Document:

Employment Offer Letter Agreement

 Exhibit 10.40 

 

 

 CONFIDENTIAL 
 July 10, 2007 
 Mr. Steven M. Schmidt 
 [Address on file with the Company] 
 Dear Steve: 
 It is with great pleasure that I confirm our offer of employment with Office Depot in this revised letter. We are looking forward to having you as part of
our team. 
 This letter confirms the details of the offer, which are set forth below. Please note that this offer is contingent upon the
satisfactory outcome of both a drug screen and background investigation. This conditional offer is also contingent upon the signing of a non-compete agreement, which is enclosed and verification of all data contained in your submitted resume. This
offer will be considered rescinded if not accepted within ten (10) days hereof. 
  

			
	Position:	  	President, Business Solutions Division, reporting directly to Steve Odland, Chairman and Chief Executive Officer.
		
	Salary:	  	Base salary of $24,038.46 bi-weekly, which annualized equals $625,000.
		
	Location:	  	Corporate Headquarters, Delray Beach, Florida.
		
	Start Date:	  	July 24th, 2007
		
	Next Performance Review:	  	Performance reviews for the previous calendar year are conducted annually in or around March. To be eligible for an annual performance review and a merit-performance-based salary
increase, you must begin employment on or before September 30, 2007.
		
	Bonus Eligibility:	  	You will be eligible to participate in the Corporate Bonus Plan (the “Plan”). For 2007, you will receive a guaranteed bonus calculated at target (75% of base salary),
prorated for the period of your employment during 2007 and payable in March 2008. Payment may be higher than target based on business performance as determined by the CEO.

 2200 Old Germantown Road | Delray Beach, FL 33445 | T + 561.438.4800 

			
	Car Allowance:	  	You are eligible to participate in Office Depot’s Executive Car Allowance Program and will receive a bi-weekly car allowance of $600.00.
		
	Vacation:	  	Vacation is accrued at the rate of four weeks per year.
		
	Relocation:	  	You are eligible to participate in the Corporate relocation program. For more information, please contact Lisa Eckelkamp at (561) 438-0757.
		
	Benefits:	  	You will be eligible to participate in the following benefit plans (participation shall be in subject to the terms and waiting periods of the specific plans):
		
		  	Medical
		
		  	Prescription Drug
		
		  	Dental
		
		  	Vision
		
		  	Group Basic Life and Accidental Death & Dismemberment Insurance
		
		  	Short and Long Term Group Disability
		
		  	Flexible Spending Accounts
		
		  	Office Depot, Inc. Retirement Savings Plan (401(k) Plan)
		
		  	Deferred Compensation Plan (DCP) (enrollment in the DCP will not be available until January 2008)
		
		  	Employee Stock Purchase Plan (ESPP)
		
		  	Financial Planning Services through AYCO
		
	Equity Compensation:	  	You will receive a new hire sign-on stock award equal to a total market value of $2.5M on the date of the award, subject to approval by the Chairman of the Compensation Committee
of the Board of Directors. At least 25% of the total award value, or $625K, must be taken in stock options. The balance may be taken in the form either of

  

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	 	  	stock options or restricted stock, at your election. Please notify me in writing of
your election prior to your first day of hire. We expect the award will be approved
on
or about your first date of hire. The value of this award will be determined
using the Black-Scholes methodology and fair market value of Office Depot’s
stock on the day of grant. The vesting and other terms of the award will
be
consistent with awards granted to our other officers at your level, with one-third
of the total award vesting on each of the first three anniversary dates of the grant
date.
		
	Long-Term Incentive Plan:	  	You will be eligible to participate in the Long-Term Incentive Plan at a level commensurate with your position at the time of the grant in 2008. Currently the annual target is a
valuation of $1.4M (subject to Compensation Committee approval).
		
	Non-Compete Agreement:	  	For and in consideration of the above compensation terms, the sufficiency of which you acknowledge by your acceptance of employment, enclosed is an important document, which
requires your execution – the Associate Non-Competition, Confidentiality and Non-Solicitation Agreement. Please return this document within ten (10) days hereof (a return envelope has been provided for your convenience). Your offer for
employment is also conditioned upon your representation that you do not have any post-employment obligations (contractual or otherwise) that would limit in any respect your employment with Office Depot and your contemplated duties or otherwise
subject Office Depot to liability for breach of any such obligations. Your acceptance of employment shall constitute your affirmation of the foregoing representation.
		
	 Employment at Will /
 Severance:
	  	All employment with Office Depot is at will, and nothing herein shall be construed to constitute an employment agreement or deemed a guarantee of continued employment. In the event
that you are terminated due to no fault of your own, you will be entitled to receive (a) a lump sum amount equal to the sum of eighteen (18) months of your annual base salary determined at the time of separation, (b) a lump sum amount equal to
eighteen (18) months of the monthly COBRA premium for the type of coverage you may have under the Office Depot group health plan at the time of termination, (c) a pro-rata bonus calculated at “target” under the Plan for the beginning of

  

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	 	  	the calendar year of termination through the date of termination, and (d) a bonus
calculated at “target” under the Plan for the calendar year prior to the year
of
termination to the extent unpaid at the date of termination (collectively, the
“Severance Payment”). The Severance Payment, less applicable taxes and other
deductions required by law, will be made within thirty (30) days of the
expiration
of any revocation or waiting periods required by law or within thirty (30) days of
the date of your termination if no revocation or waiting periods are required by
law; provided, however, that the Severance Payment is expressly
conditioned
upon your execution of a release in favor of Office Depot, Inc., its affiliates,
successors and assigns, and your compliance with the covenants contained in said
release. Unless otherwise agreed to in writing by Office Depot,
the Severance
Payment shall be in lieu of any severance payment or benefit under any Office
Depot severance plan, policy, program or practice (whether written or unwritten)
and, therefore, the Severance Payment shall be the exclusive source
of any
severance benefits.
		
	Change in Control:	  	At the present time, not all members of the Company’s Executive Committee are covered by Change in Control (“CIC”) Agreements. However, we are in the process of
presenting to the Company’s Compensation Committee at the July 24 meeting a proposal to extend CIC protection to all members of the Executive Committee on an equitable basis. If approved by the Compensation Committee at its next meeting (which
we anticipate to be the case), then you would be provided the same CIC protections afforded to other Executive Committee members.

 Office Depot is required to verify your eligibility to work in the United States. Accordingly, on your first day of work at Office Depot, you must complete an Employment Eligibility Verification Form and provide original documentation
establishing your identity and employment eligibility. The List of Acceptable Documents for this purpose is enclosed for your reference. 
 If
you fail to provide the necessary documentation to establish your identity and eligibility to work in the United States by the close of business of your second day of work, you will not be permitted to work at Office Depot. 
 Enclosed is the Drug Test Chain of Custody form you must take to the lab. The lab will fill out the form for you. Be sure to take a photo ID with you.

  

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 Call ChoicePoint at 800-939-4782 and provide your zip code in order to ascertain the collection site that is
most convenient for you. Please let ChoicePoint know that you have a Quest Diagnostics lab sheet, in order to be directed to the correct lab. 
 Steve, we are excited to have you join management as President, Business Solutions Division. I look forward to your response as soon as practicable. 
  

	
	Sincerely,
	
	  
	Steve Odland
	Chairman & CEO

  

					
	Agreed to and Accepted by:	 		 	
			
	  	 		 	July 11, 2007
	(Name)	 		 	Date

  

 5Messrs. Levatich, Olin & Wandell Form of Transition Agreement

 Exhibit 10.4 
 TRANSITION AGREEMENT 
 AGREEMENT dated the
             day of
                                        
between Harley-Davidson, Inc., a Wisconsin corporation (the “Corporation”), and
                                     (the
“Executive”). Unless otherwise indicated, terms used herein and defined in Schedule A shall have the meanings assigned to them in Schedule A. 
 WHEREAS, the HDI Group desires to continue to attract and retain skilled and dedicated management employees, consistent with achieving the best possible price for its stockholders in any transition period
or change in ownership and control of the Corporation; and 
 WHEREAS, the Executive has specific duties and unique talents
which are of benefit to the HDI Group both presently and in any transition period; and 
 WHEREAS, the HDI Group and the
Executive desire that the Executive be free of any conflict of interest with regard to the performance of the Executive’s duties in evaluating any proposed change in ownership or control; and 
 WHEREAS, the Executive and the Corporation desire to enter into this Transition Agreement; 
 NOW, THEREFORE, it is agreed as follows 
 1. The HDI Group currently employs the Executive as
                                    , Harley-Davidson, Inc.,
upon the terms and conditions currently reflected in the Executive’s personnel file or in various minutes of the Board. 
 2. This Agreement shall become effective on the date hereof and shall terminate on the second anniversary of the occurrence of a Change of Control Event; provided, however, that no benefits shall be payable or accrue pursuant to this
Agreement prior to the occurrence of a Change of Control Event. 
 3. During the two year period following a Change of Control
Event, so long as the Executive remains employed by the HDI Group, the Executive shall devote his or her full time, attention, and energies to the business of the HDI Group and shall not engage in any other business activity whether or not such
business activity is pursued for gain, profit, or other pecuniary advantage; but this shall not be construed as preventing the Executive from (a) investing the Executive’s assets in such form or manner as will not materially affect the
Executive’s ability to perform his or her duties and obligations to the HDI Group; or (b) continuing to serve as a director of any corporation of which he or she was a director immediately prior to the Change of Control Event. The
Executive agrees that once a Change of Control Event occurs he or she will not voluntarily terminate his or her employment with the HDI Group until ten days after such Change of Control Event has occurred. 
 4. The HDI Group agrees that following a Change of Control Event no termination of the Executive’s employment with the HDI Group will
be effective, unless it provides the Executive ten days prior written notice of such termination; provided, however, that the Executive shall provide the HDI Group Employer with ten days prior written notice of any termination by the Executive of
the Executive’s employment with the HDI Group. The Executive may waive the notice requirement for the HDI Group. 

 5. The Executive recognizes and acknowledges that the list of the HDI Group’s
customers, its product plans, forecasts and financial information, as well as other confidential information, as it may exist from time to time, is a valuable, special, and unique asset of the HDI Group’s business. The Executive shall not,
except for the benefit of the HDI Group or as otherwise expressly authorized by the HDI Group, during or at any time within five (5) years after the termination of the Executive’s employment from the HDI Group, disclose any such
information or any part thereof to any person, firm, corporation, association, or other entity, or use such information or any part thereof for any reason or purpose whatsoever, in either case under any circumstances in which such disclosure or use
is reasonably likely to affect adversely the interests of the HDI Group in any country of the world in which the HDI Group then distributes its products. This Section is not intended to limit in any way the Executive’s independent obligation to
preserve and not to misappropriate trade secrets of the HDI Group. In the event of a breach or threatened breach by the Executive of the provisions of this Section, the HDI Group shall be entitled to an injunction restraining the Executive from
disclosing or using, in whole or in part, this information. The HDI Group will be free to pursue any other remedies as may in its discretion be deemed appropriate under the circumstances. 
 6. Upon the happening of a Change of Control Event, the HDI Group agrees, while the Executive is employed hereunder, that the Executive
shall be compensated at a level that is at least comparable in the aggregate to the Executive’s highest level of Compensation in effect during the 180-day period immediately prior to the Change of Control Event and in a manner that satisfies
each of the following: 
 (a) The Executive shall receive an annual base salary in cash equivalent of not less
than the Executive’s highest annual base salary as in effect during the 180-day period immediately prior to the Change of Control Event, subject to any deferral election then in effect. 
 (b) The Executive (and with respect to medical, dental and vision coverage, the Executive’s eligible dependents) shall
be included in any and all employee benefit or fringe benefit plans, practices, policies or programs providing benefits for the HDI Group’s salaried employees in general, including but not limited to retirement, savings, group life insurance,
hospitalization, medical, dental, profit sharing and 401(k) plans, and in all plans, practices, policies or programs providing additional benefits to executives of the HDI Group of comparable status and position to the Executive, including but not
limited to deferred compensation, split-dollar life insurance, supplemental retirement, pension restoration, stock option, stock appreciation, stock bonus and similar or comparable programs; provided, however, that, in no event shall the aggregate
level of benefits under such plans, practices, policies or programs in which the Executive is included be less than the aggregate level of benefits under plans, policies, practices and programs of the HDI Group in which the Executive was
participating at any time during the 180-day period immediately prior to the Change of Control Event. It is understood that if the Executive’s hire date is on or after August 1, 2006, then the HDI Group shall

  

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not be required to include the Executive in a defined benefit or similar program unless such programs are made available to executives of the HDI Group whose date of hire occurred on or after
August 1, 2006 and who are of comparable status and position to the Executive. 
 (c) The Executive shall
annually be entitled to not less than the amount of paid vacation and not fewer than the number of paid holidays to which the Executive was entitled annually at any time during the 180-day period immediately prior to the Change of Control Event or
such greater amount of paid vacation and number of paid holidays as may be made available annually to other executives of the HDI Group of comparable status and position to the Executive. 
 (d) The Executive shall be included in any annual or long-term or other bonus plan of the HDI Group which shall satisfy the
standards described below (any such plan, the “Bonus Plan”). Bonuses under any such Bonus Plan shall be payable with respect to achieving such financial or other goals reasonably related to the business of the HDI Group as the HDI Group
shall establish (the “Goals”), all of which Goals shall be attainable, prior to the second anniversary of the date of the Change of Control Event, with approximately the same degree of probability as the goals under any bonus plan or plans
of the HDI Group as in effect at any time during the 180-day period immediately prior to the Change of Control Event (whether one or more, the “Prior Bonus Plan”). The amount of the bonus (the “Bonus Amount”) that the Executive
is eligible to earn under any such Bonus Plan shall be no less than the amount of the Executive’s percentage of base salary available as incentive compensation (assuming performance at target) (the “Target Bonus Percentage”) provided
in such Prior Bonus Plan, and in the event the Goals are not achieved such that the entire Target Bonus Percentage is not payable, any such Bonus Plan shall provide for a payment of a Bonus Amount equal to a portion of the Target Bonus Percentage
reasonably related to that portion of the Goals which were achieved. 
 7. Benefits Following an Eligible Termination.

 In the event of Termination, the Executive shall be entitled, subject to the limitation set forth in Section 8, to the
following benefits: 
 (a) Lump Sum Severance Payment. 
 The Executive shall be entitled to receive, in cash or cash equivalent on the first business day of the month following the
month in which occurs the six month anniversary of the date of Termination, a lump-sum payment equal to the product of three multiplied by the sum of: 
 (i) the Executive’s highest annual rate of base salary during the five year period preceding the Executive’s termination of employment with the HDI Group; 
  

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 (ii) the higher of (A) the Executive’s bonus opportunity (at
target) for the year in which occurs the Change of Control Event, equal to the product of the Executive’s highest annual base salary and highest Target Bonus Percentage, in each case as in effect during the 180-day period immediately prior to
the Change of Control Event, or (B) the highest annual bonus paid to or accrued for the benefit of the Executive during the five year period immediately preceding the Executive’s termination of employment with the HDI Group under any bonus
plan, program, or arrangement of the HDI Group which the HDI Group Employer maintains or has adopted; and 
 (iii) the product of four times the last quarterly payment, prior to the Change of Control Event, paid to the Executive by the HDI Group, to the extent such payment was paid by the HDI Group in lieu of providing the Executive with various
fringe benefits (the “Perquisite Payment”). 
 (b) Payment in Lieu of Post-Retirement Life Insurance.

 In addition, if the Executive has attained age 55 and completed at least five years of service with the HDI
Group prior to the date of Termination, the Executive shall receive an additional amount, in lieu of any post-retirement life insurance, equal to one times the Executive’s annual base salary, at his or her then current rate (the “Retiree
Insurance Payment”), plus an additional amount such that the net amount retained by the Executive, after deduction for federal and state income taxes and FICA and Medicare employment taxes on the Retiree Insurance Payment, and any federal and
state income taxes and FICA and Medicare employment taxes on the additional payment, shall equal the Retiree Insurance Payment. For purposes of determining the amount of the additional payment, the Executive shall be deemed to pay federal and state
income taxes at the highest marginal rate of federal and state income taxation in the calendar year in which the additional payment is to be made. The payment in lieu of post-retirement life insurance shall not duplicate any other program of the HDI
Group under which the Executive may be entitled to a payment in lieu of post-retirement life insurance. The payment shall be made to the Executive in cash or cash equivalent on the first business day of the month following the month in which occurs
the six month anniversary of the date of Termination. 
 (c) Vesting of Certain Benefits. 
 At the time the ten days written notice prior to Termination is given: 
 (i) the Executive will be fully and immediately vested in his or her accrued benefit and any minimum years of service or age
requirement for vesting will be deemed to have been satisfied under any qualified or nonqualified pension, savings or other retirement programs that are maintained by the HDI Group and in which the Executive was entitled to participate at the time
of the Change of Control Event or at any time prior to Termination, with the benefits under each such plan in which the Executive participates being distributed in accordance with the terms of the relevant plan; provided, however, that if the HDI

  

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Group reasonably concludes that it is unable to take the actions contemplated under this subparagraph (i) with respect to any plan that is intended to be qualified under Code
Section 401(a) without violating the requirements of Code Section 401(a)(4) or any similar provision, then the Executive shall be entitled to receive, with respect to any such plan, a single sum payment equal to the account balance that
the Executive forfeits under any defined contribution plan or the actuarial present value (determined using the interest and mortality assumption in effect under Code Section 417(e)(3), or any successor to such provision, on the date of
Termination) of any accrued benefit that the Executive forfeits under any defined benefit plan as a result of not being fully vested at the time of Termination, with such payment to be made on the first business day of the month following the month
in which occurs the six month anniversary of the date of Termination; 
 (ii) all restricted stock or restricted
stock unit awards made to the Executive pursuant to the Harley-Davidson, Inc. 2009 Incentive Stock Plan, as amended, or made pursuant to any successor or predecessor plan, including, without limitation, any plan of the HDI Group that is in effect
following the date of the Change of Control Event, will be fully and immediately vested to the extent not already vested; 
 (iii) all stock options or stock appreciation rights granted pursuant to the Harley-Davidson, Inc. 2009 Incentive Stock Plan, as amended, or granted pursuant to any successor or predecessor plan,
including, without limitation, any plan of the HDI Group that is in effect following the date of the Change of Control Event, will be fully vested and will become immediately exercisable to the extent not already vested and exercisable; 

(iv) all performance or other awards granted to the Executive pursuant to any HDI long-term incentive plan, or granted
pursuant to any successor plan, including, without limitation, any plan of the HDI Group that is in effect following the date of the Change of Control Event, if not already vested pursuant to the terms of such long-term incentive plan, will be fully
and immediately vested, as if all performance requirements have been satisfied at the target level of performance, and with payment to the Executive to be made on the first business day of the month following the month in which occurs the six month
anniversary of the date of Termination; and 
 (v) the HDI Group Employer will pay to the Executive, on the first
business day of the month following the month in which occurs the six month anniversary of the date of Termination, an amount in respect of any bonus under a short-term incentive or other annual bonus plan of the HDI Group equal to the higher of
(1) the Executive’s incentive compensation assuming performance at target for the fiscal year in which the date of Termination falls, or (2) the bonus the Executive received for the year prior to the Change of Control Event, which
amount shall be pro-rated by a fraction, the numerator of which is the number of days elapsed in the HDI Group’s fiscal year on the date of Termination and the denominator of which is 365. 
  

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 (d) Retirement Benefits. 
 An Executive will be entitled to receive an amount determined under either subparagraph (i) or (ii), whichever is applicable (but not
under both): 
 (i) If the Executive participates in (i.e., is accruing a benefit under) the Retirement Annuity
Plan for Salaried Employees of Harley-Davidson (the “Salaried Retirement Plan”) as of his or her Termination date, then the Executive will be entitled to additional benefits under (A) the Harley-Davidson, Inc. Pension Benefit
Restoration Plan (the “Benefit Restoration Plan”) and (B) any other supplemental retirement plan of the HDI Group in which the Executive participates or any other agreement between the HDI Group and the Executive providing retirement
benefits for the Executive, or any successors to such plans, based on the most favorable benefit provisions of such plans in effect at any time during the 180-day period prior to the date of the Change of Control Event (the Pension Restoration Plan
and such other programs are collectively referred to as the “Retirement Plans”). The amount of such additional pension benefits payable under each such Retirement Plan will be paid in accordance with the terms of the applicable Retirement
Plan and shall equal to the difference between (1) the amount the Executive (or in the event of the Executive’s death, the Executive’s surviving spouse or other beneficiary) is actually entitled to receive upon retirement or
termination under the terms and conditions of the applicable Retirement Plan, and (2) the amount the Executive (or such surviving spouse or beneficiary) would have been entitled to receive under such terms and conditions if (A) the
Executive’s benefits under the applicable Retirement Plan had been fully vested on the date of Termination, (B) the Executive had continued to work until the earlier of the Executive’s 65th birthday or the third anniversary of the
date of Termination, and (C) the Executive had continued to receive compensation (both base salary and, to the extent relevant under a Retirement Plan, bonuses or other compensation) during the period of assumed employment at the highest rate
and at the same time as such compensation was paid to the Executive during the calendar year immediately preceding the date on which occurs the Change of Control Event or the calendar year immediately preceding the year in which occurs the date of
Termination, whichever is more beneficial to the Executive. 
 (ii) If the Executive participates in the Employer
Retirement Contribution feature of the Retirement Savings Plan for Salaried Employees of Harley-Davidson or the Buell Motorcycle Company Retirement Savings Plan as of his or her Termination date, then the Executive will be entitled to additional
benefits under (A) the “Employer Retirement Contribution Restoration Credits” provisions of the Harley-Davidson Management Deferred Compensation Plan, or any successor thereto (the “Deferred Compensation Plan”) and
(B) any other supplemental retirement plan of the HDI Group in which the Executive participates or any other agreement between the HDI Group and the Executive providing retirement benefits for the Executive, or any successors to such plans,
based on the most favorable benefit provisions of such plans in effect at any time

  

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during the 180-day period prior to the date of the Change of Control Event (the Deferred Compensation Plan and such other programs are collectively referred to as the “Nonqualified
Plans”). The amount of such additional benefits payable under each such Nonqualified Plan will be paid in accordance with the terms of the applicable Nonqualified Plan and shall equal the difference between (1) the contributions the
Executive is actually entitled to receive for the period beginning on the date of Termination and ending on the earlier of the Executive’s 65th birthday or the third anniversary of the date of Termination (without regard to earnings or losses
thereon) under the terms and conditions of the applicable Nonqualified Plan, and (2) the contributions the Executive would have been entitled to receive under such terms and conditions if (A) Executive’s benefits under the applicable
Nonqualified Plan has been fully vested on the date of Termination, (B) the Executive had continued to work until the earlier of the Executive’s 65th birthday or the third anniversary of the date of Termination, and (C) the Executive
had continued to receive compensation (both base salary and, to the extent relevant under a Nonqualified Plan, bonuses or other compensation) during the period of assumed employment at the highest rate and at the same time as such compensation was
paid to the Executive during the calendar year immediately preceding the date on which occurs the Change of Control Event or the calendar year immediately preceding the year in which occurs the date of Termination, whichever is more beneficial to
the Executive. Notwithstanding the foregoing, the benefits due under this paragraph (d)(ii) are not intended to replace, and shall be determined without considering, any employee pre-tax contributions that could have been made under the applicable
Nonqualified Plan, any employer matching contributions that would have been made under the applicable Nonqualified Plan, and any earnings on any such amounts. 
 (e) Welfare Benefits. 
 The Executive will also receive: 
 (i) until December 31 of
the second calendar year following the calendar year in which occurs the date of Termination, use of professional outplacement services by qualified consultants retained at the expense of the HDI Group Employer; provided, however, that this
subparagraph (i) shall not apply following the Executive’s death; and 
 (ii) for three years from the
date of Termination, continued coverage under HDI Group hospital, medical, dental, vision, life, disability insurance and other welfare benefit plans; provided, however, that any period of continued hospital, medical, dental or vision coverage
pursuant to this provision shall be credited against (reduce) the maximum period of continuation coverage that the Executive (or any other qualified beneficiary with respect to the Executive) is permitted to elect in accordance with COBRA, or any
successor provision thereto; and provided further, that in the event of the Participant’s death after Termination, for a period of one year following the Executive’s date of death (but in no event more than three years following the date
of Termination), the HDI Group shall

  

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provide continued coverage under the HDI Group hospital, medical, dental and vision plans for the Executive’s covered dependents, but all other welfare benefit plan coverage shall cease. For
purposes of this subparagraph (ii), if hospital, medical, dental, or vision coverage or benefits are provided under a plan that is subject to Code Section 105(h), then, for any period of coverage following the end of the COBRA continuation
period, the benefits payable under such plan shall comply with the requirements of Sections 1.409A-3(i)(1)(A) and (B) of the Income Tax Regulations (or any successor thereto) and, if and to the extent necessary, the HDI Group shall amend
such plan to comply therewith. Also, with respect to the first six months following the Termination during which the Executive’s life insurance coverage is extended under this subparagraph (ii), if the premiums payable by the HDI Group for
group life insurance coverage during such period and the portion of the premiums payable during such period that represents current life insurance protection (as determined in accordance with Internal Revenue Service requirements) for the Executive
under a split-dollar insurance arrangement, in the aggregate (the “Life Insurance Coverage Value”) exceed the amount of the “limited payments” exemption set forth in Section 1.409A-1(b)(9)(v)(B) of the Income Tax Regulations
(or any successor thereto), then, to the extent required to comply with Code Section 409A, the Executive, in advance, shall pay the HDI Group an amount equal to the Life Insurance Coverage Value, and promptly following the end of such six month
period, the HDI Group Employer shall make a cash payment to the Executive equal to the amount paid to the HDI Group by the Executive. Thereafter such life insurance coverage shall be provided at the expense of the HDI Group for the remainder of the
period specified above. 
 (f) Payment in Lieu of Automobile, Association and Similar Fees. 
 Unless the Perquisite Payment was substituted for the following, the Executive shall also receive a cash lump sum payment,
calculated so as to equal the fair market value of three years of benefits and paid to the Executive on the first business day of the month following the month in which occurs the six month anniversary of the date of Termination, for: 
 (i) automobiles and vehicles (or allowance in respect thereof) to which he was entitled either prior to the Change of Control
Event or prior to Termination; and 
 (ii) all amounts in respect of club, association or similar fees and dues
covering the Executive to which he was entitled either prior to the Change of Control Event or prior to Termination. 
 (g) Payment of Accrued Compensation. 
 The Executive shall also be entitled to all amounts earned or
accrued through the date of Termination but not paid as of such date, including base salary, reimbursement for reasonable and necessary expenses incurred by the Executive on behalf of the HDI Group during the period ending on the date of
Termination, vacation pay, and sick leave (collectively, “Accrued Compensation”). All Accrued Compensation shall be paid to the Executive within ten (10) days following Termination. 
  

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 (h) Continuation of Section 409A Elections. 
 Notwithstanding anything in Paragraphs (a) through (g) to the contrary, Termination does not affect deferral or
distribution elections that the Executive may have in place with respect to the payment of any benefits that are subject to Code Section 409A, and payment of such amounts will be made pursuant to the terms of the applicable plan or program
under which the deferral election was made. 
 (i) Death of the Executive. 
 If the Executive dies prior to the payments of amounts due to the Executive under this Agreement, then the amounts that
otherwise would have been paid to the Executive will be paid, as soon as practicable following the Executive’s death, to the Executive’s estate. 
 (j) Agreement Not a Guarantee of Employment. 
 Nothing in this
Agreement shall be construed to prevent the HDI Group Employer or the Board from terminating the Executive’s employment under this Agreement either for Cause or without Cause or to prevent the Executive from terminating the Executive’s
employment under this Agreement either for Good Reason or without Good Reason. A termination by the HDI Group Employer for Cause or a termination by the Executive without Good Reason shall relieve the HDI Group of its obligation to make any payments
under this Agreement, except for the Accrued Compensation and those that may be payable under then existing employee benefit programs. For the Executive to be terminated for Cause, the existence of Cause must be determined by a written resolution
adopted by the affirmative vote of not less than two-thirds of all the Continuing Directors, excluding for this purpose the Executive, or in the event there are no Continuing Directors, by a unanimous vote of all of the directors of the Board, at a
meeting duly called and held for that purpose after reasonable notice to the Executive and opportunity for the Executive and his or her counsel to be heard. Any such determination shall require that the Continuing Directors (or the entire Board)
find that in their reasonable good faith judgment the conduct which was the basis for the hearing in fact occurred and is sufficient to warrant a termination for Cause. 
 8. Payment Limitation. 
 (a) Notwithstanding any other provision of
this Agreement, if any portion of the payments or benefits under this Agreement, or under any other agreement with or plan of the HDI Group (in the aggregate, the “Total Payments”), would constitute an “excess parachute payment”
that is subject to the tax imposed by Code Section 4999, then the Total Payments to be made to the Executive shall be reduced such that the value of the aggregate Total Payments that the Executive is entitled to receive shall be One

  

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Dollar ($1) less than the maximum amount which the Executive may receive without becoming subject to the tax imposed by Code Section 4999; provided that the foregoing reduction in the amount
of Total Payments shall not apply if the after-tax value to the Executive of the Total Payments prior to reduction in accordance with this Paragraph (a) (including the tax imposed by Code Section 4999) is greater than one hundred ten
percent (110%) of the after-tax value to the Executive if the Total Payments are reduced in accordance with this Paragraph (a). 
 (b) For purposes of this Section, the terms “excess parachute payment” and “parachute payments” shall have the meanings assigned to them in Code Section 280G, and such
“parachute payments” shall be valued as provided therein. Present value shall be calculated in accordance with Code Section 280G(d)(4). The Executive and the HDI Group Employer, at the HDI Group Employer’s expense, shall obtain
the opinion (which need not be unqualified) of nationally recognized tax counsel (“National Tax Counsel”) selected by the HDI Group Employer’s independent auditors and acceptable to the Executive, which opinion sets forth: 

(i) the amount of the Base Period Income, 
 (ii) the amount and present value of the Total Payments, 
 (iii) the amount and present value of any excess parachute payments determined without regard to the limitations of this
Section 8, 
 (iv) the after-tax value of the Total Payments if the reduction in Total Payments contemplated
under Paragraph (a) of this Section 8 did not apply, and 
 (v) the after-tax value of the Total
Payments taking into account the reduction in Total Payments contemplated under Paragraph (a) of this Section 8. 
 (c) The term “Base Period Income” means an amount equal to the Executive’s “annualized includible compensation for the base period” as defined in Section 280G(d)(1) of the
Code (or any successor provision). For purposes of such opinion of National Tax Counsel, the value of any noncash benefits or any deferred payment or benefit shall be determined by the HDI Group Employer’s independent auditors in accordance
with the principles of Code Sections 280G(d)(3) and (4), which determination shall be evidenced in a certificate of such auditors addressed to the HDI Group Employer and the Executive. For purposes of determining the after-tax value of the Total
Payments, the Executive shall be deemed to pay federal income taxes and employment taxes at the highest marginal rate of federal income and employment taxation on the date on which the determination is being made and state and local income taxes at
the highest marginal rates of taxation in the state and locality of the Executive’s domicile for income tax purposes on the date on which the determination is being made, net of the maximum reduction in federal income taxes that may be obtained
from deduction of such state and local taxes. The opinion of National Tax Counsel shall be dated as of the date of the Executive’s Termination and addressed to the HDI Group Employer and the Executive and shall be binding upon the HDI Group
Employer and the Executive. If such opinion

  

 10 

 
determines that there would be an excess parachute payment and that the after-tax value of the Total Payments taking into account the reduction contemplated under Paragraph (a) of this
Section 8 is greater than the after-tax value of the Total Payments if the reduction in the Total Payments contemplated under Paragraph (a) of this Section 8 did not apply, then the payments and benefits hereunder or any other payment
or benefit determined by such counsel to be includible in the Total Payments shall be reduced or eliminated so that under the bases of calculations set forth in such opinion there will be no excess parachute payment. If such National Tax Counsel so
requests in connection with its opinion, the Executive and the HDI Group Employer shall obtain, at the HDI Group Employer’s expense, and the National Tax Counsel may rely on in providing the opinion, the advice of a firm of recognized executive
compensation consultants as to the reasonableness of any item of compensation to be received by the Executive. If the provisions of Code Sections 280G and 4999 are repealed without succession, then this Section 8 shall be of no further force or
effect. 
 9. Any amount under Section 7 the payment of which is to be made on the first business day of the month
following the month in which occurs the six month anniversary of the date of Termination, when paid, shall include interest, calculated at the reference rate or the prime rate, as the case may be, of US Bank Milwaukee, National Association,
Milwaukee, Wisconsin (or any successor thereto) as in effect from time to time during the period beginning on the date ten days following the Termination and ending on the date on which payment is actually made; provided, however, that with respect
to any life insurance reimbursement that the Executive is entitled to pursuant to Paragraph (e) of Section 7, the interest period will begin on the date on which the Executive pays the Life Insurance Coverage Value to the HDI Group.

 10. The Executive agrees that, during the term of his or her employment under this Agreement, he shall not, directly or
indirectly, engage or participate in any business activity that is directly competitive with and likely to have a material adverse effect on the business of the HDI Group without prior written approval of the Board. In the event that, while employed
by the HDI Group, the Executive engages in practices that are directly competitive and that are likely to have a material adverse effect on the HDI Group and the Executive fails to cease such competitive practices within thirty (30) days after
written notice is received from the Board, then the Executive shall be treated for purposes of this Agreement as terminated for Cause as of such 30th day. 
 11. Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Milwaukee, Wisconsin or, at the option of the Executive, in the county
where the Executive resides, in accordance with the Rules of the American Arbitration Association then in effect; provided, however, that if the Executive institutes an action relating to this Agreement, then the Executive may, at his or her option,
bring such action in a court of competent jurisdiction. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. 
 12. The HDI Group shall pay or reimburse all costs and expenses, including attorneys’ fees and disbursements, of the HDI Group and, at least monthly, the Executive in connection with any legal
services or proceedings (including, but not limited to, arbitration), whether or not instituted by the HDI Group or the Executive, relating to the interpretation or

  

 11 

 
enforcement of any provision of this Agreement. The HDI Group also agrees to pay prejudgment interest on any money judgment obtained by the Executive as a result of such proceedings, calculated
at the reference rate or prime rate, as the case may be, of US Bank Milwaukee, National Association, Milwaukee, Wisconsin (or any successor thereto) as in effect from time to time from the date that payment should have been made to the Executive
under this Agreement. Notwithstanding anything to the contrary, to comply with Code Section 409A, the Executive must timely submit any such cost of expense for reimbursement so that it can be reimbursed no later than the end of the calendar
year following the calendar year in which the expense was incurred; no reimbursement can be made after that time. 
 13. This
Agreement shall be binding upon, inure to the benefit of and be enforceable by the HDI Group and the Executive and their respective heirs, legal representatives, successors and assigns. If the HDI Group or any member of the HDI Group shall be merged
into or consolidated with another entity, the provisions of this Agreement shall be binding upon and inure to the benefit of the entity surviving such merger or resulting from such consolidation. The HDI Group will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the HDI Group or the HDI Group Employer, by agreement in form and substance satisfactory to the Executive, to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the HDI Group would be required to perform it if no such succession had taken place. The provisions of this Section 13 shall continue to apply to each
subsequent employer of the Executive hereunder in the event of any subsequent merger, consolidation or transfer of assets of such subsequent employer. From and after the date of any such purchase, merger, consolidation, transfer of assets or other
transaction, the term HDI Group as used in this Agreement shall also include any such person or entity that is the successor or subsequent employer for purposes of this Section 13, or which otherwise becomes bound by the terms and provisions of
this Agreement by operation of law. 
 14. The HDI Group Employer will indemnify the Executive against expenses (including
attorney’s fees), amounts paid in settlement (whether with or without court approval), judgments and fines actually and reasonably incurred by him or her in connection with a threatened or actual action, suit or proceeding if he or she acted in
good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the HDI Group, and with respect to any criminal action or proceeding, if he or she had no reasonable cause to believe that his or her conduct
was unlawful, if he or she becomes a party to, or is threatened with, a pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigation (if not by or in the right of the HDI Group Employer) by reason of the
fact that he or she is or was a director, officer, employee or agent of the HDI Group or is or was serving at the request of the HDI Group as a director, officer, employee or agent or in any other capacity or in another corporation, or a
partnership, joint venture, trust or other enterprise, or by reason of any action alleged to have been taken or not taken by him while acting in any such capacity, to the fullest extent permitted by the HDI Group Employer’s Articles of
Incorporation and By-Laws. Notwithstanding anything to the contrary, to comply with Code Section 409A, the Executive must timely submit any such cost or expense for reimbursement so that it can be reimbursed no later than the end of the
calendar year following the calendar year in which the item was incurred; no reimbursement can be made after that time. 
  

 12 

 15. Any provision of this Agreement which is held to be unenforceable or invalid in any
respect in any jurisdiction shall be ineffective in such jurisdiction to the extent that it is unenforceable or invalid without affecting the remaining provisions hereof, which shall continue in full force and effect. The unenforceability or
invalidity of a provision of this Agreement in one jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 16. This Agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin applicable to contracts made and to be performed therein, without regard to conflict of law
principles. 
 17. This instrument contains the entire agreement of the parties, and supersedes any earlier agreement between
them, relative to a transition period or termination in the event of a Change of Control Event. It may not be changed orally but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification,
extension, or discharge is sought. Notwithstanding anything in this Agreement to the contrary, the Corporation may unilaterally amend this Agreement prior to the occurrence of a Change of Control Event to make changes that the Corporation reasonably
determines are necessary or appropriate for purposes of causing this Agreement to comply with the requirements of Code Section 409A and regulations proposed or promulgated thereunder, so long as the Corporation makes the same changes to
corresponding agreements to which other Corporation executives are parties. 
 18. The Executive shall not be required to
mitigate damages or the amount of any payment to the Executive provided for under this Agreement by seeking other employment or otherwise, nor shall the amount of any payment provided for under this Agreement be reduced by any compensation earned by
the Executive as a result of employment by another employer after Termination. 
 19. If the Executive is also a party to a
Severance Benefits Agreement (or any similar agreement) with the Corporation (or an Affiliate), upon the occurrence of a Change of Control Event (whether such Severance Benefits Agreement or similar agreement was entered into or amended prior to or
after the date of this Agreement), then the Executive’s rights and obligations upon a termination of Executive’s employment during the term of this Agreement will be governed by this Agreement rather than the Severance Benefits Agreement
or similar agreement. 
 20. The HDI Group shall be entitled to withhold from amounts to be paid to the Executive hereunder any
federal, state or local withholding or other taxes or charges which it is from time to time required to withhold; provided, that the amount so withheld shall not exceed the minimum amount required to be withheld by law. In addition, if prior to the
date of payment of the benefits hereunder, the Federal Insurance Contributions Act (FICA) tax imposed under Sections 3101, 3121(a) and 3121(v)(2), where applicable, becomes due, the HDI Group may provide for an immediate payment of the amount needed
to pay the Executive’s portion of such tax (plus an amount equal to the income taxes that will be due on such amount) and the Executive’s remaining benefits under this Agreement shall be reduced accordingly. The HDI Group shall be entitled
to rely on an opinion of nationally recognized tax counsel if any question as to the amount or requirement of any such withholding shall arise. 
  

 13 

 21. In the event that neither the Corporation nor any Affiliate has outstanding any stock
which is publicly traded on an established securities market or otherwise, any references in this Agreement to distribution being made on the first day of the month following the month in which occurs the six month anniversary of the date of
Termination shall automatically be modified to provide for distribution within ten days following the date of Termination. 
 IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 
  

			
	HARLEY-DAVIDSON, INC.
		
	By:	 	 
	Its	 	 
	
	ATTEST:
	
	 
	
	EXECUTIVE:
	
	 

  

 14 

 Schedule A 
 CERTAIN DEFINITIONS 
 As used in this
Agreement, and unless the context requires a different meaning, the following terms have the meanings indicated. Additional terms are defined in the Agreement. 
 “AFFILIATE” means each corporation, trade or business that, with the Corporation, constitutes a controlled group of corporations or group of trades or businesses under common control within the
meaning of Code Sections 414(b) or (c), applied by substituting “at least 50 percent” for “at least 80 percent” each place it appears. 
 “BOARD” means the Corporation’s board of directors. 
 “CAUSE” means the
commission by the Executive of one or more acts for which the Executive is convicted of a felony under United States federal, state or local criminal law, or willful and gross misconduct on the part of the Executive that is materially and
demonstrably detrimental to the HDI Group taken as a whole. 
 “CHANGE OF CONTROL EVENT” means any one of the following: (a) the
Continuing Directors no longer constitute at least two-thirds (2/3) of the directors of the Board; (b) any person or group of persons (as defined in Rule 13d-5 under the Securities Exchange Act of 1934, as amended), together with its
affiliates, become the beneficial owner, directly or indirectly, of twenty percent (20%) or more of the Corporation’s then outstanding Common Stock or twenty percent (20%) or more of the voting power of the Corporation’s then
outstanding securities entitled generally to vote for the election of the Corporation’s Directors; (c) the consummation of the merger or consolidation of the Corporation with any other corporation, the sale of substantially all of the
assets of the Corporation, or the liquidation or dissolution of the Corporation, unless, in the case of a merger or consolidation, the then Continuing Directors in office immediately prior to such merger or consolidation will constitute at least
two-thirds (2/3) of the directors constituting the board of directors of the surviving corporation of such merger or consolidation and any parent (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended)
of such corporation; or (d) at least two-thirds (2/3) of the then Continuing Directors in office immediately prior to any other action proposed to be taken by the Corporation’s stockholders or by the Board determines that such
proposed action, if taken, would constitute a change of control of the Corporation and such action is taken. 
 “CODE” means the
Internal Revenue Code of 1986, as amended. 
 “COMPENSATION” means the sum of all remuneration to which the Executive is entitled,
including, but not limited to salary, participation in HDI Group bonus and benefit plans, programs or arrangements and awards under any HDI Group bonus plans, long-term incentive compensation plans, stock option plans, restricted stock plans or any
other deferred compensation plans that the HDI Group Employer maintained or adopted prior to the Change of Control Event, the value to the Executive of the use of professional outplacement services by qualified consultants and use of automobiles or
vehicles (or allowances in respect thereof), and

  

 15 

 
all amounts in respect of club, association or similar fees and dues covering the Executive. In the event that the HDI Group cannot provide the Executive with one or more benefits which it is
obligated to provide to the Executive, pursuant to this Agreement, under its employee benefit plans, programs or arrangements then the HDI Group shall provide the Executive with equivalent benefits at the expense of the HDI Group Employer.

 “CONTINUING DIRECTOR” means any individual who is either (i) a member of the Board on the date hereof or (ii) a member of
the Board whose election or nomination to the Board was approved by a vote of at least two-thirds of the Continuing Directors (other than a person whose election was as a result of an actual or threatened proxy or other control contest). 

“CORPORATION” means Harley-Davidson, Inc., a Wisconsin corporation, or any successor thereto. 
 “GOOD REASON” means the occurrence of any one of the following events, as determined by the Executive in good faith: 
 (a) any breach of this Agreement by the Corporation, including specifically any breach by the Corporation of its agreement contained in Section 6,
other than an isolated, insubstantial and inadvertent failure not occurring in bad faith that the Corporation remedies promptly after receipt of notice thereof given by the Executive; 
 (b) any reduction in the Executive’s base salary, percentage of base salary available as incentive compensation or benefits, in each case relative to those most favorable to the Executive in effect
at any time during the 180-day period prior to the Change of Control Event or, to the extent more favorable to the Executive, those in effect after the Change of Control Event; 
 (c) a material adverse change, without the Executive’s prior written consent, in the Executive’s working conditions or status with the Corporation or the HDI Group Employer from such working
conditions or status in effect during the 180-day period prior to the Change of Control Event or, to the extent more favorable to the Executive, those in effect after the Change of Control Event, including but not limited to (i) a material
change in the nature or scope of the Executive’s titles, authority, powers, functions, duties, reporting requirements or responsibilities, or (ii) a material reduction in the level of support services, staff, secretarial and other
assistance, office space and accoutrements, but excluding for this purpose an isolated, insubstantial and inadvertent event not occurring in bad faith that the Corporation remedies promptly after receipt of notice thereof given by the Executive;

 (d) the relocation of the Executive’s principal place of employment to a location more than 50 miles from the Executive’s principal
place of employment on the date 180 days prior to the Change of Control Event; 
 (e) the HDI Group Employer requires the Executive to travel on
employer business to a materially greater extent than was required during the 180-day period prior to the Change of Control Event; or 
 (f)
failure by the Corporation to obtain the agreement referred to in Section 13 as provided therein; 
  

 16 

 Provided, however, that any such event occurs following the Change of Control Event. In the event of a
dispute regarding whether the Executive terminated the Executive’s employment for “Good Reason” in accordance with this Agreement, no claim by the Corporation that such termination does not constitute a Termination shall be given
effect unless the Corporation establishes by clear and convincing evidence that such termination does not constitute a Termination. Any election by the Executive to terminate the Executive’s employment for Good Reason shall not be deemed a
voluntary termination of employment by the Executive for purposes of any other employee benefit or other plan. 
 “HDI GROUP” means
Harley-Davidson, Inc. and its Affiliates. 
 “HDI GROUP EMPLOYER” means the member of the HDI Group that employed the Executive
immediately prior to the Change of Control Event. 
 “SEPARATION FROM SERVICE” means the date on which the Executive separates from
service (within the meaning of Code Section 409A) from the HDI Group. A Separation from Service occurs when the HDI Group and the Executive reasonably anticipate that no further services will be performed by the Executive for the HDI Group
after that date or that the level of bona fide services the Executive will perform after such date as an employee of the HDI Group will permanently decrease to no more than 20% of the average level of bona fide services performed by the
Executive (whether as an employee or independent contractor) for the HDI Group over the immediately preceding 36-month period (or such lesser period of services). The Executive is not considered to have incurred a Separation from Service if the
Executive is absent from active employment due to military leave, sick leave or other bona fide reason if the period of such leave does not exceed the greater of (i) six months, or (ii) the period during which the Executive’s right to
reemployment by the HDI Group is provided either by statute or by contract; provided that if the leave of absence is due to a medically determinable physical or mental impairment that can be expected to result in death or last for a continuous
period of not less than six months, where such impairment causes the Executive to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, the leave may be extended for up to 29 months
without causing the Executive to have incurred a Separation from Service. 
 “TERMINATION” means a termination of the Executive’s
employment with the HDI Group while this Agreement is in effect, if such termination constitutes a Separation from Service and such termination satisfies either Paragraph (a) or (b) below: 
 (a) any termination by the HDI Group of the Executive’s employment following the occurrence of any Change of Control
Event, other than termination of the Executive’s employment for Cause or as a result of the death of the Executive; or 
 (b) any termination by the Executive of the Executive’s employment for Good Reason following the occurrence of a Change of Control Event. 
  

 17

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