or partial achievement of
Performance Goals during the period specified by the Committee and/or upon the
completion of a period of service, as determined by the Committee.

 

(w)          “Section 16
Participants” means Participants who are subject to the provisions of Section 16
of the Exchange Act.

 

(x)            “Share” means a
share of Common Stock.

 

(y)           “Stock Appreciation
Right” means the right to receive, without payment to the Company, an amount of
cash or Shares as determined in accordance with Section 6, based on the
amount by which the Fair Market Value on the relevant valuation date exceeds
the exercise price.

 

(z)            “Subsidiary” means
any corporation in an unbroken chain of corporations beginning with the Company
if each of the corporations (other than the last corporation in the chain) owns
stock possessing more than fifty percent (50%) of the total combined voting
power of all classes of stock in one of the other corporations in the chain.

 

15

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