Document:

Exhibit 10.3

 

CONTINGENT EMPLOYMENT AGREEMENT

 

THIS
AGREEMENT, made this          day
of                 ,
20   , by and between THE MANITOWOC COMPANY, INC., a
Wisconsin corporation (together with its subsidiaries and any upstream parent
company that in the future may control The Manitowoc Company, Inc.
referred to herein as the “Company”) and                              ,
a key employee of the Company (the “Employee”).

 

RECITALS

 

WHEREAS, sudden takeovers, acquisitions or changes of
control of domestic corporations have occurred frequently in recent years, and
current conditions may contribute to the continuation or acceleration of this
trend; and

 

WHEREAS, the possibility of a sudden takeover, acquisition
or change of control can create uncertainty of employment and may distract
and/or cause the loss of valuable Company officers, to the detriment of the
Company and its shareholders; and

 

WHEREAS, it is believed that the detriment described can be
substantially reduced by agreement on the terms hereinafter set forth.

 

AGREEMENT

 

NOW THEREFORE, in consideration of the foregoing premises
and the mutual covenants hereinafter set forth, IT IS AGREED

 

1.             Continued Employment.

 

(a)           If a “Change of Control” (as
defined below) of the Company occurs when the Employee is employed by the
Company, the Company will continue thereafter to employ the Employee, and the
Employee will remain in the employ of the Company, in accordance with the terms
and provisions of this Agreement, for a period of two (2) years following
the date of such change (the “Employment Period”).

 

(b)           As used herein, the phrase “Change
of Control” of the Company 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 Securities
Exchange Act of 1934 (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
stockholders 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 30% or more of the combined voting power of the
Company’s then outstanding securities;

 

(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 60% 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
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 50% of the 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 stockholders of the Company
retain ownership of the transferred assets proportionate to their prorata
ownership interest in the Company shall not be deemed a “Change of Control;”

 

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

 

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(v)           At any time after the date
of this Agreement when the Continuing Directors cease to constitute a majority
of the Board of Directors of the Company. 
For this purpose, a “Continuing Director” shall mean: (A) the
individuals who, at the date of this Agreement 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 paragraph 1(b) of this Agreement) whose appointment to
the Board or nomination for election by the Company’s stockholders was approved
by a vote of at least two-thirds of the then-serving Continuing Directors; or

 

(vi)          A determination by the Board
of Directors of the Company, 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 the
operative provisions of this Agreement and all other similar contingent
employment agreements of the Company.

 

2.             Duties.  Unless otherwise agreed by the Company and
Employee, during the Employment Period the Employee shall be employed by the
Company in the same position/ offices as those which the Employee held on the
date of the Change of Control of the Company. 
In such employment the Employee’s duties and authority shall consist of
and include all duties and authority customarily performed and held by a person
holding an equivalent position with a corporation of similar nature and size,
as such duties and authority related to such position are reasonably defined
and delegated from time to time by the Board of Directors of the Company.  However, no change of the Employee’s location
of employment outside a 50-mile radius from his place of employment as of the
date of this Agreement (or any other location later consented to by the
Employee), or in the Employee’s title, shall be made without the prior written
consent of the Employee.  The Employee
shall have the powers necessary to perform the duties assigned and shall be
provided such supporting services, staff, secretarial and other assistance,
office space and accouterments as shall be reasonably necessary and appropriate
in light of the duties assigned (but in no event, in any case, smaller in
quantity or size or inferior in quality than that being furnished to the
Employee on the date of the Change of Control of the Company.

 

The
Employee shall devote his entire business time, energy and skills to such
employment while so employed, but the Employee shall not be required to devote
more than an average of approximately 40 hours per calendar week to such
employment.  The Employee may participate
in civic or charitable activities which do not adversely affect his ability to
carry out his responsibilities hereunder. 
The Employee shall be entitled to a minimum of three weeks (fifteen
working days) of paid vacation annually, or such greater amount as shall be
customarily allowed to the Employee during the fiscal year of the Company prior
to the fiscal year in which the Change of Control of the 

 

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Company
shall occur.  The Employee shall have the
sole discretion to determine the time and intervals of such vacation.

 

3.             Compensation.  While employed under this Agreement, the
Employee shall be compensated as follows:

 

(a)           The Employee shall receive a
salary equal to his salary as in effect as of the date of the Change of Control
of the Company, subject to adjustment as hereinafter provided.

 

(b)           The Employee shall be
reimbursed for any and all monies advanced in connection with his employment
for reasonable and necessary expenses incurred by him on behalf of the Company.

 

(c)           The Employee shall be
included to the extent eligible thereunder in any and all plans providing
benefits for the Company’s employees, including but not limited to group life
insurance, hospitalization, medical, retiree health and pension, and shall be
provided any and all other benefits and perquisites made available to other
employees of comparable status, at the expense of the Company on a comparable
basis.  The Employee shall be deemed
eligible for retiree health if he is a participant in the Company’s retiree
health plan and qualifies on the basis of years of service (regardless of his
age).

 

(d)           The Employee shall be
permitted to participate in any restricted stock plans, stock option plans or
other stock benefit plans as the Company establishes and maintains from time to
time for its officers and employees.  The
Employee’s participation level in such stock plans shall be consistent with the
participation level of other officers and employees of the Company who have
positions, duties and responsibilities comparable to the Employee.

 

(e)           The Employee shall be
included in all profit sharing, bonus, deferred compensation, split dollar life
insurance, and similar or comparable cash incentive bonus plans customarily
extended by the Company to corporate officers and key employees of the
Company.  The Employee shall be entitled
to participate in cash incentive bonuses and profit sharing under such plans
which are consistent with the bonuses and profit sharing received under such
plans by other employees and officers of the Company who have positions, duties
and responsibilities comparable to those of the Employee provided that such
plans and bonus opportunity shall be no less favorable to the Employee than the
plans and bonus opportunity that existed immediately prior to the Change of
Control.

 

4.             Annual Compensation
Adjustments.  At least
annually during the Employment Period, the Board of Directors of the Company or
an appropriate committee thereof, in accordance with past practice, will
consider and appraise the contributions of the Employee to the Company’s
operating efficiency, growth, production and profits, and the Employee’s
compensation rate shall be eligible for increase based upon Employee’s
contributions to the Company and the increases provided to other 

 

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corporate officers and key employees generally and
as the scope and success of the Company’s operations or the Employee’s duties
expand.

 

5.             Disability.  If, during the Employment Period, the
Employee shall become disabled by sickness or otherwise so that he is unable to
perform the regular duties of his employment on a full-time basis, the Company
shall pay him commencing on the date of the disability and continuing for the
first six months thereafter, as sick pay, his normal salary and all benefits as
described in paragraph 3 hereof.  If the
disability continues beyond six months, then the payment of the Employee’s
normal salary shall be suspended during the period of disability. During the
term of his disability, and until the expiration of the Employment Period, the
Employee shall continue to receive customary fringe benefits as provided in
paragraphs 3(c) and 3(d) above. 
The obligation to provide the foregoing disability benefits shall
survive the termination of this Agreement provided the disability was incurred
before termination.  If the disability
terminates prior to the end of the Employment Period, the Employee may elect to
return to full-time employment under this Agreement in which case this paragraph
shall apply to all subsequent short or long term disabilities.

 

To
determine whether the Employee is disabled for the purposes of this paragraph,
either party may from time to time request a medical examination of the
Employee by a doctor appointed by the Company, or as the parties may otherwise
agree, and the written medical opinion of such doctor shall be conclusive and
binding upon the parties as to whether or not the Employee has become disabled
and the date when such disability arose. 
The cost of any such medical examination shall be borne by the Company.

 

6.             Retirement.  If, during the Employment Period, the
Employee shall deliver to the Company a statement signed by him stating that
the Employee voluntarily chooses to retire early from the Company, or if the
Employee shall reach the age of 65, or shall with the mutual agreement of the
Company agree in writing on early retirement, then this Agreement shall
terminate on the effective date of such event and the terms of the Company’s
retirement policies or such mutual agreement shall immediately become
effective.

 

7.             Termination Other Than for
Cause.

 

(a)           If during the Employment
Period the Employee shall elect to terminate his employment under this
Agreement for Good Reason, he shall thereupon be entitled to the benefits and a
severance payment as set forth in paragraph 7(b) below.  For purposes of this Agreement, a termination
for “Good Reason” means a termination by Employee based upon the occurrence
(without Employee’s express written consent) of any of the following:  (i) a material diminution in Employee’s
position or title, or the assignment of duties to Employee that are materially
inconsistent with Employee’s position or title as described in paragraph 2; (ii) a
material diminution in Employee’s base salary or incentive/bonus opportunities;
(iii) a change of more than fifty (50) miles from the location of his
principal place of employment on the date of the Change of Control of the
Company; or (iv) a material breach by the Company of any of 

 

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its obligations under this Agreement, or (v) any
successor to the principal business of the Company (whether by merger, purchase
of assets, liquidation or otherwise) as described in paragraph 13 fails or refuses
to assume the Company’s obligations under this Agreement.  Notwithstanding the foregoing, no such event
described above shall constitute Good Reason unless Employee gives written
notice to the Company specifying the condition or event relied upon for such
termination within ninety (90) days of the initial existence of such event
and (2) the Company fails to cure the condition or event constituting Good
Reason within thirty (30) days following receipt of Employee’s notice.

 

(b)           If during the Employment Period
the Employee’s employment hereunder shall be terminated (1) by the Company
for any reason other than the reasons set forth in paragraphs 5, 6, 8 or 9 of
this Agreement, or (2) by the Employee pursuant to paragraph 7(a) above,
thereafter the Employee shall be entitled to participate in group life,
hospitalization and medical insurance described in paragraph 3(c) hereof,
for the lesser of (i) the remainder of the Employment Period (provided
that if the Employee would be eligible to participate in the Company’s retiree
health plan (based on years of service without regard to age) if he had retired
as of the termination date, he shall be entitled to participate in such retiree
health plan upon such termination), or (ii) the number of years (including
partial years) until the Employee reaches the age of 65, and, no later than
thirty (30) calendar days following such termination, the Company shall pay to
the Employee or his personal representative a severance payment in an amount
equal to the sum of the following:

 

(i)            The Employee’s annual base
salary through the date of the termination of employment to the extent not
theretofore paid; plus

 

(ii)           All deferred salary
(including “bank” balances in the Company’s incentive compensation plans),
profit sharing, bonuses and other compensation earned by the Employee (whether
vested or unvested or subject to any other contingencies) during the course of
his employment with the Company prior to the termination of his employment;
plus

 

(iii)          The Employee’s base salary for
the lesser of (i) the portion of the Employment Period remaining unexpired
as of the termination date, or (ii) the number of years (including partial
years) from the Employee’s termination date until the Employee reaches the age
of 65).  For this purpose, the Employee’s
base salary shall be his base salary as in effect immediately prior to the
termination of employment.  For any
fraction of a year included in the unexpired portion of the Employment Period,
the Employee’s base salary shall be prorated based upon a 365-day year; plus

 

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(iv)          Incentive bonus compensation
for the current fiscal year of the Company during which the termination of
employment occurs and for the lesser of (i) all subsequent fiscal years of
the Company thereafter which are included in whole or in part in the portion of
the Employment Period remaining unexpired as of the termination date, or (ii) the
number of years (including partial years) from the Employee’s termination date
until the Employee reaches the age of 65. 
The amount of the cash incentive bonus for any partial fiscal year
included in the balance of the Employment Period shall be prorated based on a
365-day fiscal year.  The amount of the
annual bonus to be applied in calculating the incentive compensation payment
shall be the average of the annual cash incentive bonuses earned by the
Employee (whether such incentive bonuses were paid in the year earned or
deferred for payment in subsequent years) under all short and long-term cash
incentive bonus plans maintained by the Company in which the Employee
participated during the Company’s latest three consecutive fiscal years ended
prior to the termination of the Employee’s employment.  If the Employee has been employed by the Company
for less than three complete fiscal years prior to the date of the termination
of his employment, then the amount of the annual bonus for purposes of
computing these payments shall be based upon the average of the bonuses earned
by the Employee during such smaller number of complete fiscal years during
which he was employed by the Company prior to the date of the termination of
his employment.  If the Employee has not
been employed for even one complete fiscal year prior to the date of the
termination of his employment, then his annual bonus for purposes of computing
this payment shall be calculated by prorating the bonus earned by the Employee
for the portion of the Company’s most recently completed fiscal year during
which the Employee was employed, as though the Employee had been employed for
such full fiscal year.  Such proration
shall be calculated based upon a 365-day fiscal year.

 

(c)           If it shall be impossible or
impracticable for the Employee to participate directly in certain programs or
plans specified in subparagraph (b) above, then the Company shall provide,
at the Company’s expense, for the provision to the Employee of benefits as
nearly as possible identical to, and in no event less beneficial to the
Employee than, those which would be provided to the Employee through direct
participation or providing a cash payment(s) economically equivalent in
value to such benefits.

 

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(d)           If it is determined that any
payment or distribution by the Company to or for the benefit of the Employee
(whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement or otherwise) (a “Payment”) would constitute an excess “parachute
payment” within the meaning of Section 280G of the Code and would result
in the imposition on the Employee of an excise tax under Section 4999 of
the Code (the “Excise Tax”), then the Employee shall be entitled to receive the
Payments unless the after-tax amount that would be retained by the Employee
(after taking into account any and all applicable federal, state and local
excise, income or other taxes payable by the Employee, including the Excise
Tax) is less than the after-tax amount that would be retained by the Employee
(after taking into account any and all applicable federal, state and local
excise, income or other taxes payable by the Employee, including the Excise
Tax) if the Employee were instead to be paid or provided, as the case may be,
the maximum amount of the Payments that the Employee could receive without
being subject to the Excise Tax (the “Reduced Payments”), in which case the
Employee shall be entitled only to the Reduced Payments.  The reduction of the amounts payable
hereunder, if applicable, shall be made by first reducing the payments under
paragraph 7(b)(iii), unless an alternative method of reduction is elected by
the Employee, and in any event shall be made in such a manner as to maximize
the value of all Payments actually made to the Employee.  For purposes of reducing the Payments, only
amounts payable under this Agreement (and no other Payments) shall be reduced.

 

(e)           All determinations required
to be made under this paragraph 7, and the assumptions to be utilized in
arriving at such determination, shall be made by such certified public
accounting firm as may be designated by the Employee (the “Accounting Firm”)
which shall provide detailed supporting calculations both to the Company and
the Employee.  All fees and expenses of
the Accounting Firm shall be borne solely by the Company.  Any determination by the Accounting Firm shall
be binding upon the Company and the Employee.

 

(f)            In the event that any
Payment to Employee pursuant to this Agreement or otherwise would be subject to
the excise tax imposed by Section 4999 of the Internal Revenue Code of
1986, as amended (or any comparable successor provision), the Company shall be
entitled to withhold any such excise tax as required by applicable law,
together with any other amounts required to be withheld under any applicable
federal or state law.

 

8.             Termination for Cause.  Employee agrees that this Agreement may be
terminated by the Company at any time for cause, which shall mean only
conviction based upon the commission of a felony or becoming the subject of a
final nonappealable judgment of a court of competent jurisdiction holding that
the Employee is liable to the Company for damages for obtaining a personal
benefit in a transaction adverse to the interests of the Company.  The Employee shall not be deemed to have been
terminated for cause unless and until there shall have been delivered to the
Employee a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters (3/4) of the entire membership of the Board called and
held for such purpose (after reasonable notice to the Employee and an
opportunity for the Employee, 

 

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together with his counsel, to be heard before the
Board), finding that the Employee was guilty of conduct constituting cause for
termination as set forth in this paragraph 8 and specifying the
particulars thereof in detail.  In the
event this agreement is terminated for cause, the Employee shall forfeit his
right to any and all benefits he would otherwise have been entitled thereafter
to receive under the Agreement, but shall not forfeit his right to benefits
accrued up to and including the date of termination.

 

9.             Death of Employee.  Upon the death of the Employee during the
Employment Period, the payment of base compensation as provided in subparagraph
3(a) shall continue through the last day of the month in which death
occurs, and bonuses for the year in which death occurs shall be prorated on the
basis of the number of months elapsed during the fiscal year as of such
day.  The other rights and benefits of
the Employee (or his personal representative) shall be as determined under the
applicable programs and plans of the Company covering the Employee at death.

 

10.           Stock Options and Restricted
Shares.  Upon the occurrence of a
Change of Control of the Company, all stock options shall be fully vested and
exercisable and all restrictions upon unconditional receipt by Employee of
shares of stock or other securities of the Company granted under any restricted
stock or other compensation plan shall immediately be removed, and such shares
shall vest in and be distributed immediately to Employee.  The Company covenants and agrees to take such
steps (including amendment of any existing plan) to insure that all such plans
shall allow or provide for such vesting and distribution.

 

11.           Noncompetition.

 

(a)           Scope of Noncompetition. In the event
that the employment of the Employee is terminated pursuant to paragraph 7 prior
to the expiration of the Employment Period such that the Employee receives the
payments and benefits referred to in paragraph 7(b), the Employee agrees that
he will not, for the Noncompetition Period (as hereinafter defined):

 

(i)            Render services, directly or
indirectly, to any “Competitor” (other than the acquisition of an equity
interest in a corporation or other entity registered under the Securities
Exchange Act of 1934, as amended, not requiring the filing of a Schedule 13D or
Schedule 13G or any successor schedules or forms) in connection with the
development, manufacture, distribution, sale, merchandising or promotion of any
“Competitive Product” or “Competitive Service.” 
“Competitor” means any corporation, person, firm or organization or
division or part thereof engaged in or about to become engaged in research and
development work on or the production and/or sale of any Competitive Product or
Competitive Service in any country in which the Company or any of its
affiliates sold a product or service to a customer within the two-year period
ending on the effective date of the 

 

9

 

termination of Employee’s
employment with the Company.  “Competitive
Product” or “Competitive Service” means a product or service, as the case may
be, made, offered, sold or provided by a Competitor, which is the same as,
functionally equivalent to, or otherwise directly competitive with one made,
offered, sold or provided by the business units of the Company over which the
Employee had a material supervisory or management role.

 

(ii)           Engage either directly or
indirectly, in any country in which the Company or any of its affiliates sold a
product or service to a customer within the two-year period ending on the
effective date of the termination of Employee’s employment with the Company for
himself or as an investor in the development, manufacture, purchase or sale of
any Competitive Product or Competitive Service.

 

(b)           Noncompetition Period.  For purposes of this paragraph 11, the term “Noncompetition
Period” means the period beginning on the effective date of the termination of
Employee’s employment with the Company and continuing for the unexpired term of
the Employment Period in the case of a severance payment made pursuant to
paragraph 7(b).

 

(c)           Survival.  The noncompetition covenant in this paragraph
11 shall survive the termination of the Employee’s employment.

 

(d)           Notification to the Company.  If the Employee notifies the Company of the
occupation the Employee proposes to take up after termination of employment
with the Company and furnishes the Company such written or oral information as
it may reasonably request concerning such proposed occupation, the Company
agrees to notify the Employee promptly, and in any event, within fourteen (14)
business days after receipt of the requested information, whether or not the
Company considers such occupation, based on the information so furnished or
derived from its independent investigation, to come within the provisions of
this Section and, if the Company considers such occupation to come within
the provisions of this Section, whether the Company will waive any of the
provisions thereof.

 

(e)           Remedies.  In addition to other remedies provided by law
or equity, upon a breach by the Employee of any of the covenants contained in
this paragraph 11, the Company shall be entitled to have a court of competent
jurisdiction enter an injunction against the Employee prohibiting any further
breach of the covenants contained herein. 
The parties further agree that the services to be performed hereunder
are of a unique, special, and extraordinary character.  Therefore, in the event of any controversy
concerning the rights or obligations under this Agreement, such rights or
obligations shall be enforceable in a court of competent jurisdiction at law or
equity by a decree of specific performance or, if the Company elects, by
obtaining damages or such other relief as the Company may elect to pursue.  Such remedies, however, shall be 

 

10

 

cumulative and nonexclusive and shall be in addition
to any other remedies which the Company may have.

 

12.           Enforceability.  The parties agree that nothing in this
Agreement shall in any way abrogate the right of the Company and the Employee
to enforce by injunction or otherwise the due and proper performance and
observance of the several covenants herein contained to be performed by the
Employee or the Company or to recover damages for breach thereof.

 

13.           Successors and Assigns.  If the Company sells, assigns or transfers
all or substantially all of its business, assets or earning power to any
person, or if the Company merges into or consolidates or otherwise combines
with any person which is the continuing or successor entity, then the Company
shall assign all of its right, title and interest in this Agreement as of the
date of such event to the person which is either the acquiring or successor
corporation, and such person(s) shall assume and perform from and after
the date of such assignment all of the terms, conditions and provisions imposed
by this Agreement upon the Company.  In
case of such assignment by the Company and of assumption and agreement by such
person(s), all further rights as well as all other obligations of the Company
under this Agreement thenceforth shall cease and terminate.  All rights of Employee hereunder shall inure
to the benefit of the Employee and his heirs and personal representatives.  Other than as specifically provided in this
paragraph 13, neither the Company nor Employee may assign any rights or
obligations hereunder without the express written consent of the other party.

 

14.           Termination Prior to Change
of Control.  Except as
described herein in the event of a Change in Control, this Agreement is not
intended to vest in Employee any right to continued employment by Company.  Absent such a Change in Control and unless
specifically established otherwise by agreement between the Company and
Employee, Employee’s employment status with the Company is one of employment
at-will.

 

15.           Supplemental Agreement.  This Agreement supersedes any previously
existing Contingent Employment Agreement of like nature between the Company and
the Employee; however, this Agreement supplements, and is not an amendment to
or in derogation of, any other agreement between the Company and the Employee
relating to employment or the terms and conditions thereof.  No person, other than such person as may be
designated by the Board of Directors of the Company, shall have any authority
on behalf of the Company to agree to modify or change this Agreement.  Notwithstanding the foregoing, this Agreement
supersedes and replaces any contingent employment agreement entered into
between the Employee and the Company prior to the date of this Agreement which
addresses terms of employment, compensation and severance benefits that would
become available to the Employee in the event of a change of control of the
Company, as that term may be defined in such other contingent employment
agreement.  Accordingly, any such other
contingent employment agreements shall be deemed terminated and of no further
force or effect.

 

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16.           Section 409A.  This Agreement and any payment, distribution
or other benefit hereunder shall comply with the requirements of Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”), or an exemption
or exclusion therefrom, as well as any related regulations or other guidance
promulgated by the U.S. Department of the Treasury or the Internal Revenue
Service (“Section 409A”), to the extent applicable, and shall in all
respects be administered in accordance with Section 409A. To the extent
Employee is a “specified employee” under Section 409A, no payment,
distribution or other benefit described in this Agreement constituting a
distribution of deferred compensation (within the meaning of Treasury
Regulation Section 1.409A-1(b)) to be paid during the six-month period
following Employee’s “separation from service” (within the meaning of Treasury
Regulation Section 1.409A-1(h)) will be made during such six-month period.
Instead, any such deferred compensation shall be paid on the first business day
following the six-month anniversary of the separation from service. In no event
may Employee, directly or indirectly, designate the calendar year of a payment.
Any provision that would cause this Agreement or a payment, distribution or
other benefit hereunder to fail to satisfy the requirements of Section 409A
shall have no force or effect and, to the extent an amendment would be
effective for purposes of Section 409A, the parties agree that this
Agreement shall be amended to comply with Section 409A. Such amendment
shall be retroactive to the extent permitted by Section 409A. For purposes
of this Agreement, Employee shall not be deemed to have terminated employment
unless and until a separation from service (within the meaning of Treasury
Regulation Section 1.409A-1(h)) has occurred. Each payment under this
Agreement shall be treated as a separate payment for purposes of
Section 409A.

 

17.           Governing Law, Severability.  This Agreement is to be governed by and
construed under the internal laws of the State of Wisconsin.  If any provision of this Agreement shall be
held invalid and unenforceable for any reason, such provision shall be deemed
deleted and the remainder of the Agreement shall be valid and enforceable
without such provision.

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first above written.

 

 

	
   

  	
  THE MANITOWOC COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  

 

12Exhibit 10.1

 

AMENDMENT 2010-1 TO THE

BANK OF HAWAII CORPORATION EXECUTIVE INCENTIVE PLAN

 

The
Bank of Hawaii Corporation Executive Incentive Plan is hereby amended as
follows:

 

1.  Section 2.12 is amended to read in its
entirety as follows:

 

2.12         “Net Income” shall mean BOHC’s
consolidated net income before taxes for the Performance Period, as reported in
the annual report to shareholders (or as otherwise reported to BOHC’s
shareholders, or if not reported to BOHC’s shareholders, as reported in BOHC’s
monthly financial reports), adjusted as described in this Section.  The Committee may, in its sole discretion,
provide in the terms of an Award for BOHC’s reported net income to be adjusted
for one or more of the following in determining Net Income:

 

(a)           Expenses associated with
this Plan;

 

(b)           Any extraordinary or unusual
gain or loss transaction;

 

(c)           Securities gains or losses;
and

 

(d)           Dividends on preferred
shares.

 

2.  Section 2.15 is amended to read in its
entirety as follows:

 

2.15         “Performance Period”, with
respect to any Award, shall mean BOHC’s fiscal year, or such other period as
the Committee may specify.

 

3.  Section 7.1 is amended to read in its
entirety as follows:

 

7.1           Termination of Employment
Due to Death, Disability, or Retirement.

 

(a) 
Non-Incentive Pool Awards.  If a
Participant who separates from service because of death, Disability, or
Retirement had been granted a Contingent Award (other than a Contingent Award
covered by Section 7.1(b)) for the Performance Period during which such
death, Disability, or Retirement occurs (a “Termination Year Award”), the
Committee in its sole discretion shall determine whether the Participant is
entitled to the payout of any Final Award with respect to the Termination Year
Award and, if so, the manner in which the Final Award amount will be prorated
and the time at which any such payment shall be made.

 

(b) 
Incentive Pool Awards.  If a Participant who separates from service
because of death, Disability, or Retirement had been granted a Contingent Award
for the Performance Period during which such death, Disability, or Retirement
occurs equal to a percentage of an Incentive Pool established pursuant to Section 5.2
hereof based on

 

 

BOHC’s
Net Income for such Performance Period, then the Participant shall be paid
within 60 days after the Termination Measurement Date (as hereinafter defined)
a Final Award calculated in accordance with the terms of the Contingent Award
but based on BOHC’s Net Income during the portion of the Performance Period
ending on the Termination Measurement Date. 
Notwithstanding the foregoing, the Committee may, in its sole
discretion, reduce or eliminate the amount of any such Final Award under this Section 7.1(b) and
in exercising such discretion may take into account the extent to which the
Participant’s separation from service may have occurred prior to the
Termination Measurement Date.  “Termination
Measurement Date” means the later of (i) the end of the calendar month
immediately preceding the Participant’s separation from service (or the second
immediately preceding calendar month in the case of a separation from service
that occurs prior to the fifteenth day of the calendar month of such separation
from service) or (ii) the first month-end date that would result in the
Contingent Award being granted as of a date that satisfies Treasury Regulation Section 1.162-27(e)(2)(i).  No payment of a Final Award pursuant to this Section 7.1(b) shall
be made prior to the Committee’s certification of Net Income during the portion
of the Performance Period ending on the Termination Measurement Date.

 

(c) 
Alternative Terms.  The terms of a
Contingent Award may provide alternative terms for the treatment of the Award
in the event of death, Disability, or Retirement, in which case such
alternative terms shall apply in lieu of those set forth in this Section 7.1.

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