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                                                                    EXHIBIT 10.3

                            TECUMSEH PRODUCTS COMPANY
                       LONG-TERM INCENTIVE CASH AWARD PLAN

                                 AWARD AGREEMENT
                                      (SAR)

     Agreement made effective ____________, 20__ (the "Grant Date") between
Tecumseh Products Company, a Michigan corporation (the "Company"), and
________________________ (the "Employee").

     This Agreement confirms the grant of a SAR pursuant to and subject to all
the terms and conditions of the Tecumseh Products Company Long-Term Incentive
Cash Award Plan, as it may have been and in the future may be amended in
accordance with its terms (the "Plan"). In this Agreement capitalized terms that
are used without separate definition have the meanings given to them in the
Plan.

     The SAR granted and its terms are as follows:

     -    Number of shares of Class A Stock represented by SAR: _________

     -    Strike Price per share: $_______

     -    SAR vests as to:

               -    _____ shares on __________, 20__;

               -    an additional _____ shares on __________, 20__; and

               -    the final _____ shares on __________, 20__

     -    SAR expires: __________, 20__

     The SAR may be exercised, in whole or in part, by delivering a notice of
exercise to the Company's Secretary in the manner prescribed in the Plan. As
soon as reasonably practicable after each exercise, subject to the terms and
conditions of the Plan, the Company will pay the Employee an amount in cash
equal the product obtained by multiplying:

          (a) (1) the Fair Market Value of one share of Class A stock on the
     date the Secretary receives the notice of exercise, minus (2) the Strike
     Price; times

          (b) the number of shares with respect to which the SAR is exercised.

     In no event will payment be made later than the 15th day of the third month
following the end of the Company's taxable year in which the SAR is exercised.

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     The Company will be entitled to deduct from each amount payable to the
Employee any sums required by federal, state, or local tax law to be withheld
with respect to the vesting or payment of the SAR.

     No portion of the SAR that has not vested and become payable at Termination
of Employment will vest or become payable, except as may be otherwise provided
by the express terms of a Management Contract.

     The Employee's signature below indicates the Employee's acknowledgement
that the Employee has received and read a copy of the Plan. In the event of a
conflict between any term or provision contained in this Agreement and a term or
provision of the Plan, the applicable terms and provisions of the Plan will
govern and prevail.

TECUMSEH PRODUCTS COMPANY               EMPLOYEE:

By:
    ---------------------------------   ----------------------------------------
    [Name]                              [Name]
    [Title]

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                                                                    EXHIBIT 10.4

                                 FIRST AMENDMENT
                                       TO
                              EMPLOYMENT AGREEMENT

     This First Amendment to Employment Agreement, dated as of the 4th day of
March, 2008 (the "Amendment") by and between TECUMSEH PRODUCTS COMPANY, a
Michigan corporation (the "Company"), and EDWIN L. BUKER ("Executive").

                                   WITNESSETH:

     WHEREAS, Executive and the Company are parties to that certain Employment
Agreement dated August 1, 2007 (the "Employment Agreement"); and

     WHEREAS, pursuant to the terms of the Employment Agreement, under the
Company's Long-Term Incentive Equity Award Plan (the "Equity Plan"), Executive
was granted the Initial Incentive Awards consisting of (i) 180,941 Options and
(ii) 89,552 Units; and

     WHEREAS, the Company has determined it would be in the Company's best
interest to terminate the Equity Plan and replace it with a plan entitled the
Long-Term Incentive Cash Award Plan (the "Cash Plan"); and

     WHEREAS, as a result of the termination of the Equity Plan, Executive and
the Company desire to: (i) terminate the Initial Incentive Awards granted
pursuant to the Equity Plan and issue replacement awards to Executive under the
Cash Plan; and (ii) amend the Employment Agreement to provide that Annual Awards
will be granted to Executive under the Cash Plan.

          NOW, THEREFORE, in consideration of the mutual covenants contained
herein, the parties hereto agree as follows:

1. Definitions. Capitalized terms not otherwise defined herein shall have the
meaning ascribed to such term in the Employment Agreement.

2. Amendment of Employment Agreement.

     A. (i) The second sentence of Section 3(b) of the Employment Agreement is
deleted in its entirety and replaced with the following:

               The bonus actually earned and payable to Executive will be
          determined based on achievement of Company and individual performance
          objectives as may be established with respect to each

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          calendar year by the Board or a committee thereof, and subject to such
          other terms and conditions established by the Board pursuant to the
          Company's Annual Incentive Plan, as it may be amended from time to
          time, or any new annual incentive or bonus plan the Company may adopt
          in the future to replace it.

     (ii) The last sentence of Section 3(b) of the Employment Agreement is
deleted in its entirety and replaced with the following:

               Unless otherwise provided in the Company's Annual Incentive Plan,
          the minimum annual performance bonuses as described in the preceding
          sentence will be paid no later than March 15 of the year following the
          year in which each annual bonus is earned (i.e., March 15, 2008 and
          March 15, 2009).

     B. Section 4 of the Employment Agreement is deleted in its entirety and
replaced with the following:

          4. Long Term Incentive Plan Grants.

                    (a) Annual Grants. Commencing with 2008, and continuing for
               each calendar year during the Employment Period, Executive shall
               receive an annual grant of awards under the Company's Long-Term
               Incentive Cash Award Plan adopted by the Board on March 4, 2008,
               as the same may be amended (the "Cash Plan") equal to (as of the
               date of the grant) the aggregate of Executive's (i) then current
               Base Salary and (ii) the Target Bonus then in effect (the "Annual
               Award"). The Annual Awards shall be fixed and determined in
               accordance with, and shall be subject to any conditions set forth
               in the Cash Plan and the granting document(s).

                    (b) Initial Grants. Effective as of the date on which the
               Board adopts the Cash Plan (the "Plan Date"), Executive is hereby
               granted pursuant to the Cash Plan (i) a number of stock
               appreciation rights equal to the sum of 180,941 plus a number
               stock appreciation rights having a Black-Scholes value equal to
               the difference between the Strike Price (as hereinafter
               determined) and $16.75 multiplied by 180,941 (the "Initial
               SARs"), and (ii) 89,552 phantom shares (the "Initial Phantom
               Shares" and collectively, with the Initial SARs, the "Initial
               Incentive Awards") to replace and in full substitution for the
               Initial Incentive Awards granted pursuant to the Employment
               Agreement. The Initial SARs will (x) have a Strike Price (within
               the meaning of the Cash Plan) equal to the higher of the closing
               market price of the Company's Class A shares of common stock on
               the Plan Date or on the third (3rd) business day after the
               Company files its

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               Annual Report on Form 10-K for its fiscal year ended December 31,
               2007, (y) expire on August 13, 1014, and (z) vest in three (3)
               tranches, with one-third of the Initial SARs exercisable on
               August 13, 2008, one-third on August 13, 2009, and one-third on
               August 13, 2010. The Initial Phantom Shares will vest, and will
               be settled as of, August 13, 2010, if Executive remains employed
               by the Company for the full term of Employment Period. The number
               of Initial SARS will be determined by the compensation consulting
               firm of Lyons, Benenson & Company, Inc., promptly communicated to
               Executive, and included in the Award Agreement relating to the
               Initial Incentive Awards. The Initial Incentive Awards shall be
               subject to any conditions set forth in the Cash Plan and the
               granting document(s).

     C. The first sentence of Section 8(b) of the Employment Agreement is
deleted in its entirety and replaced with the following:

                    (b) Termination Payments - Termination by Executive. If
               Executive voluntarily terminates his employment (i) without Good
               Reason, or (ii) without Good Reason on Change of Control, then
               Executive shall be entitled to receive: (A) a cash payment equal
               to the aggregate amount of (x) accrued but unpaid Base Salary and
               (y) unused vacation days; (B) settlement of any then vested
               Initial Phantom Shares and Phantom Shares (as defined in the Cash
               Plan); and (C) the ability to exercise any then vested Initial
               Incentive Award and Annual Awards in accordance with their terms.

The balance of Section 8(b) of the Employment Agreement shall remain unchanged.

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     D. The first sentence of Section 8(g) of the Employment Agreement is
deleted in its entirety and replaced with the following:

                    (g) Termination Payments - Disability. If Executive is
               terminated by the Company for a Disability (as hereinafter
               defined), then Executive shall be entitled to receive: (i) a cash
               payment equal to the aggregate amount of (A) accrued but unpaid
               Base Salary, (B) unused vacation days, and (C) the Target Bonus
               on a pro rata basis through the Termination Date; (D) settlement
               of any then vested Initial Phantom Shares and Phantom Shares; and
               (ii) the immediate vesting of the next tranche of Initial SARs
               and SARs (as defined in the Cash Plan) that would have vested
               after the Termination Date under any Initial Incentive Award and
               Annual Awards; and (iii) the ability to exercise any then vested
               Initial Incentive Award and Annual Awards in accordance with
               their terms.

The balance of Section 8(g) of the Employment Agreement shall remain unchanged.

     E. Section 16 of the Employment Agreement is deleted in its entirety and
replaced with the following:

          16. Conflict. In the event of a conflict between the terms of this
          Agreement and the Cash Plan or the Company's Annual Incentive Plan,
          this Agreement shall control.

3. Termination of Options and Units. Executive and the Company agree that upon
grant of the Initial SARs and Initial Phantom Shares, the grants of the Units
and Options as provided in the Employment Agreement, and any related granting
documents will be immediately terminated and of no further force or effect.

4. Conflicts. In the event there is a conflict between the terms of the
Employment Agreement and the terms of this Amendment, the terms of this
Amendment shall control.

5. Employment Agreement. The Employment Agreement, as hereby amended, shall
continue in full force and effect, to the fullest extent not inconsistent with
this Amendment.

6. Applicable Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Michigan applicable to contracts made
and to be performed within such State without regards to the principles of
conflicts of law.

7. Counterparts. This Amendment may be executed in two or more counterparts,
each of which shall be deemed to be an original but all of which together shall
constitute one and the same instrument.

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     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first above written.

                                        TECUMSEH PRODUCTS COMPANY

                                        /s/ James S. Nicholson
                                        ----------------------------------------
                                        By: James S. Nicholson
                                        Its: Vice President, Treasurer and Chief
                                             Financial Officer

                                        EXECUTIVE

                                        /s/ Edwin L. Buker
                                        ----------------------------------------
                                        Edwin L. Buker

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