Document:

Exhibit 4.6

 

EXECUTION
VERSION

 

AMENDMENT NO. 1 TO

AMENDED AND RESTATED CREDIT AGREEMENT

 

This Amendment No. 1 to Amended and Restated Credit Agreement
(this “Amendment”) is entered into as of December 19, 2008 by and
among The Manitowoc Company, Inc., a Wisconsin corporation (the “Borrower”),
the Subsidiary Borrowers signatory hereto (together with the Borrower, the “Borrowers”),
JPMorgan Chase Bank, N.A., individually, as administrative agent (the “Administrative
Agent”) and as Collateral Agent, and the other financial institutions
signatory hereto.

 

RECITALS

 

A.                                   The Borrowers,
the Administrative Agent and the Lenders are party to that certain Amended and
Restated Credit Agreement dated as of August 25, 2008 (the “Credit
Agreement”).  Unless otherwise specified
herein, capitalized terms used in this Amendment shall have the meanings
ascribed to them by the Credit Agreement.

 

B.                                     The Borrowers,
the Administrative Agent and the undersigned Lenders wish to amend the Credit
Agreement on the terms and conditions set forth below.

 

Now,
therefore, in consideration of the mutual execution hereof and other good and
valuable consideration, the parties hereto agree as follows:

 

1.                                       Amendments
to Credit Agreement.  Upon the “Effective
Date” (as defined below), the Credit Agreement shall be amended as follows:

 

(a)                                  The
defined term “Adjusted LIBO Rate” in Section 1.01 of the Credit Agreement
is hereby deleted and replaced with the following:

 

“Adjusted LIBO Rate” means, with respect to any
Eurocurrency Borrowing (or, as applicable, for purposes of determining the
Alternate Base Rate with respect to any ABR Borrowing)  for
any Interest Period, an interest rate per annum (rounded upwards, if necessary,
to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest
Period multiplied by (b) the Statutory Reserve Rate; provided that,
with respect to any Eurocurrency Borrowing denominated in a Foreign Currency,
the Adjusted LIBO Rate shall mean the LIBO Rate.

 

(b)                                 The
defined term “Alternate Base Rate” in Section 1.01 of the Credit Agreement
is hereby deleted and replaced with the following:

 

“Alternate Base Rate” means, for any day, a
rate per annum equal to the greatest of (a) the Prime Rate in effect on
such day, (b) the Base CD Rate in effect on such day plus 1%, (c) the
Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1% and (d) the

 

 

Adjusted LIBO Rate for a one month Interest Period on
such day (or if such day is not a Business Day, the immediately preceding
Business Day) plus 1%, provided that, for the avoidance of doubt, the Adjusted
LIBO Rate for any day shall be based on the rate appearing on the Reuters BBA
Libor Rates Page 3750 (or on any successor or substitute page of such
page) at approximately 11:00 a.m. London time on such day.  Any change in the Alternate Base Rate due to
a change in the Prime Rate, the Base CD Rate, the Federal Funds Effective Rate
or the Adjusted LIBO Rate shall be effective from and including the effective
date of such change in the Prime Rate, the Base CD Rate, the Federal Funds
Effective Rate or the Adjusted LIBO Rate, respectively; provided, however, that in no event shall the Alternate
Base Rate with respect to the Term B Loan at any time be less than 4.50% per
annum.

 

(c)                                  The
defined term “Applicable Rate” in Section 1.01 of the Credit Agreement is
hereby deleted and replaced with the following:

 

“Applicable Rate” means, for any day, (a) with
respect to any ABR Loan or Eurocurrency Loan (other than the Term B Loan), or
with respect to the commitment fees payable hereunder, as the case may be, the
applicable rate per annum set forth in Schedule 1.01 under the caption “ABR
Spread”, “Eurocurrency Spread” or “Commitment Fee Rate”, as the case may be,
based upon the Consolidated Total Leverage Ratio; provided, however,
that for purposes of calculating the Applicable Rate with respect to ABR Loans
bearing interest at the rate determined pursuant to clause (d) of the
definition of Alternate Base Rate, the ABR Spread shall be additionally
increased by 0.50% and (b) with respect to the Term B Loan, (i) 3.50%
per annum with respect to Eurocurrency Loans and (ii) 2.00% per annum with
respect to ABR Loans; provided, however, that such rates with
respect to the Term B Loan shall be 3.25% per annum with respect to
Eurocurrency Loans and 1.75% per annum with respect to ABR Loans during any
time when either Level I Status or Level II Status (in each case as defined on
Schedule 1.01) exists, with such status being determined as set forth on
Schedule 1.01.

 

(d)                                 The
defined term “Foreign Subsidiary” in Section 1.01 of the Credit Agreement
is hereby deleted and replaced with the following:

 

“Foreign Subsidiary” means, as to any Person,
each subsidiary of such Person which is not a Domestic Subsidiary.  For the avoidance of doubt, Newco and the
Target shall be for all purposes hereof considered to be Foreign Subsidiaries.

 

(e)                                  The
defined term “French Pledge Agreements” in Section 1.01 of the Credit
Agreement is hereby deleted and replaced with the following:

 

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“French Pledge Agreements” means the Pledge
Agreement (Acte de Nantissement de Compte d’Instruments Financiers) by
Manitowoc FSG International Holdings, Inc. and the two Pledge Agreements
(Acte de Nantissement de Compte d’Instruments Financiers and Acte de
Nantissement de Parts Sociales) by Manitowoc France SAS, each dated as of the
Effective Date and made in favor of the Collateral Agent for the benefit of the
Secured Creditors.

 

(f)                                    The
defined term “LIBO Rate” in Section 1.01 of the Credit Agreement is hereby
deleted and replaced with the following:

 

“LIBO Rate” means, with respect to any
Eurocurrency Borrowing (or, as applicable, for purposes of determining the
Alternate Base Rate with respect to any ABR Borrowing) for any Interest Period,
the rate per annum determined by the Administrative Agent at approximately
11:00 a.m., London time, on the Quotation Day for such Interest Period by
reference to the British Bankers’ Association Interest Settlement Rates for
deposits in the currency of such Borrowing (as reflected on the applicable
Telerate screen page), for a period equal to such Interest Period; provided
that, to the extent that an interest rate is not ascertainable pursuant to the
foregoing provisions of this definition, the “LIBO Rate” shall be the rate at
which JPMorgan offers to place deposits in the currency of such Borrowing for
such Interest Period to first-class banks in the London interbank market at
approximately 11:00 a.m., London time, on the Quotation Day for such
Interest Period; and provided  further that in no event shall the
LIBO Rate with respect to the Term B Loan at any time be less than 3.00% per
annum.

 

(g)                                 The
defined term “Material Subsidiary” in Section 1.01 of the Credit Agreement
is hereby deleted and replaced with the following:

 

“Material Subsidiary” means a Subsidiary of the
Borrower (a) which has or acquires assets constituting more than the
greater of (i) .50% of the consolidated assets of the Borrower and its
consolidated subsidiaries and (ii) $20,000,000 or (b) which generated
more than 4% of Consolidated Net Income over the four fiscal quarter period
most recently ended prior to the time of computation, but excluding Grove
Australia Pty. Ltd; it
being understood that in calculating Consolidated Net Income for the purposes
of this definition, Consolidated Net Income shall (x) be calculated on a Pro
Forma Basis to give effect to (1) the Target and its Subsidiaries
acquired during or after such period pursuant to the Acquisition and not
subsequently sold or otherwise disposed of by the Borrower or any of its
Subsidiaries during or after such period, (2) any Acquired Entity or
Business acquired during or after such 

 

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period pursuant to a Permitted Acquisition and not
subsequently sold or otherwise disposed of by the Borrower or any of its
Subsidiaries during or after such period and (3) any Subsidiary or
business disposed of during or after such period by the Borrower or any of its
Subsidiaries and (y) exclude any gains or losses on foreign currency
transactions in connection with the Acquisition.

 

(h)                                 Section 1.01
of the Credit Agreement is amended by adding the following definitions in
appropriate alphabetical order:

 

“Alternate Currency Participation Exposure” means, for any
Lender at any time, its Alternate Currency Exposure minus the aggregate amount
of Alternate Currency Loans it holds directly.

 

“Defaulting Lender” means any Lender, as
determined by the Administrative Agent, that has (a) failed to fund any
portion of its Loans or participations in Letters of Credit, Swingline
Loans  or Alternate Currency Loans within
three Business Days of the date required to be funded by it hereunder, (b) notified
the Borrower, the Administrative Agent, the Issuing Bank, the Swingline Lender,
the Alternate Currency Fronting Lender or any Lender in writing that it does
not intend to comply with any of its funding obligations under this Agreement
or has made a public statement to the effect that it does not intend to comply
with its funding obligations under this Agreement or under other agreements in
which it commits to extend credit, (c) otherwise failed to pay over to the
Administrative Agent or any other Lender any other amount required to be paid
by it hereunder within three Business Days of the date when due, unless the
subject of a good faith dispute, or (d) become the subject of a bankruptcy
or insolvency proceeding, or has had a receiver, conservator, trustee or
custodian appointed for it, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding
or appointment.

 

“Permitted
Transactions” means transactions entered into to facilitate corporate
restructurings or lawful tax planning, in either event, otherwise permitted by
this Agreement, which transactions are comprised of either (a) loans,
capital contributions, or other transfers (in each case consisting exclusively
of book entries, cash (by wire or otherwise) or intercompany obligations and
not any other type of asset) by Credit Parties to External Subsidiaries but
only if the amount of such transfers is returned to a Domestic Credit Party (if
the initial Credit Party transferor was a Domestic Credit Party) or to any
Credit Party (if the initial Credit Party transferor was a Foreign Credit
Party) in the same form as made (i.e., a cash capital contribution shall be
returned in cash) 

 

4

 

promptly, but
in no event later than the Business Day next following the date of the initial
transfer or (b) loans, capital contributions, or other transfers (in each
case consisting exclusively of book entries, cash (by wire or otherwise) or
intercompany obligations and not any other type of asset) by External
Subsidiaries to Credit Parties but only if the amount of such transfers is
returned to an External Subsidiary in the same form as made (i.e., a cash
capital contribution shall be returned in cash) promptly, but in no event later
than the Business Day next following the date of the initial transfer;
provided, however, that (A) if any of the foregoing transactions shall
involve transfers of funds from the Borrower or a Subsidiary to the Borrower or
any other Subsidiary, such transfers shall be accomplished by (i) book
entries on the accounts of the Borrower or such Subsidiary maintained with the
Administrative Agent or (ii) wire transfers to accounts of the Borrower or
such Subsidiary maintained with the Administrative Agent or its Affiliates; (B) such
transactions shall not be detrimental to the interests of the Lenders and  shall occur at a time when no Default shall
have occurred and be continuing; and (C) the Borrower has given the
Administrative Agent at least 10 days (or such lesser number of days as the
Administrative Agent may agree) prior written notice of its intent to engage in
or cause such transactions, accompanied by a reasonably detailed description of
same.

 “Restructuring
Transactions” means, collectively, the loans, forgivenesses of
Indebtedness, capital contributions and other transfers and investments
substantially as described on Schedule 1.05 hereto.

 

(i)                                     Article II
of the Credit Agreement is hereby amended by adding a new Section 2.23 as
follows:

 

SECTION 2.23.                 Defaulting
Lenders.

 

Notwithstanding
any provision of this Agreement to the contrary, if any Lender with a Revolving
Commitment or Revolving Credit Exposure becomes a Defaulting Lender, then the
following provisions shall apply for so long as such Lender is a Defaulting
Lender:

 

(a)                                  if
any Swingline Exposure, LC Exposure or Alternate Currency Participation
Exposure of such Lender exists at the time a Lender is a Defaulting Lender,  the
Applicable Borrower shall within one Business Day following notice by the
Administrative Agent (i) prepay such Swingline Exposure or, if agreed by
the Swingline Lender, cash collateralize the Swingline Exposure of the 

 

5

 

Defaulting Lender on terms satisfactory to the
Swingline Lender, (ii) cash collateralize such Defaulting Lender’s LC
Exposure in accordance with the procedures set forth in Section 2.06(j) for
so long as such LC Exposure is outstanding and (iii) prepay all Alternate
Currency Exposure (other than Alternate Currency Borrowings as to which such
Lender is not a Participating Lender) or, if agreed by the Alternate Currency
Fronting Lender, cash collateralize the Alternate Currency Participation
Exposure of the Defaulting Lender on terms satisfactory to the Alternate
Currency Fronting Lender; and

 

(b)                                 the
Swingline Lender shall not be required to fund any Swingline Loan, the Issuing
Bank shall not be required to issue, amend or increase any Letter of Credit and
no Alternate Currency Lender shall be required to fund any Alternate Currency
Borrowing as to which such Defaulting Lender would be a Participating Lender
unless, in each case, the Swingline Lender, the Issuing Bank or the Alternate
Currency Fronting Lender, as applicable, is satisfied that cash collateral will
be provided by the Applicable Borrower in accordance with Section 2.23(a).

 

(j)                                     Section 2.20(b) of the
Credit Agreement is hereby deleted and replaced with the following:

 

(b)           If any Lender requests compensation
under Section 2.16, or if any of the Borrowers is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.18, or if any Lender becomes a
Defaulting Lender, then the Borrower may, at its sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender to
assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in Section 9.04), all its interests, rights and
obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Borrower shall have received the
prior written consent of the Administrative Agent (and if a Revolving
Commitment is being assigned, the Issuing Bank), which consent shall not
unreasonably be withheld, (ii) such Lender shall have received payment of
an amount equal to the outstanding principal of its Loans and participations in
LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder, from the assignee (to the extent
of such outstanding principal and accrued interest and fees) or the Borrower
(in the case of all other amounts) and (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.16 or
payments required to be made pursuant to 

 

6

 

Section 2.18, such
assignment will result in a reduction in such compensation or payments.  A Lender shall not be required to make any
such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment and delegation cease to apply.

 

(k)                                  The final sentence of Section 2.21(a) of
the Credit Agreement is hereby deleted and replaced with the following:

 

Upon any such designation of a Wholly-Owned Foreign
Subsidiary and the consent of each of the Lenders with a Revolving Commitment,
which will not be unreasonably withheld, such Subsidiary shall be a Subsidiary
Borrower hereunder (with the related rights and obligations) and shall be
entitled to request (i) Revolving
Loans, (ii) Alternate Currency Loans in one or more specified Alternate
Currencies from such Alternate Currency Lenders as shall agree to make
Alternate Currency Loans to such Subsidiary Borrower or (iii) a
combination of the foregoing, on and subject to the terms and conditions
of, and to the extent provided in, this Agreement; provided, however,
that if the Borrower so indicates in the applicable Designation Letter, the
Subsidiary Borrower may be entitled to request only Alternate Currency Loans,
in which case such Subsidiary Borrower shall then be entitled to request only
Alternate Currency Loans on and subject to the terms and conditions of, and to
the extent provided in, this Agreement and the consent to such designation of
only the Administrative Agent and the applicable Alternate Currency Lenders
shall be required.

 

(l)                                     The first sentence of Section 5.13(c) of
the Credit Agreement is hereby deleted and replaced with the following:

 

(c)                                  Without
limiting the provisions of Sections 5.10(c) or 5.13, the Borrower agrees
that within 60 days after the Initial Borrowing Date (and periodically
thereafter as the Administrative Agent may request) it will identify to the
Administrative Agent by written notice each Foreign Subsidiary that is a
Material Subsidiary  of the
Borrower which may (i) become a guarantor of some or all of the
Obligations, (ii) have 65% or more of its Equity Interests pledged to
secure some or all of the Obligations or (iii) pledge its assets to secure
some or all of the Obligations (each of the foregoing being “Credit Support”),
in each case (A) without having an adverse tax or other financial
consequence to the Borrower or any of its Subsidiaries in any material respect,
(B) solely to the extent any of the foregoing actions could not reasonably
be expected to result in personal liability to the directors of such Foreign
Subsidiary and 

 

7

 

(C) solely to the extent any of the foregoing
actions are not otherwise prohibited by applicable law (any of the actions
described in (i) — (iii) above which do not have any of the
consequences described in (A) — (C) above being “Permitted Credit
Support”).

 

(m)                               Section 6.01(f) of the
Credit Agreement is hereby deleted and replaced with the following:

 

(f)                                    Indebtedness
of a Subsidiary of the Borrower acquired pursuant to the
Acquisition or a Permitted Acquisition (or Indebtedness assumed at
the time of the Acquisition or a Permitted
Acquisition of an asset securing such Indebtedness), provided that (i) such
Indebtedness was not incurred in connection with, or in anticipation or
contemplation of, the Acquisition or
such Permitted Acquisition, (ii) such Indebtedness does not constitute
debt for borrowed money, it being understood and agreed that Capital Lease
Obligations and purchase money Indebtedness shall not constitute debt for
borrowed money for purposes of this clause (ii) and (iii) the
aggregate principal amount of all Indebtedness permitted by this clause (f) to
be outstanding at any time shall not exceed $50,000,000 minus the aggregate
principal amount of Indebtedness outstanding under Section 6.01(s);

 

(n)                                 Section 6.01(n) of the Credit
Agreement is hereby deleted and replaced with
the following:

 

(n) Indebtedness consisting of guarantees (v) by
the Borrower of the pension obligations of Enodis Group Limited, (w) by
the Domestic Credit Parties of each other’s Indebtedness and lease and other
contractual obligations permitted under this Agreement, (x) by the Foreign
Credit Parties of each other’s and each Domestic Credit Party’s Indebtedness
and lease and other contractual obligations permitted under this Agreement, (y) by
External Subsidiaries of each other’s and each Credit Party’s Indebtedness and
lease and other contractual obligations permitted under this Agreement or (z) by
any Credit Party of any Indebtedness and lease and other contractual
obligations permitted under this Agreement of any External Subsidiary (or by
any Domestic Credit Party of any Indebtedness and lease and other contractual
obligations permitted under this Agreement of any Foreign Credit Party) so long
as the amount of such Guarantee under this clause (z), when aggregated with (1) the
aggregate outstanding principal amount of Intercompany Loans which are
restricted in amount by the proviso to Section 6.05(i) and (2) the
aggregate amount of contributions, capitalizations and debt forgiveness which
are 

 

8

 

restricted in amount by the proviso to Section 6.05(j) and
which have theretofore been made and not repaid do not at any time exceed the
Dollar Equivalent of $80,000,000;

 

(o)                                 Section 6.01(r) of the
Credit Agreement is hereby deleted and replaced with the following:

 

(r)                                    Indebtedness
incurred in consummating the Funding Transactions, the Restructuring Transactions and the Permitted Transactions; and

 

(p)                                 Section 6.02(m) of the
Credit Agreement is hereby deleted and replaced with the following:

 

(m)                               Liens
on property or assets acquired pursuant to the Acquisition or a
Permitted Acquisition, or on property or assets of a Subsidiary of the Borrower
in existence at the time such Subsidiary is acquired pursuant to the Acquisition or a Permitted Acquisition; provided
that (i) any Indebtedness that is secured by such Liens is permitted to
exist under Section 6.01(f), (ii) such Liens are not created in
connection with, or in contemplation or anticipation of, the
Acquisition or such Permitted Acquisition and do not attach to any
other asset of the Borrower or any of its Subsidiaries and (iii) such
Liens secure no more than the aggregate principal amount of the Indebtedness,
if any, secured by such Liens on the date of the
Acquisition or the Permitted
Acquisition;

 

(q)                                 Section 6.03 of the Credit Agreement is
hereby amended by deleting the word “and” at the conclusion of subsection
6.03(a)(xix), replacing the “.” at the conclusion of subsection 6.03(a)(xx)
with “; or” and adding a new subsection 6.03(a)(xxi) as follows:

 

(xxi)                           the Borrower may transfer assets to any
Wholly-Owned Subsidiary of the Borrower, and any Wholly-Owned Subsidiary of the
Borrower may transfer assets to the Borrower or to any other Wholly-Owned
Subsidiary, in connection with the Restructuring Transactions and the Permitted
Transactions.

 

(r)                                    The second sentence of Section 6.04 of
the Credit Agreement is hereby deleted and replaced with the following:

 

Notwithstanding
clause (b) of this Section 6.04, other than in connection with the
Restructuring Transactions and the Permitted Transactions, a Foreign Credit
Party may not pay any dividend to an External Subsidiary unless (x) such
dividend is substantially contemporaneously therewith directly or indirectly
remitted as a dividend or distribution to a Domestic Credit Party, (y) such
dividend is in the form of an intercompany note payable of such 

 

9

 

Foreign Credit
Party which is subordinated on terms satisfactory to the Administrative Agent
to the obligations of such Foreign Credit Party under the Credit Documents (a “Dividend
Note”) or (z) at the time such dividend is paid no Default has
occurred and is continuing and, after giving effect to such dividend, the “Outflow
Amount” (as defined below) does not exceed €30,000,000.

 

(s)                                  Section 6.05(i) of the
Credit Agreement is hereby deleted and replaced with the following:

 

(i)                                     the
Borrower and its Wholly-Owned Subsidiaries may make intercompany loans and
advances between and among one another (collectively, “Intercompany Loans”);
provided that (I) at no time shall the sum of (A) the
aggregate outstanding principal amount of all Intercompany Loans (excluding
Intercompany Loans outstanding on the Effective Date and set forth on Schedule
1.02 and Intercompany Loans permitted by 6.05(o)) made pursuant to this clause (i) by
Credit Parties to External Subsidiaries or by Domestic Credit Parties to
Foreign Credit Parties, plus (B) the aggregate amount of contributions,
capitalizations and forgiveness (excluding any contributions, capitalizations
and forgivenesses permitted by Section 6.05(o))  theretofore
made by Credit Parties to (or in respect of) External Subsidiaries and by
Domestic Credit Parties to (or in respect of) Foreign Credit Parties, in each
case pursuant to Section 6.05(j) (net of cash equity returns), plus (C) the
outstanding amount of Guarantees issued pursuant to Section 6.01(n)(z) exceed
the Dollar Equivalent of $80,000,000 (determined without regard to any
write-downs or write-offs of such Intercompany Loans), (II) no
Intercompany Loans may be made by a Credit Party to an External Subsidiary or
by a Domestic Credit Party to a Foreign Credit Party at a time that an Event of
Default exists and is continuing, (III) any such Intercompany Loan made by
a Credit Party shall be evidenced by an Intercompany Note which shall be
pledged to the Collateral Agent to the extent required pursuant to the US
Pledge Agreement, and (IV) each Intercompany Loan made to any Credit Party
by an External Subsidiary shall include (or, if not evidenced by an
Intercompany Note, the books and records of the respective parties shall note
that such Intercompany Loan shall be subject to) the subordination provisions
attached as Annex A to the form of Intercompany Note;

 

(t)            Section 6.05(j) of
the Credit Agreement is hereby deleted and replaced with the following:

 

(j)                                     the
Borrower and its Wholly-Owned Subsidiaries may make cash capital contributions
to their respective Wholly-Owned Subsidiaries, and may capitalize or forgive
any Indebtedness owed

 

10

 

to them by a Wholly-Owned
Foreign Subsidiary or a
Wholly-Owned Domestic Subsidiary and outstanding under clause (i) of
this Section 6.05; provided that (I) at no time shall the sum
of (A) the aggregate amount of such contributions, capitalizations and forgiveness
(excluding any contributions, capitalizations and forgivenesses permitted by Section 6.05(o))
made by Credit Parties to External Subsidiaries or by Domestic Credit Parties
to Foreign Credit Parties (net of cash equity returns), plus (B) the
aggregate outstanding principal amount of Intercompany Loans (excluding
Intercompany Loans outstanding on the Effective Date and set forth on Schedule
1.02 and Intercompany Loans permitted by 6.05(o)) made by Credit Parties to
External Subsidiaries and by Domestic Credit Parties to Foreign Credit Parties,
in each case pursuant to Section 6.05(i) (determined without regard
to any write-downs or write-offs thereof), plus (C) the outstanding amount
of Guarantees issued pursuant to Section 6.01(n)(z), exceed the Dollar
Equivalent of $80,000,000, (II) Credit Parties may only make capital
contributions to, and capitalize or forgive any Indebtedness owed to them by, a
Wholly-Owned Foreign Subsidiary pursuant to this clause (j) to the extent (A) required
to comply with any thin capitalization rules applicable to such
Wholly-Owned Foreign Subsidiary or (B) that the making of Intercompany
Loans to such Wholly-Owned Foreign Subsidiary would have adverse tax
consequences to the Credit Party making the same, and (III) no such contributions,
capitalizations or forgivenesses may be made by a Credit Party to a External
Subsidiary or by a Domestic Credit Party to a Foreign Credit Party at any time
that an Event of Default exists and is continuing;

 

(u)           Section 6.05(k) of
the Credit Agreement is hereby deleted and replaced with the following:

 

(k)           the Borrower and its Subsidiaries may
make transfers of assets among the Borrower and its Subsidiaries as permitted
by Sections 6.03(a)(ix), (x), (xi) and (xxi);

 

(v)           Section 6.05(o) of
the Credit Agreement is hereby deleted and replaced with the following:

 

(o)           the Borrower and its Subsidiaries may
consummate the Funding Transactions, the Restructuring Transactions and the
Permitted Transactions (subject, in the case of Intercompany Loans with respect
to the Restructuring Transactions and the Permitted Transactions, to the
requirements of clauses (II), (III) and (IV) of Section 6.05(i)).

 

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(w)          Section 6.09(a) of
the Credit Agreement is hereby deleted and replaced with the following:

 

(a)           make (or give any notice in respect
of) any voluntary or optional payment or prepayment on or redemption or
acquisition for value of, or any prepayment or redemption as a result of any
asset sale, change of control or similar event of (including in each case,
without limitation, by way of depositing with the trustee with respect thereto
or any other Person money or securities before due for the purpose of paying
when due), (i) any Indebtedness (other than the Obligations) unless no
Default has occurred and is continuing, (ii) any Indebtedness which is
subordinated to any of the Obligations (other than Intercompany Loans)  or (iii) any Senior Notes unless the Consolidated
Total Leverage Ratio immediately prior to and after giving effect to making
such payment is less than 2.00 to 1.00;

 

(x)            The
second sentence of the final paragraph of Section 8.01 of the Credit
Agreement is hereby deleted and replaced with the following:

 

Each of the Administrative Agent, the Collateral Agent and the UK
Security Trustee shall also be authorized, on behalf of the Lenders, to (i) enter
into such amendments of the Security Documents and to enter into such
agreements (including intercreditor agreements but excluding any releases of
Collateral not otherwise authorized hereby) as, in either case, it deems
necessary or appropriate in connection with a Permitted Securitization and (ii) execute
releases of Collateral being transferred from the Borrower or a Subsidiary
to the Borrower or a Subsidiary in a transaction permitted hereby and in
connection with which such Collateral is substantially contemporaneously
repledged (with the same priority as the released pledge or security interest)
to the Administrative Agent, the Collateral Agent  or  the UK
Security Trustee, as applicable, for the benefit of the Secured Creditors.

 

(y)           A
new Schedule 1.05 to the Credit Agreement is hereby added to the Credit
Agreement in the form of Schedule 1.05 attached hereto.

 

2.             Confirmation.  For the avoidance of doubt, the parties
confirm and agree that the term “Other Creditor” and “Secured Creditor” as used
in the US Security Agreement and the other Security Documents shall include
Lenders and their Affiliates which were party to Swap Agreements or Bank Product
Agreements (as defined in the US Security Agreement) in existence as of the
Effective Date or the Restatement Date.

 

3.             Representations
and Warranties of the Borrowers.  The
Borrowers represent and warrant that:

 

12

 

(a)           The execution,
delivery and performance by the Borrowers of this Amendment have been duly
authorized by all necessary corporate action and that this Amendment is a
legal, valid and binding obligation of the Borrowers enforceable against the
Borrowers in accordance with its terms, except as the enforcement thereof may
be subject to  the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or similar law
affecting creditors’ rights generally;

 

(b)           Each of the representations
and warranties contained in the Credit Agreement is true and correct in all
material respects (except that any representation or warranty which is already
qualified as to materiality or by reference to Material Adverse Effect is true
and correct in all respects) on and as of the date hereof (other than
representations and warranties that relate solely to an earlier date);

 

(c)           After giving effect
to this Amendment, no Default has occurred and is continuing.

 

4.             Effective
Date.  This Amendment shall become
effective upon the execution and delivery hereof by the Borrowers, the
Administrative Agent and the Required Lenders (without respect to whether it
has been executed and delivered by all the Lenders); provided that Sections 1
and 2 hereof shall not become effective until the date (the “Effective Date”)
when the following additional conditions have also been satisfied:

 

(a)           The execution and
delivery by Kysor Nevada Holding Corp. of a joinder to the Subsidiary Guaranty
and the US Security Agreement, in form and substance acceptable to the
Administrative Agent.

 

(b)           Each of the Credit
Parties shall have executed and delivered to the Administrative Agent a
Reaffirmation of Guaranty and Collateral Documents in the form of Exhibit A
hereto.

 

(c)           The Administrative Agent shall have
received an executed legal opinion from Foley & Lardner LLP in form
and substance satisfactory to the Administrative Agent.  The Borrower hereby requests such counsel to
deliver such opinion.

 

(d)           The Borrowers shall
have provided such other corporate and other certificates, opinions, documents,
instruments and agreements as the Administrative Agent may reasonably request.

 

The Administrative
Agent shall notify the Borrower and the Lenders promptly of the occurrence of
the Effective Date and such notice shall be conclusive and binding on all
parties hereto.  In the event
the Effective Date has not occurred on or before December 19, 2008,
Sections 1 and 2 hereof shall not become operative and shall be of no force or
effect.

 

13

 

5.             Reference
to and Effect Upon the Credit Agreement.

 

(a)           Except as
specifically amended or waived above, the Credit Agreement and the other Credit
Documents shall remain in full force and effect and are hereby ratified and
confirmed in all respects.

 

(b)           The execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of
any right, power or remedy of the Administrative Agent, the Collateral Agent or
any Lender under the Credit Agreement or any other Credit Document, nor
constitute a waiver of any provision of the Credit Agreement or any other
Credit Document, except as specifically set forth herein.  Upon the effectiveness of this Amendment,
each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”,
“herein” or words of similar import shall mean and be a reference to the Credit
Agreement as amended hereby.

 

(c)           This Amendment shall
be deemed to be a Credit Document for all purposes of the Credit Documents.

 

6.             Costs
and Expenses.  The Borrower hereby
affirms its obligations under Section 9.03 of the Credit Agreement to
reimburse the Administrative Agent for all reasonable out-of-pocket expenses
incurred by the Administrative Agent in connection with the preparation, negotiation,
execution and delivery of this Amendment, including but not limited to the
reasonable fees, charges and disbursements of attorneys for the Administrative
Agent with respect thereto.

 

7.             Governing
Law.  This Agreement shall be
construed in accordance with and governed by the law (without regard to
conflict of law provisions) of the State of New York.

 

8.             Headings.  Section headings in this Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purposes.

 

9.             Counterparts.  This Amendment may be executed in any number
of counterparts, each of which when so executed shall be deemed an original but
all such counterparts shall constitute one and the same instrument.

 

[SIGNATURE PAGES FOLLOW]

 

14

 

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

 

	
   

  	
  THE MANITOWOC COMPANY,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC EMEA HOLDING
  SARL

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC HOLDING ASIA SAS

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Amendment No. 1 to
Amended and Restated Credit Agreement]

 

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.,
  individually and as Administrative Agent and Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Amendment No. 1 to
Amended and Restated Credit Agreement]

 

 

	
   

  	
  DEUTSCHE BANK AG NEW YORK
  BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Amendment No. 1 to
Amended and Restated Credit Agreement]

 

 

	
   

  	
  MORGAN STANLEY SENIOR
  FUNDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Amendment No. 1 to
Amended and Restated Credit Agreement]

 

 

	
   

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Amendment No. 1 to
Amended and Restated Credit Agreement]

 

 

	
   

  	
  [ADDITIONAL LENDER
  SIGNATURE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Amendment No. 1 to
Amended and Restated Credit Agreement]

 

 

Schedule 1.05

 

RESTRUCTURING TRANSACTIONS

 

The Borrower
and its Subsidiaries intend to engage in a number of intercorporate
transactions to integrate the corporate structure of Enodis Ltd. (“Enodis”) and
its subsidiaries with the existing corporate structure of the Borrower and its
pre-existing Subsidiaries, and to maximize the financial performance of the
Borrower and its Subsidiaries on a consolidated basis.

 

1.                                       Repayment
of Enodis’s Private Placement and Revolving Credit Agreement Obligations.

 

Shortly after
the funding of the Loans under the Credit Agreement, the Borrower provided $235
million and £86 million to Enodis  to enable
Enodis to pay off the Target Debt, as required by the Credit Agreement.  The Borrower proposes to characterize these
transfers of funds as loans to Enodis, rather than as capital contributions, as
of the Effective Date of Amendment No. 1 to Amended and Restated Credit
Agreement.  These loans will be payable
in pounds and will total £235.128 million.

 

2.                                       Buyout
of the Enodis Stock Options Held by Employees of Enodis.

 

Shortly after
the funding of the Loans under the Credit Agreement, the Borrower provided
£10,665,282.93 to Enodis Holdings Ltd. and $54,123,679.36 to Enodis Corporation
to buy out the Enodis stock options held by employees of Enodis as required in
connection with the acquisition transaction. 
The Borrower proposes to characterize these transfers of funds as loans
rather than as capital contributions, as of the Effective Date of Amendment No. 1
to Amended and Restated Credit Agreement.

 

3.                                       German
Restructuring.

 

The Borrower
proposes to combine the German subsidiaries of Enodis with the pre-existing
German subsidiaries of the Borrower, both to rationalize the corporate
organization and to permit the filing of a consolidated income tax return in
Germany.  As part of that transaction,
the Borrower would contribute to Manitowoc Finance (Luxembourg) S.a.r.l.
approximately £203 million of its notes receivable from Enodis.

 

4.                                       U.S.
Restructuring.

 

The U.S.
Subsidiaries of Enodis are currently owned by foreign entities.  The Borrower proposes to bring the Domestic
Subsidiaries of Enodis under the direct ownership of the Borrower and its
pre-existing Domestic Subsidiaries, without the intervention of any foreign
entities.  This will rationalize the
business organization; allow the Borrower and all of the Domestic Subsidiaries
to file a single consolidated federal income tax return in the United States,
and permit the pledge of 100% of the stock of these entities to the Lenders.

 

 

As part of
those transaction, Boek- en Offset Drukkerij Kuyte BV, which is a Foreign
Subsidiary, would sell its shares of Enodis Holdings Inc. to the Borrower or a
Domestic Subsidiary of the Borrower in exchange for an intercompany note for
£840 million.  After a series of
intermediate steps, this note will be transferred to the Borrower and its
Domestic Subsidiaries and eliminated.

 

5.                                       Enodis
Intercompany Loan Transactions.

 

The Borrower
proposes to finalize the journal entries for several non-cash transactions to
settle intercompany loans involving the Target and its Subsidiaries as of the
Effective Date of Amendment No. 1 to Amended and Restated Credit
Agreement.  The net effect of these
transactions is to increase the assets of the U.S. Subsidiaries of the Target.

 

6.                                       French
Thin Capitalization Planning.

 

The Borrower
and Subsidiaries intend to enter into a series of transactions which will
result in Manitowoc France SAS becoming liable for a payable in the amount of €178
million, which was previously owed by Manitowoc Holding Asia SAS, which is a
Subsidiary Borrower.

 

7.                                       Sale
of Ice Business.

 

The Borrower
will be required by the antitrust authorities to sell certain subsidiaries in
the ice business.  These sales are described
as Divestiture Transactions in the Credit Agreement.  The Subsidiaries to be sold are parties to
intercompany loan transactions with other subsidiaries of the Borrower.  The Borrower proposes to arrange for the
payment, forgiveness, or other settlement of these intercompany loan
transactions shortly before the required Divestiture Transactions take place.

 

 

EXHIBIT A

 

REAFFIRMATION OF GUARANTY
AND COLLATERAL DOCUMENTS

 

Each of the undersigned acknowledges receipt
of a copy of that certain Amendment No. 1 to Amended and Restated Credit
Agreement dated as of the date hereof (the “Amendment”) relating to the
Credit Agreement dated as of August 25, 2008 (the “Credit Agreement”)
referred to therein, consents to the Amendment and each of the transactions
referenced therein, hereby (i) reaffirms its obligations under the
Subsidiary Guaranty, the Parent Guaranty and each other Security Document to
which it is a party and agrees that all references in any such other Credit
Document to the “Credit Agreement” shall mean and be a reference to the Credit
Agreement as amended by the Amendment and (ii) confirms and acknowledges
its agreement to the matters set forth in Section 2 of the Amendment.  Capitalized terms used herein, but not
otherwise defined herein, shall have the meanings ascribed to such terms in the
Credit Agreement, as amended by the Amendment.

 

Dated as of December 19, 2008

 

	
   

  	
  THE MANITOWOC COMPANY,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC EMEA HOLDING
  SARL

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC HOLDING ASIA SAS

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC CRANE COMPANIES, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
   

  	
  MANITOWOC FOODSERVICE COMPANIES, INC.

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC MARINE GROUP LLC

  
	
   

  	
   

  
	
   

  	
  By: The Manitowoc Company, Inc., its sole
  managing member

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC CRANES, INC.

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GROVE U.S. L.L.C.

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC FSG HOLDINGS, INC.

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC FP, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC FSG OPERATIONS, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Reaffirmation of
Guaranty and Collateral Documents]

 

 

	
   

  	
  MMG HOLDING CO., LLC

  
	
   

  	
   

  
	
   

  	
  By: The Manitowoc Company, Inc., its sole managing
  member

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MARINETTE MARINE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MCCANN’S ENGINEERING & MANUFACTURING CO.,
  LLC

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC FRANCE SAS

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANITOWOC FSG INTERNATIONAL HOLDINGS, INC. (f/k/a
  North Central Crane & Excavator Sales Corp.)

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MCCALL REFRIGERATION, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Reaffirmation of Guaranty and Collateral Documents]Exhibit 10.1

 

THE
MANITOWOC COMPANY, INC.

 

DEFERRED
COMPENSATION PLAN

 

Effective June 30,
1993

 

and

 

Amended and Restated Through December 31,
2008

 

 

Table of Contents

 

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
  PURPOSE AND EFFECTIVE DATE

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  AGREEMENTS AND ELECTIONS TO DEFER

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  INVESTMENT
  DIRECTIONS

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  DISTRIBUTIONS

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  ACCOUNTS

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  EMPLOYER
  CONTRIBUTIONS

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  MANITOWOC STOCK

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  GENERAL PROVISIONS

  	
  16

  
	
   

  	
   

  	
   

  

 

	
  December 31, 2008

  	
   

  	
  Amended for 409A

  

 

i

 

ARTICLE 1

PURPOSE AND EFFECTIVE DATE

 

Section 1.1             Purpose.

 

The purpose of The
Manitowoc Company, Inc. Deferred Compensation Plan (the “Plan”) is to
promote the best interests of The Manitowoc Company, Inc. (the “Company”)
and its subsidiaries and affiliates and the stockholders of the Company by (1) attracting
and retaining well-qualified persons for service as non-employee directors of
the Company and promoting identity of interest between directors and
stockholders of the Company; and (2) attracting and retaining key
management employees possessing a strong interest in the successful operation
of The Manitowoc Company, Inc. and its subsidiaries and affiliates
(collectively referred to herein as the “Employer”) and encouraging their
continued loyalty, service, and counsel to the Employer.  It is intended that the Plan will allow
participants to elect voluntarily to defer and convert, in the case of
non-employee directors, all or a portion of their retainer and meeting fees for
services as a director and, in the case of key employees, a portion of their
compensation, into Manitowoc Stock and other investments for payment upon
retirement, death, disability, or designated distribution date.

 

Section 1.2             Effective
Date of Plan and Prior Amendments.

 

The effective date
of the Plan is June 30, 1993.  The
Plan was amended and restated on May 7, 1996, to permit participation by
key employees of subsidiaries adopting the Plan and on February 18, 1997,
to conform to Rule 16b-3.  The Plan
was further amended as of March 31, 2002, to modify investment options
under the Plan and to simplify rules pertaining to distribution elections.

 

Section 1.3             Grandfathered Accounts and Code Section 409A.

 

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

 

1

 

ARTICLE 2

DEFINITIONS

 

The following terms have the following
meanings unless the context clearly indicates otherwise:

 

Section 2.1             Administrator.

 

“Administrator” means a committee of the
Board composed of not less than two directors, each of whom shall qualify as a “Non-Employee
Director” within the meaning of Rule 16b-3, or such other committee or
officer of the Company designated by the Board.

 

Section 2.2             Agreement.

 

“Agreement” means the agreement (as approved as to form by the
Administrator) entered into between the Employer and a Participant, whereby the
Participant agrees to defer a portion of the Participant’s Compensation
pursuant to the provisions of the Plan and the Employer agrees to make benefit
payments in accordance with the terms of the Plan.  An Agreement may be an “Initial Agreement”
applicable to a Participant or a “Modified Agreement.”

 

Section 2.3             Beneficiary.

 

“Beneficiary” means the person or entity designated by the Participant
to be the beneficiary of the Deferred Compensation Account of the Participant.  If a valid designation of Beneficiary is not
in effect at the time of the death of a Participant, the estate of the
Participant is deemed to be the sole Beneficiary of such Account.  If a Participant dies before receiving full
distribution of such Participant’s Account, any remaining distributions shall
be made to the Beneficiary.  If a
Beneficiary dies while entitled to receive distributions from the Plan, any
remaining payments shall be paid to the estate of the Beneficiary.  Beneficiary designations shall be in writing,
filed with the Administrator, and in such form as the Administrator may
prescribe for this purpose.

 

Section 2.4             Board.

 

“Board” means the Board of Directors of the Company.

 

Section 2.5             Change
of Control.

 

“Change of Control” means, for Grandfathered
Accounts, the first to occur of the following:

 

(a)           The acquisition by any person or
entity, or group thereof acting in concert, of beneficial ownership of
securities of the Company which, together with securities previously owned, confer
upon the holder the voting power, on all matters brought to a vote of
stockholders, of thirty percent (30%) or more of all the then outstanding
shares of the Company.

 

2

 

(b)           The sale, assignment or transfer of
assets (or earning power) of the Company or any subsidiary or subsidiaries, in
a transaction or series of transactions, to a twenty percent (20%) stockholder
(as herein defined) or any affiliate of a twenty percent (20%) stockholder, if
the aggregate market value thereof exceeds fifty percent (50%) of the aggregate
book value, determined by the Company in accordance with generally accepted
accounting principles, of all the assets (or earning power) of the Company
determined on a consolidated basis before such transaction or the first of such
transactions, unless the Board approved such transaction or transactions before
the date on which the twenty percent (20%) stockholder became a twenty percent
(20%) stockholder.  For purposes of this
definition of Change of Control, a twenty percent (20%) stockholder means any
person, entity, or group of persons and/or entities acting in concert, who or
which, together with such stockholder, and its or their affiliates and
associates, is the beneficial owner of securities of the Company which confer
upon the holder the voting power, on all matters brought to a vote of
stockholders, of twenty percent (20%) or more of all the then outstanding
shares of the Company.

 

(c)           The merger or consolidation of the
Company (or of one or more subsidiaries of the Company, in a transaction or
series of transactions, if the aggregate book value of the assets thereof
exceeds fifty percent (50%) of the aggregate book value of all the assets of
the Company determined on a consolidated basis before such transaction or the
first of such transactions), with or into a twenty percent (20%) stockholder or
any affiliate of a twenty percent (20%) stockholder, unless the Board approved
such merger or consolidation before the date on which the twenty percent (20%)
stockholder first became a twenty percent (20%) stockholder.

 

(d)           The dissolution of the Company,
unless the Board approved such dissolution before the date on which the twenty
percent (20%) stockholder first became a twenty percent (20%) stockholder.

 

(e)           Change in the composition of the
Board after which a majority of the members thereof are not continuing
directors.  Continuing director, for this
purpose, means (i) any member of the Board while such person is a member
of the Board, who is not an acquiring person, or an affiliate or associate of
an acquiring person, or a representative of an acquiring person or of any such
affiliate or associate, and was a member of the Board prior to July 4,
1993, or (ii) any person who subsequently becomes a member of the Board,
who is not an acquiring person, or an affiliate or associate of an acquiring
person, or a representative of an acquiring person or of any such affiliate or
associate, if such person’s nomination for election or election to the Board is
recommended or approved by a majority of the continuing directors.  As used herein, affiliate and associate shall
have the respective meanings ascribed to such terms in Rule 12b-2 under
the Exchange Act.

 

(f)            The commencement (within the meaning
of Rule 14d-2 of the General Rules and Regulations under the Exchange
Act) of a tender or exchange offer which, if successful, would result in a
change of control of the Company.

 

(g)           A determination by the Board, in view
of then current circumstances or impending events, that a change of control of
the Company has occurred or is imminent, which determination shall be made for
the specific purpose of triggering the operative provisions of the Company’s
contingent employment agreements.

 

3

 

For Non-Grandfathered Accounts, a “Change of
Control” means the first event that would be a “Change of Control” for a
Grandfathered Account and which would also satisfy the requirements of
Code Section 409A(a)(2)(A)(v).

 

Section 2.6             Company.

 

“Company” means The Manitowoc Company, Inc., a Wisconsin
corporation, or any successor corporation.

 

Section 2.7             Code.

 

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

 

Section 2.8             Compensation.

 

“Compensation” means (i) for
non-employee director Participants, the Retainer Fee and (ii) for key
employee Participants, “Compensation” has the same meaning as the term “eligible
compensation,” as defined in The Manitowoc Company, Inc. 401(k) Retirement
Plan and incorporated herein by this reference, without regard to the dollar
limits applied to that definition by Code Section 401(a)(17), and without
regard to whether such Participants are eligible to participate in the 401(k) Retirement
Plan.

 

Section 2.9             Date.

 

“Date” means the date an Initial Agreement, a Modified Agreement, or a Form is
received by the Administrator.

 

Section 2.10           Deferred
Compensation Account; Account; Sub-Account.

 

“Deferred Compensation Account” generally refers to a Participant’s
entire interest in the Plan.  “Account”
generally refers to a Participant’s entire interest in Program A and Program B,
separately.  “Sub-Account” means the
separate accounts maintained under Program B.

 

Section 2.11           Disability.

 

“Disability” means: (a) for Grandfathered Accounts, a disability
as set forth in Code Section 22(e)(3); and (b) for Non-Grandfathered
Accounts, a situation that would allow a distribution under Code Section 409A(a)(2)(A)(ii).  Code Sections 409A(a)(2)(A)(ii) and
409A(a)(2)(C) provide that a Participant shall be considered “disabled”
only when he or she: (a) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months; or (b) is, by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months, receiving income replacement benefits for a period of not less
than 3 months under an accident and health plan covering employees of the
Employer.

 

4

 

Section 2.12           Distribution
Date.

 

“Distribution Date” means the date designated by a Participant in the
Participant’s Distribution Election Form for the commencement of payment
of amounts credited to the Participant’s Accounts.

 

Section 2.13           Employer.

 

“Employer” means the Company and each subsidiary and affiliate of the
Company which adopts this Plan.

 

Section 2.14           Employer
Contribution.

 

“Employer Contribution” means the amount of contribution which may be
made each year on behalf of key employee Participants, as described in Article 7.

 

Section 2.15           Exchange
Act.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended
from time to time.

 

Section 2.16           Forms.

 

Each of the
following, as approved by the Administrator and properly completed by the
Participant, is a “Form” under the Plan:

 

(a)                   “Beneficiary
Designation Form” is used to designate a Participant’s Beneficiaries.  A Beneficiary Designation may, but is not
required, to specify the form of payment from those available under the
Plan.  A Beneficiary Designation may, but
is not required, to designate contingent Beneficiaries.

 

(b)                   “Distribution
Election Form” is used to designate the form and timing of distributions to be
made to a Participant from the Participant’s Accounts in the Plan.  Separate Distribution Election Forms may be
filed for a Participant’s Program A Account and Program B Account.  If only one Distribution Election Form is
on file with the Plan it shall apply to Accounts of the Participant in both Program
A and Program B.  No Distribution
Election Form other than the Form filed at the commencement of Plan
participation can be given effect until it has been on file with the
Administrator for 12 months.  For
Non-Grandfathered Accounts, a new or modified Distribution Election Form must
either: (i) meet one of the exemptions set forth in IRS Notice 2007-86,
Notice 2006-79 or Notice 2005-1; or (ii) further delay the commencement of
any amount previously deferred by a minimum of 5 additional years.

 

(c)                   “Hardship
Distribution Request Form” is used to request a hardship distribution of
amounts credited to a Participant’s Accounts. 
Hardship distributions shall be drawn from Program B and then Program A
Accounts, in that order.

 

(d)                   “New
Investment Direction Form” is used to change investment directions
prospectively under the Plan as to new deferral amounts.

 

5

 

(e)                   “Investment
Transfer Form” is used to transfer funds from one Program B Sub-Account to
another.  Investment Transfer Forms
cannot be used in Program A effective March 31, 2002.

 

Section 2.18           Grandfathered
Account.

 

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

 

Section 2.19           Manitowoc
Stock.

 

“Manitowoc Stock” means the
common stock, $.01 par value, of the Company.

 

Section 2.20           Non-Grandfathered
Account.

 

“Non-Grandfathered Account”
refers to all or any part of a Participant’s Account that was not earned and
fully vested as of December 31, 2004. 
Non-Grandfathered Accounts are subject to Code Section 409A and the
provisions of this Plan shall be interpreted and applied with the intent to
ensure that no benefits are subject to taxation before the date when such
benefits are paid to a Participant or Beneficiary.  Nothing in this Plan, any Agreement, any Form or
related document shall be construed or interpreted as a guarantee of any
particular tax consequences.

 

Section 2.21           Participant.

 

“Participant” means any
non-employee member of the Board and any eligible employee of an Employer who
has executed an Agreement.  Key employee
status for a Plan Year is determined as of the last day of the immediately
preceding Plan Year, or, as to newly-hired employees in their first year of
employment, at time of hire based on current base rate of pay.  Key employees, for all Plan purposes, include
only elected officers of the Company and other “highly compensated employees.”  For purposes of this Section, “highly
compensated employees” means any employee of an Employer who:  (a) for all Plan Years beginning on or
after January 1, 2004, has been employed by one or more Employer(s) for
at least one year at a salary grade of 210 or higher and who continues to be
employed by an Employer at such a salary grade on the last day of the preceding
Plan Year; or (b) for all Plan Years beginning before January 1,
2004, received Compensation in a Plan Year equal to or greater than the indexed
amount described in Code Section 414(q)(1).  Notwithstanding the preceding sentence, any
employee who was an eligible highly compensated employee and who made
contributions to the Plan during the 2003 Plan Year, shall continue to remain a
key employee for so long as the individual would have continued to satisfy the
eligibility requirements that were in effect prior to January 1,
2004.  An individual who temporarily
continues eligibility under this transition rule 

 

6

 

and who later ceases to satisfy
the prior requirements must satisfy the new requirements in order to again be
eligible to participate in the Plan.  A
Participant who ceases to be a non-employee director or a key employee shall
cease making deferrals as of the first day of the Plan Year following such loss
of eligibility, but shall remain an inactive Participant until all amounts due
such person under the Plan have been distributed in full. Plan Year

 

Section 2.22           Plan
Year.

 

“Plan Year” means the fiscal year of the Company.

 

Section 2.23           Program
A.

 

“Program A,” effective March 31, 2002, is deemed to be solely
invested in Manitowoc Stock.  Any
dividends paid on shares of Manitowoc Stock deemed to be held under Program A
are deemed to be reinvested in Manitowoc Stock under Program A, in accordance
with rules and procedures established by the Administrator.  There are no investment options in Program
A.  Effective March 31, 2002, the
funds in Program A cannot be transferred at any time to Program B.  All distributions under the Plan from Program
A must be made in Manitowoc Stock, except fractional shares may be paid in
cash.  Any Manitowoc Stock that may be
held in trust pursuant to the Plan in connection with Program A will be held in
a trust that is completely separate from any trust that may hold assets
pursuant to the Plan in connection with Program B.

 

Section 2.24           Program
B.

 

“Program B,” effective March 31, 2002, is deemed to consist of Sub-Accounts,
each of which is deemed to be invested in a designated mutual fund.  Any dividends paid on such mutual funds shall
be deemed to be reinvested in the applicable Sub-Account.  Manitowoc Stock is not an investment option
in Program B.  Funds deemed to be
invested pursuant to Program B cannot be transferred at any time to Program
A.  All distributions from Program B must
be made in cash.  Any assets that may be
held in trust pursuant to the Plan in connection with Program B will be held in
a trust that is completely separate from any trust that may hold assets
pursuant to the Plan in connection with Program A.

 

Section 2.25           Retainer Fee.

 

“Retainer Fee” means those fees paid by the Company to non-employee
directors for services rendered on the Board or any committee of the Board,
including attendance fees and fees for serving as committee chair.  Any Retainer Fee payable for services during
a month is deemed to accrue to the non-employee director on the first day of
such month for Plan purposes.

 

Section 2.26           Rule 16b-3.

 

“Rule 16b-3” means Rule 16b-3 of the General Rules and
Regulations under the Exchange Act as promulgated by the Securities Exchange
Commission or its successor, as amended and in effect from time to time.

 

7

 

Section 2.27           Separation.

 

“Separation” means a “separation from service” within the meaning of
Code Section 409A(2)(A)(i).

 

ARTICLE 3

AGREEMENTS AND ELECTIONS TO DEFER

 

Section 3.1             Initial Deferrals.

 

Each new non-employee director and new key employee shall be entitled
to defer Compensation accruing on and after the first day of the month
following such person’s Initial Agreement Date, provided such Initial Agreement
Date is not more than thirty (30) days after the Date such person initially
becomes eligible under the Plan. 
Thereafter, such persons shall be eligible to commence deferrals only
with respect to compensation that is earned, in whole or in part, as of the
first day of any subsequent Plan Year, provided their Initial Agreement Date is
before such date.  Notwithstanding the
preceding limitation, Participants were allowed to revoke and modify their
existing elections for Non-Grandfathered Benefits between October 3, 2004
and December 31, 2008, in accordance with transitional guidance issued by
the Internal Revenue Service, including IRS Notice 2005-1, Notice 2006-79,
Notice 2007-86 and the proposed regulations issued under Code Section 409A.  For Plan Years beginning after December 31,
2006, Participants may make a separate election with respect to such
performance-based compensation until 6 months before the end of the measurement
period for such compensation.  For
purposes of this provision, performance-based compensations has the meaning
provided in Code Section 409A(a)(4)(B)(iii).

 

Section 3.2             Termination
of Employment, Service or Status and Reinstatement.

 

A Participant has no further right to defer
Compensation under the Plan after termination of service to the Company as a
non-employee director, or after termination of employment in the case of all
other Participants, or, if earlier, upon receipt of written notice from the
Administrator of revocation of an employee’s status as a key employee.  Such revocations by the Administrator are
effective only upon the first day of the Plan Year following the date that the
employee is provided such written notice. 
If a Participant terminates service with the Employer and subsequently
returns to service, the Participant shall be treated as a new employee (or
director if applicable) for all Plan purposes.

 

Section 3.3             Deferral
Percentages and Limitations.

 

A non-employee director Participant may make
a deferral election with respect to all or part of the non-employee director
Participant’s Compensation, in increments of five percent (5%).  A key employee Participant may make separate
deferral elections, in whole percentages, with respect to regular pay and
incentive bonuses.  Deferral elections
shall not exceed forty percent (40%) of regular pay for any Plan Year and
deferral elections with regard to incentive bonuses are not subject to a
percentage maximum; provided, however, that the maximum amount of Compensation
of a key employee Participant for any Plan Year which may be considered for
purposes of determining the Employer contribution authorized by Section 7.1
shall not exceed

 

8

 

twenty-five percent (25%) for any Plan Year.  Deferral elections remain in effect from year
to year until modified or revoked in accordance with Plan rules.

 

Section 3.4             Necessary
Election Information and Documentation.

 

Each Participant shall provide as a part of
an Initial Agreement, and in a Modified Agreement, as necessary, supplemented
by appropriate Forms, the following information:

 

(a)           the percentage of
Compensation to be deferred;

 

(b)           the percentage of
deferred Compensation to be directed to Program A (the Manitowoc Stock Program)
or Program B (the Diversified Investment Program);

 

(c)           the Program B
Sub-Accounts to which deferred amounts are to be allocated;

 

(d)           the Distribution
Date;

 

(e)           whether
distributions are to be in a lump sum, in installments, or a combination
thereof; and

 

(f)            the Participant’s
Beneficiaries.

 

Persons subject to Section 16 of the
Exchange Act shall be afforded a further opportunity to determine in advance
whether applicable withholding requirements on amounts distributed from Program
A are to be satisfied by an Employer through withholding of shares of Manitowoc
Stock or whether the Participant will provide cash from other sources for this
purpose.

 

Section 3.5             Increasing
Deferral Elections.

 

A Participant may increase the
deferral amount specified in the Participant’s Initial Agreement by completing
and executing a Modified Agreement and submitting it to the Administrator.  Such Modified Agreement shall be effective
with respect to Compensation accruing on and after the first day of the Plan
Year beginning after the Date of the Modified Agreement.  For Plan Years beginning on or after 2007,
Participants may make a separate election with respect to such
performance-based compensation until 6 months before the end of the measurement
period for such compensation.  For
purposes of this provision, performance-based compensations has the meaning
provided in Code Section 409A(a)(4)(B)(iii).

 

Section 3.6             Reducing
or Revoking Deferral Elections.

 

A Participant may reduce, or completely
revoke, such Participant’s deferral election by completing and executing a
Modified Agreement and submitting it to the Administrator.  Such Modified Agreement shall be effective
with respect to Compensation accruing on and after the first day of the Plan
Year beginning after the Date of the Modified Agreement; provided, however,
that the effective date of such an election shall be the first day of the month
following the Date of the Modified Agreement if the Participant establishes to
the Administrator that the 

 

9

 

reason for the reduction/revocation constitutes an “unforeseeable
emergency” within the meaning of Code Section 409A(a)(2)(A)(vi).  Further, to the extent permitted under
Internal Revenue Service Notice 2005-1, an election to reduce or completely
revoke a pre-2005 deferral election shall become effective as soon as
administratively feasible.  In the event
that the Administrator allows a Participant to reduce or cease making deferral
contributions under the Plan other than on the first day of a Plan Year, the
Participant shall forfeit any Employer Contributions to which the Participant’s
Account would otherwise be entitled for the Plan Year in which such reduction
or revocation occurred.  For Plan Years
beginning on or after 2007, Participants may make a separate election with
respect to such performance-based compensation until 6 months before the end of
the measurement period for such compensation. 
For purposes of this provision, performance-based compensations has the
meaning provided in Code Section 409A(a)(4)(B)(iii).

 

Section 3.7             Change
of Beneficiary.

 

A Participant shall be permitted at any time
to modify the Participant’s Beneficiary Designation Form.

 

ARTICLE 4

INVESTMENT DIRECTIONS

 

Section 4.1             New
Investment Direction Form.

 

In connection with an Initial Agreement and thereafter, from time to
time as determined by the Participant (or a Beneficiary after the Participant’s
death), in accordance with Administrator rules, each Participant shall file a
New Investment Direction Form applicable to new deferral amounts to be
credited to the Participant’s Program B Account.  Such instructions shall be effective on the
first day of the month following the new Investment Direction Form Date.

 

Section 4.2             Sub-Account
Transfers.

 

A Participant (or a Beneficiary after the Participant’s death) may
transfer to one or more different Sub-Accounts in Program B all or a part (not
less than ten percent (10%)) of the amounts credited to the Participant in other
Program B Sub-Accounts by completing and executing an Investment Transfer Form and
submitting it to the Administrator.  Such
transfers among Program B Sub-Accounts shall become effective on the first day
of the calendar month following the Investment Transfer Form Date.

 

Section 4.3             No
Transfers Out of Program A After March 31, 2002.

 

Effective March 31, 2002, transfers into or out of Accounts in
Program A are not permitted.

 

10

 

ARTICLE 5

DISTRIBUTIONS

 

Section 5.1             Distribution Forms.

 

Each Distribution Election Form shall designate the Distribution
Date applicable to the Participant’s Account governed by the election, and
whether distributions are to be made in a lump sum, in installments, or in a
combination thereof.  Each installment in
a series of installment distributions from a Non-Grandfathered Account shall be
treated as a separate individual distribution for purposes of applying the
change in distribution provisions set forth in this Plan and under Code Section 409A.  Distribution Election Forms are to be
completed at the time a Participant completes the Participant’s Initial
Agreement and may be modified thereafter, as the Participant may elect.  Modified Distribution Election Forms for
Grandfathered Accounts must be filed with the Administrator not less than 12
months before the modification can be permitted to be effective and
modifications by insiders must be approved in advance by the Administrator;
modified Distribution Election Forms for Non-Grandfathered Accounts that apply
to distributions made for any reason other than death, Disability or an “unforeseeable
emergency” must also provide that the new distribution date will be at least 5
years after the date when the distribution would have been made under the prior
Distribution Election Form.  Separate
Distribution Election Forms may be filed for each Program A Account and Program
B Account.  If only one Distribution Election
Form is on file with the Plan it shall apply to Accounts of the Participant
in both Program A and Program B.

 

Section 5.2             Distribution
Dates.

 

A Participant may designate as a Distribution Date the first day of the
calendar month following the date of the Participant’s death; the first day of
the calendar month following the date of the Participant’s Disability; the
first day of the calendar month following the date of termination of the
Participant’s service as a member of the Board if the Participant is a
non-employee director; or, if the Participant is an employee of an Employer,
the first day of the calendar month following the date of termination of the
Participant’s employment with the Employer; the first day of any calendar month
specified by the Participant; or the earliest to occur of these dates.  For purposes of Non-Grandfathered Accounts: (a) a
distribution may only commence as a result of a termination of employment or
service if such termination is also a Separation, as defined above; and (b) to
the extent that the Participant is a “key employee,” as defined in Code Section 416(i),
a distribution from any Non-Grandfathered Account that is made as a result of a
Separation may not commence until at least 6 months after such Separation.

 

Section 5.3             Distribution Forms.

 

A Participant shall direct whether distributions from an Account are to
be made in a lump sum, in no more than 180 monthly, 60 quarterly, or 15 annual
installments.  Each installment is
determined by dividing the applicable Account balance by the number of remaining
payments.  Each installment in a series
of installment distributions from a Non-Grandfathered Account shall be treated
as a separate individual distribution for purposes of applying the change in
distribution provisions set forth in this Plan and under Code Section 409A.  If a Participant receives a distribution on
an installment basis, amounts remaining in that Account before payment in full
is 

 

11

 

completed
shall continue to accrue earnings and incur losses in accordance with the terms
of the Plan.  Except as provided in Section 5.4,
all distributions shall be made to the Participant.  Installment payments shall be made pro rata
from each Account (including any Sub-Accounts) holding assets subject to the
installment method of payment.  Separate
payment method elections for Sub-Accounts in Program B are not permitted.  The Administrator may determine minimum
amounts applicable to any periodic payment method to facilitate convenient
administration of the Plan.

 

Section 5.4             Distributions
After Death.

 

If the Distribution Date is the first day of the month following the
Participant’s death or a fixed date which in fact occurs after the Participant’s
death or if at the time of death the Participant was receiving distributions in
installments, the balance remaining in the Participant’s Account shall be
payable to the Participant’s Beneficiary. 
All distributions to Beneficiaries shall be in a lump sum except when
the Distribution Date is the first day of the month following the Participant’s
death and the Beneficiary Designation specifies installment payments to the
Beneficiary.

 

Section 5.5             Distributions
of Manitowoc Stock.

 

All distributions from Program A shall be made in shares of Manitowoc
Stock, except that fractional shares may be paid in cash.  All distributions from Program B shall be
made in cash.  Any brokerage commissions
or transaction fees applicable to the sale of shares of Manitowoc Stock
distributed from Program A are the responsibility of the recipient of the
distribution.

 

Section 5.6             Hardship.

 

Notwithstanding the foregoing, a Participant (or Beneficiary after the
death of the Participant) may request an extraordinary distribution of all or
part of the amount credited to the Participant’s Account because of
hardship.  A distribution from a
Grandfathered Account shall be deemed to be because of hardship if such
distribution is necessary due to unanticipated events beyond the control of the
Participant (or Beneficiary) that would result in severe financial hardship to
the Participant (or Beneficiary) if the extraordinary distribution is not
permitted.  Any request by an insider for
a hardship distribution must be approved in advance by the Administrator.  A distribution from a Non-Grandfathered
Account shall be deemed to be because of hardship only if the circumstances
also constitute a “unforeseeable emergency” within the meaning of Code Section 409A(a)(2)(A)(vi).  In accordance with Code Section 409A(a)(2)(B)(ii),
such an unforeseeable emergency exists if the Participant suffers a severe financial
hardship resulting from: (a) an illness or accident of the Participant, the
Participant’s spouse or the Participant’s dependent (as defined in Code Section 152(a));
(b) the Participant’s loss of property due to casualty; or (c) other
similar extraordinary and unforeseeable circumstances arising from events
beyond the control of the Participant. 
Any hardship distribution from a Non-Grandfathered Account may not
exceed the amounts necessary to satisfy such emergency plus amounts necessary
to pay taxes reasonably anticipated as a result of the distribution, after
taking into account the extent to which such hardship may is or may be relieved
through reimbursement or compensation by insurance or otherwise or by
liquidation of 

 

12

 

the
Participant’s assets (to the extent that the liquidation of such assets would
not itself cause severe financial hardship).

 

Section 5.7             Exchange Act Compliance.

 

The Administrator may adopt any additional rules and modify existing
rules and procedures, as necessary, to assure compliance with the insider
trading liability rules under Section 16 of the Exchange Act, as in
effect from time to time.

 

Section 5.8             Change
of Control.

 

Any remaining balance in a Participant’s Account shall be distributed
in a single lump sum amount to the Participant, or the Participant’s
Beneficiary if applicable, upon the occurrence of a Change in Control of the
Company.  Such distribution shall occur
not later than thirty (30) days following the date on which the Change in
Control of the Company occurred and shall include the accelerated distribution
of any installment payments otherwise to be paid.

 

ARTICLE 6

ACCOUNTS

 

Section 6.1             Participant
Program A and Program B Accounts.

 

The Employer shall establish Accounts under Program A and Program B for
each Participant having an interest in each Program.  Accounts in Program B shall be divided into
Sub-Accounts for each Participant as indicated by the Participant’s investment
directions in effect from time to time. 
The Employer shall credit to each Account and applicable Sub-Accounts,
any amounts deferred by a Participant under the Plan, including for key
employees any Employer Contribution allocable to the Participant’s Account
under Section 7.1.  Such credits for
deferred Compensation are to be made within a reasonable time (not to exceed
thirty (30) days) following the time that the deferred Compensation, but for
the Participant’s deferral election, would otherwise have been paid or made
available to the Participant.  The
credits for Employer Contributions, if any, shall be made as provided in Section 7.1.  The Employer shall deduct amounts it is
required to withhold on the deferred Compensation at the time it is credited to
a Participant’s Account, under any state, federal, or local law for payroll or
other taxes or charges, from the Participant’s Compensation which is not
deferred, to the maximum extent possible, before reducing the amount of the
Participant’s deferrals.

 

Section 6.2             Immediate
Vesting.

 

The Accounts of Participants in the Plan are immediately vested and
non-forfeitable.

 

Section 6.3             Account
Investments.

 

Accounts, including Sub-Accounts, established for Participants shall be
deemed to be fully invested at all times in the investment assigned to the
Account or Sub-Account.  The Employer
shall separately account for credited amounts as units of the designated
investment, having the value attributable to units of the designated investment
at all times, taking into 

 

13

 

account
reinvestment of all dividends pertaining to such investment, but without
adjustment for any income tax consequences attributable to deemed Employer
ownership of such investments.

 

Section 6.4             Participant
Account Statements.

 

The Administrator shall provide to each Participant, not less
frequently than semiannually, a statement with respect to each of the
Participant’s Accounts, including Sub-Accounts, in such form as the
Administrator determines to be appropriate, setting forth credited amounts
added during the reporting period, any units of each designated investment
attributable to each Account or Sub-Account and their current value, amounts
distributed to the Participant since the last report, the current balance to the
credit of such Participant in each Account and Sub-Account, and other
appropriate information.

 

Section 6.5             Investment
Options.

 

Program A is deemed to be invested solely in Manitowoc Stock.  Program B is divided into Sub-Accounts, each
of which is deemed to be invested in a designated mutual fund.  Each such Sub-Account is a separate
investment option under Program B.  The
investment options associated with Program B that are currently available are
set forth in the Summary Plan Information that is provided to each
Participant.  The Administrator shall,
from time to time, review the investment options available under Program B and
may, on a prospective basis, eliminate, modify, or otherwise change such
investment options.

 

ARTICLE 7

EMPLOYER CONTRIBUTIONS

 

Section 7.1             Amount
of Employer Contributions.

 

The Employer shall credit to the Accounts of key employee Participants,
in accordance with their investment directions on file with the Plan, an
Employer Contribution equal to the amount of deferred compensation of a key
employee for a Plan Year multiplied by the rate, determined as a percentage of
eligible compensation, of fixed and variable profit sharing contributions plus
one percent (1%) that the Participant has received from the Participant’s
Employer for the Plan Year under the 401(k) Retirement Plan, subject to
the restrictions of Section 3.3 and Section 3.6.  If the Participant is not a participant in
the 401(k) Retirement Plan, the amount of Employer contribution made on
behalf of the Participant shall be determined in a similar manner but with
regard to the qualified defined contribution retirement program in which the
Participant does participate, as determined by the Administrator.  Effective as of January 1, 2005, the
Employer also reserves the right to make such additional contributions as it
deems necessary or advisable to compensate any Participant who is adversely and
unexpectedly affected by any forfeitures, adjustments or other limitations
under any qualified retirement plan(s) maintained by the Employer.  Such contributions are wholly within the
discretion of the Employer and need not be made on a uniform or consistent
basis.

 

14

 

Section 7.1             Crediting
Employer Contributions.

 

Such Employer Contribution shall be credited to the Account of the
eligible Participant within a reasonable time (not to exceed thirty (30) days)
following the time the Employer deposits its similar contributions to the 401(k) Retirement
Plan.

 

ARTICLE 8

MANITOWOC STOCK

 

Section 8.1             Manitowoc
Stock Allocation and Adjustment.

 

The amount of Manitowoc Stock which may be allocated to Participants’
Accounts under the Plan is determined by the amount of Compensation deferred
under the Plan and the investment directions provided by Participants.  In the event of any merger, share exchange,
reorganization, consolidation, recapitalization, stock dividend, stock split or
other change in corporate structure affecting Manitowoc Stock, appropriate adjustments
shall be made to the units credited to Program A for each Participant, except
that any such adjustments to units credited to Program A for each Participant
subject to Section 16 shall be only such as is necessary to maintain the
proportionate interest of such Participant and preserve, without exceeding, the
value reflected by such Participant’s Program A Account.

 

Section 8.2             Manitowoc Stock Value.

 

Plan record keeping pertaining to Manitowoc Stock shall be based on the
fair market value of Manitowoc Stock. 
Fair market value per share of Manitowoc Stock on any given date is
defined for Plan purposes as the value, as determined by the Administrator, at
which shares were traded on that date in representative trades reported in the
principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on The New York Stock Exchange on such date or,
if no Manitowoc Stock is traded on such date, the most recent date on which
Manitowoc Stock was traded.

 

Section 8.3             No
Stockholder Rights.

 

Participants shall have no rights as a stockholder pertaining to
Manitowoc Stock units credited to their Program A Accounts.  No Manitowoc Stock unit nor any right or
interest of a Participant under the Plan in any Manitowoc Stock unit may be
assigned, encumbered, or transferred, except by will or the laws of descent and
distribution.  The rights of a
Participant hereunder with respect to any Manitowoc Stock unit are exercisable
during the Participant’s lifetime only by the Participant or the Participant’s
guardian or legal representative.

 

Section 8.4             Manitowoc
Stock Distributions.

 

Any shares of Manitowoc Stock distributed to Participants under the
Plan shall be subject to such stock transfer orders and other restrictions as
the Administrator may deem advisable under the rules, regulations and other
requirements of the Company, any stock exchange upon which Manitowoc Stock is
then listed and any applicable Federal, state or foreign securities law, and
the Administrator may cause a legend or legends to be put on any such certificates
to make appropriate reference to such restrictions.

 

15

 

ARTICLE 9

GENERAL PROVISIONS

 

Section 9.1             Administration
and  Administrator Authority

 

The Administrator shall administer and interpret the Plan, and
supervise preparation of Agreements, forms, and any amendments thereto.  Interpretation of the Plan shall be within
the sole discretion of the Administrator and shall be final and binding upon
each Participant and Beneficiary.  The
Administrator may adopt and modify rules and regulations relating to the
Plan as it deems necessary or advisable for the administration of the
Plan.  If the Administrator shall also be
a Participant or Beneficiary, any determinations affecting such person’s
participation in the Plan which would otherwise be made by the Administrator
shall be made by the Board or its delegate for this purpose.  If at any time the Administrator is not
composed of at least two “Non-Employee Directors” within the meaning of Rule 16b-3,
then all determinations affecting participation by persons subject to Section 16
of the Exchange Act shall be made by the Board. 
Headings are given to the sections of the Plan solely as a convenience
to facilitate reference.  The reference
to any statute, regulation, or other provision of law shall be construed to
refer to any amendment to or successor of such provision of law.  With regard to persons subject to Section 16
of the Exchange Act, transactions under the Plan are intended to comply with
all applicable conditions of Rule 16b-3 or its successor under the
Exchange Act.  The Plan shall be
construed so that transactions under the Plan will be exempt from Section 16
of the Exchange Act pursuant to regulations and interpretations issued from
time to time by the Securities and Exchange Commission.

 

Section 9.2             General
Creditor Status, No Assignment and Exercise of Rights.

 

The right of the Participant or the Participant’s Beneficiary to
receive a distribution hereunder shall be an unsecured claim against the
general assets of the Company or any Employer and neither the Participant nor
any Beneficiary shall have any rights in or against any amount credited to the
Participant’s Account or any other specific assets of the Company or any
Employer.  The right of a Participant or
Beneficiary to the payment of benefits under this Plan shall not be assigned,
encumbered, or transferred, except by will or the laws of descent and
distribution.  The rights of a
Participant hereunder are exercisable during the Participant’s lifetime only by
the Participant or the Participant’s guardian or legal representative.

 

Section 9.3             Unfunded
Plan.

 

This Plan is unfunded and is maintained by Employers primarily for the
purpose of providing deferred compensation for non-employee directors of the
Company and a select group of management and highly compensated employees.  Nothing contained in this Plan and no action
taken pursuant to its terms shall create or be construed to create a trust of
any kind, or a fiduciary relationship between the Company or any Employer and
any Participant or Beneficiary, or any other person.  The Employers may authorize the creation of
one or more trusts or other arrangements to assist the Employers in meeting the
obligations created under the Plan.  Any
liability to any person with respect to the Plan shall be based solely upon any
contractual obligations that may be created pursuant to the Plan.  No obligation of an Employer hereunder 

 

16

 

shall be
deemed to be secured by any pledge of, or other encumbrance on, any property of
the Company or any Employer.

 

Section 9.4             Payment
and Withholding of Taxes.

 

No later than the date as of which an amount first becomes includible
in the gross income of the Participant for Federal income tax purposes with
respect to any participation under the Plan, the Participant shall pay to the
Employer, or make arrangements satisfactory to the Employer regarding the
payment of, any Federal, state, local or foreign taxes of any kind required by
law to be withheld with respect to such amount.

 

Section 9.5             Amendment
and Termination.

 

There shall be no time limit on the duration of the Plan.  The Board may, at any time, amend or
terminate the Plan without the consent of the Participants or Beneficiaries,
provided, however, that no amendment or termination may reduce any Account
balance accrued on behalf of a Participant based on deferrals already made, or
divest any Participant of rights to which such Participant would have been
entitled if the Plan had been terminated immediately prior to the effective
date of such amendment.  This Section shall
not, however, restrict the right of the Board to cause all Accounts to be
distributed in the event of Plan termination, provided all Participants and
Beneficiaries are treated in a uniform and nondiscriminatory manner in such
event.  In addition, no amendment may
become effective until stockholder approval is obtained if the amendment (i) except
as expressly provided in the Plan, materially increases the aggregate number of
shares of Manitowoc Stock that may be allocated in a Plan Year, (ii) materially
increases the benefits accruing to Participants under the Plan or (iii) materially
modifies the eligibility requirements for participation in the Plan.

 

Section 9.6             Initial
Approval.

 

The Plan will become effective on July 4, 1993, subject to
approval by a majority of the votes cast at a duly held meeting of the Company’s
stockholders at which a quorum representing a majority of all outstanding
voting stock is, either in person or by proxy, present.

 

Section 9.7             Administrative
Costs.

 

Costs of establishing and administering the Plan will be paid by the
Employers in such proportion as determined by the Administrator.

 

Section 9.8             Limitations
on “Compensation” Under the Plan.

 

Compensation and Employer Contributions credited to an Account
hereunder shall not be considered “compensation” for the purpose of computing
benefits under any qualified retirement plan maintained by an Employer, but
shall be considered compensation for welfare benefit plans, such as life and
disability insurance programs sponsored by the Employers.

 

17

 

Section 9.9             Severability.

 

If any of the provisions of the Plan shall be held to be invalid, or
shall be determined to be inconsistent with the purpose of the Plan, the
remainder of the Plan shall not be affected thereby.

 

Section 9.10           Binding
Effect.

 

This Plan shall be binding upon and inure to the benefit of the Company
and each Employer, their successors and assigns and the Participants and their
heirs, executors, administrators, and legal representatives.

 

Section 9.11           Applicable
Law.

 

This Plan shall be construed in accordance with and governed by the law
of the State of Wisconsin to the extent not preempted by federal law.

 

Section 9.21           409A
Compliance.

 

Notwithstanding anything to the contrary in this Plan document or any
accompanying forms or related material, the Plan is, with respect to
Non-Grandfathered Benefits, designed and intended to operate in compliance with
the requirements set forth in Internal Revenue Code § 409A and any
regulations or guidance issued thereunder. 
Any provisions of this Plan document, or any related material which
conflict with or would be deemed to violate Internal Revenue Code § 409A
shall be deemed limited, as determined by the Board in order to comply with
such requirements.  Notwithstanding such
intentions and provisions, nothing in this Plan or any related document is
intended to provide individual Participants or Beneficiaries with any guaranty,
warranty or assurance of particular tax treatment for benefits hereunder.

 

18

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