Document:

Exhibit 10.65

 

EXECUTION COPY

 

AMENDED AND RESTATED 

EMPLOYMENT AGREEMENT

 

THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”)  is made as of January 14, 2010 (the “Effective Date”),  between GENERAC POWER SYSTEMS, INC. (the
“Company”)  and Aaron Jagdfeld (“Executive”).

 

RECITALS:

 

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

 

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

 

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

 

1.                                       Employment.

 

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

 

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

 

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

 

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

 

 

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

 

3.                                       Base Salary and
Benefits.

 

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

 

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

 

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

 

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

 

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

 

4.                                       Termination.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5.                                       Effect of
Termination.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Notices
to the Company:

 

Generac
Power Systems, Inc. 

P.O. Box
295 

Waukesha,
WI 53187

Attention:
Chief Financial Officer and Chairman of the Audit Committee

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

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

 

20.                                 Section 409A
Compliance.

 

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

 

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

 

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

 

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

 

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

 

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

 

[Signature Page Follows]

 

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

 

	
   

  	
  GENERAC POWER SYSTEMS,
  INC.

  
	
   

  	
   

  
	
   

  	
  /s/ York A. Ragen

  
	
   

  	
  Name: York A. Ragen

  
	
   

  	
  Title: CFO

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/ Aaron Jagdfeld

  
	
   

  	
  Name: Aaron Jagdfeld

  

 

 

Exhibit A

 

RELEASE OF CLAIMS

 

A
release is required as a condition for receiving the benefits described in Section 5
of the Amended and Restated Employment Agreement between GENERAC POWER SYSTEMS,
INC. (the “Company”)
and Aaron Jagdfeld (“Executive”)
dated
                      ,
2010, (the “Employment
Agreement”); thus, by executing this release (“Release”), you have
advised us that you hold no claims against the Company, its predecessors,
successors or assigns, affiliates, shareholders or members and each of their
respective officers, directors, agents and employees (collectively, the “Releasees”), and by
execution of this Release you agree to waive and release any such claims,
except relating to any compensation, severance pay and benefits described in the
Employment Agreement.

 

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

 

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

 

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

 

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

 

Finally,
this is to expressly acknowledge:

 

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

 

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

 

 

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

 

 

	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  Aaron Jagdfled:

  

 

SIGNATURE PAGE TO

A JAGDFELD RELEASE AGREEMENT

 

2

 

Exhibit B

 

CONFIDENTIALITY, NON-COMPETITION
AND INTELLECTUAL PROPERTY

AGREEMENT

 

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

 

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

 

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

 

NOW,
THEREFORE, it is mutually agreed as follows:

 

1.                                       Confidentiality.

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

2.                                       Non-Competition; Non-Solicitation.

 

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

 

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

 

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

 

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

 

5.                                       Remedies.

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

If
to the Company:

 

Generac
Power Systems, Inc. 

P.O. Box
295 

Waukesha,
WI 53187

Attention:
Chief Financial Officer and Chairman of the Audit Committee

 

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

 

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

 

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

 

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

 

4

 

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

 

[Signature Page Follows]

 

5

 

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

 

	
   

  	
  GENERAC POWER SYSTEMS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Aaron Jagdfeld

  

 

SIGNATURE PAGE TO

A JAGDFLED CONFIDENTIALITY AGREEMENTExhibit 10.66

 

EXECUTION COPY

 

AMENDMENT TO

EMPLOYMENT AGREEMENT

 

THIS AMENDMENT (“Amendment”)
dated as of January 14, 2010, is entered into by and between Generac Power
Systems, Inc. (the “Company”)
and Dawn Tabat (“Executive”).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

*
          *           *

 

4

 

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

 

	
   

  	
  GENERAC
  POWER SYSTEMS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Aaron Jagdfeld

  
	
   

  	
  Name:

  	
  Aaron Jagdfeld

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dawn Tabat

  
	
   

  	
  Name:

  	
  Dawn Tabat

  

 

SIGNATURE PAGE TO

D TABAT EMPLOYMENT AGREEMENT AMENDMENT

 

 

Exhibit B

 

 

CONFIDENTIALITY, NON-COMPETITION AND INTELLECTUAL PROPERTY AGREEMENT (this “Non-Competition Agreement”), dated as of November 10,
2006 (the “Effective
Date”), by and between
GENERAC POWER SYSTEMS, INC. (together with its successors, assigns and
affiliates, the “Company”)  and Dawn Tabat (“Executive”).

 

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

 

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.

 

WHEREAS, it is a condition to the
execution of the Management Subscription and Stock Purchase 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.

 

WHEREAS, in partial consideration of the payments
received by Executive under that certain Agreement and Plan of Merger, dated September 13,
2006, by and among the Executive, the Company and the other parties thereto,
the Executive has agreed to execute and deliver to the Company this
Non-Competition Agreement.

 

NOW, THEREFORE, it is mutually
agreed as follows: 

 

21.           Confidentiality.

 

(a)           Confidential
Information. In addition to all duties of loyalty imposed on Executive
by law, during the term of Executive’s employment with the Company, and 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, 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 Confidential Information or Trade
Secrets which is legally required to be disclosed and will use her 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, and (ii) which
engages or plans to engage in such competition in any state of the United
States in which the Company sold or distributed, or actively attempted to sell
or to distribute, such products within eighteen (18) months prior to
termination of Executive’s employment with the Company.

 

“Confidential
Information” shall mean information related to the Company’s
business, not generally known in the trade or industry, which Executive learns
or creates during the period of Executive’s employment with the Company, which
may include but is not limited to product specifications, manufacturing
procedures, methods, equipment, compositions, technology, formulas, know-how,
research and development programs, sales methods, customer lists, customer
usages and requirements, computer programs and other confidential technical or
business information and data. Confidential Information shall not include any
information that (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 her employment with the Company, Executive agrees to
deliver to the Company all property and materials within Executive’s possession
or control which belong to the Company or which contain Confidential
Information.

 

22.         Non-Competition; Non-Solicitation.

 

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

 

(b)           Nonsolicitation.
During the term of Executive’s employment with the Company 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 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.

 

23.           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, subject to the terms of the
Employment Agreement, are hereby reserved, to discharge Executive at any time
for any reason whatsoever, with or without cause.

 

24.           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.

 

 

25.           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.

 

26.         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 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.

 

27.         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 permissible 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.

 

28.         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 Company:

 

 

Generac Power Systems, Inc.

P.O. Box 295

Waukesha, WI 53187

Attention: Chief Executive Officer

 

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

 

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

 

29.         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.

 

30.         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.

 

31.         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.

 

32.         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.

 

33.         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]

 

 

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

 

	
   

  	
  GENERAC POWER SYSTEMS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ William
  Treffert

  
	
   

  	
  Name:
  William Treffert

  
	
   

  	
  Title:
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Dawn Tabat

  
	
   

  	
  Name:
  Dawn Tabat

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