Document:

Winnebago Industries, Inc. Exhibit 10.1 to Form 8-K dated August 30, 2005

 

OFFICERS INCENTIVE
COMPENSATION PLAN 

GROUP A – OFFICERS 

FISCAL PERIOD 2006 

WINNEBAGO INDUSTRIES,
INC. 
OFFICERS INCENTIVE COMPENSATION PLAN 
Fiscal Period 2006 

	1. 	Purpose.
The purpose of the Winnebago Industries, Inc.                     Officers Incentive
Compensation Plan (the “Plan”) is to promote the                     growth and
profitability of Winnebago Industries, Inc. (the “Company”)
                    by providing its officers with an incentive to achieve corporate
profit                     objectives and to attract and retain officers who will
contribute to the                     achievement of growth and profitability of the
company.  

	2.  	Administration.  

	a.  	  	Human
Resources Committee. The Plan shall be administered                     by
a Committee (the “Committee”) appointed by the Board of Directors.  

               	b. 	  	
                    Powers and Duties. The Committee shall have sole discretion
                    and authority to make any and all determinations necessary or advisable for
                    administration of the Plan and may amend or revoke any rule or regulation so
                    established for the proper administration of the Plan. All interpretations,
                    decisions, or determinations made by the Committee pursuant to the Plan shall be
                    final and conclusive. 

                    

               	c.  	  	
                    Annual Approval. The Committee must approve the Plan prior
                    to the beginning of each new fiscal year. 

                    

     	3. 	
          Participation Eligibility. 

          

	a.  	  	Participants
must be an officer of the Company with responsibilities that can           have a real
impact on the Corporation’s end results.  

	b.  	  	The
Committee will approve all initial participation prior to the beginning of           each
new program except as provided for in section c. below.  

	c.  	  	The
Chairman of the Board and CEO of Winnebago Industries, Inc. will make the
          determination on participation for new participants and for payment of earned
          holdback allocations due to retirement, disability or death. Unless otherwise
          specified, participants must be employed as of the end of the fiscal period for
          any quarterly incentive payment and employed as of the end of the fiscal year
to           be eligible for any holdback.  

     	4. 	
          Nature of the Plan. The incentive award is based upon
          financial performance of the Corporation. The Plan is an annual program that
          provides for quarterly cumulative measurements of financial performance and an
          opportunity for quarterly incentive payment based on performance results. 

          

	  	
The
 financial performance measurements for this Plan will be based upon one or more
pre-established financial criteria. These financial performance measurements will provide
an appropriate balance between quality and quantity of earnings. The Board annually
establishes the financial measurements including a Target, a minimum threshold below
which an incentive will not be paid and a maximum incentive level.  

2

     	5. 	
          Method of Payment. The amount of the participants’
          incentive compensation for the quarter shall be in direct proportion to the
          financial performance expressed as a percentage (Financial Factor) against
          predetermined compensation targets for each participant. Upon completion of the
          first quarter of the fiscal year, quarterly results thereafter shall be combined
          to form cumulative fiscal year-to-date results. The results for the respective
          period will be used in identifying the Financial Factor to be used for that
          period when calculating the participants incentive compensation. 

          

	  	
50%
of the quarterly calculated incentive will be paid within 45 days after the close of the
fiscal quarter. The remaining 50% of the quarterly calculated incentive will be held back
and carried forward into the next cumulative quarter. At the end of the fourth fiscal
quarter (fiscal year end), a final year-end accounting will be made prior to the payment
of any remaining incentive holdback for the year. 

	  	
The
incentive for the officers except for the Chief Executive Officer, provides for a 60%
bonus (Target) comprised of (2/3) cash and (1/3) stock (or in cash at the participants
election pursuant to Section 7) at 100% achievement of the financial objectives. The
incentive for the Chief Executive Officer provides for a 105% bonus (Target) comprised of
(2/3) cash and (1/3) stock (or in cash at the participants election pursuant to Section 7)
at 100% achievement of the financial objectives. 

	  	
A
participant must be employed by Winnebago Industries, Inc. at the end of the fiscal year
to be eligible for any previous quarterly holdback allocations except as waived by the
Chairman of the Board and CEO of Winnebago Industries, Inc. for normal retirement and
disability. 

     	6. 	
          Strategic Performance. The Human Resources Committee
          reserves the right to modify the core incentive eligibility by plus/minus 20%
          (of the calculated Financial Factor) based upon strategic organizational
          priorities. Strategic performance will be measured at the end of the fiscal year
          only. Strategic measurements may focus on one or more of the following strategic
          factors but are not limited to those stated. 

          

		
	Revenue Growth	Customer Satisfaction
	Market Share	Inventory Management
	Product Quality	Technical Innovation
	Product Introductions	Ethical Business Practices

     	7.	
          Annual Supplementary Match.  Fifty percent (50%) of a
          participant’s cash incentive compensation earned for the year, pursuant to
          Paragraph 5 of the Plan will be matched annually by the Company in the form of
          restricted company stock (or in cash if elected by the participant). The annual
          supplementary Company match shall be paid as soon as practical after the final
          year-end compensation accounting and payment of any remaining incentive
          compensation holdback for the year. Participants shall elect in writing within
          45 days following the end of the fiscal year whether to receive the total of any
          annual supplementary company match in the form of restricted company stock or in
          the form of cash. A participant shall be eligible for the supplementary match
          only if such participant is actively employed at the end of the fiscal year. 

          

3

     	8. 	
          Change in Control. In the event the Company undergoes a change in
          control during the Plan year including, without limitation, an acquisition or
          merger involving the Corporation (“Change in Control”), the Committee
          shall, prior to the effective date of the Change in Control (the “Effective
          Date”), make a good faith estimate with respect to the achievement of the
          financial performance through the end of the Plan year immediately preceding the
          Effective Date. In making such estimate, the Committee may compare the
          achievement of the finance performance against forecast through the Plan period
          and may consider such factors as it deems appropriate. The Committee shall
          exclude from any such estimate any and all costs and expenses arising out of or
          in connection with the Change in Control. Based on such estimate, the Committee
          shall make a full Plan year award within 15 days after the Effective Date to all
          participants. Any holdback for previous period(s) will be released and paid to
          the participant together with the annual supplementary cash match payment
          earned. 

          

	  	
“Change
in Control” for the purposes of the Officers Incentive Compensation Plan shall
mean the time when (i) any Person becomes an Acquiring Person, or (ii) individuals who
shall qualify as Continuing Directors of the Company shall have ceased for any reason to
constitute at least a majority of the Board of Directors of the Company, provided however,
that in the case of either clause (i) or (ii) a Change of Control shall not be deemed to
have occurred if the event shall have been approved prior to the occurrence thereof by a
majority of the Continuing Directors who shall then be members of such Board of Directors,
and in the case of clause (i) a Change of Control shall not be deemed to have occurred
upon the acquisition of stock of the Company by a pension, profit-sharing, stock bonus,
employee stock ownership plan or other retirement plan intended to be qualified under
Section 401(a) of the Internal Revenue Code of 1986, as amended, established by the
Company or any subsidiary of the Company. (In addition, stock held by such a plan shall
not be treated as outstanding in determining ownership percentages for purposes of this
definition.) 

	  	
For
the purpose of the definition “Change of Control:” 

	(a)  	  	“Continuing
Director” means (i) any member of the Board of Directors of the Company, while such person is a member of the Board, who is
not an Affiliate or Associate of any Acquiring Person or of any such Acquiring Person’s Affiliate or Associate and was a
member of the Board prior to the time when such Acquiring Person shall have become an Acquiring Person, and (ii) any successor of
a Continuing Director, while such successor is a member of the Board, who is not an Acquiring Person or any Affiliate or Associate
of any Acquiring Person or a representative or nominee of an Acquiring Person or of any affiliate or associate of such Acquiring
Person and is recommended or elected to succeed the Continuing Director by a majority of the Continuing Directors. 

	(b) 	  	“Acquiring Person” means any Person or any
individual or group of Affiliates or Associates of such Person who acquires beneficial ownership, directly or indirectly, of 20%
or more of the outstanding stock of the Company if such acquisition occurs in whole or in part. 

	(c)  	  	“Affiliate” means
a Person that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control
with, the person specified. 

4

	(d)  	  	“Associate” means
(1) any corporate, partnership, limited liability           company, entity or
organization (other than the Company or a majority-owned           subsidiary of the
Company) of which such a Person is an officer, director,           member, or partner or
is, directly or indirectly the beneficial owner of ten           percent (10%) or more of
the class of equity securities, (2) any trust or fund           in which such person has
a substantial beneficial interest or as to which such           person serves as trustee
or in a similar fiduciary capacity, (3) any relative or           spouse of such person,
or any relative of such spouse, or (4) any investment           company for which such
person or any Affiliate of such person serves as           investment advisor.  

	(e) 	  	“Company” means
Winnebago Industries, Inc., an Iowa corporation.  

	(f) 	  	“Person” means
an individual, corporation, limited liability company, partnership, association,
joint stock company, trust, unincorporated organization or government or political
subdivision thereof.  

     	9. 	
          Governing Law. Except to the extent preempted by federal
          law, the consideration and operation of the Plan shall be governed by the laws
          of the State of Iowa. 

          

     	10. 	
          Employment Rights. Nothing in this Plan shall confer upon
          any employee the right to continue in the employ of the Company, or affect the
          right of the Company to terminate an employee’s employment at any time,
          with or without cause. 

          

Approved by: 

	
		

	Bruce D. Hertzke

                                                                 Chairman of the Board and CEO	   	 Dated	 
	 
	 
	 
	
		

	Gerald C. Kitch

                                                                 Chairman, Human Resources Committee

                                                                 of the Winnebago Industries Board of Directors	   	 Dated	 

5Winnebago Industries, Inc. Exhibit 10.1 to Form 8-K dated August 30, 2005

 

OFFICERS LONG-TERM
INCENTIVE PLAN 

FISCAL THREE-YEAR
PERIOD 

2006, 2007 and 2008 

WINNEBAGO INDUSTRIES,
INC.
OFFICERS LONG-TERM INCENTIVE PLAN 
Fiscal Three-Year
Period 2006, 2007 and 2008 

     	1. 	
          Purpose. The purpose of the Winnebago Industries, Inc.
          Officers Long-Term Incentive Plan (the “Plan”) is to promote the
          long-term growth and profitability of Winnebago Industries, Inc. (the
          “Company”) by providing its officers with an incentive to achieve
          long-term corporate profit objectives and to attract and retain officers who
          will contribute to the achievement of growth and profitability of the Company. 

          

	2.  	Administration.  

	a.  	  	Human
Resources Committee. The Plan shall be                     administered by
a Committee (the “Committee”) appointed by the Board                     of
Directors.  

	b. 	  	Powers and Duties. The
Committee shall have sole discretion and authority to make any and all determinations necessary or advisable for administration of
the Plan and may amend or revoke any rule or regulation so established for the proper administration of the Plan. All
interpretations, decisions, or determinations made by the Committee pursuant to the Plan shall be final and conclusive.

               	c. 	  	
                    Annual Approval. The Committee must approve the Plan prior
                    to the beginning of each new fiscal three (3) year plan period. Each year a new
                    plan will be established for a new three-year period. 

                    

     3.    
          Participation Eligibility. 

               	a. 	  	
                    Participants must be an officer of the Company with responsibilities that can
                    have a real impact on the Corporation’s end results. 

                    

               	b. 	  	
                    The Committee will approve all initial participation prior to the beginning of
                    each new program except as provided for in section c. below. 

                    

               	c. 	  	
                    The Chairman of the Board and CEO of Winnebago Industries, Inc. will make the
                    determination on participation for new participants, for partial awards due to
                    retirement, disability or death. Unless otherwise specified, participants must
                    be employed as of the end of the three (3) year fiscal period to be eligible for
                    any incentive award. 

                    

     	4. 	
          Nature of the Plan. The long-term incentive award is based
          upon financial performance of the Corporation. The Plan is a three (3) year
          (fiscal) program that provides for an opportunity for an incentive award based
          on the achievement of long-term financial performance results as measured at the
          end of the three (3) year fiscal period. 

          

2 

	  	
The
financial performance measurements for this Plan will be based upon one or more
pre-established financial criteria. These financial performance measurements will provide
an appropriate balance between quality and quantity of earnings. The Board establishes the
financial measurements including a Target, a minimum threshold below which an incentive
will not be paid and a maximum incentive level. 

     	5. 	
          Method of Payment. The long-term incentive award will be a
          performance stock grant made in restricted shares of the common stock of
          Winnebago Industries, Inc. or in cash if elected by the participant. The amount
          of the participants’ long-term incentive award for the three (3) year
          fiscal period shall be in direct proportion to the financial performance
          expressed as a percentage (Financial Factor) against predetermined award targets
          for each participant. The results for the fiscal three (3) year period will be
          used in identifying the Financial Factor to be used for that plan period when
          calculating the participants long-term incentive awards. 

          

	  	
The
long-term incentive for the officers provides for an opportunity of 25% of the annualized
base salary (Target) to be awarded in restricted stock or cash at 100% achievement of the
financial long-term objectives. The annualized base salary figure used shall be the salary
in place for each participant as of January 2006. The resultant stock unit share
opportunity or cash award opportunity (at 100% of Plan) will be adjusted up or down as
determined by actual financial performance expressed as a percentage (Financial Factor) at
the end of the three (3) year fiscal period. Participants shall elect in writing within 45
days following the end of the three (3) year fiscal period whether to receive the total of
any such long-term incentive award in the form of restricted company stock or in the form
of cash. 

	  	
A
participant must be employed by Winnebago Industries, Inc. at the end of the fiscal three
(3) year period to be eligible for any long-term incentive award except as waived by the
Chairman of the Board and CEO of Winnebago Industries, Inc. for normal retirement and
disability. 

     	6. 	
          Change in Control. In the event the Company undergoes a change in
          control during the fiscal three (3) year plan period including, without
          limitation, an acquisition or merger involving the Corporation (“Change in
          Control”), the Committee shall, prior to the effective date of the Change
          in Control (the “Effective Date”), make a good faith estimate with
          respect to the achievement of the financial performance through the end of the
          Plan three (3) year period. In making such estimate, the Committee may compare
          the achievement of the financial performance against the forecast through the
          Plan three (3) year period and may consider such other factors as it deems
          appropriate. The Committee shall exclude from any such estimate any and all
          costs and expenses arising out of or in connection with the Change in Control.
          Based on such estimate, the Committee shall make a full three (3) year Plan
          award within 15 days after the Effective date to all participants. 

          

3 

	  	
“Change
in Control” for the purposes of the Officers Long-Term Incentive Plan shall mean
the time when (i) any Person becomes an Acquiring Person, or (ii) individuals who shall
qualify as Continuing Directors of the Company shall have ceased for any reason to
constitute at least a majority of the Board of Directors of the Company, provided however,
that in the case of either clause (i) or (ii) a Change of Control shall not be deemed to
have occurred if the event shall have been approved prior to the occurrence thereof by a
majority of the Continuing Directors who shall then be members of such Board of Directors,
and in the case of clause (i) a Change of Control shall not be deemed to have occurred
upon the acquisition of stock of the Company by a pension, profit-sharing, stock bonus,
employee stock ownership plan or other retirement plan intended to be qualified under
Section 401(a) of the Internal Revenue Code of 1986, as amended, established by the
Company or any subsidiary of the Company. (In addition, stock held by such a plan shall
not be treated as outstanding in determining ownership percentages for purposes of this
definition.) 

	  	
For
the purpose of the definition “Change of Control:” 

	(a) 	  	“Continuing
Director” means (i) any member of the Board of Directors of the Company, while such person is a member of the Board, who is
not an Affiliate or Associate of any Acquiring Person or of any such Acquiring Person’s Affiliate or Associate and was a
member of the Board prior to the time when such Acquiring Person shall have become an Acquiring Person, and (ii) any successor of
a Continuing Director, while such successor is a member of the Board, who is not an Acquiring Person or any Affiliate or Associate
of any Acquiring Person or a representative or nominee of an Acquiring Person or of any affiliate or associate of such Acquiring
Person and is recommended or elected to succeed the Continuing Director by a majority of the Continuing Directors. 

	(b) 	  	“Acquiring
Person” means any Person or any individual or group of Affiliates or Associates of such Person who acquires beneficial
ownership, directly or indirectly, of 20% or more of the outstanding stock of the Company if such acquisition occurs in whole or
in part. 

               	(c) 	  	
                    “Affiliate” means a Person that directly or indirectly through one or
                    more intermediaries, controls, or is controlled by, or is under common control
                    with, the person specified. 

                    

               	(d) 	  	
                    “Associate” means (1) any corporate, partnership, limited liability
                    company, entity or organization (other than the Company or a majority-owned
                    subsidiary of the Company) of which such a Person is an officer, director,
                    member, or partner or is, directly or indirectly the beneficial owner of ten
                    percent (10%) or more of the class of equity securities, (2) any trust or fund
                    in which such person has a substantial beneficial interest or as to which such
                    person serves as trustee or in a similar fiduciary capacity, (3) any relative or
                    spouse of such person, or any relative of such spouse, or (4) any investment
                    company for which such person or any Affiliate of such person serves as
                    investment advisor. 

                    

4 

	(e) 	  	“Company” means
Winnebago Industries, Inc., an Iowa corporation.  

	(f) 	  	“Person” means
an individual, corporation, limited liability company, partnership, association, joint stock company, trust, unincorporated
organization or government or political subdivision thereof. 

     	7. 	
          Governing Law.  Except to the extent preempted by federal
          law, the consideration and operation of the Plan shall be governed by the laws
          of the State of Iowa. 

          

     	8.	
          Employment Rights.  Nothing in this Plan shall confer upon
          any employee the right to continue in the employ of the Company, or affect the
          right of the Company to terminate an employee’s employment at any time,
          with or without cause. 

          

Approved by: 

	
		

	Bruce D. Hertzke

                                                                 Chairman of the Board and CEO	   	 Dated	 
	 
	 
	 
	
		

	Gerald C. Kitch

                                                                 Chairman, Human Resources Committee

                                                                 of the Winnebago Industries Board of Directors	   	 Dated	 

5

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