FIRST AMENDED AND RESTATED
EMPLOYMENT AGREEMENT
FIRST
AMENDED AND RESTATED EMPLOYMENT AGREEMENT effective as of the 1
st day of January, 2008 (“Agreement”) by and
between OSHKOSH CORPORATION, a Wisconsin corporation (the
“Company”), and ROBERT G. BOHN (the
“Executive”).
WITNESSETH:
WHEREAS,
the Executive and the Company executed an initial Employment
Agreement as of October 15, 1998, which was subsequently amended as
of July 1, 2000 and December 31, 2000 (as amended, the
“Original Agreement”), and the parties hereto desire to
amend and restate the Original Agreement to read in its entirety as
set forth in this Agreement;
WHEREAS,
the Executive has been serving as President and Chief Executive
Officer of the Company and as a director of the Company;
WHEREAS,
the Company desires to continue to retain the services of the
Executive, and the Executive desires to continue to be employed by
the Company, on the terms and conditions set forth in this
Agreement; and
WHEREAS,
in consideration of the Company’s commitment to employ the
Executive during the term of this Agreement, the Executive is
willing to agree to the provisions respecting noncompetition and
protection of Confidential Information (as defined below) set forth
herein.
NOW,
THEREFORE, in consideration of the premises and the mutual
covenants and agreements set forth herein, the parties hereto,
intending to be legally bound, hereby agree as follows:
1.
Employment and Duties . Subject to the terms and conditions
of this Agreement, the Company hereby agrees to continue to employ
the Executive, and the Executive hereby agrees to continue to be
employed by the Company, as the Chief Executive Officer of the
Company. As such officer, he shall be responsible for the
supervision, control and conduct of all of the business and affairs
of the Company, shall have such additional duties as are normally
assigned to a chief executive officer, shall perform his duties in
a conscientious, reasonable and competent manner, shall devote his
best efforts to his employment by the Company and, except as
otherwise set forth herein, shall devote his entire business time
and attention to the performance of his duties. At all times, the
Executive shall be subject to the direction of the Board of
Directors of the Company.
The
Executive shall be entitled (a) to serve as a director of those
corporations that shall have been approved in advance by the
Compensation Committee of the Board of Directors of the Company
(the “Committee”), subject to review and approval by
the full Board of Directors of the Company, (b) to participate in
such other business, community and professional activities as the
Committee shall approve in advance, subject to review and approval
by the full Board of Directors of the Company, and (c) to devote
time to personal and financial activities so long as they do not
materially affect his ability to perform his duties hereunder. The
Company anticipates that the Executive will continue to serve as a
member of the Board of Directors of the Company and as a member of
the Executive Committee of the Board of Directors.
2.
Term . The employment of the Executive will continue until
the occurrence of the first of the following events:
(a)
September 30, 2001, subject to extension as described
below;
(b)
The Executive’s death;
(c)
The Executive shall have become totally disabled within the meaning
of the Oshkosh Corporation Long Term Disability Program for
Salaried Employees (the “LTD Program”) such that the
Executive is entitled to receive benefits under the LTD
Program;
(d)
The Executive’s retirement at any time on or after he attains
the age of 62; provided , however , that the
Executive shall give the Company twelve (12) months prior written
notice of such retirement or such other notice as the Company and
the Executive shall mutually agree upon; or
(e)
Termination of this Agreement under Section 8.
If the Executive’s
employment continues following the date identified in clause (a)
above, then for so long as the Executive is employed by the Company
the Executive shall be an at-will employee. The provisions of
Sections 6, 7, 9, 11, and 12 shall survive the expiration of the
term of this Agreement.
The
last date on which the Executive’s employment hereunder may
terminate pursuant to subsection (a) shall be automatically
extended at successive one-year intervals on the date 24 months
prior to the date on which the Executive’s employment
hereunder would otherwise terminate unless not less than thirty
(30) days prior to such date the Company or the Executive has
provided a written notice of nonrenewal (a “Nonrenewal
Notice”) to the other party. If a party gives a Nonrenewal
Notice within the prescribed time, then the Executive’s
employment hereunder shall terminate in accordance with the
provisions of this Section (as subsection (a) may have been
previously extended by the parties), and neither party shall have
any other rights or obligations as a result of the delivery of such
notice. Notwithstanding the foregoing, in no event shall this
Agreement be extended automatically (x) beyond the date on which
the Executive would attain age 62 or (y) if the Executive is
disabled at the time such extension would otherwise automatically
become effective.
3.
Compensation . The Executive shall be entitled to the
following compensation for services rendered to the Company during
the term of this Agreement:
(a)
Base Salary . Subject to adjustment in accordance with this
subsection (a), the Executive shall receive a base salary, payable
not less frequently than monthly in arrears, at the annual rate of
not less than $1,150,000. The Committee shall review the
Executive’s base salary annually to determine whether such
salary should be increased based upon (i) the Company’s
performance and/or the Executive’s performance, (ii) an
assessment of competitive practice as determined by the Committee
or, in the Committee’s sole discretion, by an independent
compensation consultant and (iii) such other criteria as the
Committee shall consider in its sole discretion. Further, if the
Executive initiates or agrees to a general reduction of base
salaries of executive officers of the Company, then such base
salary shall be subject to reduction on the same basis and terms
that apply to the other officers of the Company. (In this
Agreement, the term “Base Salary” shall mean the amount
established and adjusted from time to time pursuant to this
subsection (a).)
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(b)
Annual Bonus . The Executive shall be entitled to
participate in the bonus plan for senior management personnel of
the Company, subject to all of the terms and conditions of the plan
and the discretion and powers of the Committee
thereunder.
(c)
Stock-based Compensation . The Executive shall be entitled
to participate in stock-based compensation programs in effect from
time to time for other senior executives of the Company, subject to
all of the terms and conditions of such programs and the discretion
and powers of the Committee thereunder.
(d)
Vacations and Holidays . The Executive shall be entitled to
receive 20 days of paid vacation per year together with the paid
holidays available to all other senior management personnel. Unused
vacation and holidays shall not accrue from year to year unless
approved by the Committee.
(e)
Fringe Benefits . The Executive shall be entitled to
participate in all fringe benefit plans and programs in effect from
time to time for, and on the same basis as, all other senior
executives of the Company, including medical and dental insurance,
pension and retirement benefits and other similar benefits. The
Company shall, at its sole expense, procure and keep in effect term
life insurance on the life of the Executive, payable to such
beneficiaries as the Executive may from time to time designate, in
an amount that, when aggregated with any term life insurance
provided to the Executive pursuant to the Company’s standard
benefit plans, shall be equal to three times the sum of (x) the
Base Salary then in effect plus (y) the target bonus for the
Executive applicable to the then current fiscal year.
(f)
Perquisites . The Executive shall be entitled to all of the
perquisites offered from time to time to other senior executives of
the Company and, with the prior approval of the Committee, such
other perquisites as are necessary and appropriate for the
Executive to carry out his duties as the Chief Executive Officer of
the Company. The Executive shall also be entitled to the use,
primarily for business purposes and at the sole expense of the
Company, of the Chevrolet Suburban vehicle owned by the Company and
currently used on a regular basis by the Executive or a vehicle of
comparable nature and cost owned by the Company.
(g)
Certain Expenses . The Company shall bear the expenses of
the Executive for personal income tax, financial and estate
planning consulting services, provided that the Committee
determines that such expenses are reasonably incurred and that the
fees charged by the providers of such services are at competitive
rates. The Executive shall also be entitled to reimbursement for
all reasonable fees and expenses of the Executive’s legal
counsel in connection with the negotiation and preparation of this
Agreement.
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(h)
Supplemental Retirement Benefit . The Company shall pay the
Executive a supplemental retirement benefit computed in accordance
with Section 11.
The Committee, in its sole
discretion, may base any future changes in compensation or benefits
applicable to the Executive that are made in accordance with the
foregoing on an assessment of competitive practice by an
independent compensation consultant retained by the Committee. Any
approvals of, or changes to, compensation or benefits applicable to
the Executive that the Committee makes in accordance with the
foregoing shall be subject to the review and approval of the full
Board of Directors of the Company.
4.
Reimbursements . The Company shall reimburse the Executive
for actual out-of-pocket costs incurred by him in the course of
carrying out his duties hereunder, such reimbursements to be made
in accordance with the policies and procedures of the Company in
effect from time to time.
5.
Withholding . All payments under this Agreement shall be
subject to withholding or deduction by reason of the Federal
Insurance Contributions Act, the federal income tax and state or
local income tax and similar laws, to the extent such laws apply to
such payments.
6.
Noncompetition . In consideration of the Company’s
commitment to employ the Executive during the term of this
Agreement, the Executive agrees that, except in the event of a
material breach of this Agreement by the Company, for a period of
one year after the termination of any period in respect of which
the Executive is receiving payments of Base Salary hereunder
(including payments made under Section 9) or, if later, a period of
one year after the termination of the Executive’s active
employment with the Company (whether such termination occurs before
or after the expiration of the term of this Agreement), he shall
not, except as permitted by the Company’s prior written
consent, engage in, be employed by, or in any way advise or act for
in any capacity where Confidential Information would reasonably be
considered to be useful, or have any financial interest in, any
business that, as of the date of such termination, is engaged
directly or indirectly in the business of designing, manufacturing
or marketing fire apparatus (including, without limitation,
aircraft rescue and firefighting vehicles), refuse truck bodies or
vehicles, concrete mixers, snow removal vehicles, defense trucks or
trailers or their related components, or any other business in
which the Company or any of its subsidiaries is engaged as of the
date of such termination with the approval of the Board of
Directors of Company and with the consent of the Executive.
However, the foregoing shall not restrict the Executive as to any
business if neither the Company nor any of its subsidiaries is
engaged in such business as of the date of such termination and the
Board of Directors of the Company has approved the exit of the
Company and/or its subsidiaries from such business. The geographic
scope of the Executive’s agreement not to compete shall
extend to all of the United States and to any other country if the
Company has directly or indirectly (i) sold product for delivery to
a customer in that country during the 36 months preceding the date
of termination, (ii) actively sought to sell product for delivery
to any customer in that country during such period or (iii) made
plans, in which the Executive participated, to sell product for
delivery to any customer in that country during such period,
whether or not the Company pursued or abandoned such plans prior to
the date of termination. The ownership of minority and
noncontrolling shares of any corporation whose shares are listed on
a recognized stock exchange or traded in an over-the-counter
market, even though such corporation may be a competitor of the
Company or any subsidiary specified above, shall not be deemed as
constituting a financial interest in such competitor. This covenant
shall survive the termination of this Agreement.
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7.
Confidential Information .
(a)
Defined . “Confidential Information” shall mean
ideas, information, knowledge and discoveries, whether or not
patentable, that are not generally known in the trade or industry
and about which the Executive has knowledge as a result of his
employment with the Company, including without limitation defense
product engineering information, marketing, sales, distribution,
pricing and bid process information, product specifications,
manufacturing procedures, methods, business plans, marketing plans,
internal memoranda, formulae, trade secrets, know-how, research and
development and other confidential technical or business
information and data. Confidential Information shall not include
any information that the Executive can demonstrate is in the public
domain by means other than disclosure by the Executive.
(b)
Nondisclosure . For a period of five years after the
termination of the Executive’s active employment with the
Company (whether such termination occurs before or after the
expiration of the term of this Agreement) and indefinitely
thereafter in respect of any Confidential Information that
constitutes a trade secret or other information protected by law,
the Executive will keep confidential and protect all Confidential
Information known to or in the possession of the Executive, will
not disclose any Confidential Information to any other person and
will not use any Confidential Information, except for use or
disclosure of Confidential Information for the exclusive benefit of
the Company as it may direct or as necessary to fulfill the
Executive’s continuing duties as an employee of the Company.
This Section 7(b) shall not, however, be construed to prohibit
competition by Executive for a longer time or in a broader
territory than that specified in Section 6.
(c)
Return of Property . All memoranda, notes, records, papers,
tapes, disks, programs or other documents or forms of documents and
all copies thereof relating to the operations or business of the
Company or any of its subsidiaries that contain Confidential
Information, some of which may be prepared by the Executive, and
all objects associated therewith in any way obtained by him shall
be the property of the Company. The Executive shall not, except for
the use of the Company or any of its subsidiaries, use or duplicate
any such documents or objects, nor remove them from facilities and
premises of the Company or any subsidiary, nor use any information
concerning them except for the benefit of the Company or any
subsidiary, at any time. The Executive will deliver all of the
aforementioned documents and objects, if any, that may be in his
possession to the Company at any time at the request of the
Company.
8.
Termination .
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(a)
By the Company for Cause . The Company may terminate this
Agreement for Cause at any time. For the purposes of this
Agreement, “Cause” shall mean any of the following: (i)
theft, dishonesty, fraudulent misconduct, disclosure of trade
secrets, gross dereliction of duty or other grave misconduct on the
part of the Executive that is substantially injurious to the
Company; (ii) the Executive’s willful act or omission that he
knew would have the effect of materially injuring the reputation,
business or prospects of the Company; (iii) the Executive’s
conviction of a felony, as evidenced by a binding and final
judgment, order or decree of a court of competent jurisdiction;
(iv) the Executive’s consent to an order of the Securities
and Exchange Commission for a violation of the federal securities
laws; (v) the Executive’s repeated and demonstrated failure
to perform material duties in a competent and efficient manner
which failure is not due to illness or disability of the Executive;
(vi) a petition under the federal bankruptcy laws or any state
insolvency law was filed by or against, or a receiver was appointed
by a court for the property of, the Executive; or (vii) the
Executive’s failure to file timely required federal or state
income tax returns and to pay related taxes. Notwithstanding the
foregoing, the Executive shall not be deemed to have been
terminated for Cause unless and until there shall have been
delivered to the Executive (A) a copy of a resolution, duly adopted
by the affirmative vote of not less than a majority of the entire
membership of the Board of Directors of the Company (excluding the
Executive) at a meeting of the Board of Directors called and held
for the purpose (after reasonable notice to the Executive and an
opportunity for him, together with his counsel, to be heard before
the Board of Directors), finding that in the good faith opinion of
the Board of Directors conduct of the Executive met one of the
standards set forth in any of clauses (i) through (vii) of the
preceding sentence and specifying the particulars thereof and (B)
an affidavit sworn to by the Secretary of the Company stating that
such resolution was in fact adopted by the affirmative vote of not
less than a majority of the entire membership of the Board of
Directors (excluding the Executive). If the Company terminates this
Agreement for Cause, then the Executive shall forfeit his right to
any and all benefits (other than vested fringe benefits and accrued
vested Supplemental Retirement Benefits described in Section 11) he
would otherwise been entitled to receive under this
Agreement.
(b)
By the Company without Cause . The Company may terminate
this Agreem