Document:

Amended and Restated  Director's Premium Optino and Stock Grant Program

  
 BRIGGS & STRATTON
CORPORATION 
  
 FORM 10-Q for Quarterly Period Ended September 26,
2004 
  
 Exhibit No. 10.12 
  
 AMENDED AND RESTATED 
 DIRECTOR’S PREMIUM OPTION AND STOCK GRANT PROGRAM 
  

  
 As Amended and Restated

 Effective 10-29-04 
  
 BRIGGS & STRATTON CORPORATION 
  
 DIRECTOR’S PREMIUM OPTION AND STOCK GRANT PROGRAM 
  
 As adopted by the Board of Directors on April 21, 2004 and amended 
 on October 20, 2004 to be effective October 29, 2004 
  

 2 

  
 BRIGGS & STRATTON
CORPORATION 
 DIRECTOR’S PREMIUM OPTION AND STOCK GRANT PROGRAM 
  

	1.0	Objectives 

  
 The Director’s Premium Option and Stock Grant Program (“Program”) is designed to tie the interests of the Company’s directors to the long term market value added performance of the Company. In this
way, the objectives of directors will be more closely aligned with those of the Company’s Shareholders. The Program will allow nonemployee directors to participate in the long-term appreciation in the equity value of the Company. In general,
the Program is structured such that each nonemployee director receives unrestricted shares and premium options on the Company’s Stock (“PSOs”) as elements of annual compensation. The PSOs 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	Administration 

  
 The Program shall be administered by the Board of Directors (“Board”). 
  

	3.0	Stock Subject to Plan 

  
 The total number of shares reserved and available for distribution as PSOs under the Program with respect to fiscal 2005 and subsequent years shall be 200,000 shares of
the Company’s common stock, par value $0.01 per share (“Stock”). Such shares may consist, in whole or in part, of treasury or market purchase shares. 
  
 In the event of any merger, reorganization, consolidation, recapitalization, stock dividend, stock split or other change in corporate
structure affecting the Stock, such substitution or adjustments shall be made in the aggregate number of shares reserved for issuance under the Program, and in the number and option price of shares subject to outstanding PSOs, as may be determined
to be appropriate by the Board, in its sole discretion; provided, however, that the number of shares subject to any award shall always be a whole number. 
  

	4.0	Eligibility 

  
 Each nonemployee director of the Company shall be eligible to participate in the Program. 
  

	5.0	Stock Grant 

  
 For fiscal 2005 and subsequent fiscal years, each nonemployee director of the Company who serves as a director through the end of the fiscal year shall receive 400 shares of the Company’s Stock and 4,000 PSOs.

  
 PSO grants shall be evidenced by option agreements, the terms and provisions
of which shall be determined by this Program or the Board. These grants will be awarded at the same time the 

  

 1 

 
Company awards grants to Senior Executives. The PSOs shall constitute non-qualified stock options. 
  
 No PSO shall be transferable by the optionee other than by will or by the laws of descent and
distribution, and all PSOs shall be exercisable, during the optionee’s lifetime, only by the optionee or by the guardian or legal representative of the optionee, it being understood that the terms “holder” and “optionee”
include the guardian and legal representative of the optionee named in the option agreement and any person to whom an option is transferred by will or the laws of descent and distribution. 
  
 If an optionee’s service as a director terminates by reason of death, any PSO held by
such optionee may thereafter be exercised, to the extent then exercisable or on such accelerated basis as the Board may determine, for a period of one year (or such other period as the Board may specify at grant) from the date of such death or until
the expiration of the stated term of such PSO, whichever period is shorter. 
  
 When an optionee’s service as a director terminates due to reaching the mandatory retirement age or due to retirement upon reaching the end of the term for which elected, a PSO held by such optionee may thereafter be exercised by the
optionee, to the extent it was exercisable at the time of such retirement or on such accelerated basis as the Board may determine, for a period of three years (or such shorter period as the Board may specify at grant) from the date of such
retirement or until the expiration of the stated term of such PSO, whichever period is shorter; provided, however, that if the optionee dies within such three-year (or such shorter) period, any unexercised PSO held by such optionee shall,
notwithstanding the expiration of such three-year (or such shorter) period, continue to be exercisable to the extent to which it was exercisable at the time of death for a period of one year from the date of such death or until the expiration of the
stated term of such PSO, whichever period is shorter. 
  
 When an optionee’s
service as a director terminates for any reason other than death or retirement as described above, unless otherwise determined by the Board at grant, the PSO shall thereupon terminate, except that such PSO, to the extent then exercisable, may be
exercised for the lesser of three months or the balance of the term. Notwithstanding the foregoing, if an optionee’s service as a director terminates at or after a Change in Control (as defined in the Company’s Stock Incentive Plan), other
than by death or retirement (as described above), any PSO held by such optionee shall be exercisable for the lesser of (x) six months and one day, and (y) the balance of such PSO’s term. 
  

	6.0	Term 

  
 All PSOs shall 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 or the Board determines other dates at
grant. 
  

	7.0	Exercise Price 

  
 The exercise price for PSOs granted hereunder shall be the exercise price for PSOs granted under the Premium Option and Restricted Stock Program for Senior Executives for that fiscal year. 
  

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	8.0	Definitions 

  
 All capitalized terms used herein that are not otherwise defined shall have the same meaning given to them in the EVA Plan, Premium Option and Restricted Stock Program or Stock Incentive Plan. 
  

	9.0	Amendments and Termination 

  
 The Board may amend, alter, or discontinue the Program but no amendment, alteration or discontinuation shall be made which would impair the rights of an optionee under a
PSO granted without the optionee’s or recipient’s consent. 
  
 The Board
may amend the terms of any PSO theretofore granted, prospectively or retroactively, but no such amendment shall impair the rights of any holder without the holder’s consent. 
  
 Subject to the above provisions, the Board shall have authority to amend the Program to take into account changes in law and tax and
accounting rules, as well as other developments. 
  

	10.0	Unfunded Status of Program 

  
 It is presently intended that the Program constitute an “unfunded” plan for incentive and deferred compensation. The Board may authorize the creation of trusts
or other arrangements to meet the obligations created under the Program to deliver Stock; provided, however, that, unless the Board otherwise determines, the existence of such trusts or other arrangements is consistent with the “unfunded”
status of the Program. 
  

	11.0	General Provisions 

  

	(a)	The Board may require each person purchasing shares pursuant to a PSO grant to represent to and agree with the Company in writing that the optionee or participant is acquiring the
shares without a view to the distribution thereof. 

  
 All certificates for shares of Stock or other securities delivered under the Program shall be subject to such stock transfer orders and other restrictions as the Board may deem advisable under the rules, regulations and other requirements
of the Securities and Exchange Commission, any stock exchange upon which the Stock is then listed and any applicable Federal or state securities law, and the Board may cause a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions. 
  

	(b)	Nothing contained in this Program shall prevent the Company, a subsidiary or affiliate from adopting other or additional compensation arrangements for its nonemployee directors.

  

	(c)	The adoption of the Program shall not confer upon any director any right to continue to serve as a director. 

  

	(d)	The Program and all awards made and actions taken thereunder shall be governed by and construed in accordance with the laws of the State of Wisconsin. 

  

 3Form of Stock Option Agreement

 Exhibit 10(a)(i) 
  
 Texas Instruments Incorporated 
 Nonqualified Stock Option Agreement (Executive Officers) 
  
 Form No. 2 
 2000 LTIP 
  
 Your option is subject to the following terms and conditions, your acceptance of which is required before you can exercise the option:

  

	1.	Exercisability. On or after the first anniversary of the Option Date (as defined in Section 9), during the balance of the option term, your option may be exercised and shares
purchased at any time or times under the following conditions: 

  

	 	(a)	Installment Table. Except as provided in Sections 1(b), 1(c) and 1(d), the option will be exercisable through the tenth anniversary of the Option Date based on the following
table. 

  

			
	 On or After

	 	 Percent Exercisable

	 1st
anniversary of the Option Date
	 	25%
	 2nd
anniversary of the Option Date
	 	50%
	 3rd
anniversary of the Option Date
	 	75%
	 4th
anniversary of the Option Date
	 	100%

  

	 	(b)	Change in Control. The table in Section 1(a) will not apply and, subject to the other terms and conditions of this agreement, the option will be exercisable in full through
the tenth anniversary of the Option Date if there is a Change in Control (as defined in Section 9). 

  

	 	(c)	Termination of Employment. The effect of termination of employment from TI (as defined in Section 9) is as follows: 

  

	 	(i)	Termination for cause: The option will be canceled immediately upon termination. 

  

	 	(ii)	Death: The option will continue to full term, becoming exercisable per the table in Section 1(a), and will be exercisable by your heirs. 

  

	 	(iii)	Permanent disability: The option will continue to full term, becoming exercisable per the table in Section 1(a). 

  

	 	(iv)	Termination (except for cause), at least six months after the Option Date and when you are retirement eligible (normal or early) either under the terms of the TI 401(k) or pension
plan in your home country or the country in which you work, as applicable (regardless of whether you are a participant in such plan), or if there is no such plan, as may be set forth in the laws or regulations in your home country or the country in
which you work, as applicable: The option will continue to full term, becoming exercisable per the table in Section 1(a). 

	 	(v)	Termination (except for cause) at least six months after the Option Date and after 20 years of service (credited or otherwise) as a TI employee, but you are not retirement eligible
as described in Section 1(c)(iv): The option will continue to full term, but will be exercisable only to the extent it was exercisable on the date of termination. 

  

	 	(vi)	Other: For any termination other than those specified above, the option will be exercisable for 30 days after the date of termination, only to the extent that it was exercisable on
the date of termination per the table in Section 1(a), except as follows: If you die within 30 days after your termination, then your heirs may exercise the option for a period of up to one year after your death, but only to the extent any
unexercised portion was exercisable on the date of termination. 

  

	 	(vii)	If your termination under Section 1(c)(v) or (vi) occurs within 30 days before the effective date of a Change in Control, then the Change in Control will be deemed to have occurred
first and the option will be exercisable in accordance with Section 1(b). 

  

	 	(d)	Confidential Information and Competition. See Section 6, particularly Section 6(c), for the effect of disclosure of confidential information or of competition with TI.

  

	2.	Continuing Employment. Your option will not be affected by any change of employment so long as you continue to be employed by TI. The option will not constitute or be
evidence of any agreement or understanding, expressed or implied, on the part of TI to employ you for any specific period. 

  

	3.	Transferability. Your option is not transferable except by will or by the laws of descent and distribution, and during your lifetime may be exercised only by you.

  

	4.	Manner of Exercise. Your option may be exercised by delivery of a written notice of exercise to the Secretary of the Company or the Secretary’s designee, specifying the
number of shares for which you wish to exercise the option, and delivery of the full purchase price thereof, in a form approved by the Compensation Committee of the Board of Directors of the Company, to the Secretary or the Secretary’s
designee, or in such other manner as the Committee may otherwise from time to time permit. 

  

	5.	Long-Term Incentive Plan. Your option is subject to all of the terms and conditions of the Texas Instruments 2000 Long-Term Incentive Plan (hereinafter “the Plan”).
In the event of any conflict between such terms and conditions and those set forth herein, the terms of the Plan shall govern and be determinative. It is expressly intended that the definition of Change in Control contained in Section 9 shall
supersede any definition of such term or similar term that may be contained in the Plan. 

  

	6.	Confidential Information and Competition. By accepting your option, and in consideration for the option and for the Company’s obligations set forth herein, you agree
with the Company as follows: 

  
 (a) You recognize and acknowledge that in the course of your employment with TI, you have obtained private or confidential information and proprietary data relating to TI, including but not limited to TI’s trade secrets (hereinafter
“Confidential Information”). TI agrees that it will continue to provide you with access to its Confidential Information to the extent necessary for you to carry out the duties of your employment with TI. 

 (b) You agree not to use or disclose to third parties, either directly or indirectly,
Confidential Information at any time, except with the prior written consent of TI. Without intending to limit the remedies available to TI, you acknowledge that damages at law will be an insufficient remedy to TI if you violate the terms of this
Section 6(b) and agree that TI may apply for and have injunctive relief in any court of competent jurisdiction specifically to enforce the terms of this paragraph upon the breach or threatened breach of any such terms or otherwise specifically to
enforce such terms. 
  
 (c) You agree that, if,
during your employment and for a period of two years thereafter you engage in Competition (as defined in Section 9), either directly or indirectly, for your own benefit or on behalf of any other person or entity, or if, at any time, you use or
disclose to third parties any Confidential Information without the written consent of TI, then (i) the option will not be thereafter exercisable at any time, and (ii) you shall repay immediately to the Company any profit (spread between Option Price
and market price of the Company’s common stock on the date of exercise) made on the option within three years prior to termination of your employment or any time after termination of your employment. Any amount payable to the Company pursuant
to this provision may be reduced or waived as the Company, in its sole judgment, deems warranted by the circumstances. 
  
 (d) You recognize and acknowledge that the provisions of this Section 6 relating to nondisclosure and noncompetition during and after
employment are entered into by you in consideration of, and as a material inducement to, the agreements by the Company herein as well as an inducement for the Company to enter into this Option Agreement, and that, but for your agreement to the
provisions of this Section 6, the Company would not have entered into this Agreement. 
  

	7.	Responsibility for Taxes. You acknowledge that the ultimate liability for income tax, social insurance or other tax-related withholding (hereinafter “Tax-Related
Items”) in connection with this grant or its exercise is your responsibility. You authorize TI to withhold all applicable Tax-Related Items legally payable by you from your wages or other cash compensation paid to you by TI or from proceeds of
the sale of the shares. If permissible under local law, TI may (a) sell or arrange for the sale of shares that you acquire to meet the withholding obligation for Tax-Related Items, and/or (b) withhold shares, provided that TI only withholds the
number of shares necessary to satisfy the minimum withholding amount. Finally, you shall pay to TI any amount of Tax-Related Items that TI may be required to withhold that cannot be satisfied by the means described above. 

 

	8.	Nature of Grant. In accepting this grant, you acknowledge that: (a) the grant of your option is voluntary and occasional and does not create any contractual or other right to
receive future grants of options, or benefits in lieu of options; (b) you are voluntarily participating in the Plan; (c) your option is an extraordinary item that does not constitute compensation for services rendered to TI; (d) your option is not
part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, termination, pension or retirement benefits or similar payments; and (e) the option grant will not be interpreted to form
an employment contract or relationship with TI. 

	9.	Certain Definitions. 

  

	 	(a)	The term “Change in Control” means an event when (i) any Person, alone or together with its Affiliates and Associates or otherwise, shall become an Acquiring Person
otherwise than pursuant to a transaction or agreement approved by the Board of Directors of the Company prior to the time the Acquiring Person became such, or (ii) a majority of the Board of Directors of the Company shall change within any 24-month
period unless the election or the nomination for election by the Company’s stockholders of each new director has been approved by a vote of at least a majority of the directors then still in office who were directors at the beginning of the
period. For the purposes hereof, the terms Person, Affiliates, Associates and Acquiring Person shall have the meanings given to such terms in the Rights Agreement dated as of June 18, 1998 between the Company and Harris Trust and Savings Bank, as in
effect on the date hereof; provided, however, that if the percentage employed in the definition of Acquiring Person is reduced hereafter from 20% in such Rights Agreement or any successor Rights Agreement, then such reduction shall also be
applicable for the purposes hereof. 

  

	 	(b)	The term “Company” means Texas Instruments Incorporated and the term “TI” means and includes Texas Instruments Incorporated and its subsidiaries.

  

	 	(c)	The term “Competition” means: 

  
 (i) engaging in any business activity similar to that in which you engaged during your last three years of employment with TI for any
person or entity selling, marketing, designing or manufacturing products the same as, similar to, or that compete with products that TI sells or markets in any area that TI sells or markets such products; 
  
 (ii) engaging in the selling or marketing of any products
that are the same as, similar to, or that compete with any products that you sold or marketed, or attempted to sell or market, during the last three years of your employment with TI in any area in which you sold or marketed, or attempted to sell or
market, such products; 
  
 (iii) engaging in the
manufacture or design of any products that are the same as, similar to or that compete with any products that you sold or marketed, or attempted to sell or market, or participated in the design or manufacture of, during the last three years of your
employment with TI; or 
  
 (iv) engaging in the
selling or marketing of any products that are the same as, similar to, or that compete with any products that you participated in the design or manufacture of during the last three years of your employment with TI in any area in which TI has sold or
marketed, or attempted to sell or market, such products. 
  

	 	(d)	The term “Option Date” means the date of grant of this option. 

  

	10.	Texas Law. This agreement and specifically the provisions of Section 6 hereof shall be construed both as to validity and performance and enforced in accordance with the laws
of the State of Texas without giving effect to the principles of conflict of laws thereof. 

	11.	Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part,
the remaining provisions shall nevertheless be binding and enforceable. 

  
 END 
  
 By accepting this option agreement, I
acknowledge I have read and I agree to be bound by all of the terms and conditions set forth above, including Section 6 relating to Confidential Information and Competition.

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