GENERAC POWER SYSTEMS, INC. P.O. Box 295 Waukesha, Wisconsin 53187

accordance with the standard payroll practices of the Company, for a period of 18 months commencing after the Separation Date and not less that eight (8) days after this Agreement and the Release of Claims are signed and returned to the Company;

b.             at such time as the Company makes payment of annual bonuses to its senior executives in respect of the 2007 fiscal year, payment of an amount equal to any earned Annual Bonus that you would have otherwise been entitled to receive with respect to the Company’s 2007 fiscal year;

c.             the Company shall maintain Continued Benefits for the continued benefit of yourself, your spouse and your dependents for a period of 18 months commencing on the Separation Date (the “Continued Benefits Period”); and

d.             following the Continued Benefits Period, you shall be entitled to full COBRA rights; provided, however, if you elect to utilize rights under COBRA after the Separation Date, you shall be responsible for all premiums in respect thereof, as permitted by law.

4.             Ratification of Agreements. You acknowledge that your obligations set forth in each of the Non-Compete Agreements shall continue in full force and effect after the Separation Date. You agree to return to the Company on or prior to the Separation Date all Company property and documents in your possession, custody or control, including, without limitation, automobiles, credit cards, computers and telecommunication equipment, keys, instructional and policy manuals, mailing lists, computer software, financial and accounting records, reports and files, and any other physical or personal property which you obtained in the course of your employment with the Company, and you further agree not to retain copies of any such Company documents, excluding publicly available documents and documents relating directly to your own compensation and employee benefits.

5.             Repurchase of Certain Equity Interests. You acknowledge and agree that Acquisition Corp. has and will continue to have the right to repurchase, pursuant to Section 5.01 of the Shareholders’ Agreement, dated November 10, 2006, by and among Acquisition Corp. and the other shareholders of Acquisition Corp. party thereto (the “Shareholders’ Agreement”), all of the Class A Common Stock of Acquisition Corp. held by you, The William and Selma Treffert Living Trust Dated February 21, 1998 and The William W. Treffert Grantor Retained Annuity Trust (collectively, the “Trusts”) and any of your or the Trusts’ Permitted Transferees (as defined in the Shareholders’ Agreement) for a purchase price equal to $797,929.83.

6.             Confidentiality of this Agreement. You agree to maintain the terms of this Agreement confidential unless otherwise required by law; provided, however, that you may disclose the terms of this Agreement to your immediate family members and to your attorneys, accountants and financial or tax advisors.

7.             No Admission. Neither by offering to make nor by making this Agreement does either party admit any failure of performance, wrongdoing, or violation of law.

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8.             Complete Agreement. This Agreement, the Release and the Non-Compete Agreements set forth the entire understanding of the parties with respect to the subject matter hereof and thereof, and supersede any and all prior agreements, oral or written, relating to your employment by the Company or the termination thereof. This Agreement may not be modified except by a writing, signed by you and by a duly authorized officer of the Company. This Agreement shall be binding upon your heirs and personal representatives, and the successors and assigns of the Company.

9.             Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin without regard to its choice of law rules.

10.           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 in accordance with the rules and procedures of the Employment Dispute Resolution Rules of the American Arbitration Association then in effect.

11.           Full Understanding. You acknowledge that before entering into this Agreement, you have had the opportunity to consult with any attorney or other advisor of your choice, and you are hereby advised to do so if you choose. You further acknowledge that you have entered into this Agreement of your own free will, and that no promises or representations have been made to you by any person to induce you to enter into this Agreement other than the express terms set forth herein. You further acknowledge that you have read this Agreement and understand all of its terms, including the Release of Claims.

12.           Tax Withholding. The Company may withhold from any amount payable under this Agreement such federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

If the foregoing is acceptable to you, please sign the annexed copy of this Agreement and return it to me. You may take up to twenty-one (21) days from today to consider, sign and return this Agreement. In addition, you may revoke the Agreement after signing it, but only by delivering a signed revocation notice to me within seven (7) days of your signing this Agreement. This Agreement shall not become effective or enforceable until this seven day revocation period expires without you having revoked this Agreement.

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Exhibit A

RELEASE OF CLAIMS

A release is required as a condition for receiving the benefits described in Section 3 of the Separation Agreement, dated as of October 22, 2007, by and among GENERAC POWER SYSTEMS, INC. (the “Company”), William Treffert (“Executive”), The William and Selma Treffert Living Trust Dated February 21, 1998 and The William W. Treffert Grantor Retained Annuity Trust (the “Separation 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 (including, without limitation, GPS CCMP ACQUISITION CORP. and GENERAC ACQUISITION CORP.) 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.