for Ronald C. Hanson
December 31, 2008
EXECUTIVE EMPLOYMENT AGREEMENT
THIS AGREEMENT (this “Agreement”) is made as of the 31st day of December, 2008 (the “Effective
Date”), by and between Sauer-Danfoss Inc. (the “Company”) and Ronald C. Hanson (the “Executive”). The
existing Employment Agreement between the Company and the Executive dated July 1, 2003 shall terminate by
mutual agreement as of December 30, 2008 and will be replaced, in its entirety by this Agreement.
WHEREAS, the Company desires to provide for the continued employment of the Executive on the
terms and conditions set forth herein, in the best interest of the Company and its constituencies; and
WHEREAS, the Executive desires to continue to be employed by the Company as provided herein; and
NOW, THEREFORE, in consideration of the premises and the respective covenants, promises and
agreements of the parties herein contained, the parties agree as follows:
1. Employment . The Company agrees to continue to employ the Executive and the Executive
agrees to continue to be employed on a full-time basis by the Company for the period and upon the terms and
conditions specified herein.
2. Term; Employment Period . The term of this Agreement (the “Term”) shall begin on the
Effective Date and continue until terminated according to Section 6 of this Agreement. The period during which
the Executive is employed by the Company is referred to as the “Employment Period.” The date on which the
termination of the Executive’s employment becomes effective is referred to as the “Termination Date”.
3. Position and Duties . During the Employment Period, the Executive shall serve as Vice
President, Human Resources of the Company and shall have such responsibilities, duties and authority as set forth
in the B