Amended and Restated Premium Option and Restricted Stock Program



  
 BRIGGS & STRATTON
CORPORATION 
  
 FORM 10-Q for Quarterly Period Ended September 26,
2004 
  
 Exhibit No. 10.6 
  
 AMENDED AND RESTATED 
 PREMIUM OPTION AND RESTRICTED STOCK PROGRAM 
  









  
 As Amended and Restated

 Effective 10-29-04 
  
 BRIGGS & STRATTON CORPORATION 
  
 PREMIUM OPTION AND RESTRICTED STOCK PROGRAM 
  
 As adopted by the Compensation Committee on April 20, 2004 and amended 
 by the Board of Directors on October 20 to be effective October 29, 2004 
  

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 BRIGGS & STRATTON
CORPORATION 
 PREMIUM OPTION AND RESTRICTED STOCK PROGRAM 
  

	1.0	Objectives 

  
 The Premium Option and Restricted Stock Program (“PORS Program”) is designed to build upon the Company’s Economic Value Added Incentive Compensation Plan (“EVA Plan”) by tying the interests of
all Senior Executives to the long term consolidated results of the Company. In this way, the objectives of Senior Executives throughout the Company will be more closely aligned with the Company’s Shareholders. Whereas the EVA Plan provides for
near and intermediate term rewards, the PORS Program provides a longer term focus by allowing Senior Executives to participate in the long-term appreciation in the equity value of the Company. In general, the PORS Program is structured such that
each year an amount equivalent to the Total Bonus Payout under the EVA Plan is invested on behalf of Senior Executives in restricted shares of the Company’s Stock (“Restricted Shares”) and an amount equivalent to the Senior
Executive’s Target Incentive Award is invested in premium options on the Company’s Stock (“PSOs”). The Restricted Shares vest five years after their date of grant. The PSOs vest and become exercisable after they have been held
for three years, and they expire at the end of five years. The PSOs are structured so that a fair return must be provided to the Company’s Shareholders before they become valuable. 
  

	2.0	Restricted Share Grants 

  
 For fiscal 2005 and subsequent years, the dollar amount to be invested in Restricted Shares for each Senior Executive shall be equal to the amount of each
Participant’s Total Bonus Payout determined under the EVA Plan. The number of Restricted Shares awarded shall be determined by dividing (a) the dollar amount of such Restricted Shares award by (b) the Fair Market Value of Company Stock on the
date of grant as determined by the Committee, rounded (up or down) to the nearest 10 shares. Fair Market Value is defined in the Company’s Stock Incentive Plan (“SIP Plan”). 
  
 All Restricted Shares shall vest on the fifth anniversary of the date of grant regardless of
whether such vesting date occurs before or after retirement and shall have such other terms and conditions as the Committee shall determine. 
  

	3.0	Premium Stock Option Grants 

  
 For fiscal 2005 and subsequent years, the dollar amount to be invested in PSOs for each Senior Executive shall be equal to the amount of each Participant’s Target
Incentive Award determined under the EVA Plan. The number of PSOs awarded shall be determined by dividing (a) the dollar amount of such PSO award by (b) the Black-Scholes value of a share of Company stock based on its Fair Market Value on the date
of the grant as determined by the Committee, rounded (up or down) to the nearest 10 shares. Fair Market Value is defined in the SIP Plan. 
  

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 All PSOs shall vest and be exercisable beginning on the third anniversary of the date of grant and shall terminate on the
fifth anniversary of the date of grant unless sooner exercised, unless the Committee determines other dates. 
  
 The exercise price for PSOs shall be 110% of the Fair Market Value per share of the Company’s Stock on the date of grant. 
  

	4.0	Limitations on Grants and Carryover 

  
 Notwithstanding Sections 2 and 3, the maximum number of Restricted Shares that may be granted to all Senior Executives for any Plan Year shall be 500,000, and the maximum
number of PSOs that may be granted to all Senior Executives for any Plan Year shall be 730,000. In the event that the limitations shall be in effect for any Plan Year, the dollar amount to be invested for each Senior Executive shall be reduced by
proration based on the aggregate Total Bonus Payouts or Target Incentive Awards of all Senior Executives so that the limitations are not exceeded. The amount of any such reduction shall be carried forward to subsequent years and invested in
Restricted Shares or PSOs to the extent the annual limitation is not exceeded in such years. 
  

	5.0	The Stock Incentive Plan 

  
 Except as modified herein, PSOs are Incentive Stock Options under the Company’s SIP Plan as amended from time to time to the extent they are eligible for treatment
as such under Section 422 of the Internal Revenue Code. If not eligible for ISO treatment, the PSOs shall constitute nonqualified stock options. Except as specifically modified herein, PSOs shall be governed by the terms of the Company’s SIP
Plan, and shall be granted as described in this Program annually unless the Committee modifies or terminates either the EVA Plan or the SIP Plan. As provided in the SIP Plan, all grants of PSOs to Participants who are subject to Sec. 16(b) of the
Securities Exchange Act of 1934 are subject to approval of the Company Shareholders. In the event such approval is not obtained, this Program shall terminate. 
  

	6.0	Definitions 

  
 All capitalized terms used herein that are not otherwise defined shall have the same meaning given to them in the Company’s Economic Value Added Incentive Compensation Plan. 
  

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