Document:

Exhibit 10.46

 

2009 EXECUTIVE MANAGEMENT

INCENTIVE COMPENSATION PROGRAM

 

OBJECTIVE

 

The
objective of the 2009 Executive Management Incentive Program (EMIP) is to
reward participants  for helping the company achieve critical
business results. The Program has been designed to incent those  employees who
have a direct impact on the company’s ability to meet our operating profit
(EBITDA)  goals. The EMIP is structured to reward participants for the
achievement of these key financial goals.

 

PARTICIPATION

 

Participants
in the 2009 Executive Management Incentive Compensation Program include
Corporate  Officers, Vice Presidents and Directors. Participation can be extended
to other key employees as  recommended and approved by
the Generac Compensation Committee.

 

DEFINITIONS

 

·                                         EBITDA

 

Earnings
before Interest, Taxes, Depreciation and Amortization as defined and reported
in credit  agreements between Generac and its lenders.

 

·                                         Target EBITDA

 

For
2009, budgeted EBITDA as approved by Generac’s Board of Directors serves as the
target.

 

·                                         Financial Portion

 

That
portion of the bonus Program tied to specific financial goals of the company as
applicable.  For 2009, the Financial Portion will be 100% of the participant’s
Target Award Level.

 

·                                         Target Bonus Award Level

 

Target
bonus award level is the target annual incentive level that has been
established for each  participant under the Program. Target award
is expressed as a percentage of the participant’s base  salary.

 

·                                         Target EBITDA Budget Levels

 

Target
EBITDA budget levels established for 2009 that will serve as a multiplier of up
to 3 times  the Target Bonus Award Level.

 

·                                         Base Salary

 

Base
salary is the salary earned or actually paid to the participant during the
fiscal year disregarding  deferral elections, premiums, allowances,
expense reimbursements, commissions, incentives,  severance or termination
pay, and payments under deferred salary or long term incentive  agreements.

 

 

TARGET BONUS AWARD LEVELS

 

For
2009, the target bonus award levels range from 15% - 35% of base salary, as
determined by position  level and responsibilities.

 

The
maximum bonus award payable under the 2009 EMIP is equal to 105% of base
salary.  

 

BONUS AWARD CRITERIA

 

For
2009, bonus awards are based upon the following criteria:

 

Financial
Performance

 

100%
of the target award is based upon achieving target corporate EBITDA budget
levels.  

 

2009
Target EBITDA Budget Levels chart:

 

 

BONUS AWARD CALCULATIONS

 

At
the conclusion of the 2009 fiscal year, the award earned by each participant is
calculated based on the  financial performance of the company.

 

Financial Performance

 

Bonus
Incentive Earned  =  Target bonus award level  x  Target
EBITDA budget level  x  Base Salary achieved for 2009

 

Bonus
award is payable under the financial portion only if actual EBITDA achieved is
greater than  92.5% of target EBITDA.

 

The
target opportunity is earned if the established performance goals are exactly
achieved. Depending on  how actual EBITDA performance compares to
EBITDA budget, the actual incentive earned will be  based on a sliding scale
ranging from 0 to 3 times the target opportunity.

 

·                  Example: A VP with a base
salary of $150,000 has a target bonus level of 25% hits the target EBITDA
budget at level 2. Result = $150,000 x 25% x 2 = $75,000 bonus

 

 

ADMINISTRATION

 

1.              Individuals who
become eligible to participate in the Program after the beginning of the 2009
fiscal  year (a “Program Year”) through either promotion or hire will be
eligible for an incentive award prorated to reflect such participant’s service
during the Program Year.

 

2.              In the event a
participant’s target award level changes during the Program Year, the
participant’s  award will be pro-rated based on the time
that he or she participated in each target award level  category.

 

3.              If a
participant terminates for reason of retirement, disability or death, any award
earned will be prorated based on the number of days worked in the Program Year
and will be paid in accordance with  the terms and conditions of
the 2009 EMIP.

 

4.              If a
participant’s employment is terminated either voluntarily or involuntarily for
any reason (other  than retirement, disability or death) during
the Program Year, no bonus award will be due or payable.

 

5.              The 2009
incentive award will be calculated using December 31, 2009 base salary.

 

6.              All awards
payable will be made by separate check, less applicable withholding and taxes,
on or  before March 15, 2010. Except as otherwise noted in #4 above,
individuals must be actively  employed at the time of
disbursement to be eligible for an incentive award payment.

 

7.              The Generac
Compensation Committee may, in its sole discretion, amend, modify, suspend or  terminate this
Program at any time.

 

8.              The Program is
not and should not be construed as a contract of employment between the company  and any
eligible employees or other person.

 

9.              The 2009
Executive management Incentive Program (EMIP) replaces all bonus programs that
may  be in existence and replaces any Bonus/Incentive parameters set forth
in the individual offer letter.

 

10.       The Generac Compensation
Committee shall be responsible for the calculation and final  determination
of any and all individual awards and will be responsible for the administration
of the  2009 EMIP.THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND ARE PROPOSED TO BE IS

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND ARE PROPOSED TO BE ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE ACT.   UPON ANY SALE, SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT. 

ABBY, INC.

SUBSCRIPTION AGREEMENT made as of this _____ day of ______________, 200___ between ABBY, INC., a Colorado corporation with its principal office at 500 Country Hills Blvd NE #138  Calgary, AB T3K 5K3(the "Company") and the undersigned (the "Subscriber").

WHEREAS:

A.

The Company desires to issue a maximum of  9,000,000 shares of common stock of the Company at a price of $ 0.005 per share (the "Offering") pursuant to Regulation S of the United States Securities Act of 1933 (the “Act”).

B.

The Subscriber desires to acquire the number of shares of the Offering set forth on the signature page hereof (the "Shares") on the terms and subject to the conditions of this Subscription Agreement.

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto do hereby agree as follows:

SUBSCRIPTION FOR SHARES

Subject to the terms and conditions hereinafter set forth, the Subscriber hereby subscribes for and agrees to purchase from the Company such number of Shares as is set forth upon the signature page hereof at a price equal to $.005 US per Share.  Upon execution, the subscription by the Subscriber will be irrevocable.

 The purchase price is payable by the Subscriber contemporaneously with the execution and delivery of this Subscription Agreement.

Upon execution by the Company, the Company agrees to sell such Shares to the Subscriber for said purchase price subject to the Company's right to sell to the Subscriber such lesser number of Shares, as it may, in its sole discretion, deem necessary or desirable.

Any acceptance by the Company of the Subscriber is conditional upon compliance with all securities laws and other applicable laws of the jurisdiction in which the Subscriber is resident.  Each Subscriber will deliver to the Company all other documentation, agreements, representations and requisite government forms required by the lawyers for the Company as required to comply with all securities laws and other applicable laws of the jurisdiction of the Subscriber.  The Company will not grant any registration or other qualification rights to any Subscriber.

The Subscriber agrees not to engage in hedging transactions with regard to the Shares unless in compliance with the Act.

The Subscriber acknowledges and agrees that all certificates representing the Shares will be endorsed with the following legend:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE ACT.   SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT”

The Subscriber and the Company agree that the Company will refuse to register any transfer of the Shares not made in accordance with the provisions of Regulation S of the Act, pursuant to registration under the Act, or pursuant to an available exemption from registration.

REPRESENTATIONS AND WARRANTIES BY SUBSCRIBER

v

The Subscriber recognizes that the purchase of Shares involves a high degree of risk in that the Company has only recently commenced its proposed business and may require substantial funds in addition to the proceeds of this private placement; 

v

An investment in the Company is highly speculative and only investors who can afford the loss of their entire investment should consider investing in the Company and the Shares;

v

The Subscriber has had full opportunity to review information regarding the business and financial condition of the Company with the Subscriber’s legal and financial advisers prior to execution of this Subscription Agreement;

v

The Subscriber has such knowledge and experience in finance, securities, investments, including investment in non-listed and non-registered securities, and other business matters so as to be able to protect its interests in connection with this transaction.

v

The Subscriber acknowledges that no market for the Shares presently exists and none may develop in the future and accordingly the Subscriber may not be able to liquidate its investment.

v

The Subscriber hereby acknowledges that this offering of Shares has not been reviewed by the United States Securities and Exchange Commission (the "SEC") and that the Shares are being issued by the Company pursuant to an exemption from registration provided by Regulation S pursuant to the United States Securities Act. 

v

The Subscriber is acquiring the Shares as principal for the Subscriber's own benefit;

v

The Subscriber is acquiring the Shares subscribed to hereunder as an investment for the Subscriber's own account, not as a nominee or agent, and not with a view toward the resale or distribution of any part thereof, and the Subscriber has no present intention of selling, granting any participation in, or otherwise distributing the same;

v

The Subscriber does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to such person, or to any third person, with respect to any of the Shares sold hereby;

v

The Subscriber has full power and authority to enter into this Agreement which constitutes a valid and legally binding obligation, enforceable in accordance with its terms;

v

Subscriber can bear the economic risk of this investment, and was not organized for the purpose of acquiring the Shares;

v

The Subscriber has satisfied himself or herself as to the full observance of the laws of his or her jurisdiction in connection with any invitation to subscribe for the Shares and/or any use of this Agreement, including (i) the legal requirements within his/her jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares.

REPRESENTATIONS BY THE COMPANY

The Company represents and warrants to the Subscriber that:

o

The Company is a corporation duly organized, existing and in good standing under the laws of the State of Nevada and has the corporate power to conduct the business which it conducts and proposes to conduct.

o

Upon issue, the Shares will be duly and validly issued, fully paid and non-assessable common shares in the capital of the Company.

o

The issued and outstanding shares of the Company consist of 15,000,000 shares of the Company’s common stock prior to the completion of the issue of any shares of the Company’s common stock pursuant to this Offering.

TERMS OF SUBSCRIPTION

Pending acceptance of this subscription by the Company, all funds paid hereunder shall be deposited by the Company and immediately available to the Company for the purposes set forth in the disclosure statement.  In the event the subscription is not accepted, the subscription funds will constitute a non-interest bearing demand loan of the Subscriber to the Company.

The Subscriber hereby authorizes and directs the Company to deliver the securities to be issued to such Subscriber pursuant to this Subscription Agreement to the Subscriber’s address indicated herein.

The Subscriber acknowledges and agrees that the subscription for the Shares and the Company's acceptance of the subscription is not subject to any minimum subscription for the Offering.

MISCELLANEOUS

Any notice or other communication given hereunder shall be deemed sufficient if in writing and sent by registered or certified mail, return receipt requested, addressed to the Company, at its principal office, at 500 Country Hills Blvd NE  #138  Calgary, AB T3K 5K3 Attention: Mr. Don Thompson, President, and to the Subscriber at his address indicated on the last page of this Subscription Agreement. Notices shall be deemed to have been given on the date of mailing, except notices of change of address, which shall be deemed to have been given when received.

Notwithstanding the place where this Subscription Agreement may be executed by any of the parties hereto, the parties expressly agree that all the terms and provisions hereof shall be construed in accordance with and governed by the laws of the State of Colorado.  The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further action as may be necessary or appropriate to carry out the purposes and intent of this Subscription Agreement.

REPRESENTATIONS BY ALBERTA, BRITISH COLUMBIA, ONTARIO AND QUEBEC RESIDENTS

7.1

If the Subscriber is a resident of Canada, the Subscriber represents to the Company that the Subscriber is: 

(i)

An accredited investor as defined in the Securities Act or Regulations of the Province of residence; 

(ii)

a spouse, parent, brother, sister or child of _______________________, a senior officer or director of the Company; 

(iii)

a close friend or business associate of _________________________, a senior officer or director of the Company , or

(iv)

A company owned primarily by an individual or individuals that qualify as accredited investors as described in Section 7.1 (i)

(v)

a company, all of the voting securities of which are beneficially owned by one or more of a spouse, parent, brother, sister, child or close personal friend or business associate of ____________________, a senior officer or director of the Company.

IN WITNESS WHEREOF, this Subscription Agreement is executed as of the day and date first written above.

Subscriber Signature: _________________________________________  

Number of Shares: __________________________________ (_______)

________________________________________________

Print Name

________________________________________________

Address

________________________________________________

                        _______________________________________________

Telephone   :_______________________

Accepted by:  _________________________________

Name of Authorized Signatory: Don Thompson, President

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