Exhibit 10.4


 





 


August 7, 2007


 


Clement Feng


20690 Bradford Court


Brookfield, WI 53045


 


Dear Clement:


 


We
are pleased to offer you the position of Chief Marketing Officer, an Executive
Vice President level position within our company.  The purpose of this letter is to give you an
overview of the terms and conditions of your employment at Generac Power
Systems, Inc. This letter is not, and should not be construed as, a
contract.


 


Your salary will be $262,000 per year and you will be included in the June 2008
performance reviews. Additionally, you will be included in an annual sales
bonus program.  This program provides for
the opportunity to earn up to 30% of your base salary with a cap of 3X your
target.


 


You will also participate in our corporate quarterly bonus program.  If the company achieves a level one bonus, you
will receive up to $2000 per quarter; if the company achieves a level two
bonus, you will receive up to $4000 per quarter; if the company achieves a
level three bonus; you will receive up to $6000 per quarter. You must be
employed for the full quarter to be eligible for this bonus.


 


Your regular insurance benefits will be available the first day of the
month following your 90-day probationary period. However, we will provide
short-term health coverage for you and your family during the waiting period
before your regular Generac insurance benefits begins.


 


In consideration of anticipated earnings for your current 2007 bonus
program, Generac will provide a one time bonus of $100,000 payable by December 31,
2007.  You must be employed at the time
of the payout.


 


You will also be invited to participate in the company’s Restricted
Share Program.  Upon the start of your
employment with Generac you will be given the opportunity to purchase up to 389
shares of Generac’s Restricted Stock.  Further
details of this program will be provided.


 


Should
your employment with the company be terminated for any reason other than for
cause, you will be entitled to a severance package equal to one year of your
base salary. Additionally, for a period of up to one year after your
termination, Generac will provide for reimbursement of your COBRA costs until
you become employed with another employer.


 


ACCOUNTING AND
FINANCE


P.O. BOX 8 · WAUKESHA, WI  53187 · 262/544-4811 · FAX 262/968-9372


 

















 


This offer includes an annual allowance for 15 days of paid vacation.  Should you not use your entire vacation time
granted in a calendar year, the unused vacation days will be paid to you at
your base rate of compensation at the end of the calendar year.  Excluded from this payout will be any portion
of the unused days related to the additional third week of vacation included in
this offer.


 


Clement, as a condition of employment you will be required to sign a
non-compete agreement.  We are excited
that you have accepted our offer and will be starting your new position with us
no later than September 4, 2007.  We
look forward to a rewarding and productive relationship.  If you have any further questions, please let
me know.


 


 


	
  Sincerely,

  
	
   

  
	
  /s/
  Aaron P. Jagdfeld

  	
   

  
	
  Aaron
  P. Jagdfeld

  
	
  President and Chief Financial
  Officer

  



 


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