Document:

EXHIBIT 10

 

 EXHIBIT 10.1
 

 

 EXECUTIVE EMPLOYMENT AGREEMENT

 
 Executive Employment Agreement ("Agreement") is made and effective this 1st day of December, 2009 by and between View Systems, Inc., a Nevada corporation whose principal place of business is 1550 Caton Center Drive, Baltimore, MD 21227 (the "Company") and Gunther Than ("Executive").

 WHEREAS, the Company wishes to assure itself of the benefit of Executive's services, experience and loyalty, and Executive has indicated his willingness to provide his services, experience and loyalty on the terms and conditions set forth herein:

 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the parties hereto agree as follows:

 1.

Employment.
  

Subject to approval of its board of directors, Company hereby employs Executive as its President and Chief Executive Officer and Executive hereby accepts such employment in accordance with the terms of this Agreement.  In the event of any conflict or ambiguity between the terms of this Agreement and terms of employment applicable to regular employees, the terms of this Agreement shall control.  Election or appointment of Executive to another office or position, regardless of whether such office or position is inferior to Executive's initial office or position, shall not be a breach of this Agreement.

 2.

Duties of Executive.
  

The duties of Executive shall include the performance of all of the duties typical of the office held by Executive and such other duties and responsibilities as may be assigned by the Chairman of the Board of Directors (the "Chairman") and/or the directors of the Company.

 3.

Exclusivity.
  

(a)
 Executive shall faithfully, industriously, and to the best of Executive’s ability, serve the Company, shall in all respects conform to and comply with the lawful and reasonable directions and instructions given to him by the Directors and Officers of the Company having authority over him and shall perform all duties in a professional, ethical and businesslike manner and promote and serve the interests of the Company.

 (b)

Executive shall not engage in activities which would interfere significantly with his faithful performance of his duties hereunder.  Executive may engage in other professional activities or be involved in other businesses as long as they do not conflict or interfere with his ability to serve in his capacity for the Company.

 4.

Compensation.
 

 Executive shall be paid compensation during this Agreement as follows:

 (a)

A base salary of $10,000.00 per month, payable in form of cash or shares of the Company’s shares as agreed upon.  This base salary may be adjusted from time to time by the Company’s board of directors or a committee of the Company’s board of directors; provided that the base salary shall not be less than the initial base salary, unless the parties mutually agree otherwise. 

 

 

 
 (b)

An incentive bonus to be determined by the Board of Directors of Company based upon Company's performance and the results achieved by Executive in his job performance.

 (c)

Options, to purchase shares of Company Common Stock, such Options to accrue and to be granted in the event that Executive is employed and according to a pre-determined schedule.  The Options shall be earned and vest in Executive in accordance with a set schedule to be decided by the Board of Directors (BoD).  

 (d)

A per annum 1 payment
2 of at least 600,000 shares of common stock  and additionally whatever the BoD may give a bonus or additional at their discretion  in exchange for the non-compete provisions contained in paragraph 7 below.

 5.

Benefits.
 

 
(a)
 Expense Reimbursement.  Executive shall be entitled to reimbursement for all reasonable expenses, including travel and entertainment, incurred by Executive in the performance of Executive's duties.  Executive will maintain records and receipts.

 (b)

Benefit Plans.  Executive shall be entitled to participate in such employee benefit plans as Company shall establish for Executives from time to time.

 6.

Rights to Work Product.
 

 In consideration of Executive's original and continuing employment under this Agreement, it is agreed and understood that Executive shall disclose to Company all inventions, improvements, designs, information, reports, studies, other tangible or intangible material of any nature whatsoever produced or as a result of any of the services performed by Executive hereunder and all copies of any of the foregoing.  Executive hereby irrevocably grants, assigns, transfers and sets over unto Company all right, title and interest of any kind, nature or description in and to the above referenced work product and Executive shall not be entitled to make use of the work product except as may be expressly permitted in this Agreement.  Executive agrees to execute:  (i) any and all documents and; (ii) provide all such assistance, as is reasonably requested by Company in connection with the registration and protection by litigation or otherwise of any patents, copyrights, trademarks or other proprietary rights in the work product produced hereunder (including any reissues thereof).

 7.

Confidential Information and Noncompetition.

 (a)

Confidential Information.  Executive recognizes that the services to be performed by him/her hereunder are special, unique and extraordinary in that, by reason of his employment hereunder, he may acquire or has acquired confidential information and trade secrets concerning the operation of the Company, the use or disclosure of which could cause Company substantial loss and damages that could not be readily calculated and for which no remedy at law would be adequate.  Accordingly, in consideration of Executive's original and continued employment by Company in a capacity in which he may receive or contribute to the production of confidential information, and the payment specified in paragraph 4d above, Executive agrees and acknowledges that all tangible and intangible information obtained or developed, and in connection with the performance of this Agreement (including information developed by Executive as part of his/her performance of services) which is so designated by Company, shall be considered to be confidential and proprietary information which contains valuable business information and trade secrets of company relating to its business practices and critical to its competitive position in the marketplace.

 

 _______________________________

1    Accrued from the beginning of the calendar year and payable in whole regardless of length of service for the year and at any time during the year.

2    Payable upon request.
 

 

 

 (i)

Information publicly known that is generally employed by the trade at or after the time Executive first learns of such information, or generic information or knowledge which Executive would have learned in the course of similar employment or work elsewhere in the trade, shall not be deemed part of the company confidential information.

 (ii)
 All notes, materials or records, of any kind, in any way incorporating or reflecting any of the Company confidential information shall belong exclusively to Company and Executive agrees to turn over all copies of such materials in his control to Company upon termination of this Agreement.

 (iii)

Executive agrees during the term of this Agreement and thereafter to hold in confidence and not to directly or indirectly reveal, report, publish, disclose or transfer any of the Company confidential information to any person or utilize any of the Company confidential information for any purpose, except in the course of his/her work for the Company.

 (iv)

Executive agrees to notify Company promptly and in writing of any circumstances of which Executive has knowledge relating to any possession, use or knowledge of any portion of the Company confidential information by any unauthorized person.

 (b)

No Competing Employment.  In consideration of the payment specified in paragraph 4(d) above, for  so long as Executive is employed by Company, and for one calendar year following termination of this Agreement, Executive shall not, unless he receives prior written consent from the Board of Directors, directly or indirectly, own an interest in, manage, operate, join, control, lend money or render financial or other assistance to or participate in or be connected with, as an officer, employee, partner, stockholder, consultant or otherwise, any individual, partnership, firm, corporation or other business entity that materially competes with the Company.  This covenant shall survive termination of this Agreement.

 (c)

No Interference.  In consideration of the payment specified in paragraph 4(d) above, during the term of this Agreement, and for one calendar year following termination of this Agreement, Executive shall not, whether for his own account or for the account of any other individual, partnership, firm, corporation, or other business organization (other than the Company), intentionally solicit, endeavor to entice away from Company or otherwise interfere with the relationship of Company with any person who is employed by or otherwise engaged to perform services for Company (including, but not limited to, any employees of Company's venture partners and independent sales representatives or organizations) or any person or entity who is, or was within the then most recent twelve (12) month period, a customer or client of the Company.  This covenant shall survive termination of this Agreement.

 8.

Term and Termination.
 

 (a)
 The Initial Term of this Agreement shall commence on the effective date noted above and it shall continue in effect unless terminated by either party upon ninety (90) days written notice.

 (b)

This Agreement and Executive's employment may be terminated by Company at its discretion at any time, provided that if the termination is without cause, for a period of three years following such termination, Executive shall be paid his base salary and a bonus for each of the three years equivalent in value to the bonus received in the year prior to his termination.

 (c)

This Agreement may be terminated by Executive at Executive's discretion by providing at least ninety (90) days prior written notice to the Company.  In the event of termination by Executive pursuant to this subsection, Company may immediately relieve Executive of all duties and immediately terminate this Agreement, provided that company shall pay Executive the compensation Executive has earned hereunder to the termination date included in Executive's original termination notice.

 (d)

In the event Company is acquired, or is the non-surviving party in a merger, or sells all or substantially all of its assets, this Agreement shall not be deemed terminated as a result thereof.

 9.

Notices.
 

 Any notice required by this Agreement or given in connection with it, shall be in writing and shall be given to the appropriate party by personal delivery or by certified mail, postage prepaid, or recognized overnight deliver services:

 

 If to Company:

 View Systems, Inc.

1550 Caton Center Drive
 Baltimore, MD 21227

 If to Executive:

 Gunther Than

22454 Hillcrest Circle
 Golden, Colorado  80401

 10.

Entire Agreement.
 

 This Agreement constitutes the entire Agreement between the parties with respect to the subject matter hereof and supersedes and merges all prior proposals, understandings and all other agreement, oral or written between the parties relating to such subject matter.  Each party hereby acknowledges that it has not entered into this Agreement in reliance upon any representation made by the other party and not embodied herein.

 11.

Headings.
 

 Headings used in this Agreement are provided for convenience only and shall not be used to construe meaning or intent.

 12.

Assignment.
 

 (a)
 
By Executive.  Neither this Agreement nor any right, duty, obligation or interest hereunder may be assigned or delegated by Executive without the prior express written approval of Company, which may be withheld by Company at Company's absolute discretion.

 (b)

By Company.  This Agreement and all of Company's rights and obligations hereunder may be assigned, delegated or transferred by it to (i) any venture partner of Company or to any parent, subsidiary or affiliate of any venture partner, or (ii) any business entity which at any time by merger, consolidation or otherwise acquires all or substantially all of the assets of the Company or to which Company transfers all or substantially all of its assets.  Upon such assignment, delegation or transfer, any such partner, parent, subsidiary, affiliate or other business entity shall be deemed to be substituted for all purposes as the Company hereunder.

 (c)

Binding Effect.  This Agreement shall be binding upon, and inure to the benefit of, the parties hereto, any successors to or assigns of Company and Executive's heirs and the personal representatives of Executive's estate.

 13.

Severability.
 

 If any term of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term had never been included.

 

 14.

Miscellaneous.
 

 (a)
 This Agreement may not be modified or altered except by a written instrument executed by both parties.

(b)
 The parties agree that each provision in this Agreement is deemed equally essential to each party.

 

 

(c)

The failure of either of the parties to insist upon strict performance of any of the provisions of this Agreement shall not be construed as the waiver of any subsequent default of a similar nature.

 (d)

Either party shall be excused from performance and shall not be liable for any delay in deliver or for non-delivery, in whole or in part, caused by the occurrence of any contingency beyond the control of the parties.

 

 

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

 

 View Systems, Inc.

Executive
 

                                                                  
 

Chairman of the Board
 President & CEO

Dr. Martin Maassen
 Gunther ThanExhibit 10.42

 

GPS CCMP ACQUISITION CORP.

2006 MANAGEMENT EQUITY INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

 

RESTRICTED STOCK AGREEMENT  (this “Agreement”)  made as December 27,
2007 (the “Effective Date”),  by and between
GPS CCMP Acquisition Corp., a Delaware corporation (the “Company”),  and Clement Feng (the “Executive”).

 

WHEREAS,
as a material inducement to the Company to sell and issue to the Executive the
Restricted Shares hereunder, the Executive has agreed to execute and deliver to
the Company the Confidentiality, Non-Competition and Intellectual Property
Agreement attached hereto as Exhibit C (the “Non-Competition Agreement”);

 

WHEREAS,
in consideration of the mutual covenants contained herein, the receipt and
sufficiency of which are hereby acknowledged;

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

1.             Purchase and Sale of
Restricted Shares.

 

(a)           Upon execution of this
Agreement and the Joinder Agreement, in the form attached hereto as Exhibit D (the “Joinder Agreement”),  to the Shareholders’
Agreement, dated as of November 10, 2006, by and among the Company and the
other parties from time to time party thereto (the “Shareholders’ Agreement”),  and subject to the terms and
conditions of the Plan (as defined below) and this Agreement, the Company will
issue to the Executive 389.579916  shares of class A nonvoting
common stock of the Company, par value $0.01 per share (the “Class A Common Stock”),  for a purchase price of $341.36  per share (the “Class A Purchase Price”).  All of such shares of Class A
Common Stock purchased by the Executive pursuant to this Agreement are referred
to herein as “Restricted
Shares”.

 

(b)           The foregoing sale and
issuance of Restricted Shares shall be deemed, for all purposes, an Award under
(and as defined in) the Company’s 2006 Management Equity Incentive Plan (the “Plan”),  which is incorporated herein
by this reference and made a part of this Agreement.

 

2.             Section 83(b) Election.

 

The
parties agree that the fair market value of each share of Class A Common
Stock as of November 10, 2006, based on the appraisal report of Corporate
Valuation Advisors was the Class A Purchase Price, and that such price
represents the fair market value of each share of Class A Common Stock on
the Effective Date. The Executive, in its sole discretion, may make an election
with the Internal Revenue Service (the “IRS”)  under Section 83(b) of
the Code and the regulations promulgated thereunder in the form of Exhibit A attached
hereto (the “83(b) Election”),  and in connection with the
making of such election, shall provide a copy of such form to the Company
promptly following its filing. The Executive understands that under applicable
law such election must be filed with the IRS no later than thirty (30) days
after any acquisition of the Restricted Shares to be effective. If the
Executive files an effective 83(b) Election, the excess of the fair market
value of the Restricted Shares on the date hereof (which the IRS may assert is
different from the fair market value determined by the parties) covered by such
election over the amount paid by the Executive for the Restricted Shares shall
be treated as ordinary income received by the Executive, and the Company or one
of its Subsidiaries shall withhold from the Executive’s compensation all
amounts required to be withheld under applicable law. If the Executive does not
file an 83(b) Election, future appreciation on the Restricted Shares will
generally be taxable as ordinary income when such stock vests pursuant to this
Agreement. The foregoing is merely a brief summary of complex

 

 

tax
laws and regulations, and therefore the Executive is advised to consult with
its own tax advisors regarding the purchase and holding of the Restricted
Shares.

 

3.             Executive
Representations and Warranties.

 

As
an inducement to the Company to issue the Restricted Shares to the Executive
and as a condition thereto, the Executive represents, acknowledges and agrees
(as applicable) that:

 

(i)            this Agreement
constitutes the legal, valid and binding obligation of the Executive, enforceable
against it in accordance with its terms, except to the extent the
enforceability thereof may be limited by bankruptcy laws, insolvency laws,
moratorium laws or other laws affecting creditors’ rights generally or by
general equitable principles, and the execution, delivery and performance of
this Agreement by the Executive does not and will not conflict with, violate or
cause a breach of any agreement, contract or instrument to which the Executive
is a party or any judgment, order or decree to which the Executive is subject;
and

 

(ii)           neither the
issuance of the Restricted Shares to the Executive nor any provision  contained
herein or in the Plan, shall entitle the Executive to remain in the employment
of the Company or any of its Subsidiaries, or affect the right of the Company
or any Subsidiary to terminate the Executive’s employment at any time for any
reason.

 

4.             Vesting
of Class A Common Stock.

 

(a)           All Restricted Shares shall
initially be unvested and shall be subject to repurchase by the  Company pursuant
to the Shareholders’ Agreement. Subject in all respects to the provisions of
the Certificate of Incorporation of the Company, all stock dividends, if any,
that are paid on unvested Restricted Shares and all stock dividends, if any,
that are paid on any such stock dividends (any such stock dividends, “Restricted
Share Dividends”)  and
all cash dividends paid on unvested Restricted Shares (or on Restricted Share
Dividends) (“Unvested Shares Cash Dividends”)  shall be treated as set forth in Section 6(d).

 

(b)           Time-Vesting.  194.789958  Restricted
Shares shall be “Time Vesting Shares.”

 

(i)            Vesting
Schedule. Subject to Sections 4(b)( ii) through (iv),
the Time Vesting Shares shall vest as set forth below, provided that the
Executive remains employed with the Company or one of its Subsidiaries on such
Vesting Dates:

 

	
  Vesting
  Date

  	
   

  	
  Vested Percentage of 

  Time Vesting Shares

  	
   

  
	
  December 27,
  2008

  	
   

  	
  25

  	
  %

  
	
  December 27,
  2009

  	
   

  	
  50

  	
  %

  
	
  December 27,
  2010

  	
   

  	
  75

  	
  %

  
	
  December 27,
  2011

  	
   

  	
  100

  	
  %

  

 

(ii)           Acceleration
upon Change of Control.   Upon
the occurrence of a Change of Control prior to February 15, 2011, all then
unvested Time Vesting Shares shall immediately vest in full, so long as the Executive is employed
with the Company or one of its Subsidiaries on the applicable Change of Control
Date.

 

(iii)          Accelerated Vesting
upon Death or Disability.   Notwithstanding
the foregoing provisions of this Section 4, in the event of the Executive’s
termination of employment with the

 

2

 

Company
or any of its Subsidiaries by reason of his death or becoming Disabled on or
after the Effective Date, Time Vesting Shares that would otherwise have been
become vested within twelve months immediately following the date of such death
or Disability shall vest as of the date of such death or Disability.

 

(iv)          Cessation of
Vesting.   Subject to the effect of
paragraph (iii) above, the vesting of all Time Vesting Shares shall cease
upon the date of employee’s termination of employment with the
Company.

 

(c)           Performance-Based Vesting.

 

(i)            General.   In
accordance with Section 4(c)(ii) through (iv), 194.789958 Restricted Shares shall be eligible to vest upon
the occurrence of either a Change of Control or an IPO Liquidity Event,
provided the Executive is employed with the Company or one of its Subsidiaries
on the Change of Control Date or IPO Liquidity Event Date, as applicable, as
set forth in the requirements of this Section 4(c) (the “Performance
Vesting Shares”).

 

(ii)           Change of
Control.   In the event that, upon the
occurrence of a Change of Control (and provided that the Executive is employed
with the Company or one of its Subsidiaries on the applicable Change of Control
Date), the Class B Return is equal to or greater than 2, 100% of the
Performance Vesting Shares shall vest on the Change of Control Date.

 

(iii)          IPO Liquidity
Event.   Upon the occurrence of an IPO
Liquidity Event (and provided that the Executive is employed
with the Company or one of its Subsidiaries on the applicable IPO Liquidity Event
Date), 100% of the Performance Vesting Shares shall vest on the IPO Liquidity
Event Date.

 

(iv)          Cessation of
Vesting upon Termination of Employment Prior to Change of Control or IPO
Liquidity Event.   In the
event of the Executive’s termination of employment for any reason prior to the
occurrence of either a Change of Control or an IPO Liquidity Event, vesting
shall cease for the Performance Vesting Shares.

 

(d)           Dividends, Etc.   Subject in all respects to the provisions of
the Certificate of Incorporation of the Company, Restricted Share Dividends,
Unvested Shares Cash Dividends and Additional Property shall be delivered to
the Executive promptly upon the vesting of the related Restricted Shares.

 

5.             Legend.

 

(a)           Each certificate
representing Restricted Shares shall bear each of the following legends  (in addition to
any legends required under the Shareholders’ Agreement).

 

“THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE
OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM REASONABLY
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT OF 1933.”

 

3

 

“THE
SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED, SOLD,
ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF OR EXCHANGED UNLESS
SUCH TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OR
EXCHANGE COMPLIES WITH THE PROVISIONS OF THE SHAREHOLDERS’ AGREEMENT AND THE
RESTRICTED STOCK AGREEMENT, EACH AS AMENDED FROM TIME TO TIME, BETWEEN OR AMONG
THE COMPANY AND THE INVESTORS PARTY THERETO. IN ADDITION TO RESTRICTIONS ON
TRANSFER, THE RESTRICTED STOCK AGREEMENT PROVIDES FOR THE VESTING OF THE SHARES
ACCORDING TO THE SPECIFIC PROVISIONS OF THE RESTRICTED STOCK AGREEMENT. COPIES
OF THE SHAREHOLDERS’ AGREEMENT AND THE RESTRICTED STOCK AGREEMENT ARE ON FILE
WITH THE COMPANY.”

 

(b)           The certificates shall also
bear any legend required by any applicable state securities law.

 

6.             Restrictions on Transfer
and Conversion.

 

(a)           The Company and the
Executive acknowledge and agree that the Restricted Shares are subject to and
restricted by the Shareholders’ Agreement and with respect to such Restricted
Shares, the Executive shall be an “Investor”  and a “Management Shareholder”  as such terms are used in
the Shareholders Agreement.

 

(b)           No unvested Restricted
Shares shall be transferable to any Person for any reason. Any attempt to
Transfer any unvested Restricted Shares shall be null and void and have no
force or effect, and the Company shall not, and shall cause any transfer agent
not to, give any effect in such entity’s share records to such attempted
Transfer.

 

(c)           Prior to any Transfer of
vested Restricted Stock made in accordance with the Shareholders’ Agreement,
the transferee shall agree, by execution of a Joinder Agreement, to be bound by
this Agreement as holder of Restricted Shares and by the Shareholders’
Agreement as an “Investor” and a “Management Shareholder”.  Any Transfer or attempted
Transfer of any Restricted Shares in violation of this Section 6 or
the Shareholders’ Agreement shall be void, and the Company shall not record
such Transfer on its books or treat any purported transferee of such Restricted
Shares as the owner of such stock for any purpose.

 

(d)           All Restricted Share
Dividends, all Unvested Shares Cash Dividends and all new, substituted or
additional securities or other property contemplated by Section 10
below (“Additional
Property”), shall be subject to the same restrictions
(and the same vesting) as the Restricted Share to which such Restricted Share
Dividend, Unvested Shares Cash Dividends or Additional Property relates, and
will be paid to the Executive in accordance with Section 4(d).

 

(e)           The Executive acknowledges
that the transfer restrictions contained in this Agreement are reasonable and
in the best interests of the Company.

 

7.             Right of Repurchase. Except as provided in any
other agreement between the Company and/or one of its Subsidiaries and the
Executive, and subject to applicable securities laws, the Company shall have no
duty or obligation to disclose to the Executive, and the Executive shall have
no right to be advised of, any material information regarding the Company and
its Subsidiaries at any time prior to, upon or in connection with the Company’s
exercise of it right to repurchase the Restricted Shares pursuant to Article V
of the Shareholders’ Agreement (the “Repurchase Option”)  upon the termination of the Executive’s
employment with the Company or one of it Subsidiaries. In connection
with the

 

4

 

exercise of the Repurchase Option by the
Company with respect to unvested Restricted Shares, if the Company holds,
pursuant to Section 6(d) Unvested Shares Cash Dividends,
Restricted Share Dividends and/or Additional Property with respect to such
unvested Restricted Shares, upon the purchase by the Company or its designee of
such Restricted Shares, notwithstanding anything to the contrary in this
Agreement or the Shareholders’ Agreement, all such Unvested Shares Cash Dividends,
Restricted Share Dividends (subject to any repurchase provisions in the
Shareholders’ Agreement) and/or Additional Property shall be forfeited by the
Executive (and any Permitted Transferee of the Executive) and all of the
Executive’s rights, or the rights of any Permitted Transferee of the Executive,
to such Unvested Shares Cash Dividends, Restricted Share Dividends and/or
Additional Property shall terminate.

 

8.             Securities
Laws Matters.

 

(a)           The Executive understands
and agrees that: (i) the Restricted Shares have not been registered under
the Securities Act, (ii) the Restricted Shares are restricted securities
under the Securities Act and (iii) the Restricted Shares may not be resold
or transferred unless they are first registered under the Securities Act or
unless an exemption from such registration is available. The Executive hereby
makes to the Company the representations and warranties set forth in Exhibit B hereto.

 

(b)           Except as otherwise set
forth in the Shareholders’ Agreement, the Company may, but shall not be
obligated to register or qualify the issuance, or the resale of any of the
Restricted Shares under the Securities Act or any other applicable law.

 

9.             Definitions.

 

The
following terms shall have the meanings ascribed below:

 

“Aggregate
Net Proceeds”  means:

 

(i)            all cash proceeds actually received by the CCMP
Investors with respect to the sale or assignment of shares of Class B
Common Stock to third parties, net of any unreimbursed Sales Costs, plus

 

(ii)           the Fair Market Value of any shares of Marketable
Securities actually received by the CCMP Investors with respect to the sale or
assignment of Class B Common Stock to third parties (for purposes of
clarity, excluding any conversion of shares of Class B Common Stock into
shares of Class A Common Stock), as determined on the date of the
consummation of such sale or other disposition, net of any unreimbursed Sales
Costs, plus

 

(iii)          dividends in cash or the fair market value of any
property dividends (other than stock dividends) as determined by the Board of
Directors of the Company in good faith, actually received by the CCMP Investors
(or receivable at the discretion of the CCMP Investors or persons within their
control) in respect of the Class B Common Stock;

 

provided, however,  that (A) Aggregate Net
Proceeds shall not include any advisory, management, monitoring, transaction or
other fees pursuant to arrangements entered into as of November 10, 2006
(as amended from time to time), or any expense reimbursement, received by one
or more CCMP Investors or any of their affiliates and (B) any cash
dividends received by the CCMP Investors shall not be counted more than once in
any calculation of Aggregate Net Proceeds.

 

5

 

“CCMP Investment”  means initially
$588,500,000, and shall be adjusted for any cash or other consideration
contributed from the CCMP Investors from and after November 10, 2006.

 

“CCMP
Investors”  means CCMP
Capital Investors II, L.P., CCMP Capital Investors (Cayman), L.P., Asia Opportunity
Fund II, L.P., AOF II
Employee Co-Invest Fund, L.P. and CCMP Generac Co-Invest, L.P.

 

“Change
of Control”  means (a) any
transaction or series of related transactions, whether or not the Company is a
party thereto, in which, after giving effect to such transaction or
transactions, the capital stock of the Company representing in excess of fifty
percent (50%) of the voting power of the Company is owned directly, or
indirectly through one or more entities, by any “person”
or “group”  (as such terms are used in Section 13(d) of
the Exchange Act) of Persons, other than one or more CCMP Investors or a “group”  in which a CCMP Investor is
a member, or (b) a sale, lease or other disposition of all or
substantially all of the assets of the Company and its Subsidiaries on a
consolidated basis (including securities of the Company’s directly or
indirectly owned Subsidiaries (if any)).

 

“Change
of Control Date”  means the date
of consummation of a Change of Control. 

 

“Class A
Common Stock”  has the meaning
set forth in Section 1(a) hereof.

 

“Class B
Return”  as of any date
of determination means the quotient of (a) the Aggregate Net Proceeds
received by the CCMP Investors with respect to shares of Class B Common
Stock (or shares of Class A Common Stock into which shares of Class B
Common Stock are converted) through such date, divided by
(b) the CCMP Investment; provided, however,  that solely with respect to
an IPO (and solely on the IPO Date), the “Class B Return”  shall equal the quotient of (i) sum
of (A) the Aggregate Net Proceeds received by the CCMP Investors with
respect to shares of Class B Common Stock prior to the IPO plus
(B) the product of (x) price per share at which shares of the
Class A Common Stock are initially sold by the underwriters in connection
with the IPO and (y) the number of shares of Class A Common Stock
into which shares of Class B Common Stock held by the CCMP Investors are
converted, divided by (ii) the CCMP
Investment.

 

“Class B
Common Stock”  means the class
B voting common stock of the Company, par value $0.01 per share.

 

“Code”  means the Internal Revenue
Code of 1986, as amended.

 

“Disabled”  means: (a)(i) 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 (ii) in the event that the Company has no such long-term
disability plan in effect at the time the disability arises on the part of the
Executive, that Executive is unable, as a result of a medically determinable
physical or mental illness, to perform the duties and services of his position
and (b) Executive shall be absent from his duties with the Company on a
full time basis for 180 consecutive days. “Disability” shall have a
correlative meaning.

 

“Fair
Market Value”  of Marketable
Securities means an amount equal to (i) the Market Price of such
Marketable Securities multiplied by (ii) the number of
shares of such Marketable Securities.

 

“IPO”  means the initial public
offering of Shares registered on Form S-1 (or any equivalent or successor
form under the Securities Act).

 

“IPO Date”
means the date on which the Company consummates an IPO of the Company.

 

6

 

“IPO
Liquidity Event”  means, from and
after the date of an IPO, the achievement with respect to the Class A
Shares of an average closing trading price equal to or exceeding the Liquidity
Threshold Price in any sixty (60) consecutive trading day period starting prior
to the later of (a) the fifth anniversary of the date hereof, and (b) one
year after the IPO.

 

“IPO
Liquidity Event Date”  means the date
of occurrence of the IPO Liquidity Event.

 

“Liquidity
Threshold Price”  means, at any
time, the lowest amount which when multiplied by the number of shares of Class A
Common Stock then held by the CCMP Investors and then added to the Aggregate
Net Proceeds received by the CCMP Investors since the date hereof with respect
to its shares of Class B Common Stock or shares of Class A Common
Stock issued upon conversion of its shares of Class B Common Stock in
connection with an IPO, would yield to the CCMP Investors a Class B Return
equal to 2.

 

“Market
Price”  of Marketable
Securities means, on any date of determination, the average of the closing
prices of such Marketable Securities on any U.S. securities exchange on which
such Marketable Securities are listed or, if not so listed, the average bid and
asked price of such Marketable Securities reported on the NASDAQ National
Market or any established over-the-counter trading system on which prices for
such Marketable Securities are quoted, in each case, for a period of twenty
trading days prior to such date of determination; provided, that,
with respect to any Marketable Securities received by the CCMP Investors in
connection with a Change of Control transaction, the Market Price of such
Marketable Securities shall be the value ascribed to such Marketable Securities
in such transaction.

 

“Marketable
Securities”  means freely
tradeable equity securities of a Person that are listed on an established U.S.
securities exchange or through the NASDAQ National Market, or any established
over-the-counter trading system.

 

“Person”  shall be construed broadly
and shall include, without limitation, an individual, a partnership, an
investment fund, a limited liability company, a corporation, an association, a
joint stock company, a trust, a joint venture, an unincorporated organization
and a governmental entity or any department, agency or political subdivision
thereof.

 

“Recapitalization”  shall mean an event or
series of events affecting the capital structure of the Company including, but
not limited to, stock dividends, stock splits, rights offers or
recapitalizations through large, non-recurring cash dividends.

 

“Restricted
Shares”  has the meaning
set forth in Section 1(a) hereof. “Restricted Shares”  shall also include shares of
the Company’s capital stock issued with respect to, or exchanged or substituted
for, the Restricted Shares by way of a stock split, stock dividend or other
recapitalization, merger, consolidation, reorganization or similar transaction.

 

“Sales
Costs”  means any costs
or expenses (including legal or other advisor costs and expenses), fees
(including investment banking fees (but excluding any such fees payable to CCMP
Investors or their Affiliates)), commissions or discounts payable directly by
the CCMP Investors in connection with, arising out of or relating to any sale
or other disposition of the Class B Common Stock (including in connection
with the negotiation, preparation and execution of any transaction
documentation with respect to such sale or other disposition).

 

“Securities
Act”  means the
Securities Act of 1933, as amended, or any successor federal law then in force.

 

7

 

“Shareholders’ Agreement”  means the Shareholders’ Agreement, dated as of November 10,
2006, among the Company and certain shareholders of the Company, as amended,
modified or supplemented from time to time.

 

“Shares”  means all shares of Class A
Common Stock and Class B Common Stock, whenever issued, including all
shares of Class A Common Stock and Class B Common Stock issued upon
the exercise, conversion or exchange of any Convertible Securities.

 

“Subsidiary”  or “Subsidiaries”  of any Person means any
corporation, partnership, joint venture or other legal entity of which such
Person (either alone or through or together with any other Person), owns,
directly or indirectly, 50% or more of the stock or other equity interests
which are generally entitled to vote for the election of the board of directors
or other governing body of such corporation or other legal entity.

 

“Transfer”  means the sale, transfer,
assignment, pledge or other disposal (whether with or without consideration and
whether voluntarily or involuntarily or by operation of law) of any Restricted
Shares.

 

10.          Adjustment
of Shares.

 

In the event of a Recapitalization, the terms
of this Agreement (including, without limitation, the number and kind of shares
of Class A Common Stock subject to this award) shall be adjusted as set
forth in Section 13(a) of the Plan. In the event that the
Company is a party to a merger or consolidation, this award shall be subject to
the agreement of merger or consolidation, as provided in Section 13(b) of
the Plan.

 

11.          Related Agreements.   Simultaneously with the execution and
delivery of this Agreement, the  Executive shall
execute and deliver the Non-Competition and a Joinder Agreement.

 

12.          General Provisions.

 

(a)           Severability.   It is the desire and intent of the parties hereto
that the provisions of this Agreement be enforced to the fullest extent
permissible under the laws and public policies applied in each jurisdiction in
which enforcement is sought. Accordingly, if any particular provision of this
Agreement shall be adjudicated by a court of competent jurisdiction to be
invalid, prohibited or unenforceable for any reason, such provision, as to such
jurisdiction, shall be ineffective, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of
this Agreement or affecting the validity or enforceability of such provision in
any other jurisdiction. Notwithstanding the foregoing, if such provision could
be more narrowly drawn so as not to be invalid, prohibited or unenforceable in
such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn,
without invalidating the remaining provisions of this Agreement or affecting
the validity or enforceability of such provision in any other jurisdiction.

 

(b)           Entire Agreement.   This Agreement, the Plan, the Joinder
Agreement and the Shareholders’ Agreement embody the complete agreement and
understanding among the parties hereto with respect to the subject matter
hereof and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way.

 

(c)           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.

 

8

 

(d)           Successors and Assigns.   Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit of and be enforceable by the
Executive, the Company, and their respective successors, permitted assigns,
heirs, representative and estate, as the case may be (including subsequent
holders of Restricted Shares); provided that the rights and obligations of the
Executive under this Agreement shall not be assignable except in connection
with a permitted transfer of Restricted Shares hereunder and under the
Shareholders’ Agreement.

 

(e)           Governing Law.   THIS
AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTS
PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE, OR ANY OTHER
JURISDICTION), THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE
STATE OF DELAWARE TO BE APPLIED.

 

(f)            Jurisdiction and Venue.   SUBJECT TO THE TERMS OF THIS AGREEMENT, THE
PARTIES AGREE THAT ANY AND ALL ACTIONS ARISING UNDER OR IN RESPECT OF THIS
AGREEMENT SHALL BE LITIGATED IN THE FEDERAL OR STATE COURTS IN DELAWARE. BY
EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY IRREVOCABLY SUBMITS TO THE PERSONAL
JURISDICTION OF SUCH COURTS FOR ITSELF, HIMSELF, OR HERSELF AND IN RESPECT OF
ITS, HIS PROPERTY WITH RESPECT TO SUCH ACTION. EACH PARTY AGREES THAT VENUE
WOULD BE PROPER IN ANY OF SUCH COURTS, AND HEREBY WAIVES ANY OBJECTION THAT ANY
SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF ANY SUCH
ACTION.

 

(g)           Remedies.   Each of the parties to this Agreement and any
such Person granted rights hereunder whether or not such Person is a signatory
hereto shall be entitled to enforce its rights under this Agreement
specifically to recover damages and costs (including reasonable attorney’s
fees) for any breach of any provision of this Agreement and to exercise all
other rights existing in its favor. The parties hereto agree and acknowledge
that money damages may not be an adequate remedy for any breach of the
provisions of this Agreement and that any party and any such Person granted
rights hereunder whether or not such Person is a signatory hereto may in its
sole discretion apply to any court of law or equity of competent jurisdiction
for specific performance and/or other injunctive relief (without posting any
bond or deposit) in order to enforce or prevent any violations of the
provisions of this Agreement.

 

(h)           Amendment and Waiver.   The provisions of this Agreement may be
amended and waived only with the prior written consent of the Company and the
Executive and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall be construed as a waiver of such provisions
or affect the validity, binding effect or enforceability of this Agreement or
any provision hereof; provided that
the Company may amend or modify the Agreement without the Executive’s consent
in accordance with the provisions of the Plan (including, without limitation,
the provisions in Sections 13(b), 15(c) and 16(e) of the Plan) or as
otherwise set forth in this Agreement.

 

(i)            Notices.   Any notice provided for in this Agreement
must be in writing and must be either personally delivered, transmitted via
facsimile, mailed by first class mail (postage prepaid and return receipt
requested) or sent by reputable overnight courier service (charges prepaid) to
the recipient at the address below indicated or at such other address or to the
attention of such other person as the recipient party has specified by prior
written notice to the sending party. Notices will be deemed to have been given
hereunder and received when delivered personally, when received if transmitted
via facsimile, five (5) days after deposit in the U.S. mail and one (1) day
after deposit with a reputable overnight courier service.

 

If to the Company, to:

 

9

 

GPS
CCMP Acquisition Corp. 

c/o CCMP Capital Advisors, LLC 

245 Park Avenue, 16th Floor 

New York, NY 10167

Attention:
Stephen Murray

 

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

 

(j)            Business Days.   If any time period for giving notice or taking
action hereunder expires on a day which is a Saturday, Sunday or holiday in the
state in which the Company’s chief executive office is located, the time period
for giving notice or taking action shall be automatically extended to the
business day immediately following such Saturday, Sunday or holiday.

 

(k)           Survival of Representations,
Warranties and Agreements.   All representations, warranties and agreements
contained herein shall survive the consummation of the transactions
contemplated hereby and the termination of this Agreement indefinitely.

 

(l)            Recapitalization, Exchange,
Etc. Affecting the Company’s Shares.   The
provisions of this Agreement shall apply, to the full extent set forth herein,
with respect to any and all Shares of the Company or any successor or assign of
the Company (whether by merger, consolidation, sale of assets, conversion to a
corporation or otherwise) that may be issued in respect of, in exchange for, or
in substitution of, the Shares of the Company and shall be appropriately
adjusted for any dividends, splits, reverse splits, combinations,
recapitalizations, and the like occurring after the date hereof.

 

(m)          Descriptive Headings.   The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a part of this
Agreement.

 

(n)           Construction.   Where specific language is used to clarify by
example a general statement contained herein, such specific language shall not
be deemed to modify, limit or restrict in any manner the construction of the general
statement to which it relates. The language used in this Agreement shall be
deemed to be the language chosen by the parties to express their mutual intent,
and no rule of strict construction shall be applied against any party.

 

(o)           WAIVER OF JURY TRIAL.   EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

(p)           Nouns and Pronouns.   Whenever the context may require, any
pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns and pronouns shall include the
plural and vice versa.

 

(q)           Plan; Shareholders’
Agreement; Counsel.   The
Executive acknowledges and understands that material definitions and provisions
concerning the Restricted Shares and the Executive’s rights and obligations
with respect thereto are set forth in the Plan and the Shareholders’ Agreement.
The Executive has had the opportunity to retain counsel, and has read
carefully, and understands, the provisions of such documents. The Executive has
had the opportunity to seek legal advice from such counsel on this Agreement
and the transactions contemplated hereby.

 

(r)            Non-Qualified Deferred
Compensation.   The parties
acknowledge and agree that, to the extent applicable, this Agreement shall be
interpreted in accordance with Section 409A of the Code and Department of
Treasury regulations and other interpretive guidance issued thereunder,
including without

 

10

 

limitation
any such regulations or other guidance that may he issued after the Effective
Date. Notwithstanding any provision of this Agreement to the contrary, in the
event that the Company determines that any amounts payable hereunder will be
immediately taxable to the Executive or the Executive under Section 409A
of the Code and related Department of Treasury guidance, the Company may (a) adopt
such amendments to this Agreement and appropriate policies and procedures,
including amendments and policies with retroactive effect, that the Company
determines necessary or appropriate to preserve the intended tax treatment of
the benefits provided by this Agreement and/or (b) take such other actions
as the Company determines necessary or appropriate to comply with the
requirements of Section 409A of the Code and related Department of
Treasury guidance, including such Department of Treasury guidance and other
interpretive materials as may be issued after the Effective Date.

 

[SIGNATURE PAGE FOLLOWS]

 

11

 

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

 

 

	
   

  	
  THE
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GPS
  CCMP ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Aaron P. Jagdfeld

  
	
   

  	
   

  	
  Name:

  	
  Aaron P. Jagdfeld

  
	
   

  	
   

  	
  Title

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Clement Feng

  
	
   

  	
  CLEMENT
  FENG

  

 

12

 

EXHIBIT A

 

ELECTION TO INCLUDE STOCK IN
GROSS

INCOME PURSUANT TO SECTION 83(b) OF THE

INTERNAL REVENUE CODE

 

The undersigned purchased 389.579916
shares of Class A Common Stock, par value $0.01 per share (the “Class A Common Stock”),
of GPS CCMP Acquisition Corp. (the “Company”) pursuant to a Restricted Stock
Agreement (the “Restricted
Stock Agreement”) dated as of December 27, 2007 (the “Effective Date”)
between the Company and the undersigned. 
Under certain circumstances, the Company has the right to repurchase the
Class A Common Stock from the undersigned (or from the holder of the Class A
Common Stock, if different from the undersigned) upon the occurrence of certain
events as described in the Restricted Stock Agreement on the terms set forth in
the Shareholders’ Agreement, dated as of November 10, 2006, among the
Company, the Executive and certain other parties thereto.  Hence, the Class A Common Stock is
subject to a substantial risk of forfeiture and is nontransferable to other
than family members (within the meaning of Treasury Regulation
§1.83-3(d)).  The undersigned desires to
make an election under Section 83(b) of the Internal Revenue Code of
1986, as amended (“Code”)
to have the Class A Common Stock taxed at the time the undersigned
purchased the Class A Common Stock.

 

Therefore, pursuant to Code §83(b) and Treasury Regulation §1.83-2
promulgated thereunder, the undersigned hereby makes an election, with respect
to the Class A Common Stock, to report as taxable income for the
undersigned’s taxable year ended December 31, 2007 the excess (if any) of
the Class A Common Stock’s fair market value on the Effective Date, over
the purchase price thereof.

 

The following information is supplied in accordance with Treasury
Regulation §1.83-2(e):

 

1.  The name, address and social
security number of the undersigned:

 

CLEMENT FENG

 

                                    

 

Social
Security Number:                             

 

2.  A description of the property
with respect to which the election is being made: 389.579916
shares of Class A Nonvoting Common Stock, par value $0.01 per share, of
GPS CCMP Acquisition Corp.

 

3.  The date on which the
property was transferred: December 27, 2007.  The taxable year for which such election is
made:  the undersigned’s taxable year
ending December 31, 2007.

 

4.  The restrictions to which the
property is subject:

 

The Class A Common Stock may not be transferred and are subject to
repurchase under the terms of an agreement between the taxpayer and the
Company.

 

13

 

5.  The fair market value on December 27,
2007, of the property with respect to which the election is being made,
determined without regard to any lapse restrictions is $132,987.00.

 

6.  The amount paid for such
property: $132,987.00.

 

7.  A copy of this election has
been furnished to the person for whom the services are performed:  Secretary of the Company pursuant to Treasury
Regulation §1.83-2(e)(7), and a copy has been furnished to Generac Power
Systems, Inc.

 

This election is being sent to the Internal Revenue Service office with
which the undersigned files his return. 
In addition, a copy of this election will be submitted with the income
tax return of the undersigned for the taxable year in which the Class A
Common Stock was purchased.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CLEMENT FENG

  

 

14

 

 

EXHIBIT B

 

CONFIDENTIAL
INVESTMENT QUALIFICATION QUESTIONNAIRE

 

GPS CCMP
ACQUISITION CORP.

A Delaware corporation
(the “Company”)

 

SPECIAL INSTRUCTIONS

 

In order to establish the availability under federal
and state securities laws of an exemption from registration or qualification
requirements for the proposed issuance of Shares, you are required to represent
and warrant, and by executing and delivering this questionnaire will be deemed
to have represented and warranted, that the information stated herein is true,
accurate and complete to the best of your knowledge and belief, and may be
relied on by the Company.  Further, by
executing and delivering this questionnaire you agree to notify the Company and
supply corrective information promptly if, prior to the consummation of your payment
of the Purchase Price in exchange for the Shares, any such information becomes
inaccurate or incomplete.  Your execution
of this questionnaire does not constitute any indication of your intent to
subscribe for the Shares.

 

A subscriber who is a natural person must complete
each Question except for 2 and 5.

 

A subscriber that is an entity other than a trust
must complete each Question except for 3 and 5.

 

A subscriber that is a trust must complete each
Question except for 3.

 

GENERAL INFORMATION

 

1.     ALL
SUBSCRIBERS.

 

a.     Name(s) of
prospective investor(s): CLEMENT FENG

 

b.     Address:

 

c.     Telephone
Number:

 

2.     SUBSCRIBERS
THAT ARE ENTITIES.

 

a.     Type of
entity:

 

o Trust

 

o Corporation

 

15

 

o Partnership

 

Other:

 

b.     State and
date of legal formation:

 

c.     Nature of
Business:

 

d.     Was the
entity organized for the specific purpose of acquiring the Shares pursuant to
the Management  Subscription and Stock Purchase
Agreement?

 

Yes o

 

No o

 

e.     Federal
tax identification number:

 

3.     SUBSCRIBERS
WHO ARE INDIVIDUALS.

 

a.     State
where registered to vote:

 

b.     Social
Security Number:

 

c.     Please
state the subscriber’s education and degrees earned:

 

	
  Degree

  	
   

  	
  School

  	
   

  	
  Year

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

d.     Current
occupation (if retired, describe last occupation):

 

Employer:

 

Nature of Business:

 

Position:

 

16

 

Business Address:

 

Telephone Number:

 

4.     Accreditation.
Does the subscriber satisfy one or more of the following accredited investor
requirements?  Contact the Company if
none of the following is applicable.

 

Investor is:

 

o    A
natural person whose net worth (or joint net worth with my spouse) is in excess
of $1,000,000 as of the date hereof.

 

o    A
natural person whose income in each of the prior two years was, and whose
income in the current year is reasonably expected to be in excess of $200,000
or whose joint income with my spouse in each of the prior two years was, and is
reasonably expected to be in the current year in excess of $300,000.

 

o    A
director or officer of the Company.

 

o    A
trust with total assets in excess of $5,000,000, not formed for the specific
purpose of investing in the Shares of GPS CCMP Acquisition Corp., whose
purchases are directed by a sophisticated person, who has such knowledge and
experience in financial and business matters that he or she is capable of
evaluating the merits and risks of an investment in the Shares of GPS CCMP
Acquisition Corp.

 

o    A
“bank”, “savings and loan association”, or “insurance company” as defined in
the Securities Act of 1933.

 

o    A
broker/dealer registered pursuant to Section 15 of the Securities Exchange
Act of 1934.

 

o    An
investment company registered under, or a “business development company” as
defined in Section 2(a)(48) of the Investment Company Act of 1940.

 

17

 

o    A
Small Business Investment Company licensed by the U.S. Small Business
Administration under the Small Business Investment Act of 1958.

 

o    A
plan established and maintained by a state, its political subdivisions, or any
agency or instrumentality of a state or its political subdivisions, for the
benefit of its employees and having total assets in excess of $5,000,000.

 

o    An
“employee benefit plan” as defined in the Employee Retirement Income Security
Act of 1974 (a “Plan”) which has total assets in excess of $5,000,000.

 

o    A
Plan whose investment decisions, including the decision to subscribe for the
Shares of GPS CCMP Acquisition Corp., are made solely by (i) a “plan
fiduciary” as defined in Section 3(21) of the Employee Retirement Income
Security Act of 1974, which includes a bank, a savings and loan association, an
insurance company or a registered investment adviser, or (ii) an “accredited
investor” as defined under Rule 501(a) of the Securities Act of 1933.

 

o    A
private business development company as defined in Section 202(a)(22) of
the Investment Advisers Act of 1940.

 

o    Any
organization described in Section 501(c)(3) of the Internal Revenue
Code of 1986, as amended, corporation, Massachusetts or similar business Trust,
or partnership, not formed for the specific purpose of investing in the Shares
and having total assets in excess of $5,000,000.

 

o    Any
entity in which all of the equity owners meet one of the above descriptions.

 

18

 

5.     Trusts.

 

Does the trust meet the following tests:

 

a.             Has total assets in excess of $5,000,000?

 

Yes o     No o

 

b.             Was formed for the purpose of the investment in the
Shares in this Contribution?

 

Yes o     No o

 

c.             Are the purchases by the Trust directed by a
sophisticated investor who, alone or with his, her or its subscriber
representative, understands the merits and risks of the investment in the
Shares?

 

Yes o     No o

 

[THE REMAINDER OF
THIS PAGE IS BLANK]

 

19

 

	
  INDIVIDUAL(S) SIGN HERE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Signature)

  	
   

  
	
   

  	
   

  
	
  CLEMENT FENG

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Address)

  	
   

  

 

	
  Social Security Number:

  	
   

  	
   

  

 

	
  Spouse of
  Subscriber:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Signature)

  	
   

  

 

	
  Social Security Number:

  	
   

  	
   

  

 

	
   

  	
   

  
	
  ENTITIES SIGN HERE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Print Name of Organization)

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
			

 

	
   

  	
   

  
	
  (Signature)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Print Name and Title)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Address)

  	
   

  
	
   

  	
   

  
	
  Federal ID Number:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Address)

  	
   

  
			

 

20

 

 

Exhibit C

 

CONFIDENTIALITY, NON-COMPETITION
AND INTELLECTUAL PROPERTY AGREEMENT (this “Non-Competition Agreement”), dated as of December 27, 2007 (the “Effective Date”), by and between GPS
CCMP ACQUISITION CORP. (together with its
successors, assigns and affiliates, the “Company”) and Clement Feng (“Executive”).

 

WHEREAS, the Company or
one of its subsidiaries employs the Executive, and in connection with such
employment, the 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 the Company’s confidential
information relating to the Company, the Company’s customers, suppliers,
subcontractors, employees and others.

 

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

 

NOW,
THEREFORE, it is mutually agreed as follows:

 

SECTION 1.         Confidentiality.

 

Confidential Information.  In addition to all duties of loyalty imposed
on Executive by law, during the term of Executive’s employment with the Company
or any of its subsidiaries, and for 18 moths following the termination of such
employment for any reason, 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 without the prior written 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 any
Confidential Information so disclosed or used is reasonably likely to be used
anywhere on behalf of any Competitive Business.

 

(b)                                 Trade Secrets.  During his or her employment with the Company
or any of its subsidiaries, Executive shall preserve and protect 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 Non-Competition 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 Non-Competition Agreement, Executive is permitted to furnish
that

 

21

 

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 Non-Competition 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 or any of its subsidiaries, 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 or any of its
subsidiaries.

 

“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 or any of its subsidiaries, 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 (A) is or becomes generally available to the
public other than as a result of a disclosure by Executive in violation of this
Non-Competition Agreement or (B) becomes available to Executive on a
non-confidential basis from a source other than the Company or its affiliates
which is not prohibited from disclosing such information to Executive by a
legal, contractual or fiduciary obligation to the Company or any other person.

 

“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)                                 Executive
further agrees to take all reasonable measures to prevent unauthorized persons
or entities from obtaining or using Confidential Information.  Promptly upon termination of his employment
with the Company and its subsidiaries, 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.

 

SECTION 2.         Non-Competition;
Non-Solicitation.

 

(a)                                  Noncompetition.  During the term of Executive’s employment
with the Company or any of its subsidiaries and for eighteen (18) months
following the termination of

 

22

 

such employment for any
reason, 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.

 

“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 or any Competitive Business
with which Executive may be associated, 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 or any of its subsidiaries.

 

(b)                                 Nonsolicitation.   During the term of Executive’s employment
with the Company or any of its subsidiaries and for eighteen (18) months
following the termination of such employment for any reason, 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 any of its subsidiaries, 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 or any of its subsidiaries.

 

SECTION 3.         No Right to
Continued Employment.  Nothing in
this Non-Competition 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 are hereby reserved, to discharge
Executive at any time for any reason whatsoever, with or without cause.

 

SECTION 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.

 

SECTION 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 to which either of them may be entitled, without the posting
of any bond or other security.

 

(b)                                 The period of
time during which the restrictions set forth in Section 2(a) 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.

 

SECTION 6.         Successors and
Assigns.  This Non-Competition 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

 

23

 

substantially
all of the assets or the business of either of the Company are sold or
transferred.  The obligations of
Executive are personal to Executive and shall not be assigned by Executive.

 

SECTION 7.         Severability.  It is expressly agreed that if any
restrictions set forth in this Non-Competition 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 permitted under applicable law, nevertheless,
remain effective, and this Non-Competition 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
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 Non-Competition
Agreement insofar as possible and to render this Non-Competition Agreement
enforceable in all respects as so modified. 
The covenants contained in this Section 7 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
Non-Competition 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.

 

SECTION 8.         Notices.  Any notice required or permitted to be given
under this Non-Competition 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 Executive, to him at his most recent address in the Company’s records.

 

If
to the Company:

 

Generac
Power Systems, Inc.

P.O. Box 295

Waukesha, WI  53187

Attention:  Chief Executive Officer

 

24

 

with a
copy to:

 

GPS
CCMP Acquisition Corp.

c/o CCMP Capital Advisors, LLC

245 Park Avenue, 16th floor 

New York, New York  10167

Attn:  Stephen Murray

 

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

 

SECTION 10.       Entire
Agreement.  This Non-Competition
Agreement constitute the entire agreement of the parties hereto with respect to
the subject matter hereof, and supersedes all prior agreements and
understandings of the parties hereto, oral or written, with respect to the
subject matter hereof, however, if any portion of this Non-Competition
Agreement is determined to be unenforceable by a court of law, then solely the
appropriate conflicting provisions of any other agreement binding upon
Executive shall control.

 

SECTION 11.       Waiver, etc.  The failure of the Company to enforce at any
time any of the provisions of this Non-Competition Agreement shall not be
deemed or construed to be a waiver of any such provision, nor in any way affect
the validity of this Non-Competition Agreement or any provision hereof or the
right of the Company to enforce thereafter each and every provision of this
Non-Competition Agreement.  No waiver of
any breach of any of the provisions of this Non-Competition 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.

 

SECTION 12.       Applicable Law.  All issues and questions concerning the
construction, validity, enforcement and interpretation of this Non-Competition
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.

 

SECTION 13.       Enforcement.  If any party shall institute legal action to
enforce or interpret the terms and conditions of this Non-Competition 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 Non-Competition 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]

 

25

 

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

 

 

	
   

  	
  GPS
  CCMP ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Clement Feng

  

 

26

 

 

EXHIBIT D

 

JOINDER AGREEMENT

 

This Joinder Agreement (this “Joinder Agreement”)
is made as of the date written below by the undersigned (the “Joining Party”) in
accordance with the Shareholders’ Agreement dated as of November 10, 2006
(the “Shareholders’ Agreement”)
among GPS CCMP ACQUISITION CORP., CCMP CAPITAL INVESTORS II, L.P., CCMP CAPITAL
INVESTORS (CAYMAN) II, L.P. ASIA OPPORTUNITY FUND II, L.P., AOF II EMPLOYEE
CO-INVEST FUND, L.P., CCMP GENERAC CO-INVEST, L.P. and certain other persons
named therein.  Capitalized terms used,
but not defined, herein shall have the meaning ascribed to such terms in the
Shareholders’ Agreement.

 

The Joining Party hereby acknowledges, agrees and
confirms that, by its execution of this Joinder Agreement, the Joining Party
shall be deemed to be a party to and a “Management Shareholder” under the
Shareholders’ Agreement as of the date hereof and shall have all of the rights
and obligations of a Management Shareholder as if it had executed the
Shareholders’ Agreement.  The Joining
Party hereby ratifies, as of the date hereof, and agrees to be bound by, all of
the terms, provisions and conditions contained in the Shareholders’
Agreement.  The Joining Party
acknowledges that, among the obligations of such Joining Party pursuant to the
Shareholders’ Agreement is the obligation to sell any or all of the Company
Equity Securities acquired by such Joining Party to the Company or to one or
more Third Parties in certain circumstances pursuant to Articles IV and V
of the Shareholders’ Agreement.

 

IN WITNESS WHEREOF, the undersigned has executed
this Joinder Agreement as of the date written below.

 

	
  Date:
  December 27, 2007

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Clement Feng

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address
  for Notices:

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED
  ON THIS [27] day of December, 2007:

  	
   

  
	
   

  	
   

  
	
  GPS
  CCMP ACQUISITION CORP.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
			

 

27

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