Document:

EX-10.1

 

Exhibit 10.1

 

JLG INDUSTRIES, INC.
EXECUTIVE
SEVERANCE PLAN

 

As Amended and Restated Effective October 15, 2006

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Section 1.
	 	Introduction	 	 	1	 
	 
	 	 	 	 	 	 
	1.1.
	 	Establishment and History	 	 	1	 
	1.2.
	 	Effective Date	 	 	1	 
	1.3.
	 	Purpose	 	 	1	 
	 
	 	 	 	 	 	 
	Section 2.
	 	Definitions and Construction	 	 	2	 
	 
	 	 	 	 	 	 
	2.1.
	 	Definitions	 	 	2	 
	2.2.
	 	Gender and Number	 	 	7	 
	 
	 	 	 	 	 	 
	Section 3.
	 	Participation by Eligible Executives	 	 	8	 
	 
	 	 	 	 	 	 
	3.1.
	 	Generally	 	 	8	 
	3.2.
	 	Participation Agreement Required	 	 	8	 
	 
	 	 	 	 	 	 
	Section 4.
	 	Severance Benefits	 	 	9	 
	 
	 	 	 	 	 	 
	4.1.
	 	Basic Benefit	 	 	9	 
	4.2.
	 	Gross-Up Payment	 	 	9	 
	4.3.
	 	Medical and Life Insurance Benefits	 	 	12	 
	4.4.
	 	SERP Benefit	 	 	12	 
	4.5.
	 	SERP Rabbi Trust	 	 	14	 
	4.6.
	 	Cash Bonus Award	 	 	14	 
	4.7.
	 	Legal Expenses After a Change in Control	 	 	15	 
	4.8.
	 	Dismissal	 	 	15	 
	4.9.
	 	Application of Section 409A of the Code	 	 	17	 
	 
	 	 	 	 	 	 
	Section 5.
	 	Covenants	 	 	18	 
	 
	 	 	 	 	 	 
	5.1.
	 	Generally	 	 	18	 
	5.2.
	 	Noncompetition	 	 	18	 
	5.3.
	 	Interference with Business Relations	 	 	19	 
	5.4.
	 	Return of Property; Intellectual Property Rights	 	 	19	 
	5.5.
	 	Proprietary and Confidential Information	 	 	20	 
	 
	 	 	 	 	 	 
	Section 6.
	 	Release	 	 	21	 
	 
	 	 	 	 	 	 
	6.1.
	 	Generally	 	 	21	 
	6.2.
	 	Time Limit for Providing Release	 	 	21	 
	 
	 	 	 	 	 	 
	Section 7.
	 	Nature of Participant's Interest in the Plan	 	 	22	 
	 
	 	 	 	 	 	 
	7.1.
	 	No Right to Assets	 	 	22	 
	7.2.
	 	No Right to Transfer Interest	 	 	22	 
	7.3.
	 	No Employment Rights	 	 	22	 
	7.4.
	 	Withholding and Tax Liabilities	 	 	22	 

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Table of Contents
	Executive Severance Plan
	 	October 15, 2006

 

 

	 	 	 	 	 	 	 
	Section 8.
	 	Administration, Interpretation, and Modification of Plan	 	 	23	 
	 
	 	 	 	 	 	 
	8.1.
	 	Plan Administrator.	 	 	23	 
	8.2.
	 	Powers of the Administrator.	 	 	23	 
	8.3.
	 	Finality of Committee Determinations	 	 	23	 
	8.4.
	 	Incapacity	 	 	23	 
	8.5.
	 	Amendment, Suspension, and Termination.	 	 	23	 
	8.6.
	 	Power to Delegate Authority.	 	 	23	 
	8.7.
	 	Headings.	 	 	23	 
	8.8.
	 	Severability.	 	 	24	 
	8.9.
	 	Governing Law.	 	 	24	 
	8.10.
	 	Complete Statement of Plan	 	 	24	 
	 
	 	 	 	 	 	 
	Exhibit A— Draft Release	 	 	A-1	 

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Table of Contents
	Executive Severance Plan
	 	October 15, 2006

 

 

SECTION 1. INTRODUCTION

	1.1.	 	Establishment and History.
	 
	 	 	The Company first established the Plan for eligible executives on June 1, 1995. The Plan
was originally intended to replace the severance benefits that participants had under
certain individual agreements (customarily denominated a “Deferred Compensation Benefit
Agreement”) with the Company that provided for unfunded deferred compensation benefits and
certain other benefits. Since the Plan was first adopted on June 1, 1995, it has been
amended and restated several times.
	 
	1.2.	 	Effective Date.

	 	(a)	 	This restatement of the Plan is effective October 15, 2006; provided, however, that any
provision in this restatement intended to satisfy the requirements of Section 409A of the
Code is effective January 1, 2005. Any
individual who first becomes eligible to participate in the Plan on or after October 15,
2006, will participate in the Plan subject to the terms set forth in this restatement and
the individual’s Participation Agreement.
	 
	 	(b)	 	Any individual who participated in the Plan before October 15, 2006, will participate
in the Plan subject to the terms set forth in this restatement and the individual’s
Participation Agreement (and not subject to the terms of any earlier restatement or
participation agreement) if the individual executes a new Participation Agreement in
accordance with Section 3.2.
	 
	 	(c)	 	Any individual who participated in the Plan before October 15, 2006, and who fails to
execute a new Participation Agreement in accordance with Section 3.2 will continue to
participate in the Plan subject to the terms set forth in the applicable earlier
restatement of the Plan and his Participation Agreement (and not subject to the terms of
this restatement other than the terms of this restatement that bring the earlier
restatement of the Plan into compliance with Section 409A of the Code).

	1.3.	 	Purpose.
	 
	 	 	The Plan is an unfunded welfare plan maintained primarily for the purpose of providing
severance pay benefits to a select group of management and highly compensated employees.
The Plan is intended to avoid the adverse tax consequences of Section 409A of the Code.

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 1
	Executive Severance Plan
	 	October 15, 2006

 

 

SECTION 2. DEFINITIONS AND CONSTRUCTION

	2.1.	 	Definitions.
	 
	 	 	When used in capitalized form in the Plan, the following words and phrases have the
following meanings, unless the context clearly indicates that a different meaning is
intended:

	 	(a)	 	“Accounting Firm” has the meaning provided in Section 4.2(c)(1).
	 
	 	(b)	 	“Administrative Committee” means the Administrative Committee appointed to administer
the JLG Industries, Inc. Employees’ Retirement Savings Plan.
However, following a Change in Control, “Administrative Committee” means the
trustee under the grantor trust maintained by the Company in connection with the
Plan.
	 
	 	(c)	 	“Applicable Percentage” and “Applicable CIC Percentage” are the percentages specified
by the Compensation Committee with respect to the Participant that are reflected in the
Participant’s Participation Agreement.
	 
	 	(d)	 	“Associate” has the meaning assigned to that term for purposes of Rule 12b-
2 of the General Rules and Regulations under the Securities Exchange Act.
	 
	 	(e)	 	“Beneficial Owner” means the following: a Person is deemed to be the “Beneficial Owner”
of, to “Beneficially Own,” and to have “Beneficial Ownership” of, any securities that:

	 	(1)	 	such Person or any of such Person’s Securities Law Affiliates or Associates
beneficially owns, directly or indirectly;
	 
	 	(2)	 	such Person or any of such Person’s Securities Law Affiliates or
Associates has (A) the right or obligation to acquire (whether such right
or obligation is exercisable or effective immediately or only after the
passage of time) pursuant to any agreement, arrangement, or understanding
(whether or not in writing) or upon the exercise of conversion rights,
exchange rights, rights, warrants or options, or otherwise; provided that
a Person will not be deemed the “Beneficial Owner” of, or to “Beneficially
Own,” or to have “Beneficial Ownership” of, securities tendered pursuant
to a tender or exchange offer made by such Person or any of such Person’s
Securities Law Affiliates or Associates until such tendered securities are
accepted for purchase or exchange; or (B) the right to vote pursuant to
any agreement, arrangement, or understanding (whether or not in writing);
provided that a Person will not be deemed the “Beneficial Owner” of, or to
“Beneficially Own,” or to have “Beneficial Ownership” of, any security
under this clause (B) if the agreement, arrangement, or understanding to
vote such security (i) arises solely from a revocable proxy given in
response to a public proxy or consent solicitation made pursuant to, and
in accordance with, the applicable rules and regulations of the Securities
Exchange Act, and (ii) is not also then reported by such

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 2
	Executive Severance Plan
	 	October 15, 2006

 

 

	 	 	 	Person on Schedule 13D under the Securities Exchange Act (or any
comparable or successor report); or
	 
	 	(3)	 	are beneficially owned, directly or indirectly, by any other Person (or any
Securities Law Affiliate or Associate thereof) with which such Person or any of such
Person’s Securities Law Affiliates or Associates has any agreement, arrangement, or
understanding (whether or not in writing) or with which such Person or any of such
Person’s Securities Law Affiliates or Associates have otherwise formed a group for the
purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described
in clause (B)(i) of paragraph (2), above), or disposing of any securities of the Company.

	 	(f)	 	“Beneficiary” means the person designated in writing by a Participant to receive all or a
portion of his Severance Benefits under the Plan after he dies. If a
Participant fails to designate a Beneficiary or his designated Beneficiary fails to
survive him, his Beneficiary will be the person to whom he is married at the time of his
death, or if he is not married at that time, his Beneficiary will be his estate. A
Participant may revoke in writing a prior designation of a Beneficiary at any time before
the Participant dies.
	 
	 	(g)	 	“Board of Directors” means the Board of Directors of the Company.
	 
	 	(h)	 	“Cause” means, as determined by the Administrative Committee, disloyalty, mismanagement,
abdication of job responsibility, or commission of a felony, any one of which results in
significant injury to the business of the Company.
	 
	 	(i)	 	“Change in Control” means the first to occur of the following events—

	 	(1)	 	an acquisition (other than directly from the Company) of securities of the Company by
any Person, immediately after which such Person, together with all Securities Law
Affiliates and Associates of such Person, becomes the Beneficial Owner of securities of the
Company representing 25 percent or more of the Voting Power; provided that, in determining
whether a Change in Control has occurred, the acquisition of securities of the Company in a
Non-Control Acquisition will not constitute an acquisition that would cause a Change in
Control; or
	 
	 	(2)	 	three or more directors, whose election or nomination for election is not approved by a
majority of the members of the Incumbent Board then serving as members of the Board of
Directors, are elected within any single 12-month period to serve on the Board of
Directors; provided that an individual whose election or nomination for election is
approved as a result of either an actual or threatened Election Contest or Proxy Contest,
including by reason of any agreement intended to avoid or settle any Election Contest or
Proxy Contest, will be deemed not to have been approved by a majority of the Incumbent
Board for purposes of this definition; or

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 3
	Executive Severance Plan
	 	October 15, 2006

 

 

	 	(3)	 	members of the Incumbent Board cease for any reason to constitute at least a
majority of the Board of Directors; or
	 
	 	(4)	 	approval by shareholders of the Company of:

	 	(A)	 	a merger, consolidation, or reorganization involving the Company, unless

	 	(i)	 	the shareholders of the Company, immediately before the merger,
consolidation, or reorganization, own, directly or indirectly immediately
following such merger, consolidation, or reorganization, at least 75
percent of the combined voting power of the outstanding voting securities
of the corporation resulting
from such merger, consolidation, or reorganization in substantially the
same proportion as their ownership of the voting securities immediately
before such merger, consolidation, or reorganization;
	 
	 	(ii)	 	individuals who were members of the Incumbent Board immediately prior
to the execution of the agreement providing for such merger,
consolidation, or reorganization constitute at least a majority of the
board of the directors of the Surviving Corporation; and
	 
	 	(iii)	 	no Person (other than (1) the Company or any Subsidiary thereof, (2)
any employee benefit plan (or any trust forming a part thereof) maintained
by the Company, any Subsidiary thereof, or the Surviving Corporation, or
(3) any person who, immediately prior to such merger, consolidation, or
reorganization, had Beneficial Ownership of securities representing 25
percent or more of the Voting Power) has Beneficial Ownership of
securities representing 25 percent or more of the combined voting power of
the Surviving Corporation’s then outstanding voting securities;

	 	(B)	 	a complete liquidation or dissolution of the Company; or
	 
	 	(C)	 	an agreement for the sale or other disposition of all or substantially all of
the assets of the Company to any Person (other than a transfer to a Subsidiary of
the Company).

	 	(j)	 	“Code” means the Internal Revenue Code of 1986, as amended and in effect from time to
time.
	 
	 	(k)	 	“Company” means JLG Industries, Inc., and any successor to JLG Industries, Inc. Employment
with the Company includes employment with any corporation, partnership, or other organization
required to be aggregated with the Company under sections 414(b) and (c) of the Code.

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 4
	Executive Severance Plan
	 	October 15, 2006

 

 

	 	(l)	 	“Company Payments” has the meaning provided in Section 4.2(a).
	 
	 	(m)	 	“Compensation Committee” means the Compensation Committee of the Board of Directors.
	 
	 	(n)	 	“Covered Compensation” is the compensation specified by the Compensation Committee with
respect to the Participant that is reflected in the Participant’s Participation Agreement.
	 
	 	(o)	 	“Dismissed” has the meaning provided in Section 4.8.
	 
	 	(p)	 	“Effective Date” means October 15, 2006 except that the Effective Date for any provision in
this restatement intended to satisfy the requirements of Section 409A of the
Code is January 1, 2005.
	 
	 	(q)	 	“Election Contest” means an election contest described in Rule 14a-11 promulgated
under the Securities Exchange Act.
	 
	 	(r)	 	“Eligible Executive” means an employee of the Company who (1) was covered by an agreement
under a restatement of the Plan that was in effect prior to the Effective Date or (2) is an
officer of the Company or holds any other key position designated by the Compensation Committee in
its sole discretion as eligible to participate in the Plan.
	 
	 	(s)	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended and in
effect from time to time.
	 
	 	(t)	 	“Excise Tax” means the excise tax imposed under section 4999 of the Code as described in
Section 4.2(a).
	 
	 	(u)	 	“Executive Trust” means the JLG Industries, Inc. Executive Trust.
	 
	 	(v)	 	 “Good
Reason” has the meaning provided in Section 4.8(c).
	 
	 	(w)	 	“Gross-Up Payment” has the
meaning provided in Section 4.2.
	 
	 	(x)	 	“Incumbent Board” means individuals who, as of the close of business on the Effective Date,
are members of the Board of Directors; provided that, if the election, or nomination for election
by the Company’s shareholders, of any new director was approved by a vote of at least 75 percent
of the Incumbent Board, such new director will, for purposes of the Plan, be considered as a
member of the Incumbent Board; provided further that no individual will be considered a member of
the Incumbent Board if such individual initially assumed office as a result of either an actual
or threatened Election Contest or other actual or threatened Proxy Contest, including by reason
of any agreement intended to avoid or settle any Election Contest or Proxy Contest.
	 
	 	(y)	 	“MIP” means the JLG Industries, Inc. Annual Management Incentive Plan.

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 5
	Executive Severance Plan
	 	October 15, 2006

 

 

	 	(z)	 	“Non-Control Acquisition” means an acquisition by (1) an employee benefit plan (or a
trust forming a part thereof) maintained by (A) the Company or (B) any of its Subsidiaries, (2)
the Company or any of its Subsidiaries, or (3) any Person in connection with a Non-Control
Transaction.
	 
	 	(aa)	 	“Non-Control Transaction” means any transaction described in clauses 4(A)(i) through (iii)
of the definition of Change in Control.”
	 
	 	(bb)	 	“Participant” means a member of a select group of management or highly compensated
employees of the Company who has become a participant in the Plan under Section 2.
	 
	 	(cc)	 	“Participation Agreement” has the meaning provided in Section 3.2.
	 
	 	(dd)	 	“Person” means any individual, firm, corporation, partnership, joint venture,
association, trust, or other entity.
	 
	 	(ee)	 	“Plan” means the JLG Industries, Inc. Executive Severance Plan as amended and restated
effective October 15, 2006, and set forth in this document.
	 
	 	(ff)	 	“Proxy Contest” means a solicitation of proxies or consents by or on behalf of a Person other
than the Board of Directors.
	 
	 	(gg)	 	“Section” means a section of this Plan and any subsections of that section.
	 
	 	(hh)	 	“Securities Exchange Act” means the Securities Exchange Act of 1934, as amended and in
effect from time to time.
	 
	 	(ii)	 	“Securities Law Affiliate” means an “affiliate” as defined for purposes of Rule 12b-2 of the
General Rules and Regulations under the Securities Exchange Act.
	 
	 	(jj)	 	“SERP” means JLG Industries, Inc. Supplemental Executive Retirement Plan.
	 
	 	(kk)	 	“Severance Benefit” has the meaning provided in Section 4.1.
	 
	 	(ll)	 	“Subsidiary” of any Person means any corporation or other entity of which at least 80
percent (or such lesser percentage as the Administrative Committee may determine) of the
voting power of the voting equity securities or voting interest therein is owned, directly or
indirectly, by such Person.
	 
	 	(mm)	 	“Surviving Corporation” means a corporation resulting from a merger, consolidation, or
reorganization described in paragraph (4)(A)(i) of the definition of “Change in Control.”
	 
	 	(nn)	 	“Voting Power” means the voting power of all securities of the Company then outstanding
generally entitled to vote for the election of directors of the Company.

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 6
	Executive Severance Plan
	 	October 15, 2006

 

 

	2.2.	 	Gender and Number.
	 
	 	 	Words used in the masculine gender in the Plan are intended to include the feminine and
neuter genders, where appropriate. Words used in the singular form in the Plan are intended
to include the plural form, where appropriate, and vice versa.

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 7
	Executive Severance Plan
	 	October 15, 2006

 

 

SECTION 3. PARTICIPATION BY ELIGIBLE EXECUTIVES

	3.1.	 	Generally.

	 	(a)	 	An Eligible Executive who has an agreement in effect on the Effective Date
under a prior restatement of the Plan is eligible to receive a benefit subject to the terms
of this October 15, 2006 restatement if he properly executes a Participation Agreement in
accordance with Section 3.2.
	 
	 	(b)	 	If an Eligible Executive is not covered by an agreement under a prior restatement of
the Plan on the Effective Date, the Eligible Executive will not become a Participant in the
Plan unless the Compensation Committee designates him as eligible to participate in the
Plan and he properly executes a Participation Agreement in accordance with Section 3.2.

	3.2.	 	Participation Agreement Required.

	 	(a)	 	No employee will be eligible to receive a benefit under this restatement of the Plan
unless he and the Company execute a Participation Agreement evidencing his participation in
the October 15, 2006 Plan restatement. The executed
Participation Agreement will constitute an agreement between the Company and the
employee that binds both of them to the terms of the Plan and will bind their
heirs, executors, administrators, successors, and assigns, both present and future.
	 
	 	(b)	 	In the case of an employee who is eligible to participate in this restatement of the
Plan pursuant to Section 3.1(a), the executed Participation Agreement will constitute the
employee’s written agreement to waive all rights he may have under any earlier restatement
of the Plan.

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 8
	Executive Severance Plan
	 	October 15, 2006

 

 

SECTION 4. SEVERANCE BENEFITS

4.1. Basic Benefit.

	 	(a)	 	Amount. Subject to the timely execution of a release as provided in Section 6,
a Participant who is Dismissed is entitled to a Severance Benefit, determined as follows—

	 	(1)	 	Before a Change in Control. If a Participant is Dismissed before a Change in
Control occurs, the Participant’s Severance Benefit will equal—

	 	 	(A)	 	the Participant’s Applicable Percentage, times
	 
	 	 	(B)	 	the Participant’s Covered Compensation.

	 	(2)	 	On or Following a Change in Control. Subject to Section 4.2(b), if the
Participant is Dismissed six months before or two years after a Change in Control,
the Participant’s Severance Benefit will equal—

	 	 	(A)	 	the Participant’s Applicable CIC Percentage, times
	 
	 	 	(B)	 	the Participant’s Covered Compensation.

	 	(b)	 	Time and Form of Payment. Except as provided in Section 4.9, the Severance
Benefit will be paid in the form of a lump sum on the 60th day following the date the
Participant is Dismissed, provided that the requirements of Section 6 are satisfied.
	 
	 	(c)	 	Death Benefit. If the Participant dies after being Dismissed but before
receiving his Severance Benefit, his Severance Benefit will be paid to his Beneficiary.

4.2. Gross-Up Payment.

	 	(a)	 	Eligibility. Except as provided in Section 4.2(b) and subject to the timely
execution of a release as provided in Section 6, a Participant is eligible to receive a
Gross-Up Payment if the Participant—

	 	(1)	 	is Dismissed in connection with a Change in Control; and
	 
	 	(2)	 	receives payments or benefits contingent on the Change in Control from any
Company-sponsored plan, program or arrangement (“Company Payments”) that are
“excess parachute payments” within the meaning of section 280G(b)(1) of the Code
and are subject to the excise tax imposed by section 4999 of the Code (the “Excise
Tax”).

	 	(b)	 	Notwithstanding anything to the contrary in Section 4.2(a), a Participant will not
receive a Gross-Up Payment if the Participant’s excess parachute payment is less than or
equal to 310% of his “base amount” (within the meaning of section 280G(b)(3) of the Code).
In such an event, the Participant’s Company Payments

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 9
	Executive Severance Plan
	 	October 15, 2006

 

 

	 	 	 	will be reduced by the smallest amount necessary to ensure that the Company
Payments do not exceed three times the Participant’s base amount.

	 	(c)	 	Amount.

	 	(1)	 	Generally. The amount of the Gross-Up Payment will equal an amount such that, after
payment by the Participant of all taxes (including any interest or penalties imposed with
respect to such taxes), including any Excise Tax imposed upon the Gross-Up Payment, the
Participant retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Company Payments. The nationally recognized firm of certified public accountants (the
“Accounting Firm”) used by the Company prior to the Change in Control (or, if such
Accounting Firm declines to serve, a nationally recognized firm of certified public
accountants selected by the Company) will determine whether the Company Payments will
result in an excess parachute payment that is subject to the Excise Tax. If the
Accounting Firm determines that the Company Payments will not be subject to the
Excise Tax, it will, at the same time as it makes such determination, furnish the
Participant with an opinion that he has substantial authority not to report any
Excise Tax on his/her federal, state, local income or other tax return. If it is
later determined pursuant to Section 4.2(c)(4) that the Company Payments are
subject to the Excise Tax, the Gross-Up Payment will include any penalties and
interest that are imposed or become due as a result of the Accounting Firm’s
initial determination that the Company’s Payments were not subject to the Excise
Tax.
	 
	 	(2)	 	Tax Rates. For purposes of determining the amount of the Gross-Up Payment, the
Participant will be deemed to pay (A) federal income taxes at the highest marginal rates
of federal income taxation applicable to individuals in the calendar year in which the
Gross-Up Payment is to be made and (B) state and local income taxes at the highest
marginal rates of taxation applicable to individuals as are in effect in the state and
locality of the Participant’s residence in the calendar year in which the Gross-Up Payment
is to be made, net the maximum reduction in federal income taxes that can be obtained from
deduction of such state and local taxes, taking into account any limitations applicable to
individuals subject to federal income tax at the highest marginal rates.
	 
	 	(3)	 	Adjustments to Gross-Up Payments. If it is established pursuant to a final
determination of a court or an Internal Revenue Service proceeding or written opinion of
counsel that the Excise Tax is less than the amount previously taken into account
hereunder, the Participant will repay the Company, within 30 days of his receipt of notice
of such final determination or opinion, the portion of the Gross-Up Payment attributable to
such reduction (plus the portion of the Gross-Up Payment attributable to the Excise Tax
imposed on the Gross-Up Payment being repaid by the Participant if such repayment results
in a reduction in Excise Tax) plus any interest received by the Participant on the amount
of such repayment, provided that if any such amount has been paid by the

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 10
	Executive Severance Plan
	 	October 15, 2006

 

 

	 	 	 	Participant as an Excise Tax or other tax, he will cooperate with the Company
in
seeking a refund of any tax overpayments, and he will not be required to make
repayments to the Company until the overpaid taxes and interest thereon are
refunded to him.

	 	(4)	 	Additional Gross-Up Payment. If it is established pursuant to a final determination of
a court or an Internal Revenue Service proceeding or the written opinion of counsel that
the Excise Tax exceeds the amount taken into account hereunder (including by reason of any
payment the existence or amount of which cannot be determined at the time of the Gross-Up
Payment), the Company will make an additional Gross-Up Payment in respect of such excess
(including any tax penalties imposed or interest due because of the underpayment) 30 days
after the Company’s receipt of notice of such final determination or opinion; provided that
the Participant notifies the Company of the potential underpayment within 30 days of the
Participant’s initial receipt from the Internal Revenue Service of a dispute or inquiry
regarding the amount of the Excise Tax.

	 	(d)	 	Time and Form of Payment.

	 	(1)	 	Generally.

	 	 	(A)	 	Except as provided in Section 4.9, if the Company determines that an Excise Tax
will be imposed upon a Participant, the Gross-Up Payment will be paid in a lump sum
on the fifth day before the due date of the Excise Tax.
	 
	 	 	(B)	 	Except as provided in Section 4.9, if the Accounting Firm initially determines
that an Excise Tax will not be imposed upon the Company Payments and an Excise Tax
is subsequently imposed on the Company Payments pursuant to Section 4.2(c)(4), the
Gross-Up Payment will be paid in a lump sum on the 60th day after the
Participant’s initial receipt of notice of such final determination or opinion;
provided that no Gross-Up Payment will be paid under this Section 4.2(d)(1)(B) if
the Participant does not notify the Company of the potential underpayment within
30 days of the Participant’s initial receipt from the Internal Revenue Service of
a dispute or inquiry regarding the amount of the Excise Tax.

	 	(2)	 	Death Benefit. If the Participant dies after being Dismissed but before receiving any
Gross-Up Payment that might be due under this Section 4.2, the Gross-Up Payment will be
paid in a lump sum to his Beneficiary at the time set forth in Section 4.2(d)(1), above.

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 11
	Executive Severance Plan
	 	October 15, 2006

 

 

4.3. Medical and Life Insurance Benefits.

	 	 	If the Participant is Dismissed and timely executes a release as provided in Section 6, the
Company will provide the Participant with medical and life insurance benefits as follows—

	 	(a)	 	Medical Benefits.

	 	(1)	 	Amount. The amount of the medical benefits is equal to the amount of medical
benefits (if any) that the Company would have provided to the Participant had the
Participant continued employment with the Company in the same position held by the
Participant at the time of his termination from employment. The Company reserves
the right to modify, amend, or terminate at any time, the medical benefits that
would have been provided to the Participant if he had continued employment with the
Company.
	 
	 	(2)	 	Time of Payment. A Participant will continue to receive his medical benefits
under the Company’s medical insurance plan for a period beginning on the date
medical benefits otherwise would cease as a result of the Participant’s having been
Dismissed and continuing for the number of months that bears the same proportion to
twelve months as the Participant’s Applicable Percentage under Section 2.1(c) of
the Plan bears to 100%.

	 	(b)	 	Life Insurance Benefits.

	 	(1)	 	Amount. The life insurance benefits provided will be the benefits (if any) that
the Company would have provided to the Participant had the Participant continued
employment with the Company in the same position held by the Participant at the
time of his termination from employment.
	 
	 	(2)	 	Time of Payment. Except as provided in Section 4.9, life insurance benefits
will be continued under this Section 4.3(b) for a period beginning on the date life
insurance benefits otherwise would cease as a result of the Participant’s having
been Dismissed and continuing for the number of months that bears the same
proportion to twelve months as the Participant’s Applicable Percentage under
Section 2.1(c) of the Plan bears to 100%.

4.4. SERP Benefit

	 	 	If the Participant is Dismissed during the six month period immediately preceding or the
two year period immediately following a Change in Control, is at least age 50 as of the
date of the Change in Control, and timely executes a release as provided in Section 6, his
benefit under the Supplemental Executive Retirement Plan (the “SERP”) will be determined
and paid as follows—

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 12
	Executive Severance Plan
	 	October 15, 2006

 

 

	(a)	 	Amount of Benefit.

	 	(1)	 	Decreased Early Retirement Reduction. The amount of a Participant’s Accrued Benefit (as
defined under the SERP) will be determined in accordance with the terms of the SERP except
Sections 3.4(a) and A.5(e) of the SERP will not apply to the Participant. Instead, if the
Participant begins receiving his benefit under the SERP before age 60, his Accrued Benefit
will be reduced by one half of one percent for each month during which benefits are
scheduled to be paid before the first day of the month following the month in which the
Participant reaches age 55.
	 
	 	(2)	 	Five Years of Service Credit. If the Participant became a participant in the SERP
after September 5, 2000, the Participant will receive an additional five Years of
Service for purposes of determining the Participant’s applicable percentage under
Section 3.2 of the SERP.

	(b)	 	Time and Form of Payment. Notwithstanding anything to the contrary in the SERP, if the
Participant is Dismissed in connection with a Change in Control that occurs in 2006 or 2007, the
Participant’s Accrued Benefit under the SERP will be paid at the times and in the forms specified
below based on the age of the Participant on the date he is Dismissed:

	 	(1)	 	If the Participant is less than age 55 as of December 31, 2006, his Vested Retirement
Benefit (as defined under the SERP) will not be subject to Section 409A of the Code, and he
will receive his Vested Retirement Benefit in the form of a lump sum on the later to occur
of the following dates: (1) January 1, 2007, or (2) the 30th day after the Participant is
Dismissed.
	 
	 	(2)	 	If the Participant is at least age 55 but less than age 60 as of December 31, 2006,
his Early Retirement Benefit (as defined under the SERP) will be divided into two
portions, and he will be deemed to have elected to receive each portion in the form of a
lump sum on the following dates:

	 	(A)	 	The portion of the Participant’s Early Retirement Benefit that is
“grandfathered” within the meaning of Section 409A of the Code is not subject to
Section 409A of the Code and will be paid as soon as practicable but no later than
30 days after the Participant is Dismissed.
	 
	 	(B)	 	The portion of the Participant’s Early Retirement Benefit that is not
grandfathered within the meaning of Section 409A of the Code, will be paid six
months after the Participant is Dismissed.

	 	(3)	 	If the Participant is at least age 60 as of December 31, 2006, his Normal Retirement
Benefit or Late Retirement Benefit (whichever is applicable) will be divided into two
portions, and he will be deemed to have elected to receive each portion on the dates and in
the form as follows—

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 13
	Executive Severance Plan
	 	October 15, 2006

 

 

	 	(A)	 	The portion of the Participant’s Normal Retirement Benefit or
Late Retirement Benefit that is “grandfathered” within the meaning of
Section 409A of the Code, is not subject to Section 409A of the Code and
will be paid in the form of a lump sum on the 30th day after the
Participant is Dismissed.
	 
	 	(B)	 	The portion of the Participant’s Normal Retirement Benefit or Late
Retirement Benefit that is not grandfathered within the meaning of
Section 409A of the Code, will be paid six months after the date that the
Participant is Dismissed in the form of a lump sum to the extent permitted
under Section 409A of the Code, and if a lump sum payment is not
permissible, in the form of a Ten-Year Certain Life Annuity.

4.5. SERP Rabbi Trust

	 	 	Notwithstanding Section 3.2 of the JLG Industries, Inc. Executive Trust (the “Executive
Trust”), immediately preceding a Change in Control, the Company will contribute to the
Executive Trust amounts in cash or other property acceptable to the Trustee (as defined
under the Executive Trust Agreement) sufficient to fund 100% of all benefits that have
accrued under the SERP as of the Change in Control, assuming that all Participants will be
Dismissed under circumstances that entitle them to receive the maximum benefits provided
under Section 4.4, above.

4.6. Cash Bonus Award

	 	 	If the Participant is Dismissed, the Participant will receive a pro rated portion of the
bonus he would have been entitled to receive under the Annual Management Incentive Plan
(the “MIP”) for the fiscal year in which he is Dismissed equal to the greater of (a) or
(b), as defined below, multiplied by a fraction, the numerator of which is the number of
days in the performance year completed by the Participant as of the date he is Dismissed
and the denominator of which is 365. For this purpose, (a) and (b) will equal:

	 	(a)	 	the amount the Participant would have received under the MIP for the fiscal year in
which he is Dismissed had:

	 	(1)	 	all target objectives been achieved for the entire fiscal year,
	 
	 	(2)	 	the Executive otherwise satisfied all conditions for payment, and
	 
	 	(3)	 	the Company not exercised any negative discretion with respect to the amount of
any payment under the MIP.

	 	(b)	 	the amount the Participant would have received under the MIP for the fiscal year in
which he is Dismissed had

	 	(1)	 	the ratio of actual performance achieved as of the date the Participant is
Dismissed compared to target performance as of that date been sustained for the
remainder of the fiscal year,

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 14
	Executive Severance Plan
	 	October 15, 2006

 

 

	 	(2)	 	the Executive otherwise satisfied all conditions for payment, and
	 
	 	(3)	 	the Company not exercised any negative discretion with respect to the amount of
any payment under the MIP.

4.7. Legal Expenses After a Change in Control

	 	 	The Company will pay or reimburse the Participant for reasonable legal fees (including
without limitation, any and all court costs and reasonable attorneys’ fees and expenses)
incurred by the Participant in connection with or as a result of any claim, action or
proceeding brought by the Company or the Participant following a Change in Control with
respect to or arising out of the provisions of the Plan; provided, however, that the
Company will have no obligation to pay any such legal fees, if in the case of an action
brought by the Participant, the Company is successful in establishing with the court that
the Participant’s action was frivolous or otherwise without any reasonable legal or factual
basis. The Company will also make a gross-up payment to the Participant in the amount of
any (a) excise tax imposed by section 4999 of the Code on the payment or reimbursement for
reasonable legal fees, and (b) income tax or other penalties imposed on the gross-up
payment itself.

4.8. Dismissal.

	 	(a)	 	A Participant is Dismissed if his employment with the Company is terminated—

	 	(1)	 	for Good Reason; or
	 
	 	(2)	 	involuntarily by the Company for any reason other than for Cause.

	 	(b)	 	For purposes of this Section 4.8, if the Participant continues to be employed by the
Company or a successor business immediately following any of the transactions listed below,
the Participant’s employment with the Company is not considered terminated solely because
of the occurrence of the transaction—

	 	(1)	 	a change in the ownership of the Company;
	 
	 	(2)	 	all or part of the Company is merged, consolidated, spun off, liquidated, or
otherwise reorganized; or
	 
	 	(3)	 	all or part of the tangible and intangible assets of the Company are sold or
otherwise transferred to new ownership.

	 	(c)	 	Good Reason.

	 	(1)	 	Generally. A Participant’s employment with the Company is terminated for Good
Reason if his termination occurs no earlier than six months before the Change in
Control, no later than two years after the Change in Control, and no later than six
months after any of the triggering events included in Section 4.8(c)(2) or (3),
below. A Participant’s employment with the Company will not be considered
terminated for Good Reason if (A) a Change in Control has not occurred or (B) a
Change in Control has

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 15
	Executive Severance Plan
	 	October 15, 2006

 

 

	 	 	 	occurred but his employment terminates (i) more than six months before a
Change in Control, (ii) more than two years after a Change in Control, or (iii)
more than six months after any of the triggering events included in Section
4.8(c)(2) or (3), below.

	 	(2)	 	Triggering Events. The occurrence of any one of the following events without the
Participant’s consent is a triggering event for purposes of this Section 4.8(c)—

	 	(A)	 	a material change in the Participant’s position with the Company that
represents a demotion from his prior position with the Company;
	 
	 	(B)	 	the assignment to the Participant of material duties or responsibilities that
are inconsistent with his status or position with the Company;
	 
	 	(C)	 	a material reduction in the Participant’s base salary;
	 
	 	(D)	 	a change in the terms of the compensation arrangements applicable to the
Participant that represents a significant reduction in the value of such
compensation arrangements;
	 
	 	(E)	 	a material increase in the participant’s responsibilities or duties without
a commensurate increase in his base salary;
	 
	 	(F)	 	the imposition of any requirement that the Participant be based anywhere
other than within 50 miles of where his principal office was located on the date
of the Change in Control;
	 
	 	(G)	 	a material increase in the frequency or duration of the Participant’s business
travel; or
	 
	 	(H)	 	the Company’s failure to obtain the express assumption of this Plan with
respect to the Participant by any successor to the Company.

	 	(3)	 	Special Rule. A Participant’s employment with the Company will be deemed terminated
for Good Reason if the Participant is the Chief Executive Officer of the Company
immediately preceding the Change in Control and his employment with the Company is
terminated for any reason within six months after the Change in Control.
	 
	 	(4)	 	Non-Triggering Event. A Participant’s employment with the Company will not have
terminated for Good Reason if the only changes to the Participant’s duties,
responsibilities, or titles arise as a consequence of the Company ceasing to be a company
with publicly-traded securities or becoming a subsidiary, division, unit, or other
affiliate of a publicly- or privately- owned entity.

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 16
	Executive Severance Plan
	 	October 15, 2006

 

 

4.9. Application of Section 409A of the Code.

	(a)	 	In General. This Section 4.9 (1) applies only to the extent Section 409A of the Code
applies to any benefit payable under the Plan, (2) supersedes any provision of the Plan or
a Participation Agreement to the extent that such provision conflicts with this Section
4.9, (3) is intended to comply with and avoid the adverse tax consequences of Section 409A
of the Code, and (4) will be interpreted, operated, and administered in a manner consistent
with this intent.
	 
	(b)	 	Timing of Benefit Payments. No amount payable under the Plan that is subject to Section
409A of the Code will be paid before the date that is six months following the
Participant’s “Separation from Service,” within the meaning of Section 409A of the Code, or
on the date of the Participant’s death, if earlier. For purposes of this Section 4.9, a
payment that is required to be made on a certain date may be made as soon as practicable
following such date, provided that the payment must be made during the same calendar year
as the required payment date or, if later, by the 15th day of the third calendar month
following the required payment date, or otherwise in accordance with Section 409A of the
Code.

			
	 	 	 
	 
	JLG Industries, Inc.
	 	Page 17
	Executive Severance Plan
	 	October 15, 2006

 

 

SECTION 5. COVENANTS

	5.1.	 	Generally.
	 
	 	 	In consideration for the benefits provided under the Plan, each Participant will agree to
the covenants set forth in this Section 5.
	 
	5.2.	 	Noncompetition.

	 	(a)	 	Prohibited Conduct. During the period of a Participant’s employment with the Company, and the period continuing after the Participant’s termination of
employment (for any reason) for the number of months that bears the same proportion
to twelve months as the Participant’s Applicable Percentage under Section 2.1(c) of
the Plan bears to 100%, the Participant will not, without the prior written consent
of the CEO (or if the Participant is the CEO, without prior written consent of the
Compensation Committee)—

	 	(1)	 	personally engage in Competitive Activities (as defined below); or
	 
	 	(2)	 	work for, own, manage, operate, control, or participate in the ownership,
management, operation, or control of, or provide consulting or advisory services
to, any individual, partnership, firm, corporation, or institution engaged in
Competitive Activities, or any company or person affiliated with such person or
entity engaged in Competitive Activities; provided that Participant’s purchase or
holding, for investment purposes, of securities of a publicly-traded company will
not constitute “ownership” or “participation in ownership” for purposes of this
paragraph so long as Participant’s equity interest in any such company is less than
a controlling interest;

	 	 	 	However, this Section 5.2(a) will not prohibit a Participant from (1) being
employed by, or providing services to, a consulting firm, provided that he does not
personally engage in Competitive Activities or provide consulting or advisory
services to any individual, partnership, firm, corporation, or institution engaged
in Competitive Activities, or any company or person affiliated with such person or
entity engaged in Competitive Activities, or (2) engaging in the private practice
of law as a sole practitioner or as a partner in (or as an employee of or counsel
to) a law firm in accordance with applicable legal and professional standards.
	 
	 	(b)	 	Competitive Activities. “Competitive Activities” means business activities anywhere in
the world relating to products or services of the same or similar type as the products or
services (1) which are sold (or, pursuant to an existing business plan, will be sold) to
paying customers of the Company, and (2) for which the Participant then has responsibility
to plan, develop, manage, market, or oversee, or had any such responsibility within his
most recent 24 months of employment with the Company. If the scope of the obligations
contained in this
Section 5.2 are determined to exceed that which may be enforceable under applicable
law, the scope of these obligations will be reformed to provide for
enforcement to the maximum extent permitted under applicable law. The

			
	 	 	 
	 

	JLG Industries, Inc. 

Executive Severance Plan
	 	Page 18

October 15, 2006

 

 

	 	 	 	Participant will bear the burden of proving the scope of the maximum
enforceable obligations under applicable law and that the activities in which he
has engaged do not exceed such maximum enforceable obligations.

	5.3.	 	Interference with Business Relations.
	 
	 	 	During the period of the Participant’s employment with the Company, and the period
continuing after the Participant’s termination of employment (for any reason) for the
number of months that bears the same proportion to twelve months as the Participant’s
Applicable Percentage under Section 2.1(c) of the Plan bears to 100%, Participant will not,
without the prior written consent of the CEO (or if the Participant is the CEO, without
prior written consent of the Compensation Committee)—

	 	(a)	 	recruit or solicit any employee of the Company for employment or for retention as a
consultant or service provider;
	 
	 	(b)	 	hire or participate (with another company or third party) in the process of hiring
(other than for the Company) any person who is then an employee of the Company, or provide
names or other information about Company employees to any person or business (other than
the Company) under circumstances that could lead to the use of that information for
purposes of recruiting or hiring;
	 
	 	(c)	 	interfere with the relationship of the Company with any of its employees, agents, or
representatives;
	 
	 	(d)	 	solicit or induce, or in any manner attempt to solicit or induce, any client, customer,
or prospect of the Company (1) to cease being, or not to become, a customer of the Company
or (2) to divert any business of such customer or prospect from the Company; or
	 
	 	(e)	 	otherwise interfere with, disrupt, or attempt to interfere with or disrupt, the
relationship, contractual or otherwise, between the Company and any of its customers,
clients, prospects, suppliers, consultants, or employees.

	5.4.	 	Return of Property; Intellectual Property Rights.
	 
	 	 	On or before a Participant’s termination of employment with the Company for any reason, the
Participant will return to the Company all property owned by the Company or in which the
Company has an interest, including files, documents, data and records (whether on paper or
in tapes, disks, or other machine-readable form), office equipment, credit cards, and
employee identification cards. In addition, the Participant will acknowledge that the
Company is the rightful owner of any programs, ideas, inventions, discoveries, patented or
copyrighted material, or trademarks that the Participant may have originated or developed,
or assisted in originating or developing, during his period of employment with the Company,
where any such origination or development involved the
use of Company time or resources, or the exercise of his responsibilities for or on behalf
of the Company. The Participant will at all times, both before and after his termination,
cooperate with the Company in executing and delivering documents requested by the Company,
and taking any other actions, that are necessary or requested by the Company to assist the
Company in patenting, copyrighting, or

			
	 	 	 
	 

	JLG Industries, Inc. 

Executive Severance Plan
	 	Page 19

October 15, 2006

 

 

	 	 	registering any programs, ideas, inventions, discoveries, patented or copyrighted
material, or trademarks, and to vest title thereto in the Company.
	 
	5.5.	 	Proprietary and Confidential Information.
	 
	 	 	The Participant will at all times preserve the confidentiality of all proprietary
information and trade secrets of the Company, except to the extent that disclosure of such
information is legally required. “Proprietary information” means information that has not
been disclosed to the public and that is treated as confidential within the business of the
Company, such as strategic or tactical business plans; undisclosed financial data; ideas,
processes, methods, techniques, systems, patented or copyrighted information, models,
devices, programs, computer software, or related information; documents relating to
regulatory matters and correspondence with governmental entities; undisclosed information
concerning any past, pending, or threatened legal dispute; pricing and cost data; reports
and analyses of business prospects; business transactions that are contemplated or planned;
research data; personnel information and data; identities of users and purchasers of the
Company’s products or services; and other confidential matters pertaining to or known by
the Company, including confidential information of a third party that Participant knows or
should know the Company is bound to protect.

			
	 	 	 
	 

	JLG Industries, Inc. 

Executive Severance Plan
	 	Page 20

October 15, 2006

 

 

SECTION 6. RELEASE

	6.1.	 	Generally.
	 
	 	 	A Participant will not be entitled to any benefits under this Plan unless, at the time the
Participant is Dismissed, he executes and does not subsequently revoke a release
satisfactory to the Company releasing the Company, its affiliates, shareholders, directors,
officers, employees, representatives, and agents and their successors and assigns from any
and all employment-related claims the Participant or his successors and beneficiaries might
then have against them (excluding any claims the Participant might then have under this
Plan or any employee benefit plan sponsored by the Company). The release will be
substantially in the form that is attached as Exhibit A to the Plan.
	 
	6.2.	 	Time Limit for Providing Release.
	 
	 	 	A Participant will execute and submit the release to the Company within 30 days after the
Participant is Dismissed. However, if the Participant is Dismissed in connection with an
exit incentive or other employment termination program offered to a group or class of
employees, the Participant will have 50 days after the Participant terminates employment
to execute and submit the release to the Company.

			
	 	 	 
	 

	JLG Industries, Inc. 

Executive Severance Plan
	 	Page 21

October 15, 2006

 

 

SECTION 7. NATURE OF PARTICIPANT’S INTEREST IN THE PLAN

	7.1.	 	No Right to Assets.
	 
	 	 	Participation in the Plan does not create, in favor of any Participant or Beneficiary, any
right or lien in or against any asset of the Company. Nothing contained in the Plan, and no
action taken under its provisions, will create or be construed to create a trust of any
kind, or a fiduciary relationship, between the Company and a Participant or any other
person. The Company’s promise to pay benefits under the Plan will at all times remain
unfunded as to each Participant and Beneficiary, whose rights under the Plan are limited to
those of a general and unsecured creditor of the Company.
	 
	7.2.	 	No Right to Transfer Interest.
	 
	 	 	Rights to benefits payable under the Plan are not subject in any manner to alienation,
sale, transfer, assignment, pledge, or encumbrance. However, the Administrative Committee
may permit a Participant or Beneficiary to enter into a revocable arrangement to pay all or
part of his benefits under the Plan to a revocable grantor trust (a so-called “living
trust”). In addition, the Administrative Committee may recognize the right of an alternate
payee named in a domestic relations order to receive all or part of a Participant’s
benefits under the Plan, but only if (a) the domestic relations order would be a “qualified
domestic relations order” within the meaning of section 414(p) of the Code (if section 414
(p) applied to the Plan), (b) the domestic relations order does not attempt to give the
alternate payee any right to any asset of the Company, (c) the domestic relations order
does not attempt to give the alternate payee any right to receive payments under the Plan
at a time or in an amount that the Participant could not receive under the Plan, and (d)
the amount of the Participant’s benefits under the Plan are reduced to reflect any payments
made or due the alternate payee.
	 
	7.3.	 	No Employment Rights.
	 
	 	 	No provisions of the Plan and no action taken by the Company, the Board of Directors, the
Compensation Committee, or the Administrative Committee will give any person any right to
be retained in the employ of the Company, and the Company specifically reserves the right
and power to dismiss or discharge any Participant.
	 
	7.4.	 	Withholding and Tax Liabilities.
	 
	 	 	The amount of any withholdings required to be made by any government or government agency
will be deducted from benefits paid under the Plan to the extent deemed necessary by the
Administrative Committee. In addition, the Participant or Beneficiary (as the case may be)
will bear the cost of any taxes not withheld on benefits provided under the Plan,
regardless of whether withholding is required.

			
	 	 	 
	 

	JLG Industries, Inc. 

Executive Severance Plan
	 	Page 22

October 15, 2006

 

 

SECTION 8. ADMINISTRATION, INTERPRETATION, AND MODIFICATION OF PLAN

	8.1.	 	Plan Administrator.
	 
	 	 	The Administrative Committee will administer the Plan.
	 
	8.2.	 	Powers of the Administrator.
	 
	 	 	The Administrative Committee’s powers include, but are not limited to, the power to adopt
rules consistent with the Plan; the power to decide all questions relating to the
interpretation of the terms and provisions of the Plan; and the power to resolve all other
questions arising under the Plan (including, without limitation, the power to remedy
possible ambiguities, inconsistencies, or omissions by a general rule or particular
decision). The Administrative Committee has full discretionary authority to exercise each
of the foregoing powers.
	 
	8.3.	 	Finality of Committee Determinations.
	 
	 	 	Determinations by the Administrative Committee and any interpretation, rule, or decision
adopted by the Administrative Committee under the Plan or in carrying out or administering
the Plan will be final and binding for all purposes and upon all interested persons, their
heirs, and their personal representatives.
	 
	8.4.	 	Incapacity.
	 
	 	 	If the Administrative Committee determines that any person entitled to benefits under the
Plan is unable to care for his affairs because of illness or accident, any payment due
(unless a duly qualified guardian or other legal representative has been appointed) may be
paid for the benefit of such person to his spouse, parent, brother, sister, or other party
deemed by the Administrative Committee to have incurred expenses for such person.
	 
	8.5.	 	Amendment, Suspension, and Termination.
	 
	 	 	The Board of Directors has the right by written resolution to amend, suspend, or terminate
the Plan at any time. However, no amendment, suspension, or termination that reduces the
benefits to which a Participant is entitled under the Plan will apply to an employee who
already is a Participant in the Plan without his express written consent.
	 
	8.6.	 	Power to Delegate Authority.
	 
	 	 	The Board of Directors and the Administrative Committee may, in their sole discretion,
delegate to any person or persons all or part of its authority and responsibility under the
Plan, including, without limitation, the authority to amend the Plan.
	 
	8.7.	 	Headings.
	 
	 	 	The headings used in this document are for convenience of reference only and may not be
given any weight in interpreting any provision of the Plan.

			
	 	 	 
	 

	JLG Industries, Inc. 

Executive Severance Plan
	 	Page 23

October 15, 2006

 

 

	8.8.	 	Severability.
	 
	 	 	If any provision of the Plan is held illegal or invalid for any reason, the illegality or
invalidity of that provision will not affect the remaining provisions of the Plan, and the
Plan will be construed and enforced as if the illegal or invalid provision had never been
included in the Plan.
	 
	8.9.	 	Governing Law.
	 
	 	 	The Plan will be construed, administered, and regulated in accordance with the laws of the
Commonwealth of Pennsylvania, except to the extent that those laws are preempted by federal
law.
	 
	8.10.	 	Complete Statement of Plan.
	 
	 	 	This Plan contains a complete statement of its terms. The Plan may be amended, suspended,
or terminated only in writing and then only as provided in Section 8.5 or 8.6. A
Participant’s right to any benefit of a type provided under the Plan will be determined
solely in accordance with the terms of the Plan. No other evidence, whether written or
oral, will be taken into account in interpreting the provisions of the Plan.
Notwithstanding the preceding provisions of this Section 8.10, for purposes of determining
benefits with respect to a Participant, this Plan will be deemed to include (a) the
provisions of any Participation Agreement executed in accordance with Section 3.2, and (b)
the provisions of any other written agreement between the Company and the Participant to
the extent such other agreement explicitly provides for the incorporation of some or all of
its terms into this Plan.

			
	 	 	 
	 

	JLG Industries, Inc. 

Executive Severance Plan
	 	Page 24

October 15, 2006

 

 

EXHIBIT A

DRAFT RELEASE

In consideration of the benefits I am entitled to receive under the JLG Industries, Inc. Executive
Severance Plan (the “Plan”), I, [employee name], on behalf of myself, and on behalf of my heirs,
successors and assigns, hereby agree to release JLG Industries, Inc. (the “Company”), all of its
past, present and future subsidiaries, affiliates, directors, officers, employees; and all of its
and their respective heirs, successors, and assigns from any and all claims, demands, actions, and
liabilities that I might otherwise have asserted arising out of my employment with the Company,
including the termination of that employment.

I also promise not to sue the Company; any of its past, present and future subsidiaries,
affiliates, directors, officers, employees, agents, and representatives; or any of its or their
respective heirs, successors, and assigns based, in whole or in part, on any claims relating to my
employment with the Company or the termination of that employment. However, I am not releasing my
rights, if
any, under any qualified employee retirement plan nor am I releasing any rights or claims that may
arise after the date on which I sign this Release. Those rights, and only those rights, survive
unaffected by this Release.

I understand that as a consequence of my signing this Release I am giving up, with respect to my
employment and the termination of that employment, any and all rights I might otherwise have under
(1) the Age Discrimination in Employment Act of 1967, as amended; (2) and all other federal, state
or municipal laws prohibiting discrimination in employment on the basis of sex, race, national
origin, religion, age, handicap or other invidious factor; and (3) any and all theories of contract
or tort law, whether based on common law or otherwise.

I acknowledge and agree that:

	1.	 	The benefits I am receiving under the Plan constitute consideration over and above any
benefits that I might be entitled to receive without executing this Release.
	 
	2.	 	The Company advised me in writing to consult with an attorney prior to executing a copy of
the Plan document and the Release.
	 
	3.	 	I was given a period of at least 21 days within which to consider the Plan and the Release.
	 
	4.	 	The Company has advised me of my statutory right to revoke my acceptance of the terms of the
Plan and this Release at any time within seven (7) days of my signing of this Release.
	 
	5.	 	I warrant and represent that my decision to accept the Plan (including this Release) was (a)
entirely voluntary on my part; (b) not made in reliance on any inducement, promise or
representation, whether express or implied, other than the inducements, representations and
promises expressly set forth in the Plan or in the Release; and (c) did not result from any
threats or other coercive activities to induce acceptance of the Plan or Release.

In the event I decide to exercise my right to revoke within seven (7) days of my acceptance of this
Release, I warrant and represent that I will do the following: (1) notify the Company in

			
	 	 	 
	 

	JLG Industries, Inc. 

Executive Severance Plan
	 	Page A-1

October 15, 2006

 

 

writing of my intent to revoke my agreement, and (2) simultaneously return in full the
consideration received from the Company under the Plan.

I further warrant and represent that I fully understand and appreciate the consequence of my
signing this Release.

IN WITNESS WHEREOF, I hereby acknowledge receipt of consideration and execute the foregoing
agreement at _________________, this _________________day of _________________, 20___.

____________________

[name of employee]

     Witnessed by _________________ on this _________________ day of _________________, 20___.

____________________

WITNESS

			
	 	 	 
	 

	JLG Industries, Inc. 

Executive Severance Plan
	 	Page A-2

October 15, 2006EX-10.2

 

Exhibit 10.2

JLG Industries, Inc.

Executive Severance Plan

Participation Agreement

          THIS AGREEMENT is by and between JLG Industries, Inc., a Pennsylvania corporation having its
principal office at McConnellsburg, Pennsylvania (the “Company”), and                     ,
an individual residing at                                          (the “Executive”).

W I T N E S S E T H:

          [For executives who currently participate in the Executive Severance Plan, insert the
following: WHEREAS, the Executive currently participates in the JLG Industries, Inc. Executive
Severance Plan (the “Plan”), as effective June 1, 1995, November 17, 1997, or February 16, 2000;
and]

          WHEREAS, the Company has determined that the Executive is eligible to participate in the Plan,
as amended and restated effective October 15, 2006, and the Executive desires to waive his right to
any benefits under the earlier versions of the Plan and to become a Participant in the Plan subject
to the terms of this Participation Agreement and the October 15, 2006, restatement of the Plan; and

          NOW, THEREFORE, in consideration of the mutual covenants contained in the Plan document and in
this Participation Agreement, the Company and the Executive agree as follows:

     1. The Executive will be a Participant in the Plan as amended and restated effective October
15, 2006.

     2. The Executive’s Applicable Percentage will be ___% and his Applicable CIC Percentage will
be ___%.

     3. [For CEO, SVPs and EVPs, insert the following: The Executive’s Covered Compensation will
be the sum of the Executive’s base salary and annual cash bonus determined as follows:

     a) The Executive’s base salary will equal the greater of (i) the Executive’s base
salary for the twelve-month period ending immediately before he is Dismissed or (ii) the
Executive’s base salary for the twelve-month period ending immediately before a Change in
Control. For this purpose, base salary will include salary that is (i) contributed, at the
election of the Executive, to a cafeteria plan or a cash or deferred arrangement and not
included in the Executive’s gross income for federal income tax purposes by reason of
section 125 or 402(e)(3) of the Code and (ii) deferred under the JLG Industries, Inc.
Executive Deferred Compensation Plan (or any successor thereto).

     b) The Executive’s annual cash bonus will equal the greater of (i) the Executive’s
annual cash bonus for the fiscal year most recently completed before the date he is
Dismissed or (ii) the Executive’s annual cash bonus for the fiscal year most recently
completed before a Change in Control. For this purpose, annual cash bonus

 

 

will include any portion of an annual bonus deferred under the JLG Industries, Inc.
Executive Deferred Compensation Plan (or any successor thereto).]

[For VPs, insert the following: The Executive’s Covered Compensation will be the greater of
(a) the Executive’s base salary for the twelve-month period ending immediately before he is
Dismissed or (b) the Executive’s base salary for the twelve-month period ending immediately
before a Change in Control. For this purpose, base salary will include salary that is (a)
contributed, at the election of the Executive, to a cafeteria plan or a cash or deferred
arrangement and not included in the Executive’s gross income for federal income tax purposes
by reason of section 125 or 402(e)(3) of the Code and (b) deferred under the JLG Industries,
Inc. Executive Deferred Compensation Plan (or any successor thereto). In addition, if the
Executive is Dismissed within six months before or two years immediately following a Change
in Control, Covered Compensation will also include the greater of (a) the Executive’s annual
cash bonus for the fiscal year most recently completed prior to the date he is Dismissed or
(b) the Executive’s annual cash bonus for the fiscal year most recently completed before a
Change in Control. For this purpose, annual cash bonus will include any portion of an
annual bonus deferred under the JLG Industries, Inc. Executive Deferred Compensation Plan
(or any successor thereto).]

     4. [For executives who currently participate in the Executive Severance Plan, insert the
following: The Executive agrees to waive all rights he might have had under any Plan document or
restatement in effect prior to October 15, 2006, and agrees that this Participation Agreement
terminates any such rights in accordance with the terms of the prior Plan document or restatement
or any previous participation agreement.]

     5. The Executive acknowledges receipt of a copy of the 2006 Plan restatement, a copy of which
is attached hereto and incorporated herein. The Executive represents that he is familiar with the
Plan’s terms and provisions, and agrees to be subject to all terms and provisions of the Plan as
amended and restated effective October 15, 2006. The Executive also agrees to accept as binding,
conclusive, and final all interpretations of the Administrative Committee appointed to administer
the Plan, with respect to any questions arising under the Plan.

     6. The Executive agrees to the Covenants described in Section 5 of the Plan and understands
that he will not be entitled to any of the benefits under the Plan unless, at the time he
terminates employment the Company, the Executive executes a release satisfactory to the Company as
described in Section 6 of the Plan.

     7. To the extent that the terms and provisions or the Plan or this Participation Agreement
amend the JLG Industries, Inc. Supplemental Executive Retirement Plan, the Executive hereby
provides his express written consent to the application of such amendment to him.

     8. The Executive agrees to take such actions and to execute such other documents and
instruments as are deemed necessary by the Company to effectuate the intent of this Agreement.

     9. This Participation Agreement will be binding upon and inure to the benefit of (a) the
Company and its successors, assigns, and any purchaser of either the Company or its assets, and (b)
the Executive, his heirs, executors, administrators, successors and assigns.

 

 

     10. This Participation Agreement will be governed by the laws of the Commonwealth of
Pennsylvania (without regard to its conflict of laws provisions), except to the extent federal law
governs.

     11. This Participation Agreement, and the Plan attached hereto, represent the entire
understanding between the Executive and the Company with respect to the subject matter hereof. No
other evidence, written or oral, will be taken into account in interpreting the provisions of this
Participation Agreement or the Plan. The Plan may not be amended or modified except in accordance
with its terms, and this Participation Agreement may not be amended or modified except by written
agreement signed by the parties hereto.

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the date specified below.

JLG Industries, Inc.

DATE:                     BY:                     

TITLE:                                         

                                                            

     [Name of Executive]

DATE:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]