Document:

Exhibit 10.41

 

SEALY
CORPORATION

EXECUTIVE
STOCK OWNERSHIP GUIDELINES

FOR SECTION 16 OFFICERS 

(Effective January 1, 2010)

 

Overview

Sealy  executives that are designated by Sealy as
reporting officers under Section 16 of the Securities Exchange Act of 1934
(“Section 16 Officers”) are generally the most senior executives of Sealy.
As such, Sealy believes that it is important for them to build and maintain a
long-term ownership position in Sealy stock to strengthen their financial
alignment with shareholders’ interests. The Sealy Executive Stock Ownership
Guidelines for Section 16 Officers specifies target ownership levels of
Sealy common stock for each participant. 
The program consists of three core components. The first is a statement
of targeted ownership, expressed as a fixed number of shares of Sealy common
stock. The second is a means of progressing toward the targeted ownership: a
holding requirement imposed on a portion of exercised stock options or
full-value grants of stock provided by Sealy unless the ownership target is
satisfied. The third is a prohibition against certain stock transactions that
would mitigate the desired financial alignment with shareholders’ interests and
could also raise certain legal risks associated with these types of transactions.

 

Participation and Effective Date

All
Section 16 Officers are subject to these guidelines. These guidelines are
effective as of January 1, 2010. 
For purposes of this policy “full-value grants” includes all grants or
awards of shares of restricted stock, restricted stock units, performance
shares, or performance share units. These are all grants or potential grants of
Sealy common stock or the right to receive Sealy common stock, without payment
of monetary consideration to Sealy, that are made contingent on either
continued employment over a period of time or the achievement of specified
performance levels. Section 16 Officers will remain subject to the holding
requirements under these guidelines for so long as they remain Section 16
Officers of Sealy, unless these guidelines are expressly terminated.

 

Ownership Targets

The
ownership target is expressed as a fixed number of shares, based on the salary
grade of the Section 16 Officer. Except for adjustments necessary to
reflect any stock splits or similar non-economic events, this number of shares
will remain constant until the salary grade of the Section 16 Officer’s
position changes or the Compensation Committee of the Board changes the
targeted level of ownership. Although the Compensation Committee reserves the
right to change the targeted number of shares, we do not expect frequent
changes to the targets. The target ownership levels are as follows:

 

	
  Position
  / Grade

  	
   

  	
  Number of

  Shares

  	
   

  	
  Approximate Value as a multiple

  of Salary in December 2009

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CEO

  	
   

  	
  1,150,000

  	
   

  	
  5X

  	
   

  
	
  Grade 22

  	
   

  	
  480,000

  	
   

  	
  4X

  	
   

  
	
  Grade 20

  	
   

  	
  300,000

  	
   

  	
  3X

  	
   

  
	
  Grade 19

  	
   

  	
  150,000

  	
   

  	
  2X

  	
   

  

 

1

 

Measurement of Ownership Targets
and Achievement

Stock
that counts towards satisfaction of these targets includes any of the following
items held by the participant, his or her immediate family members, or in trust
for the benefit of the participant or his or her immediate family:

·                  Shares owned
outright;

·                  Shares held in
any 401(k), retirement or employee stock purchase plan;

·                  Shares retained
from stock option exercises;

·                  Restricted
Stock issued whether or not vested;

·                  Vested or
unvested restricted stock units.

Vested
and unvested stock options shall not be counted as shares for these targets.

 

Stock Holding Requirement

Sealy
does not expect or require Section 16 Officers to engage in extraordinary
out-of-pocket investment transactions to meet these ownership targets. Rather,
the ownership obligations of Section 16 Officers are limited to complying
with certain holding requirements as applied to Sealy shares delivered on or
after January 1, 2010 under Sealy stock option grants and full-value
grants. (Full-value grants are equity grants without an exercise price,
including grants of shares, restricted shares and restricted share units).

 

For
full-value grants subject to the holding requirement, the Section 16
Officer must hold at least 50% of all vested shares remaining after withholding
or sale of vested shares to cover the cost of withholding taxes. For stock
options subject to the holding requirement, the Section 16 Officer must
hold at least 50% of all the exercised options after the withholding or sale of
shares to cover the exercise price and the withholding taxes related to the
option exercise. Once the ownership target is achieved, this holding
requirement will not apply to subsequently vested shares, unless the sale of
such shares would reduce the individual’s share ownership below his or her
ownership target level.

 

Prohibited Transactions

In
furtherance of the objectives of these guidelines, and in addition to
prohibitions under the Federal securities laws, Section 16 Officers are
prohibited from purchasing, selling or writing any exchange-traded call and put
options that have Company stock as their underlying security. In addition, Section 16
Officers may not engage in any hedging transaction on Company stock that they
beneficially own, including but not limited to:

“forward contracts” (a contract under which Sealy shares are
bought or sold at an agreed price but not be delivered until a future date);

“collars”
(an arrangement which provides protection against both upside and downside
market risk);

“equity swaps”
(an arrangement under which the return on Sealy shares is exchanged for the
return on another equity, asset or equity index); or

“straddles”
(buying or selling both put and call options on Sealy shares to protect against
market risks.

 

No Compensation for Achieving the
Ownership Target; No Entitlement to Receive Grants

The
Section 16 Officer will obtain no additional compensation or reward for
achieving the targeted ownership level. In addition, Sealy does not make any
commitment to any persons covered by this policy that they will receive any
particular level of stock option grants or full-value grants. While no Section 16
Officer has any entitlement to receive any such grants, if a grant is made, it
will be subject to the requirements of these guidelines.

 

2

 

Administration

Annually
in December, Sealy will tally each Section 16 Officer’s ownership position
and report it to them in conjunction with these guidelines. This tally will
also be available to each Section 16 Officer upon request. Each Section 16
Officer is responsible for promptly bringing to Sealy’s attention any
discrepancy between Sealy’s records and any records maintained by the executive
with respect to his or her ownership position. Hardship exceptions may be made
by the Chair of the Compensation Committee.

 

Amendment and Termination

The
Compensation Committee reserves the right to terminate or amend this program at
any time. This program is not a contract of employment or compensation or
guarantee thereof.

 

 

Adopted:
December 1, 2009

 

3Exhibit 10.42

 

Sealy Corporation

Executive Compensation Recovery Policy

(Claw Back Policy)

 

To
the extent permitted by law, if the Board of Directors determines that any
bonus, incentive payment, equity award or other compensation has been awarded
or received by an executive officer of the Company based on any financial
results or operating metrics that were satisfied as a result of such officer’s
knowing or intentional fraudulent or illegal conduct, then the Board may
recover from the officer such compensation (in whole or in part) as it deems
appropriate under the circumstances. 
Further, following a restatement of the Company’s financial statements,
the Company shall recover any compensation received by the CEO and CFO that is
required to be recovered by Section 304 of Sarbanes-Oxley Act of 2002.

 

In
determining whether to recover a payment, the Board shall take into account
such considerations as it deems appropriate. 
The Board shall have sole discretion in determining whether an officer’s
conduct has or has not met any particular standard of conduct under law or
Company policy.

 

For
purposes of this policy, the term “named executive officers” has the meaning
given that term in Item 402(a)(3) of Regulation S-K under the Securities
Exchange Act of 1934, as amended, and the term “bonus” means a payout under
Sealy’s Compensation Programs.

 

 

Adopted:
December 1, 2009Exhibit 4.1

 

	
  

  	
  By AUTHORIZED SIGNATURE THIS CERTIFIES
  THAT is the owner of CUSIP DATED COUNTERSIGNED AND REGISTERED: COMPUTERSHARE
  TRUST COMPANY, N.A. TRANSFER AGENT AND REGISTRAR, FULLY-PAID AND
  NON-ASSESSABLE SHARES OF THE COMMON STOCK OF Generac Holdings Inc.
  (hereinafter called the “Company”), transferable on the books of the Company
  in person or by duly authorized attorney, upon surrender of this Certificate
  properly endorsed. This Certificate and the shares represented hereby, are
  issued and shall be held subject to all of the provisions of the Articles of
  Incorporation, as amended, and the By-Laws, as amended, of the Company
  (copies of which are on file with the Company and with the Transfer Agent),
  to all of which each holder, by acceptance hereof, assents. This Certificate
  is not valid unless countersigned and registered by the Transfer Agent and
  Registrar. Witness the facsimile seal of the Company and the facsimile
  signatures of its duly authorized officers. COMMON STOCK PAR VALUE $0.01
  COMMON STOCK THIS CERTIFICATE IS TRANSFERABLE IN CANTON, MA AND NEW YORK, NY
  SEE REVERSE FOR CERTAIN DEFINITIONS Certificate Number Shares . GENERAC
  HOLDINGS INC. INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE President
  and Chief Executive Officer Chief Financial Officer 016570|
  003590|127C|RESTRICTED||4|057-423 368736 10 4 <<Month Day, Year>>
  * * 600620* * * * * * * * * 600620* * * * * * * * * 600620* * * * * * * * *
  600620* * * * * * * * * 600620* * * * * SIX HUNDRED THOUSAND SIX HUNDRED AND
  TWENTY* * * MR. SAMPLE & MRS. SAMPLE & MR. SAMPLE & MRS. SAMPLE
  ZQ 000000 Certificate Numbers 1234567890/1234567890 1234567890/1234567890
  1234567890/1234567890 1234567890/1234567890 1234567890/1234567890
  1234567890/1234567890 Total Transaction Num/No. 123456 Denom. 123456 Total
  1234567 MR A SAMPLE DESIGNATION (IF ANY) ADD 1 ADD 2 ADD 3 ADD 4 PO BOX
  43004, Providence, RI 02940-3004 CUSIP XXXXXX XX X Holder ID XXXXXXXXXX
  Insurance Value 1,000,000.00 Number of Shares 123456 DTC 12345678
  123456789012345 1234567

  

 

	
  

  	
  For value received,
  hereby sell, assign and transfer unto Shares Attorney Dated: 20 Signature:
  Signature: Notice: The signature to this assignment must correspond with the
  name as written upon the face of the certificate, in every particular,
  without alteration or enlargement, or any change whatever. PLEASE INSERT
  SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE (PLEASE PRINT OR
  TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE, OF ASSIGNEE) of the
  common stock represented by the within Certificate, and do hereby irrevocably
  constitute and appoint to transfer the said stock on the books of the
  within-named Corporation with full power of substitution in the premises. GENERAC
  HOLDINGS INC. THE COMPANY WILL FURNISH WITHOUT CHARGE TO EACH SHAREHOLDER WHO
  SO REQUESTS, A SUMMARY OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE,
  PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OF THE
  COMPANY AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH
  PREFERENCES AND RIGHTS, AND THE VARIATIONS IN RIGHTS, PREFERENCES AND
  LIMITATIONS DETERMINED FOR EACH SERIES, WHICH ARE FIXED BY THE ARTICLES OF
  INCORPORATION OF THE COMPANY, AS AMENDED, AND THE RESOLUTIONS OF THE BOARD OF
  DIRECTORS OF THE COMPANY, AND THE AUTHORITY OF THE BOARD OF DIRECTORS TO DETERMINE
  VARIATIONS FOR FUTURE SERIES. SUCH REQUEST MAY BE MADE TO THE OFFICE OF THE
  SECRETARY OF THE COMPANY OR TO THE TRANSFER AGENT. THE BOARD OF DIRECTORS MAY
  REQUIRE THE OWNER OF A LOST OR DESTROYED STOCK CERTIFICATE, OR HIS LEGAL
  REPRESENTATIVES, TO GIVE THE COMPANY A BOND TO INDEMNIFY IT AND ITS TRANSFER
  AGENTS AND REGISTRARS AGAINST ANY CLAIM THAT MAY BE MADE AGAINST THEM ON
  ACCOUNT OF THE ALLEGED LOSS OR DESTRUCTION OF ANY SUCH CERTIFICATE.
  Signature(s) Guaranteed: Medallion Guarantee Stamp THE SIGNATURE(S) SHOULD BE
  GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings
  and Loan Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED
  SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15. The
  following abbreviations, when used in the inscription on the face of this
  certificate, shall be construed as though they were written out in full
  according to applicable laws or regulations: TEN COM - as tenants in common
  UNIF GIFT MIN ACT - Custodian (Cust) (Minor) TEN ENT - as tenants by the
  entireties under Uniform Gifts to Minors Act (State) JT TEN - as joint
  tenants with right of survivorship UNIF TRF MIN ACT - Custodian (until age )
  (Cust) under Uniform Transfers to Minors Act (Minor) (State) Additional abbreviations
  may also be used though not in the above list.

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