Document:

Separation Agreement and Release

 Exhibit 10.1 

Execution Draft 

SEPARATION AGREEMENT AND RELEASE 

This AGREEMENT is by and between NMT Medical, Inc., a Delaware corporation (the “Company”) and Francis J. Martin (the
“Executive”). 
 WHEREAS, the Executive and the Company previously entered into an Employment Agreement dated
May 20, 2009 (the “Employment Agreement”), providing for the Executive’s employment by the Company as its President and Chief Executive Officer; 

WHEREAS the Executive has resigned from his employment with the Company and from all positions held with the Company, including but not
limited to, President, Chief Executive Officer and member of the Board of Directors; 
 WHEREAS the Company and the Executive
wish to resolve all claims relating to the Executive’s separation from employment with the Company including, but not limited to, any claims arising out of either party’s obligations under the Employment Agreement. 

NOW, THEREFORE, in consideration of the promises and conditions set forth below, and for other good and valuable consideration, the
sufficiency of which is hereby acknowledged, the Parties agree as follows: 
  

	1.	Resignation Date. The Executive agrees that the effective date of the Executive’s resignation from the Company is August 25, 2010 (the
“Resignation Date”). The Executive further agrees that as of the Resignation Date, he shall resign from any and all positions he holds with the Company, including but not limited to, President, Chief Executive Officer and Member of the
Board of Directors of the Company. 

  

	2.	Consideration. In return for the Executive’s timely execution of this Agreement, including the release of claims in Section 3 below, and the
Executive’s compliance with the terms of this Agreement, the Company agrees to provide the Executive with the following severance benefits (the “Severance Benefits”): 

a. The Company shall pay the Executive’s salary for a period of twelve (12) months from the
Resignation Date, for a total of $260,000, less all applicable federal and state taxes, which amounts shall be payable on a bi-monthly payment schedule on the
15th and the last day of the month in arrears, in
accordance with the Company’s regular payroll practices; 
 b. The Company shall provide the employee
benefits for a period of twelve (12) months to the Executive in accordance with Section 6 of the Employment Agreement, subject to and in accordance with the Company’s existing payroll and withholding practices. 

c. The Company shall promptly pay to the Executive all accrued but unused vacation time as of the Resignation Date.

	3.	Release. In consideration of the benefits provided by the Company in Section 2 of this Agreement, the Executive hereby fully, forever, irrevocably
and unconditionally releases, remises and discharges the Company and its current and former officers, directors, owners, stockholders, agents, employees, attorneys, corporate affiliates, parents, and subsidiaries (collectively, the “Released
Parties”), from any and all claims, charges, complaints, suits, demands, actions, causes of action, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions,
obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature which he ever had or now has against the Released Parties including, but not limited to, those claims arising out of the Executive’s
employment with and/or separation from the Company, including, but not limited to, all claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101
et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., Section 806 of the Corporate and Criminal
Fraud Accountability Act of 2002, 18 U.S.C. § 1514(A), the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., the
Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., the Massachusetts Fair Employment Practices Act., M.G.L. c. 151B, § 1 et seq., the Massachusetts Civil Rights Act, M.G.L. c. 12,
§§ 11H and 11I, the Massachusetts Equal Rights Act, M.G.L. c. 93, § 102 and M.G.L. c. 214, § 1C, the Massachusetts Labor and Industries Act, M.G.L. c. 149, § 1 et seq., the Massachusetts Privacy Act, M.G.L. c. 214,
§ 1B, and the Massachusetts Maternity Leave Act, M.G.L. c. 149, § 105D, all as amended; all common law claims including, but not limited to, actions in tort, defamation and breach of contract, including any claims under the Employment
Agreement; and any claim or damage arising out of the Executive’s employment with or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly
referenced above; provided, however, that nothing in this Agreement prevents the Executive from filing, cooperating with, or participating in any proceeding before the EEOC, a state Fair Employment Practices Agency, or before any other
administrative, state or federal agency (except that the Executive acknowledges that the Executive may not be able to recover any monetary benefits in connection with any such claim, charge or proceeding). Nothing in this Agreement or in the
foregoing release shall be construed to modify, limit, release or otherwise affect any indemnification obligations that the Company has to the Executive in his capacity as an officer, director, consultant, employee and agent of the Company and, to
the extent applicable, each subsidiary of the Company, under the Certificate of Incorporation of the Company, the Bylaws, Section 145 of the Delaware General Corporation Law, and under any applicable Directors and Officers Insurance policy.

 Likewise, the Company fully, forever, irrevocably and unconditionally releases, remises and discharges the
Executive from any and all claims, charges, complaints, suits, demands, actions, causes of action, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions,
obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature which it ever had or now has against the Executive including, but not limited to, those claims arising out of the Executive’s employment
with and/or separation from the Company; 
  

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provided, however, that nothing in this Agreement prevents the Company from cooperating with or participating in any proceeding before any administrative, state or federal agency. 

 

	4.	Company Representation. The Company represents and acknowledges that all outstanding and vested options as of the Resignation Date shall remain
exercisable pursuant to their terms for a period of twelve (12) months following the Resignation Date. 

  

	5.	Employment Agreement. The Executive and the Company agree that the Severance Benefits described in Section 2 of this Agreement fulfill any and all
obligations the Company may have pursuant to the Employment Agreement, including Section 13(b) thereof. The Executive further agrees that his rights under Section 6 of the Employment Agreement are terminated. 

 

	6.	Business Expenses and Compensation. The Executive acknowledges that he is not eligible or entitled to receive any additional payments or consideration
from the Company beyond that provided for in Section 2 of this Agreement. The Executive further acknowledges that he has been reimbursed by the Company for all business expenses incurred in conjunction with the performance of his employment and
that no other reimbursements are owed to him other than reasonable business expenses incurred in the one month period prior to the Resignation Date, which the Executive (i) will submit within ten (10) days of the date hereof or
(ii) has submitted and which the Company shall pay within ten (10) business days to the Executive by wire transfer in accordance with its past practice. 

 

	7.	Non-Disparagement. The Executive understands and agrees that, as a condition of this Agreement, he shall not at any time make any false, disparaging,
derogatory or defamatory statements in public or in private regarding the Company or any of the other Released Parties, or regarding the Company’s business affairs, business prospects or financial condition. Likewise the Company understands and
agrees that, as a condition of this Agreement, it shall cause its officers, directors and all employees whom it makes privy to the terms of this Agreement not to make any false, disparaging, derogatory or defamatory statements in public or in
private regarding the Executive. Nothing in this paragraph shall prevent the Company or the Executive from making truthful disclosures to any governmental entity or in any litigation or arbitration or as otherwise required by law, regulation or
rule. 

  

	8.	Non-Disclosure, Non-Solicitation and Non-Competition. The Executive restates and affirms his obligation to keep confidential and not to disclose or use
any and all non-public information concerning the Company that he acquired during the course of his relationship with the Company, including, but not limited to, any non-public information concerning the Company’s business affairs, business
prospects and financial condition, as is stated more fully in the Employee Nondisclosure and Secrecy Agreement effective as of February 9, 2009 between the Company and the Executive, which remains in full force and effect for the terms set
forth therein. The Executive further restates and affirms his non-competition and non-solicitation obligations, as is and subject to the terms and conditions as stated more fully in Section 9 of the Employment Agreement between the Company and
the Executive, which remains in full force and effect as to those provisions as if they were incorporated herein for the term set forth therein. 

  

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	9.	Return of Company Property. The Executive agrees to return to the Company all keys, files, records (and copies thereof), equipment (including, but not
limited to, computer hardware, software and printers, wireless handheld devices, cellular phones, pagers, etc.), Company identification, Company vehicles and any other Company-owned property in the Executive’s possession or control and that he
will leave intact all electronic Company documents, including but not limited to, those that he developed or helped to develop during his employment with the Company. The Executive further confirms that he has cancelled or transferred all accounts
for his benefit, if any, in the Company’s name, including but not limited to, credit cards, telephone charge cards, cellular phone and/or pager accounts and computer accounts. 

 

	10.	Cooperation. The Executive agrees to reasonably cooperate with the Company in the investigation, defense or prosecution of any claims or actions now in
existence or which may be brought in the future against or on behalf of the Company. The Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with the Company’s
counsel to prepare for discovery or any mediation, arbitration, trial, administrative hearing or other proceeding or to act as a witness when reasonably requested by the Company at mutually agreeable times and at locations mutually convenient to the
Executive and the Company. The Executive also agrees to reasonably cooperate with the Company in the transitioning of his work, and will be available to the Company for this purpose or any other purpose reasonably requested by the Company. All
expenses for travel, food and lodging incurred by the Executive in connection with this Section 9 shall be paid within ten (10) days of presentation of an invoice by the Executive. In connection with any cooperation requested by this
Section 9, the Company agrees to make reasonable efforts to accommodate any personal or professional scheduling conflicts that Executive may have. 

  

	11.	Existing Claims. The Company represents that it has not filed any lawsuits, charges, complaints or claims against Executive in any court or with
any governmental agency regarding any of the matters released by it. Likewise, the Executive represents that he has not filed any lawsuits, charges, complaints or claims against the Company in any court or with any governmental agency regarding any
of the matters released by him. 

  

	12.	Neutral Reference. In the event that any news media, actual or prospective employer, business associate, or partner of the Executive or third party
contacts the Company to request a reference or to verify employment, the Company shall limit the information it provides to the following information: (a) the fact that Executive was engaged by the Company; (b) the dates during which
Executive was engaged; (c) the positions that Executive held while engaged at the Company; and (d) such additional information as set forth in the press release dated Exhibit B attached hereto. 

 

	13.	Amendment. This Agreement shall be binding upon the Parties and may not be abandoned, supplemented, changed or modified in any manner, orally or
otherwise, except by an instrument in writing of concurrent or subsequent date signed by duly authorized representatives of the Parties. This Agreement is binding upon and shall inure to the benefit of the Parties and their respective agents,
assigns, heirs, executors, successors and administrators. 

  

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	14.	Waiver of Rights. No delay or omission by the Company or the Executive in exercising any rights under this Agreement shall operate as a waiver of that or
any other right. A waiver or consent given by the Company or the Executive on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion. 

 

	15.	Validity. Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid, the
validity of the remaining parts, terms, or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this Agreement. 

 

	16.	Confidentiality. To the extent permitted by law, the Executive and the Company agree that the terms and contents of this Agreement, and the contents of
the negotiations and discussions resulting in this Agreement, shall be maintained as confidential by the Executive and the Company, its officers, directors and all employees whom the Company makes privy to the terms of this Agreement and each of
their agents and representatives and none of the above shall be disclosed except to Executive’s spouse, attorneys, tax and financial advisors, and federal, state and local tax authorities, or as otherwise required by federal or state law or as
agreed to in writing by the Company in the case of the Executive or the Executive in the case of the Company. 

  

	17.	Tax Provision. In connection with the Severance Benefits provided to the Executive pursuant to this Agreement, the Company shall withhold and remit to the
tax authorities the amounts required under applicable law, and the Executive shall be responsible for all applicable taxes with respect to such Severance Benefits under applicable law. The Executive acknowledges that he is not relying upon advice or
representation of the Company with respect to the tax treatment of any of the severance benefits described herein. 

  

	18.	Nature of Agreement. This Agreement is not and shall not in any way be construed as an admission by either Party of an admission of liability or
wrongdoing on the part of the Company. 

  

	19.	Voluntary Assent and Acknowledgements. The Executive represents that no promises or agreements of any kind (other than those expressly made by the Company
in this Agreement) have been made to or with him by any person or entity whatsoever to cause him to sign this Agreement, and that he fully understands the meaning and intent of this Agreement. The Executive acknowledges that he has been given an
opportunity to consult with his attorney, who has been advising him regarding this Agreement. The Executive further represents that he has carefully read this Agreement, understands its contents, freely and voluntarily assents to all of its terms
and conditions and signs his name of his own free act. 

  

	20.	 Applicable Law. This Agreement shall be interpreted and construed by the laws of the Commonwealth of Massachusetts, without regard to
conflict of laws provisions. The Parties hereby irrevocably submit to the jurisdiction of the courts of the Commonwealth of Massachusetts, or if appropriate, a federal court located in Massachusetts (which courts, for purposes of this Agreement, are
the only courts of competent jurisdiction), over any suit, 

  

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action or other proceeding arising out of, under, or in connection with this Agreement or its subject matter. 

 

	21.	Ambiguity. This Agreement shall be construed as if it were jointly prepared by both Parties. Any uncertainty contained in this Agreement shall not be
construed against any one party. 

  

	22.	Entire Agreement. This Agreement contains and constitutes the entire understanding and agreement between the Parties with respect to the termination of
the Executive’s employment and cancels all previous oral and written negotiations, agreements, commitments, and writings in connection therewith, except as specifically stated herein. 

 

	23.	Counterparts. This Agreement may be executed in two (2) signature counterparts, each of which shall constitute an original, but all of which taken
together shall constitute but one and the same instrument. 

  

					
	NMT MEDICAL, INC.	 		 	
			
	/s/ Richard E. Davis	 	Date:	 	8/25/10
	By:	 		 	

  

					
	FRANCIS J. MARTIN	 		 	
			
	/s/ Francis J. Martin	 	Date:	 	8/25/10
		 		 	

  

 6Amended and Restated Economic Value Added Incentive Compensation Plan

 BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES 

2010 ANNUAL REPORT ON FORM 10-K 
  

EXHIBIT 10.2 
  

AMENDED AND RESTATED ECONOMIC VALUE 

ADDED INCENTIVE COMPENSATION PLAN 

 Effective 6-28-10 

BRIGGS & STRATTON CORPORATION 
  

ECONOMIC VALUE ADDED 

INCENTIVE COMPENSATION PLAN 
  

 
  
  

 
  
  

 
  
  

 
  
  

 
  
  

 
  
  

 
  
  

 
  

As adopted by the Compensation Committee on April 20, 2004 and amended through August 10, 2010 

 BRIGGS & STRATTON CORPORATION 

ECONOMIC VALUE ADDED INCENTIVE COMPENSATION PLAN 
  

 

	I.	Plan Objectives 

  

	 	A.	 To promote the maximization of shareholder value over the long term by providing incentive compensation to key employees of Briggs &
Stratton Corporation (the “Company”) in a form which is designed to financially reward participants for an increase in the value of the Company to its shareholders. 

 

	 	B.	 To provide competitive levels of compensation to enable the Company to attract and retain employees who are able to exert a significant impact on
the value of the Company to its shareholders. 

  

	 	C.	 To encourage teamwork and cooperation in the achievement of Company goals. 

 

	 	D.	 To recognize differences in the performance of individual participants. 

 

	II.	 Plan Administration 

The Compensation Committee of the Board of Directors (the “Committee”) shall be responsible for the design,
administration, and interpretation of the Plan. 
  

	III.	 Definitions 

  

	 	A.	 “Accrued Bonus” means the bonus which is calculated in the manner set forth in Section V.A. 

 

	 	B.	 “Actual EVA” means the EVA as calculated for the relevant Plan Year. 

 

	 	C.	 “Base Salary” means the amount of a Participant’s base compensation earned during the Plan Year without adjustment for
bonuses, salary deferrals, value of benefits, imputed income, special payments, amounts contributed to a savings plan or similar items. 

  

	 	D.	 “Capital” means the Company’s weighted average monthly operating capital for the Plan Year, calculated as follows:

  

			
		 	Current Assets
	-	 	Non-operating Investments
	+	 	Bad Debt Reserve
	+	 	LIFO Reserve
	-	 	Deferred Tax Liabilities or Assets
		 	 Classified as Current Assets

	-	 	Current Noninterest-Bearing Liabilities
	+	 	Warranty Reserve
	+	 	Environmental Reserve
	+	 	Property, Plant, Equipment, Net
	-	 	Construction in Progress
	+	 	Other Assets (not including prepaid Pension Costs)
	(+/-)	 	Unusual Capital Items

  

	 	E.	 “Capital Charge” means the deemed opportunity cost of employing Capital in the Company’s businesses, determined as follows:

 Capital Charge = Capital X Cost of Capital 

	 	F.	 “Cost of Capital” means the weighted average of the cost of equity and the after tax cost of debt for the relevant Plan Year on a
market value basis. The Cost of Capital will be determined (to the nearest tenth of a percent) by the Committee prior to each Plan Year, consistent with the following methodology: 

 

	 	a)	 Cost of Equity = Risk Free Rate + (Business Risk Index X Average Equity Risk Premium) 

 

	 	b)	 Debt Cost of Capital = Debt Yield X (1 - Tax Rate) 

 

	 	c)	 The weighted average of the Cost of Equity and the Debt Cost of Capital is determined by reference to the actual debt-to-capital ratio

 where the Risk Free Rate is the average daily closing yield rate on 10 year U.S. Treasury
Bonds for the month of March immediately preceding the relevant Plan Year, the Business Risk Index is determined by using an average of the Beta available in the four (4) most recent Value Line reports on the Company. The Average Equity Risk
Premium is 6%, the Debt Yield is the weighted average yield of all borrowing included in the Company’s permanent capital, and the tax rate is the combination of the relevant federal and state effective income tax rates. 

 

	 	G.	 “Designated Key Contributor” means those Participants named by the Chief Executive Officer as a Designated Key Contributor under
the Plan. 

  

	 	H.	 “Divisional EVA Performance Factor” means an Individual Performance Factor calculated in the same manner as the Company Performance
Factor as set forth in Section VI.A., except that EVA, Actual EVA, Target EVA, NOPAT, Capital, Capital Charge and other relevant terms shall be defined by reference to the particular operating division, service division or sales group, not by
reference to the entire Company. 

  

	 	I.	 “Economic Value Added” or “EVA” means the NOPAT that remains after subtracting the Capital Charge, expressed as follows:

  

			
		 	NOPAT
	Less:    	 	Capital Charge
	Equals:	 	EVA

 EVA may be positive or
negative. 
  

	 	J.	 “Key Managers” mean those Participants designated as Key Managers by the Committee with respect to any Plan Year.

  

	 	K.	 “NOPAT” means cash adjusted net operating profits after taxes for the Plan Year, calculated as follows:

  

			
		 	    Pretax Income
	+	 	    Interest Expense
	-	 	    Normal Pension Costs
	+/-	 	    Pension Income/Expense
	+/-	 	    Change in LIFO Reserve
	+/-	 	    Change in Bad Debt Reserve
	+/-	 	    Change in Post Retire Health Care Reserve
	+/-	 	    Change in Warranty Reserve
	+/-	 	    Other Income & Expense on Non-Operating Investments
	+/-	 	    Unusual Charges
	+/-	 	    Amortization of Unusual Income or Expense Items
	-	 	    Cash Taxes on the above (+/-changes in Deferred Taxes)

	 	L.	 “Plan Year” means the one year period coincident with the Company’s fiscal year. 

 

	 	M.	 “Senior Executives” means those Participants designated as Senior Executives by the Committee with respect to any Plan Year.

  

	 	N.	 “Target EVA” means the target level of EVA for the Plan Year determined by the Committee. 

 

	IV.	 Eligibility 

  

	 	A.	 Eligible Positions. In general, all Company Officers, Division General Managers, Key Managers and members of the corporate operations group,
and certain direct reports of such individuals may be eligible for participation in the Plan. However, actual participation will depend upon the contribution and impact each eligible employee may have on the Company’s value to its shareholders,
as determined by the Chief Executive Officer of the Company, and approved by the Committee. 

  

	 	B.	 Nomination and Approval. Each Plan Year, the Chief Executive Officer of the Company will nominate eligible employees of the Company and its
subsidiaries and affiliates to participate in the Plan for the next Plan Year. The Committee will have the final authority to select Plan participants (the “Participants”) among the eligible employees nominated by the Chief Executive
Officer of the Company. Continued participation in the Plan is contingent on approval of the Committee. Selection normally will take place, and will be communicated to each Participant, prior to the beginning of the pertinent Plan Year.

  

	V.	 Individual Participation Levels 

  

	 	A.	 Calculation of Accrued Bonus. Each Participant’s Accrued Bonus will be determined as a function of the Participant’s Base Salary,
the Participant’s Target Incentive Award (provided in paragraph V.B., below), Company Performance Factor (provided in Section VI.A.) and the Individual Goal Achievement Factor (provided in Section VI.B.) for the Plan Year. Each
Participant’s Accrued Bonus will be calculated as follows: 

  

																									
	     30%    
	  	 Participant’s

Base Salary
	  	x	  	Target
Incentive
Award	  	x	  	Company
Performance
Factor	  	+	  	70%	 	Participant’s
Base Salary	  	x	  	Target
Incentive
Award	  	x	  	Individual
Goal Achievement
Factor

In no case may the Accrued Bonus exceed two times the Target Incentive Award or be less than zero. 

 

	 	B.	 Target Incentive Awards. The Target Incentive Awards will be determined according to the following schedule: 

 

			
	Executive Position	  	Target Incentive Award
(% of Base Salary)
	Chief Executive Officer	  	100%
	Chief Operating Officer	  	80%
	Executive Vice President & Senior Vice Presidents	  	60%
	Other Elected Officers	  	40%
	Division General Managers	  	40%
	Key Managers	  	40%
	Designated Key Contributors	  	25%
	All Others	  	20%

	VI.	Performance and Goal Achievement Factors 

  

	 	A.	Company Performance Factor Calculation. For any Plan Year, the Company Performance Factor will be calculated from a table approved by the Compensation Committee
that states the Company Performance Factor that applies to achievement of various percentages of the Target EVA for the Plan Year. 

  

	 	B.	Individual Goal Achievement Factor Calculation. Determination of the Individual Goal Achievement Factor will be the responsibility of the individual to whom the
participant reports. This determination will be subject to approval by the Committee and should be in conformance with the process set forth below: 

  

	 	(1)	Quantifiable Goal Achievement Factors. The Individual Goal Achievement Factor of the Accrued Bonus calculation will be based on the accomplishment of individual,
financial and/or other goals. Whenever possible, individual performance will be evaluated according to quantifiable benchmarks of success. These factors will represent an achievement percentage continuum that ranges from 0% to 200% of the individual
target award opportunity, and will be enumerated from 0 to 2.0 based on such continuum. If the Quantifiable Goal Achievement Factor is based on divisional EVA, it shall be calculated in the same manner as the Company Performance Factor set forth in
Section VI.A, unless the Compensation Committee has approved a different method of calculating divisional EVA. 

  

	 	(2)	Non-Quantifiable Goal Achievement Factors. When performance cannot be measured according to a quantifiable monitoring system, an assessment of the
Participant’s overall performance may be made based on a Non-Quantifiable Goal Achievement Factor (or Factors). The person to whom the Participant reports will evaluate the Participant’s performance, and this evaluation will determine the
Participant’s Goal Achievement Factor (or Factors) according to the following schedule: 

  

					
	Individual	 		 	
	Goal Achievement Rating	 	Goal Achievemnt Factor	 	
			
	                            Outstanding
	 	1.3 - 1.5            	 	
	                            Excellent
	 	1.1 - 1.3            	 	
	                            
Good	 	.9 - 1.1            	 	
	                            Satisfactory
	 	.5 - .9            	 	
	                            
Unsatisfactory	 	0                	 	

  

	 	(3)	Aggregate Individual Goal Achievement Factor. The Individual Goal Achievement Factor to be used in the calculation of the Accrued Bonus shall be equal to the
average (or weighted average) of one or more Quantifiable and/or Non-Quantifiable Goal Achievement Factors according to relative importance, except that the Non-Quantifiable Goal Achievement Factor shall account for no more than 15% of the Accrued
Bonus. 

  

	VII.	Change in Status During the Plan Year 

  

	 	A.	New Hire, Transfer, Promotion, Demotion 

A newly hired employee or an employee transferred, promoted, or demoted during the Plan Year to a position qualifying for participation
(or leaving the participating class) may accrue (subject to discretion of the Committee) a pro rata Accrued Bonus based on the percentage of the Plan Year (actual weeks/full year times a full year award amount for that position) the employee is in
each participating position. 

	 	B.	 Discharge 

An employee discharged during the Plan Year shall not be eligible for an Accrued Bonus, even though his or her service
arrangement or contract extends past year-end, unless the Committee determines that the conditions of the termination indicate that a prorated Accrued Bonus is appropriate. The Committee shall have full and final authority in making such a
determination. 
  

	 	C.	 Resignation 

An employee who resigns during the Plan Year to accept employment elsewhere (including self-employment) will not be
eligible for an Accrued Bonus. 
  

	 	D.	 Death, Disability, Retirement 

If a Participant’s employment is terminated during a Plan Year by reason of death, disability, or normal or early
retirement under the Company’s retirement plan, a tentative Accrued Bonus will be calculated as if the Participant had remained employed as of the end of the Plan Year. The final Accrued Bonus will be calculated by multiplying the tentative
Accrued Bonus by a proration factor. The proration factor will be equal to the number of full weeks of employment during the Plan Year divided by fifty-two. For purposes of this section, the date a participant is deemed to be terminated pursuant to
disability shall be the date the employee begins receiving a monthly Long Term Disability Benefit under the Company’s Group Insurance Plan. 

Each employee may name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any
benefit under this Plan is to be paid in case of the employee’s death. 
 Each such designation shall
revoke all prior designations by the employee, shall be in the form prescribed by the Committee, and shall be effective only when filed by the employee in writing with the Committee during his or her lifetime. 

In the absence of any such designation, benefits remaining unpaid at the employee’s death shall be paid to the
employee’s estate. 
  

	 	E.	 Leave of Absence 

An employee whose status as an active employee is changed during a Plan Year as a result of a leave of absence may, at
the discretion of the Committee, be eligible for a pro rata Accrued Bonus determined in the same way as in paragraph D. of this Section. 
  

	VIII.	 Bonus Paid and Bonus Bank 

All or a portion of the Accrued Bonus will be either paid to the Participant or credited to or charged against the Bonus
Bank as provided in this Article. 
  

	 	A.	 Participants Who Are Not Senior Executives. All Accrued Bonuses of Participants who are not Senior Executives for the Plan Year shall be paid
in cash, less amounts required by law to be withheld for income and employment tax purposes, during the 60 day period following the end of the Plan Year in which the Accrued Bonus was earned. 

 

	 	B.	 Participants Who Are Senior Executives. With respect to Plan Years preceding 2010, the calculation of Accrued Bonuses, Bonus Bank Balances
and Total Bonus Payouts shall be made in accordance with the provisions of Article VIII that were in effect for those Plan Years. With respect to Plan Year 2010, any Senior Executive who has a positive Bank Balance upon completion of the
calculations under the Plan for such Plan Year shall be paid such balance in cash, less amounts required by law to be withheld for income and employment tax purposes, 

 
during the 60 day period following the end of Plan Year 2010, and any Senior Executive who has a negative Bank Balance shall have such balance extinguished. With respect to Plan Years after 2010,
all Accrued Bonuses shall be paid in cash, less amounts required by law to be withheld for income and employment tax purposes, during the 60 day period following the end of the Plan Year in which the Accrued Bonus was earned. 

 

	IX.	 Administrative Provisions 

  

	 	A.	 Amendments, Suspension, Termination and Recovery. The Committee shall have the right to modify or amend this Plan from time to time, or
suspend it or terminate it entirely. The Committee may suspend or terminate an Accrued Bonus for a Plan Year at any time prior to its payment to the Participant or its credit to or charge to the Bonus Bank as provided in Article VIII. The Committee
may also recover all or any portion of a Total Bonus Payout to a Senior Executive or Key Manager with respect to (1) a Plan Year for which there occurs within the three (3) years following the award a material restatement of the
Company’s annual report filed with the SEC due to the negligence or misconduct of one or more persons, and (2) any subsequent Plan Year in which an Accrued Bonus was materially affected by the restatement. Such recovery may include without
limitation reducing the Participant’s Bank Balance. 

  

	 	B.	 Interpretation of Plan. Any decision of the Committee with respect to any issues concerning individual selected for awards, the amount,
terms, form and time of payment of awards, and interpretation of any Plan guideline, definition, or requirement shall be final and binding. 

  

	 	C.	 Effect of Award on Other Employee Benefits. By acceptance of a bonus award, each recipient agrees that such award is special additional
compensation and that it will not affect any employee benefit, e.g., life insurance, etc., in which the recipient participates, except as provided in paragraph D. below. 

 

	 	D.	 Retirement Programs. Awards made under this Plan shall be included in the employee’s compensation for purposes of the Company Retirement
Plans and Savings Plan. 

  

	 	E.	 Right to Continued Employment; Additional Awards. The receipt of a bonus award shall not give the recipient any right to continued
employment, and the right and power to dismiss any employee is specifically reserved to the Company. In addition, the receipt of a bonus award with respect to any Plan Year shall not entitle the recipient to an award with respect to any subsequent
Plan Year. 

  

	 	F.	 Adjustments to Performance or Achievement Goals. When a performance or achievement goal is based on Economic Value Added or other
quantifiable financial or accounting measure, it may be necessary to exclude significant nonbudgeted or noncontrollable capital investments or gains or losses from actual financial results in order to properly measure performance. The Committee will
decide those items that shall be considered in adjusting actual results. For example, some types of items that may be considered for exclusion are: 

  

	 	(1)	 Any gains or losses which will be treated as extraordinary in the Company’s financial statements. 

 

	 	(2)	 Profits or losses of any entities acquired by the Company during the Plan Year, assuming they were not included in the budget and/or the goal.

  

	 	(3)	 Material gains or losses not in the budget and/or the goal which are of a nonrecurring nature and are not considered to be in the ordinary course of
business. Some of these would be as follows: 

  

	 	(a)	 Gains or losses from the sale or disposal of real estate or property. 

	 	(b)	 Gains resulting from insurance recoveries when such gains relate to claims filed in prior years. 

 

	 	(c)	 Losses resulting from natural catastrophes, when the cause of the catastrophe is beyond the control of the Company and did not result from any
failure or negligence on the Company’s part. 

  

	 	(4)	 Capital incurred for a major acquisition for a reasonable period following such acquisition. 

 

	 	G.	 Vesting. All amounts due but unpaid to any Participant under this plan shall vest, subject to the terms of this EVA Plan, upon actual
termination of employment of the Participant. 

 X. Miscellaneous 

 

	 	A.	 Indemnification. Each person who is or who shall have been a member of the Committee or of the Board, or who is or shall have been an
employee of the Company, shall not be liable for, and shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with any claim,
action, suit, or proceeding to which he or she may be a party by reason of any action taken or failure to act under this Plan. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons
may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

 

	 	B.	 Expenses of the Plan. The expenses of administering this Plan shall be borne by the Company. 

 

	 	C.	 Withholding Taxes. The Company shall have the right to deduct from all payments under this Plan any Federal or state taxes required by law to
be withheld with respect to such payments. 

  

	 	D.	 Governing Law. This Plan shall be construed in accordance with and governed by the laws of the State of Wisconsin.

  

	 	E.	 Section 409A. To facilitate compliance with Internal Revenue Code Section 409A, a payment otherwise required to be paid under this
Plan shall be neither accelerated nor deferred nor shall there otherwise be a change in the time at which any payment due hereunder is to be paid, except pursuant to a specific written amendment adopted by the Board of Directors of Briggs &
Stratton Corporation, which amendment is consistent with the requirements of applicable regulations under Internal Revenue Code Section 409A. Further, no individual shall be deemed to have a termination of employment for purposes of this Plan
unless such termination of employment also constitutes a separation from service within the meaning of Code Section 409A.

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