Promissory Note Repayment and Special Bonus Agreement between Generac Power Systems, Inc. and Clement Feng
Generac Power Systems, Inc. and Clement Feng agree that Clement Feng will receive a special cash bonus, part of which will be used to fully repay and cancel his outstanding promissory note to the company. Clement Feng will also return all pledged collateral, including stock, to Generac. After these actions, the promissory note will be considered fully satisfied and terminated, and Clement Feng will have no further obligations under it. The company may deduct applicable taxes from the bonus payment.
Exhibit 10.48
Generac Power Systems, Inc.
S45 W29290 Hwy. 59
Waukesha, Wisconsin 53187
December 28, 2009
Clement Feng
Re: Promissory Note Repayment
Reference is made to that certain Promissory Note and Pledge Agreement, dated December 27, 2007 (the “Promissory Note”), by Clement Feng (“you”) in favor of Generac Power Systems, Inc. (the “Company”). All capitalized terms used herein but not otherwise defined shall have the meanings ascribed to such terms in the Promissory Note.
On the date hereof, you shall (i) be entitled to a special cash bonus from the Company in the aggregate amount of $219,742.45(1) (the “Special Bonus”), from which the Company shall apply $147,337.31 to repay and discharge in full all amounts due and owing under the Promissory Note (the “Repayment”), and (ii) deliver, surrender and transfer to the Company all of the Pledged Collateral, including the Pledged Stock together with stock powers in respect thereof, duly executed in blank (the “Stock Return”). The Company shall also be entitled to deduct from payment of the Special Bonus any applicable withholding taxes. Upon the occurrence of the Repayment and the Stock Return, the Promissory Note shall be satisfied, terminated and cancelled in all respects, and you shall have no remaining obligations thereunder.
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| Sincerely, | |
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| GENERAC POWER SYSTEMS, INC. | |
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| By: | /s/ Aaron Jagdfeld |
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| Aaron Jagdfeld |
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| President and Chief Executive |
ACKNOWLEDGED and AGREED
as of the date first written above by:
| /s/ Clement Feng |
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| CLEMENT FENG |
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(1) $132,987.00 principal plus 5.25% interest compounded annually plus gross up for taxes.
