Document:

jhg_Ex10_24

		

			Exhibit 10.24

		

		

			 

		

		

			Global Remuneration Policy Statement (GRPS)

		

		
			 
		

		
			Summary of Janus Henderson Group Plc Remuneration Policy
		

		
			 
		

		
			Janus Henderson Group plc (‘the Company’) operates a single Remuneration Policy which applies in its entirety to all entities and employees including the executives, unless local laws or regulations set more rigorous requirements for any aspect, in which case the higher standards apply.
		

		
			 
		

		
			A successful remuneration policy should be sufficiently flexible to take account of future changes in the Company’s business environment and remuneration practice and therefore the GRPS is subject to change from time to time.  The policy is reviewed on an annual basis to ensure that it remains aligned with evolving business strategy and changes in the markets in which we operate, is consistent with best practice, promotes sound and effective risk management and is compliant with applicable regulations.
		

		
			 
		

		
			Remuneration Principles
		

		
			Our remuneration practices aim to link pay with performance and drive long-term shareholder returns, while appropriately managing risk.  In doing so, the Compensation Committee and the Board recognize that our remuneration policies and practices must enable us to attract, motivate and retain exceptional people, while aligning their interests with those of shareholders.
		

		
			 
		

		
			The key drivers of our remuneration philosophy are:
		

		
			 
		

			
	
			
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			Attract and retain employees by providing total reward opportunities which, subject to performance, are competitive within our defined markets,

			
	
			
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			Maintain an appropriate balance between fixed and variable pay, and short and long-term elements of remuneration, to prudently manage risk taking and to align pay with the Company’s strategic objectives and time horizons,

			
	
			
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			Reinforce a strong performance culture through rewards which are differentiated based on Company, department and individual performance,

			
	
			
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			Align management interests with those of the Company’s shareholders and clients by delivering a material portion of annual remuneration in shares of Janus Henderson stock and units of Janus Henderson funds,

			
	
			
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			Ensure that reward-related processes are compliant with industry regulations and legislation, consistent with market practice, and include effective risk management controls.

		
			 
		

		
			The Company’s remuneration principles are reinforced through an appropriate balance of the following elements of remuneration:
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Base Pay

					
					
						Attract and retain employees with the personal attributes, skills and experience required to deliver long-term value for clients and shareholders.

				
	
					
						Benefits

					
					
						Provide health benefits to support our employees and their families, geared toward employee wellbeing, competitive within each of our local markets, and cost-effective and tax-efficient whenever possible.

					
						Offer competitive retirement and/or pension arrangements that allow employees to build wealth, are aligned with the Company’s risk appetite, and cost- and tax-efficient for employees and the Company.

					
						The Company operates voluntary all employee share plans including Buy As You Earn (BAYE), Sharesave (SAYE), and an Employee Stock Purchase Plan (ESPP) in which staff can participate within approved contribution guidelines to encourage employees to become shareholders in the Company.

					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			

		

 

		

			Global Remuneration Policy Statement (GRPS)

		

		

		
			 
		

			
					
						Variable Incentive Awards

					
						 

					
						 

					
					
						Employees are eligible to receive annual discretionary incentive awards based on Company, department, and individual performance and contributions.  These awards are funded from a Profit Pool (more fully described below).

					
						 

					
						Variable incentives are paid in the form of cash and/or deferred awards.  Deferrals are delivered in shares of Janus Henderson Group plc or interests in Janus Henderson funds.  In some cases deferrals are made in funds for regulatory reasons. Employees who meet certain ownership thresholds (in Janus Henderson stock) are given the opportunity to elect to have some or all of their deferral delivered in funds. Individual awards, if any, are discretionary and determined based on Company, department and individual performance.

					
						 

					
						Under the CEO Scorecard framework, a portion of the deferral is delivered in performance shares that vest based on relative total shareholder return, over a forward looking three-year period, providing a further link to Company performance.

					
						 

				

		
			 
		

		
			The Company does not operate specific ratios (maxima or minima) in regard to the mix of fixed and variable pay, opting instead for managing fixed and variable remuneration in line with market practice and by reference to the employee‘s unique role and individual performance.
		

		
			 
		

		
			Variable Incentive Awards
		

		
			 
		

		
			Profit Pools
		

		
			 
		

		
			The Company pays annual variable incentive remuneration for 99% of employees from pools funded by Company profits (“Profit Pools”).  The Profit Pools fund employee variable incentive awards, as well as performance fee remuneration (where applicable).  Employees participate in one of three separately funded pools, depending on their role in the organisation: (i) the Investments Pool, (ii) the Core Pool, or (iii) the Intech Pool.  Each pool has a  specific Pre Incentive Operating Income (PIOI) calculation and a corresponding funding percentage, effectively creating a ‘profit share’ arrangement between our employees and our shareholders.
		

		
			 
		

			
	
			
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			The Investments Pool:  Covers employees contributing to the investment management functions at Janus Henderson and include; portfolio managers, research analysts, research associates, traders, client portfolio managers, the exchange-traded product team, portfolio analytics,  investment risk employees and the investment team’s administrative support.

			
	
			
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			The Core Pool:  Covers employees contributing to the executive, distribution, administrative, and operational support of Janus Henderson and its subsidiaries.

			
	
			
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			The Intech Pool: Covers all employees of the Janus Henderson subsidiary Intech Investment Management LLC, including investments, distribution, and support employees.

		
			 
		

		
			PIOI is generally considered as operating income before the deduction of incentive remuneration and overhead.  The indicative funding percentages are subject to oversight and approval by the Compensation Committee (the “Committee”) of the Janus Henderson Board of Directors.  The Committee retains the discretion to modify or terminate remuneration plans and programmes without prior notice.
		

		
			 
		

		
			Profit Pool funding levels are directly linked to profits generated in the current year, reflecting the firm’s ability to pay and thereby strengthening its capital base.  The Committee may adjust the profit pools (even to zero);
		

		
			
		

		
			

		 

		

			 

		

		

			

		

 

		

			Global Remuneration Policy Statement (GRPS)

		

		

		
			 
		

			
	
			
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			If the Committee believes an adjustment, either up or down, better aligns the Pool with Company performance, or in consideration of any non-financial objectives or factors as appropriate,

			
	
			
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			in consideration of the annual risk assessment, and/or

			
	
			
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			based on independent guidance or advice from the Janus Henderson Board Risk Committee or the Henderson Group Holdings Asset Management Limited (“HGHAML”) Board.

		
			 
		

		
			Once the Profit Pools are calculated in aggregate, allocations are cascaded to department leadership through a process initiated by the CEO, in collaboration with members of the Executive Committee and the CEO of Intech.  During this allocation process, department performance and contribution toward Company results are taken into account, and consideration is given to financial and non-financial key performance indicators as determined for each department.  This group may review relevant department level information gathered from the annual risk assessment, the review of errors and breaches, and any conduct or behaviour issues.
		

		
			 
		

		
			Employees receive variable incentive awards  from the profit pools on a discretionary basis,  based on the recommendations of line managers and in consideration of individual performance appraisals. Under the Company’s performance appraisal framework, employees;
		

		
			 
		

			
	
			
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			set individual objectives (jointly with line management), aligned to the Company’s overall strategic objectives, yet unique to their individual role and department, and

		
			 
		

			
	
			
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			are expected to exhibit certain behavioural competencies, aligned with the Company’s purpose and guiding principles:

		
			 
		

			
	
			
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			‘we put our clients first’ – strong and enduring client relationships built on strong investment performance and a first class experience will enable us to grow our business and increase profit;

			
	
			
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			‘we act like an owner’ – focus on both revenues and costs increases profitability which is then shared in a defined way with our shareholders;

			
	
			
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			‘we succeed as a team’ – a discretionary allocation process in which partnership is a key component means the whole will be greater than the sum of its parts.

		
			 
		

		
			In respect of individual incentive awards from the Profit Pools, employees are measured against;
		

		
			 
		

			
	
			
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			achievement of their individual objectives, and

			
	
			
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			demonstration of the above behavioural competencies.

		
			 
		

		
			This is a ‘guidance based’ approach with no specific rules constraining line manager discretion.  Final decision-making and approval of individual awards is held by department leadership.  The CEO and co-Heads of HR review department outcomes, including a gender pay view, and provide oversight and direction as needed.
		

		
			 
		

			
	
			
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			The Remuneration Review Committee (the “RRC”) reviews individual incentive remuneration in the context of errors, breaches, conduct and behaviours and may adjust individual awards based on this review,

			
	
			
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			A subcommittee of the RRC, the Code Staff Compensation Committee (the “CSCC”) reviews remuneration proposals relating to individuals identified as Code Staff under the CRD, AIFMD and UCITS Remuneration Codes.

		
			 
		

		
			Profit Pool eligibility does not guarantee that variable incentives will be paid to an employee, and the payment of no variable incentive is a possibility should performance of the firm and/or the individual require this. Employees must be actively employed by Janus Henderson on the day that Profit Pool incentives are distributed in order to receive these awards.
		

		
			 
		

			
	
			
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			Employees paid outside the Profit Pools: Employees in the following positions are not eligible to participate in the Profit Pools and may receive variable incentives that are directionally consistent with the profit pool outcomes, in consideration of individual performance as determined by the Committee for the CEO or as recommended by the CEO for the Executive Committee. The Compensation Committee retains decision-making and approval of Executive Committee remuneration including the following roles paid outside the Profit Pool:  the Chief Executive Officer (CEO), Chief Risk Officer (CRO), Chief Financial Officer (CFO), Chief Investment Officer (CIO) and General Counsel.

		
			
		

		
			

		 

		

			 

		

		

			

		

 

		

			Global Remuneration Policy Statement (GRPS)

		

		

		
			 
		

		
			Monthly and quarterly commission arrangements
		

		
			Direct front line sales professionals located in the US participate in market-standard Sales Variable Pay Plans that include formulaic commissions.  The Plans are intended to reward salespeople directly for both individually generated sales and the performance of the broader team.  Monthly commissions generally are a set percentage (‘basis points’) of individual gross sales, or an ‘attainment’ framework that pays employees based on achievement of a sales goal.  Quarterly discretionary awards are funded by team gross sales.  The Plan also includes a Net Sales incentive that adjusts the monthly basis point or attainment rate.  Individual payments from these plans may be adjusted at the discretion of line management, and in consideration of personal conduct and behaviours.
		

		
			 
		

		
			Performance fee incentives
		

		
			The Company receives performance fees in relation to certain funds depending on outperformance of each relevant fund against pre-determined benchmarks and shares these performance fees, on a discretionary basis, with fund managers of these funds.  Performance Fee incentives are funded from within the Profit Pools and subject to the same risk adjustment, review and deferral principles that apply to the discretionary funding frameworks.
		

		
			 
		

		
			The Company operates a small number of legacy contractual and formulaic arrangements which predominantly relate back to historic acquisitions.  These arrangements, which do include the payment of direct performance fee sharing arrangements, are not funded from within the Profit Pools, but are subject to risk adjustment processes and the Company’s standard deferral arrangements (and where appropriate, deferral arrangements mandated by relevant regulation).
		

		
			 
		

		
			CEO Scorecard
		

		
			CEO variable incentive awards are determined through the use of a ‘scorecard’.  The scorecard approach is designed to align CEO remuneration with Company performance, which the Committee believes will drive long-term value for clients and shareholders.  The scorecard is based on the same factors used by the Company to evaluate business results.  The performance measures and weightings used are as follows:
		

			
	
			
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			Deliver investment excellence for clients (30% weighting, measured based on 3-year investment performance relative to a benchmark);

			
	
			
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			Drive financial results for shareholders (40% weighting, measured based on revenue growth, net flows, and growth in net income before taxes); and

			
	
			
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			Drive strategic results for long-term success for clients and shareholders (30% weighting, measured based on execution of strategic initiatives)

		
			Performance against these elements creates a performance ‘multiplier’ between 0.0 and 2.0, which is then applied to a target incentive award to determine the actual incentive award.  The target incentive award is established annually by comparing the Company’s revenue and total assets under management, as well as business complexity, to a select peer group of companies evaluated annually by the Committee and its external remuneration consultants.
		

		
			 
		

		
			Deferral arrangements
		

		
			 
		

		
			All staff at the Company are subject to mandatory deferral arrangements which apply to variable incentive awards (excluding the sales commission arrangement for distribution staff in the US), in excess of specified thresholds,  or as appropriate as mandated by the Alternative Investment Fund Managers Directive (AIFMD) or Undertakings for Collective Investment in Transferable Securities (UCITS) regulations.  Deferred awards are delivered under the Deferred Equity Plan (DEP), Long Term Incentive (LTI) or Mutual Fund Award (MFA) plans in the form of Janus Henderson Group plc shares or interests in Janus Henderson funds, vesting in three equal tranches over a 3 year period.  Forfeiture provisions apply to employees who cease employment with the Company, other than in prescribed circumstances, during the vesting period.  Furthermore, malus and/or clawback provisions apply under the majority of these plans, under which the Committee has discretion to vary or lapse individual unvested awards, or clawback vested awards, in specified circumstances.
		

		
			 
		

		
			Where required by regulation, a proportion of both deferred and non-deferred incentive remuneration is delivered, where practicable, in relevant shares/units of underlying funds, with associated post vesting holding periods in line with regulatory requirements.
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			

		

 

		

			Global Remuneration Policy Statement (GRPS)

		

		

		
			 
		

		
			Deferral arrangements are reviewed periodically to ensure they remain aligned with:
		

			
	
			
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			the Company’s business strategy, associated time horizons and risk appetite;

			
	
			
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			competitive practice in the sectors and jurisdictions in which the Company operates; and

			
	
			
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			emerging regulatory practice.

		
			 
		

		
			Performance Appraisals
		

		
			The Company operates an annual performance appraisal process on a global basis.  Line Managers must undertake reviews of individual performance at least annually.  In conjunction with department heads, Human Resources analyse and calibrate performance appraisal results and consider a number of outcomes, including but not limited to; the consistent application of ratings, the degree of performance differentiation, gender pay effects, and the alignment between pay and performance.
		

		
			 
		

		
			Remuneration Governance Framework
		

		
			Oversight, decision-making and management activities in relation to remuneration related matters are conducted through a number of governing bodies.
		

		
			 
		

		
			Compensation Committee of the Janus Henderson Group Board of Directors
		

		
			The independent non-executive Directors of the Committee are responsible for;
		

			
	
			
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			oversight and approval regarding CEO and Executive Committee remuneration,

			
	
			
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			decision-making regarding the Company’s remuneration practices and variable incentive plans, including;

			
	
			
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			review of the annual risk assessment and approval of any adjustments to the global profit pools, and

			
	
			
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			periodic review of incentive plans in respect of conflicts of interest and/or mitigation of excessive risk taking behaviours.

		
			 
		

		
			Henderson Group Holdings Asset Management Limited Board
		

		
			The independent non-executive Directors of the HGHAML Board,  the parent financial holding company for Janus Henderson’s European operations, is responsible for;
		

			
	
			
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			reviewing application of global remuneration practices and variable incentive plans to the Company’s European Economic Area (“EEA”) regulated subsidiaries, escalating (as the HGHAML board deems necessary) to the Janus Henderson Board of Directors where regulatory or other requirements impact the application of these plans to employees in the EEA; and

		
			 
		

			
	
			
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			decision-making in relation to the application of governance practices across the EEA regulated subsidiaries, including regarding remuneration setting (and risk adjustment) processes and regulatory capital levels for the EEA regulated subsidiaries.

		
			
		

		
			

		 

		

			 

		

		

			

		

 

		

			Global Remuneration Policy Statement (GRPS)

		

		

		
			 
		

		
			Compensation Management Forum (“CMF”)
		

		
			The CMF includes the CEO, co-Heads of Human Resources, Chief Financial Officer, Chief Risk Officer and General Counsel.  This group provides oversight and direction in regard to global remuneration practices, variable incentive plans, and ensures management information is available to the appropriate governing bodies in order to support a strong remuneration oversight and governance practice.
		

		
			 
		

		
			Remuneration Review Committee
		

		
			The RRC includes the co-Heads of Human Resources, Chief Risk Officer and General Counsel.  This group considers  guidance and feedback from relevant department heads where appropriate and is responsible for;
		

			
	
			
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			reviewing material changes to global remuneration practices and variable incentive plans,

			
	
			
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			reviewing variable incentive plans in respect of conflicts of interest and/or mitigation of excessive risk taking behaviours,

			
	
			
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			identification of Code Staff and individual remuneration decisions related to this employee population,

			
	
			
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			adjustments to individual remuneration following an assessment of errors, breaches, conduct and behaviours, and

			
	
			
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			review and consideration of any special remuneration arrangements for individuals and/or teams.

		
			The Company identifies Code Staff in accordance with applicable regulatory requirements.  Regulatory requirements and any Company criteria applied to Code Staff are reviewed on an annual basis.
		

		
			 
		

		
			Additional Remuneration Policies and Practices
		

		
			 
		

		
			Anti-avoidance and anti-hedging
		

		
			 
		

		
			Identified Code Staff are required to complete an annual attestation certifying that they;
		

			
	
			
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			understand that they must act and make decisions within the risk appetite and agreed policies of Janus Henderson, and

			
	
			
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			will adhere to the Company’s share trading policy which includes a prohibition of personal hedging transactions.

		
			 
		

		
			Guaranteed bonus and buy out awards
		

		
			 
		

		
			The Company complies with the principles of the FCA Remuneration Code in relation to guaranteed bonuses in that guaranteed variable remuneration is only awarded in cases where:
		

			
	
			
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			it is exceptional;

			
	
			
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			it occurs in the context of hiring new staff;

			
	
			
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			the firm has a sound and strong capital base; and

			
	
			
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			it is limited to the first year of service.

		
			 
		

		
			Buying out deferred bonuses is permitted subject to, as far as possible, the timing, delivery mechanism (i.e. shares or cash) and amounts paid out being set to match the former arrangements (quantum and vesting schedule) including, where relevant, applicable performance conditions associated with the forfeited awards.ex_135458.htm

Exhibit 10.24

 

Generac Holdings Inc.

2010 Amended & Restated Equity Incentive Plan

 

NONQUALIFIED STOCK OPTION AWARD AGREEMENT

 

Upon acceptance by you through the online acceptance procedures set forth at www.computershare.com (“Computershare”), this Nonqualified Stock Option Award Agreement (this "Agreement") is made effective as of the date set forth on your online award acceptance page on Computershare (“Grant Date”), which is incorporated by reference herein, between Generac Holdings Inc., a Delaware corporation (the "Company") and you (the "Participant"). Unless otherwise indicated, any capitalized term used but not defined herein shall have the meaning ascribed to such term in the Plan.

 

R E C I T A L S:

 

WHEREAS, the Company has adopted the Generac Holdings Inc. Amended & Restated 2010 Equity Incentive Plan (the “Plan”), which Plan is incorporated herein by reference and made a part of this Award Agreement. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and

 

WHEREAS, the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the option provided for herein to the Participant pursuant to the Plan and the terms set forth herein.

 

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:

 

1.     Grant of the Option. The Company hereby grants to the Participant the right and option (the “Option”) to purchase, on the terms and conditions hereinafter set forth, all or any part of an aggregate a certain number of Shares as set forth on the Participant’s online award acceptance page on Computershare. The Option is intended to be a Non-Qualified Stock Option.

 

2.     Option Price. The purchase price of the Shares subject to the Option shall equal the option price as defined and calculated pursuant to Section 6 of the Plan, and which corresponds to the Grant Date set forth on your online award acceptance page on Computershare and denoted as the award price (the “Option Price” or “Award Price”).

 

3.     Option Term. The term of the Option shall be ten (10) years, commencing on the Date of Grant, unless terminated at an earlier time pursuant to Section 6 (the “Option Term”). The Option shall automatically terminate upon the expiration of the Option Term, or at such earlier time specified herein or in the Plan.

 

4.     Vesting of the Option. Subject to the Participant’s continued service to the Company through the applicable vesting date, the Option shall vest in equal installments on each of the first four (4) anniversaries of the Date of Grant, such that twenty-five percent (25%) of the Option vests on each such anniversary. At any time, the portion of the Option which has become vested in accordance with the terms hereof shall be called the “Vested Portion”.

 

 

 

 

5.     Acceleration of Vesting Upon Termination following a Change of Control. Notwithstanding Section 4 hereof, if within the one (1) year period following a Change of Control, the Participant’s service is terminated by the Company or any Affiliate without Cause, the Option shall immediately vest as of the date of such termination of service.

 

6.     Termination of Service.

 

(a)     Termination of Service for Cause. Upon a termination of the Participant’s service by the Company for Cause, the Option, including the Vested Portion, shall immediately terminate and be forfeited without consideration.

 

(b)     Termination of Service Without Cause. Upon a termination of the Participant’s service by the Company without Cause (except as set forth in Section 5 and Section 6(e)), any unvested portion of the Option shall continue to vest during the period beginning on the date of such termination of service and ending on the earlier of (i) one year following such termination of service and (ii) the expiration of the Option Term, and any portion so vested shall remain exercisable until the earlier of (i) ninety days following the end of such one year period and (ii) the expiration of the Option Term. Any Vested Portion as of the date of a termination of service contemplated by this Section 6(b) shall remain exercisable until the earlier of (i) ninety days following such termination of service and (ii) the expiration of the Option Term.

 

(c)     Termination of Service for Normal Retirement. Upon a termination of the Participant’s service by reason of Normal Retirement, any unvested portion of the Option shall continue to vest during the period beginning on the date of such termination of service and ending on the earlier of (i) two years following such termination of service and (ii) the expiration of the Option Term, and any portion so vested shall remain exercisable until the earlier of (i) ninety days following the end of such two year period and (ii) the expiration of the Option Term. Any Vested Portion as of the date of a termination of service contemplated by this Section 6(c) shall remain exercisable until the earlier of (i) one year following such termination of service and (ii) the expiration of the Option Term.

 

(d)     Termination of Service for death or Disability. Upon a termination of the Participant’s service by reason of death or Disability, any unvested portion of the Option shall vest as soon as is reasonably practicable, but in no event later than 60 days, after the date of death or Disability, and the Option shall remain exercisable until the earlier of (i) one year following such termination of service and (ii) the expiration of the Option Term.

 

(e)     Termination of Service following a Change of Control. Upon a termination of the Participant’s service pursuant to Section 5 above, the Option shall remain exercisable until the earlier of (i) one year following such termination of service and (ii) the expiration of the Option Term.

 

(f)     Other Terminations of Service. Upon a termination of the Participant’s service for any reason, other than as contemplated by Sections 6(a), 6(b), 6(c), 6(d) and 6(e) above, any unvested portion of the Option shall immediately terminate and be forfeited without consideration. Any Vested Portion as of the date of a termination of service contemplated by this Section 6(f) shall remain exercisable until the earlier of (i) ninety days following such termination of service and (ii) the expiration of the Option Term.

 

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7.     Exercise Procedures.

 

(a)     Notice of Exercise. Except as set forth in Section 6, the Participant or the Participant’s representative may exercise the Vested Portion or any part thereof prior to the expiration of the Option Term by giving written notice to the Company in the form attached hereto as Exhibit A (the “Notice of Exercise”). The Notice of Exercise shall be signed by the person exercising such Option. In the event that such Option is being exercised by the Participant’s representative, the Notice of Exercise shall be accompanied by proof (satisfactory to the Company) of such representative’s right to exercise such Option. In the event the Option is being exercised following the termination of the Participant’s service, exercise shall be subject to the Participant’s execution on or after the termination date of an effective general release and waiver of all claims against the Company, its Affiliates and their respective officers and directors substantially in the form attached hereto as Exhibit B.

 

(b)     Method of Exercise. The Participant or the Participant’s representative shall deliver to the Company, at the time the Notice of Exercise is given, payment in a form permissible under Section 6.5 of the Plan for the full amount of the aggregate Option Price for the exercised Option.

 

(c)     Issuance of Shares. Provided the Company receives a properly completed and executed Notice of Exercise, payment for the full amount of the aggregate Option Price, and, if applicable, an effective release and waiver of all claims as required by this Section 7, the Company shall promptly cause to be issued certificates for the Shares underlying the exercised Option, registered in the name of the Person exercising the applicable Option.

 

8.     Restrictive Covenant Agreement. The Participant and the Company have previously entered into a restrictive covenant agreement. Participant hereby reaffirms his obligations under such restrictive covenant agreement and nothing contained in this Award Agreement shall cancel, change or modify Participant’s obligations thereunder.

 

9.     Non-Disparagement. The Participant, while providing services to the Company and thereafter, shall not make any oral or written communication to any Person that disparages, or has the effect of damaging the reputation of, the Company, the Affiliates or their respective directors, officers, agents, employees, former employees, representatives or stockholders; provided, that, nothing in the foregoing shall preclude the Participant from disclosing any information to Participant’s attorney or in response to a lawful subpoena or court order requiring disclosure of information.

 

10.     Adjustment of Shares. In the event of any corporate event or transaction (as described in Section 12.1 of the Plan), the terms of this Award Agreement (including, without limitation, the number and kind of Shares subject to this Agreement and the Option Price) may be adjusted as set forth in Section 12.1 of the Plan.

 

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11.     Definitions.

 

“Cause” shall mean, (i) a material breach by the Participant of any of the Participant’s obligations under any written agreement with the Company or any of its Affiliates, (ii) a material violation by the Participant of any of the Company’s policies, procedures, rules and regulations applicable to employees generally or to similarly situated employees, in each case, as they may be amended from time to time in the Company’s sole discretion; (iii) the failure by the Participant to reasonably and substantially perform his or her duties to the Company or its Affiliates (other than as a result of physical or mental illness or injury); (iv) the Participant’s willful misconduct or gross negligence that has caused or is reasonably expected to result in material injury to the business, reputation or prospects of the Company or any of its Affiliates; (v) the Participant’s fraud or misappropriation of funds; or (vi) the commission by the Participant of a felony or other serious crime involving moral turpitude. Notwithstanding the foregoing, if the Participant is a party to an employment agreement with the Company or any Affiliate at the time of his or her termination of employment and such employment agreement contains a different definition of “cause” (or any derivation thereof), the definition in such employment agreement will control for purposes of this Agreement.

 

“Disability” shall mean the failure or inability of the Participant to perform duties with the Company or any Affiliate for a period of at least 180 consecutive days (or 180 days during any twelve (12) month period) by reason of any physical or mental condition, as determined reasonably and in good faith by the Committee; provided, that, if the Company’s long term disability plan contains a definition of “disability,” the definition in such plan will control for purposes of this Agreement.

 

“Normal Retirement” shall mean a voluntary termination of employment or service as a Director by a Participant who has attained (1) at least sixty-five (65) years of age and has at least twenty (20) years of service to the Company or any of its Affiliates.

 

12.     No Right to Continued Service. The granting of the Option evidenced hereby and this Award Agreement shall impose no obligation on the Company or any Affiliate to continue the Service of the Participant and shall not lessen or affect any right that the Company or any Affiliate may have to terminate the service of such Participant.

 

13.     Securities Laws/Legend on Certificates. The issuance and delivery of Shares shall comply (or be exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded. The Company shall not be obligated to file any registration statement under any applicable securities laws to permit the purchase or issuance of any Shares under the Plan or Awards, and accordingly any certificates for Shares or documents granting Awards may have an appropriate legend or statement of applicable restrictions endorsed thereon. If the Company deems it necessary to ensure that the issuance of Shares under the Plan is not required to be registered under any applicable securities laws, each Participant to whom such Shares would be issued shall deliver to the Company an agreement or certificate containing such representations, warranties and covenants as the Company may reasonably request which satisfies such requirements.

 

14.     Transferability. Unless otherwise provided by the Committee, the Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided, that, the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. No such permitted transfer of the Option to heirs or legatees of the Participant shall be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof. During the Participant’s lifetime, the Option is exercisable only by the Participant.

 

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15.     Withholding. The Participant may be required to pay to the Company or any Affiliate and the Company shall have the right and is hereby authorized to withhold, any applicable withholding taxes in respect of the Option, its exercise or transfer and to take such other action as may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes.

 

16.     Notices. Any notification required by the terms of this Award Agreement shall be given in writing and shall be deemed effective upon personal delivery or within three (3) days of deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. A notice shall be addressed to the Company, Attention: General Counsel, at its principal executive office and to the Participant at the address that he or she most recently provided to the Company.

 

17.     Entire Agreement. This Award Agreement, the details of the award on the Participant’s online award acceptance page on Computershare, and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.

 

18.     Waiver. No waiver of any breach or condition of this Award Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.

 

19.     Successors and Assigns. The provisions of this Award Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Participant, the Participant’s assigns and the legal representatives, heirs and legatees of the Participant’s estate, whether or not any such person shall have become a party to this Award Agreement and have agreed in writing to be joined herein and be bound by the terms hereof.

 

20.     Choice of Law. This Award Agreement shall be governed by the law of the State of Delaware (regardless of the laws that might otherwise govern under applicable Delaware principles of conflicts of law) as to all matters, including but not limited to matters of validity, construction, effect, performance and remedies.

 

21.     Option Subject to Plan. By entering into this Award Agreement the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan. The Option is subject to the Plan. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

 

22.     No Guarantees Regarding Tax Treatment. The Participant (or their beneficiaries) shall be responsible for all taxes with respect to the Option. The Committee and the Company make no guarantees regarding the tax treatment of the Option. Neither the Committee nor the Company has any obligation to take any action to prevent the assessment of any tax under Section 409A of the Code or Section 457A of the Code or otherwise and none of the Company, any Affiliate, or any of their employees or representatives shall have any liability to the Participant with respect thereto.

 

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23.     Amendment. The Committee may amend or alter this Award Agreement and the Option granted hereunder at any time, subject to the terms of the Plan.

 

24.     Severability. The provisions of this Award Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

 

25.     Signature in Counterparts. The grant of Options is subject to Participant’s acceptance of the terms and conditions of this Agreement. By clicking the acknowledgment button, Participant indicates he or she (1) has been provided access to a copy of the Plan, (2) has had the opportunity to obtain independent legal advice prior to accepting the grant, (3) has read this Agreement and (4) agrees fully to the terms of the Agreement. The Participant also acknowledges that all decisions, determinations and interpretations of the Committee in respect of the Plan, this Agreement and the Options shall be final and conclusive.

 

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EXHIBIT A

NOTICE OF EXERCISE

 

 

	Generac Holdings Inc.	 
	S45 W29290 Hwy. 59	 
	Waukesha, Wisconsin 53187	 

	Attn:____________________	Date of Exercise: _________________

 

Ladies & Gentlemen:

 

1.     Exercise of Option. This constitutes notice to Generac Holdings, Inc. (the “Company”) that pursuant to my Nonqualified Stock Option Award Agreement (the “Award Agreement”) under the Company’s 2010 Amended & Restated Equity Incentive Plan (the “Plan”) I elect to purchase the number of Shares of Company common stock set forth below and for the price set forth below. By signing and delivering this notice to the Company, I hereby acknowledge that I am the holder of the stock option (the “Option”) exercised by this notice and have full power and authority to exercise the same.

 

	 	Date of Grant:	 	 
	 	 	 	 
	 	Number of Shares as to	 	 
	 	which the Option is exercised	 	 
	 	(“Optioned Shares”):	 	 
	 	 	 	 
	 	Certificates to be issued in	 	 
	 	name of:	 	 
	 	 	 	 
	 	Total exercise price:	$	 
	 	 	 	 
	 	Cash Exercise	 	 
	 	Cash payment delivered	 	 
	 	herewith:	$	 

 

 

2.     Form of Payment. Forms of payment other than cash or its equivalent (e.g. by cashier’s check) are limited by the Plan and are permissible only to the extent approved by the compensation committee of the Board of Directors of the Company (the “Committee”) or any committee designated thereby, in its sole discretion.

 

3.     Delivery of Payment. With this notice, I hereby deliver to the Company the full purchase price of the Optioned Shares and any and all withholding taxes due in connection with the exercise of my Option.

 

4.     Rights as Stockholder. While the Company will endeavor to process this notice in a timely manner, I acknowledge that until the issuance of the shares underlying the Optioned Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to such shares, notwithstanding the exercise of my option(s). No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance of the optioned stock.

 

 

 

 

5.     Interpretation. Any dispute regarding the interpretation of this notice shall be submitted promptly by me or by the Company to the Committee, which shall review such dispute at its next regular meeting. The resolution of such a dispute by such administrator of the Plan shall be final and binding on all parties.

 

6.     Governing Law; Severability. This notice is governed by the internal substantive laws but not the choice of law rules, of Delaware. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this notice will continue in full force and effect without said provision.

 

7.     Entire Agreement. The Plan and the Award Agreement under which the Optioned Shares were granted are incorporated herein by reference, and together with this notice constitute the entire agreement of the parties with respect to the subject matter hereof.

 

 

 

	 	Very truly yours,
	 	 
	 	 
	 	 
	 	 
	 	 
	 	(social security number)

 

 

 

 

EXHIBIT B

FORM OF RELEASE

 

A release is required as a condition for receiving the benefits provided pursuant to the Nonqualified Stock Option Award Agreement between GENERAC HOLDINGS INC. (the “Company”) and _____________________ (“Participant”) dated ____________________ (the “Agreement”); thus, by executing this release (“Release”), you have advised us that you hold no claims against the Company, its predecessors, successors or assigns, affiliates, shareholders or members and each of their respective officers, directors, agents and employees (collectively, the “Releasees”), and by execution of this Release you agree to waive and release any such claims, except relating to any compensation, severance pay and benefits described in any written agreement between you and the Company.

 

You understand and agree that this Release will extend to all claims, demands, liabilities and causes of action of every kind, nature and description whatsoever, whether known, unknown or suspected to exist, which you ever had or may now have against the Releasees in your capacity as an employee of the Company, including, without limitation, any claims, demands, liabilities and causes of action arising from your employment with the Releasees and the termination of that employment, including any claims for severance or vacation pay, business expenses, and/or pursuant to any federal, state, county, or local employment laws, regulations, executive orders, or other requirements, including, but not limited to, Title VII of the 1964 Civil Rights Act, the 1866 Civil Rights Act, the Age Discrimination in Employment Act as amended by the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the Civil Rights Act of 1991, the Workers Adjustment and Retraining Notification Act and any other local, state or federal fair employment laws, and any contract or tort claims.

 

You understand and agree that this Release is intended to include all claims by you or on your behalf alleging discrimination on the basis of race, sex, religion, national origin, age, disability, marital status, or any other protected status or involving any contract or tort claims based on your termination from the Company. It is also acknowledged that your termination is not in any way related to any work-related injury.

 

It also is understood and agreed that the remedy at law for breach of the Award Agreement, any restrictive covenant agreements between you and the Company, and/or this Release shall be inadequate, and the Company shall be entitled to injunctive relief in respect thereof.

 

Your ability to receive payments and benefits under the terms of the Award Agreement will remain open for a 21-day period after your Termination Date to give you an opportunity to consider the effect of this Release. At your option, you may elect to execute this Release on an earlier date. Additionally, you have seven days after the date you execute this Release to revoke it. As a result, this Release will not be effective until eight days after you execute it. We also want to advise you of your right to consult with legal counsel prior to executing a copy of this Release.

 

Finally, this is to expressly acknowledge:

 

	 	●	You understand that you are not waiving any claims or rights that may arise after the date you execute this Release.
	 	 	 
	 	
			●

				
			You understand and agree that the compensation and benefits described in the Award Agreement offer you consideration greater than that to which you would otherwise be entitled.

			

 

I hereby state that I have carefully read this Release and that I am signing this Release knowingly and voluntarily with the full intent of releasing the Releases from any and all claims, except as set forth herein. Further, if signed prior to the completion of the 21 day review period, this is to acknowledge that I knowingly and voluntarily signed this Release on an earlier date.

 

	
			Date:

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