Document:

Amended & Restated Director's Premium Option and Stock Grant Program

 BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES 
  
 2004 Annual Report on Form 10-K 
  
 EXHIBIT 10.12 
  
 AMENDED AND RESTATED DIRECTOR’S PREMIUM OPTION AND 
 STOCK GRANT PROGRAM 
  
 Effective July 1, 2004 
  

 As Amended and Restated 
 Effective 7-1-04 
  
 BRIGGS
& STRATTON CORPORATION 
  
 DIRECTOR’S
PREMIUM OPTION AND STOCK GRANT PROGRAM 
  
 As adopted by
the Board of Directors on April 21, 2004 
  

 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 100,000 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 200 shares of the Company’s Stock and 2,000 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. 
  

 2 

	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. 

  

 3 

	(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. 

  

 4Form of Director's Stock Option Agreement

 BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES 
  
 2004 Annual Report on Form 10-K 
  
 EXHIBIT 10.12(a) 
  
 BRIGGS & STRATTON CORPORATION 
 FORM OF DIRECTOR’S STOCK OPTION AGREEMENT UNDER THE 
 DIRECTOR’S PREMIUM OPTION AND STOCK GRANT
PROGRAM 
  
 Effective July 1, 2004 
  

			
	 	 	[Date]

  
 [Name] 
  
 You have been awarded a Stock Option under The
Briggs & Stratton Corporation Director’s Premium Option and Stock Grant Program (“Director’s Program”) as follows: 
  

	*	Type of Option: Premium Stock Option 

  

	*	Date of Grant: [Date] 

  

	*	Exercise Price: [110% of Fair Market Value on grant date] 

  
 Number of Shares and Form of Option: Non-qualified option on [Number] shares of Briggs & Stratton Corporation common stock 
  

	*	Exercise: Option may be exercised between [Date] and [Date] 

  
 This option is granted pursuant to the Director’s Program and is subject to the terms and conditions of the Director’s Program and to the terms
and conditions set forth in the attached Stock Option Agreement. This option is not transferable during your life, and must be exercised within specified time limits 
  
 Please acknowledge this grant under the Director’s Program by signing the enclosed copy of this letter below and
returning it to me, thereby agreeing to the terms and conditions of the attached Stock Option Agreement. 
  

			
	Very truly yours,
	
	BRIGGS & STRATTON CORPORATION
		
	By:	 	 
	 	 	 John S. Shiely
 Chairman, President
 and Chief Executive Officer

  

	
	 Accepted:

	
	  
	 Optionee: [Name]

  

 BRIGGS & STRATTON CORPORATION 
 DIRECTOR’S STOCK OPTION AGREEMENT 
  

			
	Optionee:	  	[Name]
	No. of Shares:	  	[Number]
	Date of Grant:	  	[Date]
	Expiration Date:	  	[Date]
	Exercise Price:	  	$ [110% of Fair Market Value on grant date]

  
 BRIGGS & STRATTON
CORPORATION (the “Company”), a Wisconsin corporation, hereby grants to the above-named director (the “Optionee”) under the Briggs & Stratton Corporation Director’s Premium Option and Stock Grant Program (the
“Program”) a stock option to purchase from the Company during the period commencing (except as otherwise provided herein) on [Date] and ending (except as otherwise provided herein) on the expiration date set forth above (the “option
term”) up to but not exceeding in the aggregate the number of shares set forth above of the Common Stock, $0.01 par value, of the Company (“Common Stock”) at the price per share set forth above, all in accordance with and subject to
the following terms and conditions: 
  
 1. No shares subject to
this option may be purchased before [Date]. On such date and from time to time thereafter, the shares subject to this option may be purchased during the option term. If the Optionee’s service as a director is terminated for any reason prior to
[Date], then, unless otherwise determined by (or pursuant to authority granted by) the Board of Directors of the Company (the “Board”), this option shall not be exercisable. 
  
 2. If the Optionee’s service as a director terminates by reason of death before the option becomes exercisable, this
option may be exercised for a period of one year from the date of death. If the Optionee’s service as a director terminates by reason of death after the option becomes exercisable, this option may be exercised until the expiration of the
option. 
  
 If the 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, this option may 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 from the date of such retirement or until the expiration of the option term, whichever period is shorter; provided, however, that if the Optionee dies within such three-year period, the option
shall, notwithstanding the expiration of such three-year 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 option
term, whichever period is shorter. 
  
 If the
Optionee’s service as a director terminates for any reason other than death or retirement as described above, the option shall thereupon terminate, except that the option, to the extent then exercisable, may be exercised for the balance of the
option term. Notwithstanding the foregoing, if Optionee’s service as a director terminates at or after a Change in Control (as defined in the Plan), other than by death or retirement (as described above), this option shall be exercisable for
the lesser of (x) six months and one day, and (y) the balance of the option term. 
  
 3. Exercise of this option shall occur on the date (the “Date of Exercise”) the Company receives at its principal executive offices (i) a written notice (the “Notice of Exercise”) specifying the
number of shares to be purchased, and (ii) payment by certified check, cashier’s check or confirmation of a wire transfer for the purchase price for such shares. In lieu of such payment by certified check, cashier’s check or wire transfer,
the Optionee may tender to the Company (i) outstanding shares of Common Stock, having a Fair Market Value, determined on the Date of Exercise, equal to the purchase price for the number of shares being purchased, or (ii) a combination of shares of
outstanding Common Stock, as described above, so valued and payment as aforesaid which equals said purchase price, together, in each case, with payment of any applicable stock transfer tax. If the Fair Market Value, as so determined, of the shares
tendered to the Company shall exceed the purchase price applicable to the number of shares being purchased, an appropriate cash adjustment will be made by the Company for any fractional share remaining. The Company will not deliver shares of Common
Stock being purchased 

  

 
upon any exercise of this option unless it has received an acceptable form of payment for all applicable withholding taxes or arrangements satisfactory to
the Company for the payment thereof have been made. Withholding taxes may be paid with outstanding shares of Common Stock (including Common Stock delivered upon exercise of this option), such Common Stock being valued at Fair Market Value on Date of
Exercise. The Optionee shall have no rights as a shareholder with respect to any shares covered by this option until the date of the issuance of a stock certificate for such shares. 
  
 4. This option is not transferable by the Optionee otherwise than by will or the laws of descent and distribution and is
exercisable during the Optionee’s lifetime only by the Optionee or by the guardian or legal representative of the Optionee. 
  
 5. The terms and provisions of this Agreement (including, without limiting the generality of the foregoing, terms and provisions relating to the option
price and the number and class of shares subject to this option) shall be subject to appropriate adjustment in the event of any recapitalization, merger, consolidation, disposition or property or stock, separation, reorganization, stock dividend,
issuance of rights, combination or split-up or exchange of shares, or the like. 
  
 6. Whenever the word “Optionee” is used herein under circumstances such that the provision should logically be construed to apply to the executors, the administrators, or the person or persons to whom this
option may be transferred by will or by the laws of descent and distribution, it shall be deemed to include such person or persons. 
  
 7. The terms and provisions of the Plan (a copy of which will be furnished to the Optionee upon written request to Briggs & Stratton Corporation,
12301 West Wirth Street, Wauwatosa, Wisconsin 53222) are incorporated herein by reference. To the extent any provision of this Agreement is inconsistent or in conflict with any term or provision of the Plan, the Plan shall govern. Capitalized terms
not otherwise defined herein have the meaning set forth in the Plan. 
  

 IN WITNESS WHEREOF, this Stock Option Agreement has been duly executed as of [Date]. 
  

			
	BRIGGS & STRATTON CORPORATION
		
	By	 	 
	 	 	 John S. Shiely
 Chairman, President and
 Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]