Document:

Exhibit 10.65

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”)  is made as of        ,
2010 (the “Effective Date”),  between GENERAC POWER SYSTEMS, INC. (the “Company”)  and Aaron Jagdfeld (“Executive”).

 

RECITALS:

 

WHEREAS, the Company and Executive are party to that
certain Employment Agreement dated as of November 10, 2006; and

 

WHEREAS, the Company desires that Executive continue
his service to the Company pursuant to the terms hereinafter set forth, and
Executive desires to continue to serve the Company in accordance with such
terms.

 

NOW THEREFORE, in consideration of the promises and
mutual covenants herein contained and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby agree as follows:

 

1.             Employment.

 

(a)           Executive shall be employed
by the Company and shall have the titles of President and Chief Executive
Officer of the Company and President and Chief Executive Officer of Generac
Holdings Inc. (“Holdings”).  Executive shall report directly to the Board
of Directors of Holdings (the “Board”)
and shall have such authority, duties and responsibilities as are commensurate
with Executive’s position.  Executive
shall devote substantially all of his professional time to the Company in
performing such duties and responsibilities.

 

(b)           Executive shall perform
substantially all of his duties under this Agreement at the Company’s Waukesha,
Wisconsin office.  In addition to the
duties described in Section l(a) hereof, Executive may be
appointed as a director of the Company or its parent entities.  Such additional positions shall be performed,
and appointments accepted by Executive, without additional compensation or
remuneration.

 

(c)           The Executive acknowledges
and agrees that he owes a fiduciary duty of loyalty to the Company to discharge
his duties and otherwise act in a manner consistent with the best interests of
the Company and its parent entities. 
During the Employment Period (as defined hereinafter), except with the
prior consent of the Board (excluding the Executive if he should be a member of
the Board at the time of such determination), the Executive shall devote his
best efforts and substantially all of his working time, attention and energies
to the performance of his duties and responsibilities under this Agreement
(except for vacations to which he is entitled pursuant to Section 3(e) hereof
and except for illness or incapacity).

 

2.             Term of Employment.  The term of this Agreement shall commence
upon Holdings’ initial public offering and shall continue until the fifth (5th) anniversary of the
Effective Date, unless terminated earlier as hereinafter provided (the “Employment Period”).  The Employment Period shall automatically be
extended for additional one (1) year periods on the fifth (5th) anniversary of the
Effective Date and each subsequent anniversary of the Effective Date unless 

 

 

either party provides
written notice in accordance with Section 9 hereof of such party’s
intention not to extend the Employment Period at least ninety (90) days prior
to the applicable anniversary.

 

3.             Base Salary and Benefits.

 

(a)           Base
Salary.  Commencing
as of the Effective Date, and thereafter during the Employment Period, Executive’s
base salary shall be $500,000 per annum, which amount may, but shall not be
required to be, increased by the Compensation Committee of the Board (or, if no
such committee exists, the Board) from time to time in accordance with the
compensation policies and practices of the Company (as so adjusted from time to
time, the “Base Salary”).  The Base Salary shall be payable in regular
installments in accordance with the Company’s standard payroll practices and
shall be subject to customary withholding.

 

(b)           Business
Expenses.  Upon
presentation of receipts or other appropriate documentation therefor, the
Company shall reimburse Executive for all reasonable expenses incurred by him
during the Employment Period in the course of performing his duties under this
Agreement, to the extent consistent with the Company’s policies in effect from
time to time with respect to travel, entertainment and other business expenses.

 

(c)           Employee
Benefits.  Except as
otherwise set forth herein, Executive shall be entitled to participate in any
employee benefit plan or program of the Company on a basis comparable to other
senior executives of the Company.

 

(d)           Annual
Bonus.  Commencing
on the Effective Date, Executive shall be eligible, during the Employment
Period, to receive an annual bonus (the “Annual Bonus”) based on such criteria as is
determined in accordance with the Company’s annual incentive bonus plan.  Executive’s target Annual Bonus shall be
equal to 75% of Base Salary.

 

(e)           Vacation.  Executive shall be entitled to vacation time
with compensation of twenty (20) days per annum during the Employment
Period.  Executive shall also be entitled
to all paid holidays given by the Company to its senior officers.

 

4.             Termination.

 

(a)           Termination
Rights.  Executive’s
employment hereunder may be terminated upon the occurrence of any of the
following events and/or for the following reasons:

 

(i)            Death of Executive.  Executive’s employment hereunder shall
terminate upon his death.

 

(ii)           Disability of Executive.  The Company shall have the right to terminate
Executive’s employment hereunder if the Executive is or becomes Disabled (as
defined below) during the Employment Period, shall be absent from his duties
with the Company on a full time basis for one hundred eighty (180) consecutive
days, and, within thirty (30) days after delivery of Notice of Termination by
the Company, the Executive shall not have returned to the performance of his
duties hereunder on a full time basis. 
For purposes of this Agreement, “Disabled” shall mean:  (A) that Executive qualifies for
benefits due to total disability on the part of the Executive under the Company’s
long-term disability plan, as in effect from time to time; or (B) in the
event that the Company has no such long-term disability plan in effect on any
date of determination, that 

 

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Executive is unable, as a result of a medically determinable physical
or mental illness, to perform the duties and services of his position.

 

(iii)          Cause.  The Company shall have the right to terminate
Executive’s employment for Cause.  For
purposes of this Agreement, “Cause” shall mean:

 

(A)          the willful and continued failure by Executive
substantially to perform his duties hereunder (other than such failure
resulting from his becoming Disabled), after a written demand for substantial
performance is delivered to Executive that specifically identifies the manner
in which Executive has not substantially performed his duties, and Executive
has not remedied such failure within a reasonable time after receipt of such
written notice; for purposes of this paragraph, no act, or failure to act, on
Executive’s part will be deemed “willful” unless done, or omitted to be done,
by Executive not in good faith and without reasonable belief that his action or
omission was in the best interest of the Company;

 

(B)           Executive’s gross negligence or willful misconduct
in the performance of his duties as an employee of the Company;

 

(C)           Executive’s commission of fraud, embezzlement,
misappropriation of funds, breach of fiduciary duty or a material act of
dishonesty against the Company;

 

(D)          the indictment of Executive for a felony; or

 

(E)           the drug addiction or habitual intoxication of
Executive that adversely effects Employee’s job performance and duties
hereunder, or the reputation or best interests of the Company.

 

(iv)          Good Reason.  The Executive shall have the right to
terminate his employment with the Company for Good Reason.  For purposes of this Agreement, “Good Reason” shall
mean:

 

(A)          a reduction, in excess of five percent (5%), of
Executive’s Base Salary as in effect from time to time or target Annual Bonus
opportunity, excluding across the board reductions affecting all senior
executives of the Company;

 

(B)           a material diminution in Executive’s duties or
responsibilities not cured by the Company within twenty (20) days after written
notice to the Company delivered within ninety (90) days of the occurrence of
such diminution and in accordance with Section 9 hereof;

 

(C)           a failure of the Company to make available to
Executive the type of employee benefits which are available to Executive as of
the Effective Date;

 

(D)          a requirement by the Company that Executive be based
in an office that is located more then fifty (50) miles from Executive’s
principal place of employment as of the Effective Date; or

 

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(E)           a material breach of any material term or condition
of this Agreement by the Company not cured within twenty (20) days after
written notice to the Company delivered within ninety (90) days of the
occurrence of such breach and in accordance with Section 9 hereof.

 

(v)           Without Cause or Good Reason.  The Company shall have the right to terminate
Executive’s employment hereunder without Cause and the Executive shall have the
right to terminate his employment with the Company without Good Reason.  If the Company elects not to extend the
Employment Period in accordance with Section 2 hereof, such
termination shall be deemed to be a termination by the Company without Cause
and shall be treated as such for purposes of this agreement, including Section 5(d) hereof.  If Executive elects not to extend the
Employment Period in accordance with Section 2 hereof, such
termination shall be deemed to be a termination by Executive without Good
Reason and shall be treated as such for purposes of this agreement, including Section 5(c) hereof.

 

(b)           Notice of
Termination.  Any
termination of Executive’s employment pursuant to any of Sections 4(a)(ii)-(v) above
shall be communicated by written “Notice of Termination” to the non-terminating
party delivered in accordance with Section 10 below.  For purposes of this Agreement, “Notice of Termination”
shall mean a notice by a terminating party which shall indicate the specific
termination provision hereunder pursuant to which Executive’s employment is
being terminated.

 

(c)           Termination
Date.  In
connection with any termination of Executive’s employment pursuant to any of Sections
4(a)(i)-(v) above, Executive’s employment with the Company shall
terminate on the Termination Date.  For
purposes of this Agreement, “Termination Date” shall mean (i) if Executive’s
employment is terminated due to his death, the date of his death, (ii) if
Executive’s employment is terminated because Executive is or becomes Disabled,
the date specified by the Company in the related Notice of Termination (which
shall, in no event, be less than thirty (30) days after delivery of such Notice
of Termination), (iii) if Executive terminates his employment without Good
Reason, thirty (30) days following the date on which a Notice of Termination is
given or such earlier date as is determined by the Company, and (iv) if
Executive’s employment is terminated for any other reason, the date on which a
Notice of Termination is given or any later date (within thirty (30) days after
the giving of such notice) set forth in the related Notice of Termination.

 

5.             Effect of Termination.

 

(a)           Death of
Executive.  Upon
termination of Executive’s employment due to the death of Executive during the
Employment Period, Executive’s surviving spouse and dependents or, if none, his
estate, shall be entitled to receive from the Company (i) any accrued but
unpaid Base Salary and vacation pay through the Termination Date, payable within
thirty (30) days following such Termination Date (the “Accrued
Obligations”) and (ii) any earned Annual Bonus for the fiscal
year during which the Termination Date occurred (and the Annual Bonus for the
prior fiscal year, if earned but not yet paid), payable in accordance with the
Company’s usual bonus payment schedule. 
In addition, Executive’s surviving spouse and dependents shall be
entitled to continued participation in the Company’s medical, hospitalization,
dental, and life insurance programs in which Executive participated immediately
prior to the Termination Date (collectively, “Continued
Benefits”) at the Company’s expense for a period of eighteen (18)
months following such Termination Date.

 

4

 

(b)           Disability
of Executive.  In the
event of termination of Executive’s employment due to the Executive being or
becoming Disabled, Executive shall be entitled to receive from the Company (i) the
Accrued Obligations, which shall be paid within thirty (30) days following such
Termination Date and (ii) any earned Annual Bonus for the fiscal year
during which the Termination Date occurred (and the Annual Bonus for the prior
fiscal year, if earned but not yet paid), payable in accordance with the
Company’s usual bonus payment schedule. 
In addition, Executive shall be entitled to continue to receive
installments of Executive’s then current Base Salary and Continued Benefits at
the Company’s expense from the Termination Date until the later to occur of (A) the
six (6) month anniversary thereof and (B) the date on which Executive
becomes entitled to long-term disability benefits under the applicable plan or
program of the Company, which shall be payable (in the case of Base Salary) or
provided (in the case of Continued Benefits) in accordance with the usual
payroll and benefits policies of the Company.

 

(c)           Termination
for Cause; Termination without Good Reason.  Upon the termination of Executive’s
employment either by the Company for Cause, or by Executive without Good
Reason, the Company shall pay to Executive (i) the Accrued Obligations
within thirty (30) days following such Termination Date and (ii) any
earned Annual Bonus for the fiscal year during which the Termination Date
occurred (and the Annual Bonus for the prior fiscal year, if earned but not yet
paid), payable in accordance with the Company’s usual bonus payment
schedule.  Payments made pursuant to
clause (ii) directly above shall be subject to Executive executing an
effective general release and waiver of all claims against the Company, it
Affiliates, and their respective officers and directors substantially in the
form attached hereto as Exhibit A (the “Release”)
within sixty (60) days following the Termination Date and Executive’s continued
compliance with the Confidentiality, Non-Competition and Intellectual Property
Agreement (as defined below).

 

(d)           Termination
without Cause; Termination for Good Reason.  Upon the termination of Executive’s
employment either by Executive with Good Reason, or by the Company without
Cause, Executive shall be entitled to receive from the Company (i) the
Accrued Obligations, which shall be paid within thirty (30) days following such
Termination Date, (ii) any earned Annual Bonus for the fiscal year during
which the Termination Date occurred (and the Annual Bonus for the prior fiscal
year, if earned but not yet paid), payable in accordance with the Company’s
usual bonus payment schedule, (iii) continued payment of Executive’s Base
Salary for a period of twenty-four (24) months commencing on the Termination
Date, payable in accordance with the standard payroll practices of the Company,
and (iv) an amount equal to two (2) times Executive’s target Annual
Bonus for the year during which the Termination Date occurred, payable in equal
installments over a period of twenty-four (24) months commencing on the
Termination Date and in accordance with the standard payroll practices of the
Company.  In addition, Company shall
maintain the Continued Benefits in full force and effect, for the continued
benefit of Executive, his spouse and his dependents for a period of twenty-four
(24) months commencing on the Termination Date, and Executive shall be entitled
to full COBRA rights following the termination of such Continued Benefits.  If Executive elects to utilize rights under
COBRA after the Termination Date, Executive shall be responsible for all
premiums in respect thereof, as permitted by law.  Payments made pursuant to clause (ii) and
(iii) directly above shall be subject to Executive executing an effective
Release within sixty (60) days following the Termination Date and Executive’s
continued compliance with the Non-Competition Agreement (as defined
below).  Notwithstanding the foregoing,
in the event that any Continued Benefits are prohibited by the terms of such
programs or by applicable law, the Company shall 

 

5

 

reimburse Executive (or his
surviving spouse and dependants if applicable) for the cost of obtaining
comparable coverage.

 

(e)           Interaction with Other Agreements.  If Executive is eligible to receive
termination payments and benefits under the terms of a severance agreement
between Executive and the Company, Executive shall not be eligible to receive
any termination payments or benefits under the terms of Section 5(d) hereof.

 

6.             Confidentiality,
Non-Compete, Non-Solicit/Hire and Intellectual Property Agreement.  Simultaneously with the execution and
delivery of this Agreement, the Company and Executive shall execute and deliver
the confidentiality, non-competition and intellectual property agreement in the
form attached hereto as Exhibit B, dated as the date hereof, by and
between the Company and Executive (the “Confidentiality,
Non-Competition and Intellectual Property Agreement”).

 

7.             Executive’s
Representations.  Executive
hereby represents and warrants to the Company that (i) the execution,
delivery and performance of this Agreement by Executive do not and will not
conflict with, breach, violate or cause a default under any contract,
agreement, instrument, order, judgment or decree to which Executive is a party
or by which he is bound, and (ii) upon the execution and delivery of this
Agreement by the parties, this Agreement will be the valid and binding
obligation of Executive, enforceable in accordance with its terms, except to
the extent the enforceability thereof may be limited by bankruptcy laws,
insolvency laws, reorganization laws or other laws affecting creditors’ rights
generally or by general equitable principles, Executive hereby acknowledges and
represents that he has had the opportunity to consult with independent legal
counsel regarding his rights and obligations under this Agreement and that he
fully understands the terms and conditions contained herein.

 

8.             Indemnification.  Subject to applicable law, Executive shall be
entitled to the benefit of such indemnification rights as may from time to time
exist under the terms of the Company’s organizational documents and to such
liability insurance as the Company may purchase for its senior officers from
time to time.

 

9.             Notices.  Any notice provided for in this Agreement
shall be in writing and shall be deemed to have been duly given if delivered
personally (whether by overnight courier or otherwise) with receipt acknowledged
or sent by registered or certified mail or equivalent, if available, postage
prepaid, or by fax (which shall be confirmed by a writing sent by registered or
certified mail or equivalent on the same day that such fax was sent), addressed
to the parties at the following addresses or to such other address as such
party shall hereafter specify by notice to the other:

 

Notices to the Company:

 

Generac Power Systems, Inc. 

P.O. Box 295 

Waukesha, WI 53187 

Attention: 
Chief Financial Officer and Chairman of the Audit Committee

 

If to the Executive, to him at his most recent
address in the Company’s records.

 

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10.           Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or rule in
any jurisdiction, such invalidity, illegality or unenforceability shall not
affect any other provision or any other jurisdiction, but this Agreement shall
be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

 

11.           Complete Agreement.  This Agreement, together with any other
agreements referred to herein (and any exhibits, schedules or other documents
referred to herein or therein) constitutes the complete agreement and
understanding among the parties and supersedes and preempts any prior
understandings, agreements or representations by or among the parties, written
or oral, whether in term sheets, presentations or otherwise, relating to the
subject matter hereof.

 

12.           No Strict Construction.  The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction shall be applied against any
party.

 

13.           Counterparts.  This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

 

14.           Successors and Assigns.  This Agreement is intended to bind and inure
to the benefit of and be enforceable by Executive, the Company and their
respective heirs, successors and assigns, except that Executive may not assign
his rights or delegate his obligations hereunder without the prior written
consent of the Company.

 

15.           Choice of Law.  All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall
be governed by, and construed in accordance with, the laws of the State of
Wisconsin without giving effect to any choice of law or conflict of law rules or
provisions that would cause the application of the laws of any jurisdiction
other than the State of Wisconsin.

 

16.           Amendment and Waiver.  The provisions of this Agreement may be
amended or waived only with the prior written consent of the Company and
Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

 

17.           Arbitration.  Any controversy or claim arising out of or
relating to this Agreement, the making, interpretation or the breach thereof
shall be settled by arbitration in Milwaukee, Wisconsin in accordance with the rules and
procedures of the Employment Dispute Resolution Rules of the American
Arbitration Association then in effect.

 

18.           Legal Fees and Expenses.  The Company agrees to pay, as incurred, to
the full extent permitted by law, all reasonable legal fees and expenses which
Executive may reasonably incur in connection with the negotiation and
documentation of the arrangements set forth herein.

 

19.           Tax Withholding.  The parties agree to treat all amounts paid
to Executive hereunder as compensation for services.  Accordingly, the Company may withhold from
any amount payable 

 

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under this Agreement such
federal, state or local taxes as shall be required to be withheld pursuant to
any applicable law or regulation.

 

20.           Section 409A Compliance.

 

(a)           Six Month Delay for Specified
Employees.  If any
payment, compensation or other benefit provided to Executive in connection with
his employment termination is determined, in whole or in part, to constitute “nonqualified
deferred compensation” within the meaning of Section 409A and Executive is
a specified employee as defined in Section 409A(2)(B)(i), no part of such
payments shall be paid before the day that is six (6) months plus one (1) day
after Executive’s Termination Date (the “New Payment Date”).  The aggregate of any payments that otherwise
would have been paid to Executive during the period between the date of
termination and the New Payment Date shall be paid to Executive in a lump sum
on such New Payment Date.  Thereafter,
any payments that remain outstanding as of the day immediately following the
New Payment Date shall be paid without delay over the time period originally scheduled,
in accordance with the terms of this Agreement. 
Notwithstanding the foregoing, to the extent that the foregoing applies
to the provision of any ongoing welfare benefits to the Executive that would
not be required to be delayed if the premiums therefore were paid by Executive,
Executive shall pay the full cost of premiums for such welfare benefits during
the six-month period and the Company shall pay the Executive an amount equal to
the amount of such premiums paid by Executive during such six-month period
promptly after its conclusion.

 

(b)           Compliance.  The intent of the parties is that payments
and benefits under this Agreement comply with Section 409A of the Code
and, accordingly, to the maximum extent permitted, the Agreement shall be
interpreted to be in compliance therewith. 
The Parties acknowledge and agree that the interpretation of Section 409A
and its application to the terms of this Agreement is uncertain and may be
subject to change as additional guidance and interpretations become available.  Anything to the contrary herein
notwithstanding, all benefits or payments provided by the Company to Executive
that would be deemed to constitute “nonqualified deferred compensation” within
the meaning of Section 409A are intended to comply with Section 409A.  If, however, any such benefit or payment is
deemed to not comply with Section 409A, the Company and Executive agree to
renegotiate in good faith any such benefit or payment (including, without
limitation, as to the timing of any severance payments payable hereof) so that
either (i) Section 409A will not apply or (ii) compliance with Section 409A
will be achieved; provided, however, that any resulting renegotiated terms
shall provide to Executive the after-tax economic equivalent of what otherwise
has been provided to Executive pursuant to the terms of this Agreement, and
provided further, that any deferral of payments or other benefits shall be only
for such time period as may be required to comply with Section 409A.  In no event whatsoever shall the Company be
liable for any tax, interest or penalties that may be imposed on Executive by Section 409A
of the Code or any damages for failing to comply with Section 409A.

 

(c)           Termination as a Separation from
Service.  A
termination of employment shall not be deemed to have occurred for purposes of
any provision of this Agreement providing for the payment of any amounts or
benefits subject to Section 409A upon or following a termination of
employment until such termination is also a “separation from service” within
the meaning of Section 409A and for purposes of any such provision of this
Agreement, references to a “resignation,” “termination,” “terminate,” “termination
of employment” or like terms shall mean separation from service.

 

8

 

(d)           Payments for Reimbursements and
In-Kind Benefits.  All
reimbursements for costs and expenses under this Agreement shall be paid in no
event later than the end of the calendar year following the calendar year in
which the Executive incurs such expense. 
With regard to any provision herein that provides for reimbursement of
costs and expenses or in-kind benefits, except as permitted by Section 409A,
(i) the right to reimbursement or in-kind benefits shall not be subject to
liquidation or exchange for another benefit, and (ii) the amount of
expenses eligible for reimbursements or in-kind benefits provided during any
taxable year shall not affect the expenses eligible for reimbursement or
in-kind benefits to be provided in any other taxable year, provided, however,
that the foregoing clause (ii) shall not be violated with regard to
expenses reimbursed under any arrangement covered by Section 105(b) of
the Code solely because such expenses are subject to a limit related to the
period the arrangement is in effect.

 

(e)           Payments within Specified Number
of Days.  Whenever a
payment under this Agreement specifies a payment period with reference to a
number of days (e.g., “payment shall be made within thirty (30) days following
the date of termination”), the actual date of payment within the specified
period shall be within the sole discretion of the Company.

 

(f)            Installments
as Separate Payment.  If
under this Agreement, an amount is paid in two or more installments, for
purposes of Section 409A, each installment shall be treated as a separate
payment.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first written above.

 

	
   

  	
  GENERAC
  POWER SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Aaron Jagdfeld

  

 

 

SIGNATURE PAGE TO

A JAGDFLED EMPLOYMENT
AGREEMENT

 

 

Exhibit A

 

RELEASE OF CLAIMS

 

A release is required as a
condition for receiving the benefits described in Section  5 of the
Amended and Restated Employment Agreement between GENERAC POWER SYSTEMS, INC.
(the “Company”)
and Aaron Jagdfeld (“Executive”)
dated
                      ,
2010, (the “Employment
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 the
Employment Agreement.

 

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 Employment Agreement 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 Employment 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 Employment 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:

  	
   

  	
  Aaron
  Jagdfled:

  

 

 

SIGNATURE PAGE TO

A JAGDFELD RELEASE
AGREEMENT

 

2

 

Exhibit B

 

CONFIDENTIALITY,
NON-COMPETITION AND INTELLECTUAL PROPERTY AGREEMENT

 

CONFIDENTIALITY, NON-COMPETITION AND INTELLECTUAL
PROPERTY AGREEMENT (this “Agreement”),
dated as of
                              ,
2010 (the “Effective
Date”), by and between GENERAC POWER SYSTEMS, INC. (together
with its successors, assigns and affiliates, the “Company”) and Aaron Jagdfeld (“Executive”).

 

WHEREAS, Executive has entered into an amended and
restated employment agreement dated as of the date hereof with the Company (the
“Employment Agreement”).  In connection with his performance of his
duties and obligations under the Employment Agreement, Executive has and will
receive specific confidential information relating to the business of the
Company, which confidential information is necessary to enable Executive to
perform Executive’s duties.  Executive
will play a significant role in the development and management of the
businesses of the Company and has and will be entrusted with confidential
information relating to the Company and its customers, suppliers,
subcontractors, employees and others; and

 

WHEREAS, it is a condition to the execution of the
Employment Agreement, dated as of the date hereof, by and between Executive and
the Company, that Executive execute and deliver this Agreement simultaneously
with the execution and delivery of the Employment Agreement.

 

NOW, THEREFORE, it is mutually agreed as follows:

 

1.             Confidentiality.

 

(a)           Confidential Information.  In addition to all duties of loyalty imposed
on Executive by law, during the term of Executive’s employment with the Company
and thereafter, Executive shall maintain Confidential Information in confidence
and secrecy and shall not disclose Confidential Information or use it for the
benefit of any person or organization (including Executive) other than the
Company.

 

(b)           Trade Secrets.  During his employment with the Company,
Executive shall preserve and protect all Trade Secrets of the Company from
unauthorized use or disclosure; and after termination of such employment,
Executive shall not use or disclose any Trade Secret of the Company for so long
as that Trade Secret remains a Trade Secret.

 

(c)           Procedures.  In the event that Executive is requested or
required (by deposition, interrogatories, requests for information or documents
in legal proceedings, subpoenas, civil demand or similar process) to disclose any
Confidential Information or Trade Secrets, Executive will give the Company
prompt written notice of such request or requirement so that the Company may
seek an appropriate protective order or other remedy and/or waive compliance
with the provisions of this Agreement, and Executive will cooperate with the
Company’s efforts to obtain such protective order.  In the event that such protective order or
other remedy is not obtained or the Company waives compliance with the relevant
provisions of this Agreement, Executive is permitted to furnish that
Confidential Information or Trade Secrets which is legally required to be
disclosed and will use his reasonable efforts to obtain assurances that
confidential treatment will be accorded to such information.

 

 

As used in this Agreement, all capitalized terms
used without definition shall have the meanings ascribed to them in the
Employment Agreement.  In addition, the
following terms have the meanings set forth below:

 

“Competitive Business” means any corporation, partnership,
association, or other person or entity, including but not limited to Executive,
(i) which competes directly, or is planning to compete directly, with the
Company with respect to the design, development, manufacture, remanufacture,
assembly, marketing, sales, or service of standby power products, or any other
business of the Company, that was within Executive’s management, operational,
marketing, purchasing or sales responsibility, including the responsibility of
personnel reporting directly to Executive, or about which Executive received
any Confidential Information or Trade Secrets at any time within eighteen (18)
months prior to termination of Executive’s employment with the Company, and (ii) which
engages or plans to engage in such competition in any state of the United
States in which the Company sold or distributed, or actively attempted to sell
or to distribute, such products within eighteen (18) months prior to
termination of Executive’s employment with the Company.

 

“Confidential Information” shall mean information related
to the Company’s business, not generally known in the trade or industry, which
Executive learns or creates during the period of Executive’s employment with
the Company, which may include but is not limited to product specifications,
manufacturing procedures, methods, equipment, compositions, technology,
formulas, know-how, research and development programs, sales methods, customer
lists, customer usages and requirements, computer programs and other
confidential technical or business information and data.  Confidential Information shall not include
any information that (i) is or becomes generally available to the public
other than as a result of a disclosure by Executive in violation of this
Agreement or (ii) becomes available to Executive on a non-confidential
basis from a source other than the Company which is not prohibited from
disclosing such information to Executive by a legal, contractual or fiduciary
obligation to the Company or any other person.

 

“Goodwill” means any tendency of customers, distributors,
representatives, employees, or federal, state, local or foreign governmental
entities to continue or renew any valuable business relationship with the
Company, based in whole or in part on past successful relationships with the
Company or the lawful efforts of the Company to foster such relationships, and
in which Executive, or any personnel reporting directly to Executive, actively
participated at any time within eighteen (18) months prior to termination of
Executive’s employment with the Company.

 

“Trade Secret(s)” means information, including a formula,
pattern, compilation, program, device, method, technique or process, that
derives independent economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by proper means by
other persons who can obtain economic value from its disclosure or use, and
that is the subject of efforts to maintain its secrecy that are reasonable
under the circumstances.

 

(d)           Return of Property.  Executive further agrees to take all
reasonable measures to prevent unauthorized persons or entities from obtaining
or using Confidential Information or Trade Secrets.  Promptly upon termination of his employment
with the Company, Executive agrees to deliver to the Company all property and
materials within Executive’s possession or control which belong to the Company
or which contain Confidential Information or Trade Secrets.

 

2

 

2.             Non-Competition; Non-Solicitation.

 

(a)           Non-Competition.  During the term of Executive’s employment
with the Company and for twenty-four (24) months following the termination of
such employment for any reason (the “Restricted Period”),
Executive shall not, directly or indirectly, participate in, consult with, be
employed by, or assist with the organization, planning, ownership, financing,
management, operation or control of any Competitive Business in any capacity in
which, in the absence of this Agreement, Confidential Information, Trade
Secrets or Goodwill of the Company would reasonably be considered useful.

 

(b)           Non-Solicitation.  During the Restricted  Period, Executive shall not, directly or
indirectly, on behalf of any Competitive Business, either by himself or by
providing substantial assistance to others, solicit to terminate employment
with the Company, or to accept or begin employment with or service to any
Competitive Business, any employee of the Company whom Executive supervised or
about whom Executive gained Confidential Information at any time during the
last eighteen (18) months of Executive’s employment with the Company.

 

3.             No Right to Continued
Employment.  Nothing in
this Agreement shall confer upon Executive any right to continue in the employ
of the Company or shall interfere with or restrict in any way the rights of the
Company, which, subject to the terms of the Employment Agreement, are hereby
reserved, to discharge Executive at any time for any reason whatsoever, with or
without Cause.

 

4.             No Conflicting Agreements.  Executive warrants that Executive is not
bound by the terms of a confidentiality agreement, non-competition or other
agreement with a third party that would conflict with Executive’s obligations
hereunder.

 

5.             Remedies.

 

(a)           In the event of breach or threatened breach by Executive of any
provision hereof, the Company shall be entitled to seek temporary or
preliminary injunctive relief or other equitable relief, without the posting of
any bond or other security.

 

(b)           The period of time during which the restrictions set forth in Section 2
hereof will be in effect will be extended by the length of time during which
Executive is in breach of the terms of those provisions as finally determined
by an arbitrator or any court of competent jurisdiction.

 

6.             Successors and Assigns.  This Agreement shall be binding upon
Executive and Executive’s heirs, assigns and representatives and inure to the
benefit of the Company and its successors and assigns, including without
limitation any entity to which substantially all of the assets or the business
of the Company are sold or transferred. 
The obligations of Executive are personal and shall not be assigned by
Executive.

 

7.             Severability.  It is expressly agreed that if any
restrictions set forth in this Agreement are found by any court having
jurisdiction to be unreasonable because they are too broad in any respect, then
and in each such case, the remaining provisions herein contained shall, to the
greatest extent permissible under applicable law, nevertheless, remain
effective, and this Agreement, or any portion hereof, shall, to the extent
permitted by applicable law, be considered to be amended, so as to be
considered reasonable and enforceable by such court, and the court 

 

3

 

shall
specifically have the right to restrict the time period or the business or
geographical scope of such restrictions to any portion of the time period,
business or geographic areas to the extent the court deems such restriction to
be necessary to cause the covenants to be enforceable and, in such event, the
covenants shall be enforced to the extent so permitted and the remaining
provisions shall be unaffected thereby. 
In such event, the parties hereto agree to execute all documents
necessary to evidence such amendment so as to eliminate or modify any such
unreasonable provision in order to carry out the intent of this Agreement
insofar as possible and to render this Agreement enforceable in all respects as
so modified.  The covenants contained
herein shall be construed to extend to separate jurisdictions or
sub-jurisdictions of the United States in which the Company, during the term of
Executive’s employment, have been or are engaged in business, and to the extent
that any such covenant shall be illegal and/or unenforceable with respect to
any jurisdiction, said covenant shall not be affected thereby with respect to
each other jurisdiction, such covenants with respect to each jurisdiction being
construed as severable and independent. 
The restrictive covenant provisions of this Agreement shall govern to
the extent there is any conflict between their terms and the terms of any other
agreement or understanding with the Company.

 

8.             Notices.  Any notice required or permitted to be given
under this Agreement shall be in writing and be deemed given when delivered by
hand or received by registered or certified mail, postage prepaid, or by
nationally reorganized overnight courier service addressed to the party to
receive such notice at the following address or any other address substituted
therefor by notice pursuant to these provisions:

 

If
to the Company:

 

Generac Power Systems, Inc.

P.O. Box 295

Waukesha, WI 53187

Attention: 
Chief Financial Officer and Chairman of the Audit Committee

 

If to the Executive, to her
at her most recent address in the Company’s records.

 

9.             Amendment.  No provision of this Agreement may be
modified, amended, waived or discharged in any manner except by a written
instrument executed by the Company and Executive.

 

10.           Waiver.  The failure of the Company to enforce at any
time any of the provisions of this Agreement shall not be deemed or construed
to be a waiver of any such provision, nor in any way affect the validity of
this Agreement or any provision hereof or the right of the Company to enforce
thereafter each and every provision of this Agreement.  No waiver of any breach of any of the
provisions of this Agreement by the Company shall be effective unless set forth
in a written instrument executed by the Company, and no waiver of any such
breach shall be construed or deemed to be a waiver of any other or subsequent
breach.

 

11.           Applicable Law.  All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall
be governed by, and construed in accordance with, the laws of the State of
Wisconsin without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of Wisconsin or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the
State of Wisconsin.

 

4

 

12.           Enforcement.  If any party shall institute legal action to
enforce or interpret the terms and conditions of this Agreement or to collect
any monies hereunder, venue for any such action shall be the State
Wisconsin.  Each party irrevocably
consents to the jurisdiction of the courts located in the State of Wisconsin
for all suits or actions arising out of this Agreement.  Each party hereto waives to the fullest
extent possible, the defense of an inconvenient forum, and each agrees that a
final judgment in any action shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

 

[Signature Page Follows]

 

5

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed as of the day written above.

 

	
   

  	
  GENERAC
  POWER SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Aaron Jagdfeld

  

 

 

SIGNATURE PAGE TO

A JAGDFELD
CONFIDENTIALITY AGREEMENTExhibit
10.66

 

AMENDMENT TO

EMPLOYMENT AGREEMENT

 

THIS AMENDMENT (“Amendment”)
dated as of                        , 2010, is entered into by and between Generac Power Systems, Inc. (the “Company”) and Dawn Tabat (“Executive”).

 

WHEREAS, the Company and Executive are party to that
certain Employment Agreement dated as of November 10, 2006 (the “Agreement”); and

 

WHEREAS, the Company desires that
Executive continue to serve as the Chief Operating Officer of the Company and
Executive desires to continue to serve the Company.

 

NOW, THEREFORE, in consideration of the mutual
covenants herein contained, the Company and Employee hereby amend the Agreement
as follows:

 

1.                                       Wherever it is used in the Agreement, the defined term “Board” shall refer to the Board of Directors of Generac
Holdings Inc., and not to the Board of Directors of the Company.

 

2.                                       Notwithstanding anything to the contrary, wherever it is used in the
Agreement, the defined term “Non-Competition Agreement”
shall mean the confidentiality, non-competition and intellectual property
agreement dated as of November 10, 2006 by and between the Company and
Executive.

 

3                                          Section 1(b) of the
Agreement is hereby amended by changing “one or more subsidiaries of the
Company” to “the Company or its parent entities” where the former appears in
such Section.

 

4.                                       Section 1(c) of the
Agreement is hereby amended by adding the words “and parent entities”
immediately following the word “subsidiaries” where the later appears in such
Section.

 

5.                                       Section 4(a)(iv)(A) of
the Agreement is hereby deleted in its entirety and replaced with the following
clause:

 

(A)                              a reduction, in excess of five percent (5%), of Executive’s Base Salary as
in effect from time to time or target Annual Bonus opportunity, excluding
across the board reductions affecting all senior executives of the Company;

 

6.                                       Section 4(a)(iv)(B) of
the Agreement is hereby amended by adding the words “within ninety (90) days of
the occurrence of such diminution and” between the words “delivered” and “in”
where they appear in such Section.

 

7.                                       Section 5 of the Agreement is hereby
amended by changing “as soon as practicable” to “within thirty (30) days” in
each instance where the former appears in such Section.

 

8.                                       The following sentence is hereby added to the end of Section 5(d) of
the Agreement:

 

Notwithstanding the foregoing, in the event
that the Company is prohibited from providing any of the Continued Benefits
pursuant to the terms of such programs or applicable law, the Company shall
reimburse Executive (or her

 

 

surviving spouse and dependants if applicable) for the
cost of obtaining comparable coverage.

 

9.                                       The following paragraph is hereby added as a new Section 5(e) of
the Agreement:

 

Execution of Release.  Notwithstanding anything to the
contrary, all payments and benefits provided pursuant to Section 5(c) and
Section 5(d) hereof, other than accrued but unpaid Base Salary
and vacation pay through the Termination Date, shall be subject to Executive
executing an effective Release within sixty (60) days following the Termination
Date and Executive’s continued compliance with the Non-Competition
Agreement.  For avoidance of a doubt,
payment of unpaid Base Salary and vacation pay through the Termination Date (if
any) shall not be subject to the execution of an effective Release.

 

10.                                 Section 20 of the Agreement is hereby
deleted in its entirety and replaced with the following paragraphs:

 

(a)                                  Six
Month Delay for Specified Employees.  If any payment, compensation or other benefit
provided to Executive in connection with her employment termination is
determined, in whole or in part, to constitute “nonqualified deferred
compensation” within the meaning of Section 409A of the Internal Revenue
Code (“Section 409A”) and Executive is a
specified employee as defined in Section 409A(2)(B)(i), no part of such
payments shall be paid before the day that is six (6) months plus one (1) day
after Executive’s Termination Date (the “New Payment Date”).  The aggregate of any payments that otherwise
would have been paid to Executive during the period between the date of
termination and the New Payment Date shall be paid to Executive in a lump sum
on such New Payment Date.  Thereafter,
any payments that remain outstanding as of the day immediately following the
New Payment Date shall be paid without delay over the time period originally
scheduled, in accordance with the terms of this Agreement.  Notwithstanding the foregoing, to the extent
that the foregoing applies to the provision of any ongoing welfare benefits to
the Executive that would not be required to be delayed if the premiums
therefore were paid by Executive, Executive shall pay the full cost of premiums
for such welfare benefits during the six (6) month period and the Company
shall pay the Executive an amount equal to the amount of such premiums paid by
Executive during such six (6) month period promptly after its conclusion.

 

(b)                                 Compliance.  The intent of the parties is that payments
and benefits under this Agreement comply with Section 409A and,
accordingly, to the maximum extent permitted, the Agreement shall be
interpreted to be in compliance therewith. 
The Parties acknowledge and agree that the interpretation of Section 409A
and its application to the terms of this Agreement is uncertain and may be
subject to change as additional guidance and interpretations become
available.  Anything to the contrary
herein notwithstanding, all benefits or payments provided by the Company to
Executive that would be deemed to constitute “nonqualified deferred
compensation” within the meaning of Section 409A are intended to comply
with Section 409A.  If, however, any
such benefit or payment is deemed to not comply with Section 409A, the
Company and Executive agree to renegotiate in good faith any such benefit or
payment (including, without limitation, as to the timing of any severance
payments

 

2

 

payable
hereof) so that either (i) Section 409A will not apply or (ii) compliance
with Section 409A will be achieved; provided, however, that any resulting
renegotiated terms shall provide to Executive the after-tax economic equivalent
of what otherwise has been provided to Executive pursuant to the terms of this
Agreement, and provided further, that any deferral of payments or other
benefits shall be only for such time period as may be required to comply with Section 409A.  In no event whatsoever shall the Company be
liable for any tax, interest or penalties that may be imposed on Executive by Section 409A
or any damages for failing to comply with Section 409A.

 

(c)                                  Termination
as a Separation from Service.  A termination of employment shall not be
deemed to have occurred for purposes of any provision of this Agreement
providing for the payment of any amounts or benefits subject to Section 409A
upon or following a termination of employment until such termination is also a “separation
from service” within the meaning of Section 409A and for purposes of any
such provision of this Agreement, references to a “resignation,” “termination,”
“terminate,” “termination of employment” or like terms shall mean separation
from service.

 

(d)                                 Payments
for Reimbursements and In-Kind Benefits.  All reimbursements for costs and expenses
under this Agreement shall be paid in no event later than the end of the
calendar year following the calendar year in which the Executive incurs such
expense.  With regard to any provision
herein that provides for reimbursement of costs and expenses or in-kind
benefits, except as permitted by Section 409A, (i) the right to
reimbursement or in-kind benefits shall not be subject to liquidation or
exchange for another benefit, and (ii) the amount of expenses eligible for
reimbursements or in-kind benefits provided during any taxable year shall not
affect the expenses eligible for reimbursement or in-kind benefits to be provided
in any other taxable year, provided, however, that the foregoing clause (ii) shall
not be violated with regard to expenses reimbursed under any arrangement
covered by Section 105(b) of the Code solely because such expenses
are subject to a limit related to the period the arrangement is in effect.

 

(e)                                  Payments
within Specified Number of Days.  Whenever a payment under this Agreement
specifies a payment period with reference to a number of days (e.g., “payment
shall be made within thirty (30) days following the date of termination”), the
actual date of payment within the specified period shall be within the sole
discretion of the Company.

 

(f)                                    Installments
as Separate Payment.  If
under this Agreement, an amount is paid in two or more installments, for
purposes of Section 409A, each installment shall be treated as a separate
payment.

 

11.                                 The first sentence of the
third paragraph of Exhibit A is hereby amended by changing “It is
further understood and agreed that you are waiving any right to initiate an
action in state or federal court” to “Your understand and agree that this
Release is intended to include all claims” where the former appears in such
paragraph.

 

12.                                 The first sentence of the
fourth paragraph of Exhibit A is hereby deleted in its entirety.

 

3

 

13.                                 Section 21(a) of Exhibit B
is hereby amended by deleting “without the prior consent of an authorized
officer of the Company (except for disclosures to persons acting on the Company’s
behalf with a need to know such information), under any circumstances where
Confidential Information so disclosed or used is reasonably likely to be used
anywhere on behalf of any Competitive Business” where it appears in such
Section.

 

14.                                 Section 21(d) of Exhibit B
is hereby amended by adding “or Trade Secrets” after “Confidential Information”
in each instance where the later appears in such Section.

 

15.                                 All other provisions of the
Agreement not specifically amended in this Amendment shall remain in full force
and effect.

 

16.                                 This Amendment may be
executed in multiple counterparts, which, when taken together, shall constitute
one instrument.

 

*         *         *

 

4

 

IN WITNESS WHEREOF, the Company has caused this Amendment
to be executed on its behalf by its duly authorized officer and Executive has
executed this Amendment, as of the date first written above.

 

	
   

  	
  GENERAC POWER SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Aaron Jagdfeld

  
	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Dawn Tabat

  

 

SIGNATURE
PAGE TO

D
TABAT EMPLOYMENT AGREEMENT AMENDMENT

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