Document:

Exhibit 10.1

 

As Amended and Restated

Effective 08-09-05

 

BRIGGS & STRATTON CORPORATION

 

PREMIUM OPTION AND STOCK AWARD PROGRAM

 

 

 

As adopted by the Compensation Committee on April 20, 2004 and
amended

through August 9, 2005

 

 

BRIGGS & STRATTON CORPORATION

PREMIUM OPTION AND STOCK AWARD PROGRAM

 

1.0                                 Objectives

 

The Premium Option and
Stock Award Program (“POSA 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 POSA 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 POSA 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 and/or
deferred shares of the Company’s Stock (“Restricted and/or Deferred Stock”) and
an amount equivalent to the Senior Executive’s Target Incentive Award is
invested in premium options on the Company’s Stock (“PSOs”).  The shares of Restricted and/or Deferred
Stock 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
and/or Deferred Stock Awards

 

For fiscal 2005 and
subsequent years, the dollar amount to be invested in Restricted and/or
Deferred Stock 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 shares of Restricted and/or
Deferred Stock awarded shall be determined by dividing (a) the dollar
amount of such Restricted and/or Deferred Stock 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
Incentive Compensation Plan (“ICP”).

 

The Compensation
Committee shall determine whether stock awards shall consist of Restricted
Stock, Deferred Stock or a mix of each type of stock, and may consider each
Senior Executive’s preference in making such determination.  All shares of Restricted and/or Deferred
Stock 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 Awards

 

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 ICP.

 

1

 

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 shares of Restricted and/or Deferred Stock 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 and/or Deferred
Stock or PSOs to the extent the annual limitation is not exceeded in such
years.

 

5.0                                 The
Incentive Compensation Plan

 

Except as modified
herein, PSOs are Incentive Stock Options under the Company’s ICP 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 ICP, and shall be
granted as described in this Program annually unless the Committee modifies or
terminates either the EVA Plan or the ICP. 
As provided in the ICP, 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 EVA Plan and ICP.

 

2Exhibit 10.1

 

AIA® Document A101TM — 1997

 

Standard Form of Agreement Between
Owner and Contractor

where
the basis of payment is a STIPULATED SUM

 

AGREEMENT made as of the 28th day of June in the
year of 2005

(In words indicate day, month and year)

 

	
  BETWEEN
  the Owner:

  	
   

  	
   

  
	
  (Name,
  address and other information)

  	
   

  	
  This
  document has important legal consequences. Consultation with an attorney is 

  
	
  First
  Community Bank

  	
   

  	
  encouraged
  with respect to its completion or 

  
	
  P.O. Box
  64

  	
   

  	
  modification.

  
	
  Lexington,
  SC 290271

  	
   

  	
   

  
	
  

  

  

  and the Contractor:

  (Name, address and other information)

  	
   

  	
  AIA
  Document A201-1997, General Conditions of the Contract for
  Construction, is adopted in this document by reference. Do not use with other
  general conditions unless this document is modified.

  
	
   

  	
   

  	
   

  
	
  Summerfield
  Associates, Inc.

  	
   

  	
  This
  document has been approved and endorsed

  
	
  P.O. Box
  5815

  	
   

  	
  by
  The Associated General Contractors of 

  
	
  West
  Columbia, SC 29171

  	
   

  	
  America.

  

 

The Project is:

(Name and location)

 

First
Community Bank

Administration
Center

5455
Sunset Blvd.

Lexington,
SC 29072

 

The
Architect is:

(Name,
address and other information)

 

JHS
Architecture:  Integrated Design

1812
Lincoln Street, Suite 300

Columbia,
SC 29201

 

The
Owner and Contractor agree as follows.

 

AIA
Document A101TM-1997. Copyright © 1915, 1918, 1925,
1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1980, 1987, 1991 and 1997 by
The American Institute of
Architects. All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties.
Unauthorized reproduction or distribution of this AIA® Document, or any portion
of it, may result in severe civil and criminal penalties, and will be
prosecuted to the maximum extent possible under the law. Purchasers are
permitted to reproduce ten (10) copies of this document when completed. To
report copyright violations of AIA Contract Documents, e-mail The American
Institute of Architects’ legal counsel copyright@aia.org.

 

1

 

ARTICLE 1 THE CONTRACT DOCUMENTS

 

The
Contract Documents consist of this Agreement, Conditions of the Contract
(General, Supplementary and other Conditions), Drawings, Specifications,
Addenda issued prior to execution of this Agreement, other documents listed in
this Agreement and Modifications issued after execution of this Agreement;
these form the Contract, and are as fully a part of the Contract as if attached
to this Agreement or repeated herein. The Contract represents the entire and
integrated agreement between the parties hereto and supersedes prior
negotiations, representations or agreements, either written or oral. An
enumeration of the Contract Documents, other than Modifications, appears in Article 8.

 

ARTICLE 2
THE WORK OF THIS CONTRACT

 

The
Contractor shall fully execute the Work described in the Contract Documents,
except to the extent specifically indicated in the Contract Documents to be the
responsibility of others.

 

ARTICLE 3
DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION

 

§ 3.1 The date of commencement of the Work shall be
the date of this Agreement unless a different date is stated below or provision
is made for the date to be fixed in a notice to proceed issued by the Owner.

(Insert the date of commencement if it differs from the date
of this Agreement or, if applicable, state that the date will be fixed in a
notice to proceed.)

 

July 11,
2005 or upon receipt of building permit (whichever is later)

 

If,
prior to the commencement of the Work, the Owner requires time to file
mortgages, mechanic’s liens and other security interests, the Owner’s time
requirement shall be as follows:

 

§ 3.2 The Contract
Time shall be measured from the date of commencement.

 

§ 3.3 The Contractor
shall achieve Substantial Completion of the entire Work not later than        days
from the date of commencement, or as follows:

(Insert number of calendar days. Alternatively, a calendar
date may be used when coordinated with the date of commencement. Unless stated
elsewhere in the Contract Documents, insert any requirements for earlier Substantial
Completion of certain portions of the Work)

 

303
Calendar Days

 

,
subject to adjustments of this Contract Time as provided in the Contract
Documents.

(Insert provisions, if any, for liquidated damages relating
to failure to complete on time or for bonus payments for early completion of
the Work.)

 

ARTICLE 4
CONTRACT SUM

 

§ 4.1 The Owner shall pay the Contractor the
Contract Sum in current funds for the Contractor’s performance of the Contract.
The Contract Sum shall be Three million Three hundred ninety four thousand two hundred
twenty two dollars ($3,394,222.00), subject to additions and deductions as
provided in the Contract Documents.

 

§ 4.2 The Contract Sum
is based upon the following alternates, if any, which are described in the
Contract Documents and are hereby accepted by the Owner:

(State the numbers or other identification of accepted
alternates. If decisions on other alternates are to be made by

 

2

 

the Owner subsequent to the execution of this Agreement,
attach a schedule of such other alternates showing time amount for each
and the date when that amount expires)

 

Copy
of Summerfield Associates, Inc. quote dated June 27, 2005.

 

§ 4.3 Unit prices, if
any, are as follows:

 

None

 

ARTICLE 5 PAYMENTS

 

§ 5.1 PROGRESS PAYMENTS

 

§ 5.1.1 Based
upon Applications for Payment submitted to the Architect by the Contractor and
Certificates for Payment issued by the Architect, the Owner shall make progress
payments on account of the Contract Sum to the Contractor as provided below and
elsewhere in the Contract Documents.

 

§ 5.1.2 The period
covered by each Application for Payment shall be one calendar month ending on
the last day of the month, or as follows:

 

§ 5.1.3 Provided that
an Application for Payment is received by the Architect not later than the 25th
day of a month, the Owner shall make payment to the Contractor not later than
the 15th day of the                       month.
If an Application for Payment is received by the Architect after the application
date fixed above, payment shall be made by the Owner not later than (      )
days after the Architect receives the Application for Payment.

 

§ 5.1.4 Each
Application for Payment shall be based on the most recent schedule of
values submitted by the Contractor in accordance with the Contract Documents.
The schedule of values shall allocate the entire Contract Sum among the
various portions of the Work. The schedule of values shall be prepared in
such form and supported by such data to substantiate its accuracy as the
Architect may require. This schedule, unless objected to by the Architect,
shall be used as a basis for reviewing the Contractor’s Applications for
Payment.

 

§ 5.1.5 Applications
for Payment shall indicate the percentage of completion o each portion of the
Work as of the end of the period covered by the Application for Payment.

 

§ 5.1.6 Subject to
other provisions of the Contract Documents, the amount of each progress payment
shall be computed as follows:

 

.1              Take that portion of the Contract Sum properly allocable to completed
Work as determined by multiplying the percentage completion of each portion of the
Work by the share of the Contract Sum allocated to that

 

3

 

portion
of the Work in the schedule of values, less
retainage of ten percent (10%). Pending
final determination of cost to the Owner of changes in the
Work, amounts not in dispute shall be included as provided in Section 7.3.8 of
AIA Document A201-1997;

 

.2              Add that portion of the Contract Sum properly allocable to materials and
equipment delivered and suitably stored at the site for subsequent incorporation in the completed construction
(or, if approved in advance by the Owner, suitably stored off the site at a
location agreed upon in writing), less retainage of percent (10%);

 

.3              Subtract the aggregate of previous payments
made by the Owner; and

 

.4              Subtract amounts, if any, for which the
Architect has withheld or nullified a Certificate for Payment as provided in Section 9.5 of AIA Document A201-1997.

 

§ 5.1.7 The progress
payment amount determined in accordance with Section 5.1.6 shall be further modified under the
following circumstances:

 

.1              Add, upon Substantial Completion of the Work,
a sum sufficient to increase the total payments to the full amount of the
Contract Sum, less such amounts as the Architect shall determine for incomplete
Work, retainage applicable to such work and unsettled claims; and

(Section 9.8.5 of AIA Document A201-1997 requires
release of applicable retainage upon Substantial Completion of Work with
consent of surety, if any.)

 

.2              Add, if final completion of the Work is
thereafter materially delayed through no fault of the Contractor, any
additional amounts payable in accordance with Section 9.10.3 of AIA Document
A20 1-1997.

 

§ 5.1.8 Reduction or
limitation of retainage, if any, shall be as follows:

(If it is intended, prior to Substantial Completion of the
entire Work, to reduce or limit the retainage resulting from the percentages
inserted in Sections 5.1.6.1 and 5.1, 6.2 above, and this is not explained
elsewhere in the Contract Documents, insert here provisions for such reduction
or limitation.)

 

Reduce
retainage to 5% upon substantial completion as approved by both Owner and Architect.

 

§ 5.1.9  Except with the Owner’s prior approval, the
Contractor shall not make advance payments to suppliers for materials or
equipment which have not been delivered and stored at the site.

 

§ 5.2 FINAL PAYMENT

 

§ 5.2.1 Final
payment, constituting the entire unpaid balance of the Contract Sum, shall be
made by the Owner to the Contractor when:

 

.1              the Contractor has fully performed the
Contract except for the Contractor’s responsibility to, correct Work as
provided in Section l2.22 of AIA Document A201-l997, and to satisfy
other requirements, if any, which extend beyond final payment; and

 

.2              a final Certificate for Payment has been
issued by the Architect.

 

§ 5.2.2 The Owner’s
final payment to the Contractor shall be made no later than 30 days after the
issuance of the Architect’s final Certificate for Payment, or as follows:

 

ARTICLE 6 TERMINATION OR SUSPENSION

 

§ 6.1 The Contract may
be terminated by the Owner or the Contractor as provided in Article 14 of AIA
Document A20l-1997.

 

§ 6.2 The Work may be
suspended by the Owner as provided in Article 14 of AIA Document A201-1997.

 

4

 

ARTICLE 7 MISCELLANEOUS PROVISIONS

 

§ 7.1 Where
reference is made in this Agreement to a provision of AIA Document A201-1997
or another Contract Document, the reference refers to that provision as amended
or supplemented by other provisions of the Contract Documents.

 

§ 7.2 Payments due and
unpaid under the Contract shall bear interest from the date payment is due at
the rate stated below, or in the absence thereof, at the legal rate prevailing
from time to time at the place where the Project is located.

(Insert rate of interest agreed upon. if any.)

 

(Usury laws and requirements under the Federal Truth in
Lending Act, similar state and local consumer credit laws and other regulations
at the Owner’s and Contractor’s principal places of business, the location of
the Project and elsewhere may affect the validity of this provision. Legal
advice should be obtained with respect to deletions or modifications and also
regarding requirements such as written disclosures or waivers.)

 

§ 7.3 The
Owner’s representative is:

 

(Name, address and other information)

 

David
Proctor

First
Community Bank

P.0.
Box 64

Lexington,
SC 29071

 

§ 7.4 The Contractor’s
representative is:

(Name, address and other information)

 

Tim
Floyd

Summerfield
Associates, Inc.

P.0. Box 5815

West
Columbia, SC 29171

 

§ 7.5 Neither
the Owner’s nor the Contractor’s representative shall be changed without ten
days written notice to the other party.

 

§ 7.6 Other
provisions:

 

ARTICLE 8 ENUMERATION OF CONTRACT DOCUMENTS

 

§ 8.1 The
Contract Documents, except for Modifications issued after execution of this
Agreement, are enumerated as
follows:

 

§ 8.1.1 The Agreement
is this executed 1997 edition of the Standard Form of Agreement Between
Owner and Contractor, AIA Document A 101-1997.

 

§ 8.1.2 The General
Conditions are the 1997 edition of the General Conditions of the Contract for
Construction, AIA Document A20 1-1997.

 

5

 

§ 8.1.3 The
Supplementary and other Conditions of the Contract are those contained in the
Project Manual dated and are as follows

 

	
  Document

  	
   

  	
  Title

  	
   

  	
  Pages

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Specifications

  	
   

  	
  Dated April 25, 2005

  	
   

  	
   

  	
   

  

 

§ 8.1.4 The
Specifications are those contained in the Project Manual dated as in Section 8.1.3,
and are as follows:

(Either list the Specifications here or refer to an exhibit attached
to this Agreement.)

 

	
  Section

  	
   

  	
  Title

  	
   

  	
  Pages

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Specifications

  	
   

  	
  Dated April 25, 2005

  	
   

  	
   

  	
   

  

 

§ 8.1.5 The Drawings are as follows, and are dated                        unless
a different date is shown below:

(Either list the Drawings here or refer to an exhibit
attached to this Agreement.)

 

	
  Number

  	
   

  	
  Title

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

See attached - Exhibit “A”

 

§ 8.1.6 The
Addenda, if any, are as follows:

 

	
  Number

  	
   

  	
  Date

  	
   

  	
  Pages

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  May 4, 2005

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  May 5, 2005

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  May 9, 2005

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  May 11, 2005

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  May 13, 2005

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  May 17, 2005

  	
   

  	
   

  	
   

  

 

Portions
of Addenda relating to bidding requirements are not part of the Contract
Documents unless the bidding requirements are also enumerated in this Article 8.

 

§ 8.17  Other documents, if any, forming part of the
Contract Documents are as follows:

(List here any additional documents that are intended to
form part of the Contract Documents. AIA Document A201-1997 provides that
bidding requirements such as advertisement or invitation to bid, Instructions
to Bidders, sample forms and the Contractors’ bid are not part of the Contract
Documents unless enumerated in this Agreement. They should be listed here only
if intended to be part of the Contract Documents.)

 

6

 

This
Agreement is entered into as of the day and year first written above and is
executed in at least three original copies, of which one is to be delivered to
the Contractor, one to the Architect for use in the administration of the
Contract, and the remainder to the Owner.

 

 

	
  First Community Bank

  	
  Summerfield Associates, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  OWNER (Signature)

  	
  CONTRACTOR (Signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
  David K. Proctor, SVP

  	
   

  	
  T.R. Floyd, President

  	
   

  
	
  (Printed name and title)

  	
  (Printed name and title)

  

 

 

CAUTQN:  You should sign an original AIA Contract
Document, on which this text appears in RED. 
An original assures that changes will not be obscured.

 

 

General SA
Contractors

 

Summerfield Associates, Inc.

315 DREHER ROAD, P.O. BOX 5815

WEST COLUMBIA, SOUTH CAROLINA 29171

(803) 791-5035

Fax 796-1651

 

7

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