Document:

exhibit_10-2.htm

Exhibit 10.2

 

August 12, 2011

REVISED

Russ Minick

2607 Crooked Creek Road

Bloomington, IL 61705

Dear Russ,

We are pleased to confirm our offer to you for the position of Executive Advisor – Residential Products for Generac Power Systems, Inc (“Company”).   On or before October 10, 2011 the Company will appoint you to Executive Vice President – Residential Products.  Your office will be located at our corporate headquarters in Waukesha, WI and both positions described above will report to Aaron Jagdfeld, our President and CEO. The purpose of this letter is to give you an overview of the terms and conditions of your employment at Generac Power Systems, Inc.

Our offer is comprised of the following:

	
·  

	
Compensation:  You will receive a bi-weekly salary of $13,462.00.  There are 26 pay periods per year.  You will be eligible for the next pay review cycle based on 2011 performance and market assessments.

	
 
 
· 

	
Executive Incentive Program:  You will also be eligible to participate in the 2011 Executive Management Incentive Program with a target bonus of 50% and an opportunity to earn up to 125% of your base salary annually.   The bonus is based on 75% Company EBITDA and 25% Individual Performance Goals.  For 2011 you will receive a guaranteed minimum payment under the Program of $75,000.00. The Company reserves the right to modify the Incentive Program annually.  Program details are issued no later than 90 days after the commencement of the annual performance period.

	
 
· 

	
Long Term Incentive Plan:  You will be awarded equity in the amount of $720,000.00.  The equity will be granted as 30% Restricted Shares and 70% Non-qualified Stock Options.  The number of shares will be based on the closing price on the start date of employment.   The value will be based on Fair Market Value on the date of grant.  Restricted Stock vests on a 3 year cliff schedule and the Stock Options vest over a 5 year graduated period.  These awards are subject to the terms and conditions of the Equity Incentive Plan and employee must execute the Restricted Stock Award Agreement and Nonqualified Stock Option Award Agreement to participate.

	
·  

	
Additional Benefits: You will be eligible for participation in the Generac Power Systems benefits plan.  Your regular insurance benefits will be available the first day of the month following 8 weeks of employment.  Generac will reimburse you for the cost of COBRA coverage for 8 weeks.

	
· 

	
Vacation Accrual:  Per our agreement, you will accrue 2.31 hours of vacation per week (120 hours per calendar year). Vacation time is accrued and used on a calendar year basis.  Vacation accrued above our normal schedule of 80 hours per calendar year is not considered an earned benefit until you reach 5 years of service with Generac.  Accordingly, the additional 40 hours is not eligible for year-end payout or termination payout until your 5 year employment anniversary.

	
· 

	
Relocation Program: You will be eligible for relocation assistance and are expected to relocate your family no later than December 31, 2011.  You will be expected to sign a Payback agreement for the amount of the relocation benefit.  The payback will be enforced should you leave the company within one year of your relocation.  To aid in your relocation Generac will cover the cost of relocating your household goods.  There is no cap on the household goods move however this assumes standard arrangements and no unusual, large or bulky items.  All arrangements must be discussed with our relocation coordinator, Mandy Morris, and approved in advance. Generac will provide two house hunting trips to Wisconsin and will also provide temporary living arrangements for you and or your family not to exceed 6 months to assist in your transition to the area.   You will be assigned to a corporate apartment if the option is available.

This offer is contingent upon successful completion of the following:

	
·  

	
Reference Check

	
·  

	
Driver’s Record and/or Credit Check if applicable to position

	
·  

	
Employment Eligibility verification (1-9 Document)

	
·  

	
Non-compete Agreement

	
·  

	
Background including Criminal History

As an Executive Officer you will receive a Change in Control Severance Agreement.  Upon execution of the agreement you will be eligible for severance as defined in the Agreement.  Please understand this is not intended as a guarantee of employment for any specific period.  All employees have an “at will” employment relationship.

Upon acceptance, your employee orientation will occur on your first day, Monday, August 29th at our Waukesha facility promptly at 8:00am.  When you arrive, please ask for Gretchen Baron who will facilitate your orientation.  An information packet with all necessary information will be sent to your home prior to your start date.  We look forward to a rewarding and productive relationship.  If you have any further questions, please let me know.

Sincerely,

 

 /S/Rhonda Matschke

Rhonda Matschke

VP Human ResourcesExhibit 4.3

  

THIS WARRANT HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THIS WARRANT AND
THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT ARE SUBJECT TO RESTRICTIONS ON RESALE AND MAY NOT BE RESOLD EXCEPT AS PERMITTED
UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.  

 

Series 2011B Warrant to Purchase Common Stock 

 AllDigital Holdings,
Inc.

 

Dated: ______________, 2011 

 

Series 2011B Warrant No. _____ 

 

This certifies that _______________________________________
or its permitted transferee (such person or any such permitted transferee is sometimes herein called the “Holder”)
is entitled to purchase from AllDigital Holdings, Inc., a Nevada corporation (the “Company”), during the period
as hereinafter specified, up to _____________ shares (the “Shares”) of common stock, $.001 par value
of the Company (the “Common Stock”), at a purchase price described herein, subject to adjustment as described
below (as so adjusted from time to time, the “Exercise Price”), at any time until the Expiration Date (as defined
below).  

 

1.           Exercise.
This 2011B Warrant (this “Warrant”) shall be exercisable as follows: 

 

(a)
Exercise Period. This Warrant shall be exercisable, in whole or in part, during the term commencing on the date first
set forth above (the “Vesting Date”) and ending on the expiration of this Warrant as provided below.                         

 

(b)Exercise
Price. The Exercise Price shall be $.275 per share, subject to adjustment as described below.   

 

(c)Expiration
of Warrant. This Warrant shall expire and shall no longer be exercisable after _______________.  

 

(d) Piggyback Registration
Rights. If the Company at any time or from time to time subsequent
to the Vesting Date proposes to register any securities under the Securities Act either for its own account or the account of any
selling security holders (other than pursuant to (i) a registration statement on Forms S-4 or S-8 or any successor or similar forms,
(ii) a registration relating solely to a Rule 145 offering or (iii) a registration on any form that does not permit secondary sales),
the Company will provide the Holder with written notice of its intent to file such registration statement no less than fifteen
(15) days prior to its filing of such registration statement. If the Company receives written notice from the Holder within ten
(10) days of the Holder's receipt of the notice described in the preceding sentence that the holders desires to including the resale
of the Shares in such registration statement, the Company will use its best efforts to include in such registration, and in any
underwriting involved therein, all the Shares included in such request and to keep such registration statement effective with respect
to the Shares for no less than one hundred and twenty (120) days. As a condition to providing notice of any proposed registration
to the Holder, the Company may require the Holder to sign a confidentiality agreement with respect to such proposed registration.
 

 

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2.         Payment
for Shares; Issuance of Certificates.The rights represented by this Warrant may be exercised at any time within the
periods above specified, in whole or in part, by (i) the surrender of the Warrant (with the purchase form at the end hereof properly
executed) at the principal executive office of the Company (or such other office or agency of the Company as it may designate by
notice in writing to the Holder at the address of the Holder appearing on the books of the Company) and (ii) payment to the Company
of the Exercise Price for the number of Shares specified in the above-mentioned purchase form together with applicable stock transfer
taxes, if any. The Warrant shall be deemed to have been exercised, in whole or in part to the extent specified, immediately prior
to the close of business on the date the Warrant is surrendered and payment is made in accordance with the foregoing provisions
of this Section 2, and the person or persons in whose name or names the certificates for the Shares shall be issuable upon such
exercise shall become the holder or holders of record of such Shares at that time and date. The Shares and the certificates for
the Shares so purchased shall be delivered to the Holder within a reasonable time, not exceeding fifteen (15) business days, after
the rights represented by this Warrant shall have been so exercised.  

 

3.    Transfer. (a) Any transfer
of this Warrant shall be effected by the Holder by (i) executing the form of assignment at the end hereof and (ii) surrendering
the Warrant for cancellation at the office or agency of the Company referred to in Section 2 hereof, accompanied by (A) a certificate
(signed by an officer of the Holder, or other authorized representative reasonably satisfactory to the Company, if the Holder is
an entity) stating that each transferee is a permitted transferee under this Section 3, and (B) an opinion of counsel, reasonably
satisfactory in form and substance to the Company, to the effect that the Shares or the Warrant, as the case may be, may be sold
or otherwise transferred without registration under the Act. Upon any transfer of this Warrant or any part thereof in accordance
with the first sentence of this Section 3(a), the Company shall issue, in the name or names specified by the Holder, a new Warrant
or Warrants of like tenor (including all substantive provisions hereof) and representing in the aggregate rights to purchase the
same number of Shares as are purchasable hereunder at such time.  

 

(b)          Any
attempted transfer of this Warrant or any part thereof in violation of this Section 3 shall be null and void ab initio. 

 

(c)          This
Warrant may not be exercised and neither this Warrant nor any of the Shares, nor any interest in either, may be offered, sold,
assigned, pledged, hypothecated, encumbered or in any other manner transferred or disposed of, in whole or in part, except in compliance
with applicable United States federal and state securities laws and the terms and conditions hereof. Each Warrant shall bear a
legend in substantially the same form as the legend set forth on the first page of this Warrant. Each certificate for Shares issued
upon exercise of this Warrant, unless at the time of exercise such Shares are acquired pursuant to a registration statement that
has been declared effective under the Act and applicable blue sky laws, shall bear a legend substantially in the following form: 

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”). SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF REGISTRATION OR AN EXEMPTION
THEREFROM. ALLDIGITAL HOLDINGS, INC. MAY REQUIRE AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO IT THAT A PROPOSED TRANSFER OR
SALE IS IN COMPLIANCE WITH THE ACT.     

 

Any certificate for any Shares issued at any
time in exchange or substitution for any certificate for any Shares bearing such legend (except a new certificate for any Shares
issued after the acquisition of such Shares pursuant to a registration statement that has been declared effective under the Act)
shall also bear such legend unless, in the opinion of counsel for the Company, the Shares represented thereby need no longer be
subject to the restriction contained herein. The provisions of this Section 3(c) shall be binding upon all subsequent holders of
certificates for Shares bearing the above legend and all subsequent holders of this Warrant, if any. 

 

4.          Shares
to be Fully Paid. The Company covenants and agrees that all Shares that may be purchased hereunder will, upon issuance
and delivery against payment therefor of the requisite purchase price, be duly and validly issued, fully paid and nonassessable.
 

 

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5.          No
Voting or Dividend Rights.This Warrant shall not entitle the Holder to any voting rights or any other rights, including
without limitation notice of meetings of other actions or receipt of dividends or other distributions, as a stockholder of the
Company.  

 

6.          Adjustment
of Exercise Price.The Exercise Price in effect at the time and the number and kind of securities purchasable upon the
exercise of this Warrant shall be subject to adjustment from time to time upon the happening of certain events as follows: 

 

(a) In case the Company shall
(i) declare a dividend or make a distribution on its outstanding Common Stock in Common Stock, (ii) subdivide or reclassify its
outstanding Common Stock into a greater number of shares, or (iii) combine or reclassify its outstanding Common Stock into a smaller
number of shares, then appropriate adjustments in the number of Shares (or other securities for which such Shares have previously
been exchanged or converted) subject to this Warrant shall be made and the Exercise Price in effect at the time of the record date
for such dividend or distribution or of the effective date of such subdivision, combination, or reclassification shall be proportionately
adjusted so that the Holder of this Warrant after such date shall be entitled to receive the aggregate number and kind of shares
or other securities which, if this Warrant had been exercised by such Holder immediately prior to such date, the Holder would have
been entitled to receive upon such dividend, distribution, subdivision, combination, or reclassification. For example, if the Company
declares a 2 for 1 stock subdivision (forward split) and the Exercise Price hereof immediately prior to such event was $7.00 per
Share and the number of Shares issuable upon exercise of this Warrant was 85,500, the adjusted Exercise Price immediately after
such event would be $3.50 per Share and the adjusted number of Shares issuable upon exercise of this Warrant would be 171,000.
Such adjustment shall be made successively whenever any event listed above shall occur.  

 

(b) In the event that at
any time, as a result of an adjustment made pursuant to the provisions of this Section 6, the Holder of the Warrant thereafter
shall become entitled to receive any shares of the Company other than Common Stock, thereafter the number of such other shares
so receivable upon exercise of the Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to the Common Stock contained in Section 6(a) above.  

 

7.          Governing
Law. This Agreement shall be governed by and in accordance with the laws of the State of Nevada without regard to conflicts
of laws principles thereof. 

 

8.          Binding
Effect on Successors.In case of any consolidation of the Company with, or merger of the Company into, any other entity,
or in case of any sale or conveyance of all or substantially all of the assets of the Company other than in connection with a plan
of complete liquidation of the Company at any time prior to the Expiration Date, then as a condition of such consolidation, merger
or sale or conveyance, the Company shall give written notice of the consolidation, merger, sale or conveyance to the Holder and,
from and after the effective date of such consolidation, merger, sale or conveyance the Warrant shall represent only the right
to receive the consideration that would have been issuable in respect of the Shares underlying the Warrant in such consolidation,
merger, sale or conveyance had the Warrant been exercised in full immediately prior to such effective time and the Holder shall
have no further rights under this Warrant other than the right to receive such consideration.  

 

9.          Fractional
Shares. No fractional shares shall be issued upon exercise of this Warrant. The Company shall, in lieu of issuing any fractional
share, pay the holder entitled to such fraction a sum in cash equal to such fraction multiplied by the then effective Exercise
Price. 

 

10.        Lost
Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation
of this Warrant and, in the case of any such loss, theft or destruction, upon receipt of an affidavit of loss and indemnity reasonably
satisfactory to the Company, or in the case of any such mutilation upon surrender and cancellation of such Warrant, the Company,
at its expense, will make and deliver a new Warrant, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant. 

 

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11.        Headings.
The headings of the several sections and paragraphs of this Warrant are inserted for convenience only and do not constitute a part
of this Warrant. 

 

12.        Modification
and Waiver. This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument
in writing signed by the party against which enforcement of the same is sought. 

 

13.        Survival.
The rights and obligations of the Company, of the Holder and of the holder of Shares issued upon exercise of this Warrant shall
survive the exercise of this Warrant. 

 

[Signature Page Follows] 

 

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IN WITNESS WHEREOF, the Company has caused
this Series 2011B Warrant to be signed by its duly authorized officer under its corporate seal.  

 

	 	AllDigital Holdings, Inc.
	 	 
	 	By: 	 
	 	 	 
	 	Its: 	 

 

 

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PURCHASE FORM 

 

(To be signed only upon exercise of
Warrant) 

 

The undersigned, being the holder of the foregoing
Series 2011B Warrant to Purchase Common Stock, hereby irrevocably elects to exercise the purchase rights represented by such Warrant
for, and to purchase thereunder, _______________ shares of Common Stock, par value $0.001 per share (the “Shares”),
of AllDigital Holdings, Inc. and tenders herewith payment of the aggregate Exercise
Price in respect of the Shares in full, in the amount of $_________ and requests that the certificates for the Shares be issued
in the name(s) of, and delivered to _________________, whose address(es) is (are): 

 

 _________________________________ 

 

 _________________________________ 

 

 _________________________________  

 

 

Dated: __________________________ 

 

By: 

___________________________ 

 

___________________________ 

 

___________________________ 

Address 

 

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TRANSFER FORM 

 

(To be signed only upon transfer of
Warrant) 

 

For value received, the undersigned hereby
sells, assigns, and transfers unto ____________ ____________________________ the right to purchase Shares represented by the foregoing
Series 2011B Warrant to the extent of __________ Shares, and appoints _________________________ attorney to transfer such rights
on the books of AllDigital Holdings, Inc., with full power of substitution in the premises. The undersigned and the transferee
understanding and acknowledge that transfers of the Warrant are subject to restrictions set forth in Section 3 of the Warrant,
and any purported transfer in violation of Section 3 shall be null and void ab initio. 

 

Dated: ____________________________ 

 

By: 

 

_____________________________ 

 

_____________________________ 

 

_____________________________ 

Address 

 

In the presence of: 

 

___________________________ 

 

 

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