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                          BRIGGS & STRATTON CORPORATION

             Form 10-Q for Quarterly Period Ended December 27, 1998



                                Exhibit No. 10.1


                              SEPARATION AGREEMENT








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                              SEPARATION AGREEMENT



This agreement is made as of this 30th day of November by and between Briggs &
Stratton Corporation, a Wisconsin corporation (the "Employer") and Robert H.
Eldridge (the "Employee"). In consideration of the promises set forth herein,
the parties hereto agree as follows:

1.   Employment. Employment agreement executed on January 30, 1998 between
     Robert H. Eldridge and Briggs & Stratton shall remain in force through
     October 31, 1999. The Employee's service shall be performed at the location
     where he was employed immediately preceding the date hereof or any office
     or location less than 35 miles from such location.

2.   Other Compensation and Benefits. Except as specified in this Section 2 and
     Sections 3 and 4 hereof, Employee shall participate in such executive
     compensation structures and employee benefit plans as shall cover senior
     executives of the Employer generally and his participation and benefits
     (and the participation and benefits of any person claiming through his
     status as a participant) shall be governed by the terms and conditions of
     such structures and plans through October 31, 1999.

3.   Supplemental Pension Benefits. If Employee's employment shall continue
     until October 31, 1999, he shall be entitled to a monthly pension benefit
     commencing November 1, 1999 equal to $16,667.00, which shall be payable in
     the form of a joint and 100% survivor annuity - i.e., the monthly pension
     shall be $16,667.00 during Employee's lifetime, and should the spouse to
     whom he was legally married on November 1, 1999 survive him, she will be
     paid a monthly annuity for her life of $16,667.00. Such amounts shall
     include any amounts to which the Employee and such surviving spouse may be
     entitled under any qualified defined benefit pension plan maintained by the
     Employer and any unfunded supplemental defined benefit pension plan
     maintained by the Employer. To the extent that Employee is covered by a
     plan or plans described in the preceding sentence, he shall make all such
     elections and file all such papers as the Employer shall require so that
     benefits under such plans shall be payable in the form and at the time
     specified in the first sentence of this Section 3. To the extent that the
     benefits specified under this Section 3 exceed the benefits payable under
     such plans, any and all such benefits shall be an unfunded obligation of
     the Employer as to which the Employee and any person claiming through the
     Employee shall be merely a general unsecured creditor of the Employer;
     provided that the Company shall cause this benefit to be covered by the
     "rabbi" trust which it maintains with respect to other executive benefits.

4.   Medical Coverage. If Employee's employment shall continue until October 31,
     1999, he shall be entitled to purchase medical coverage for the period
     commencing on his separation from active service and continuing until he
     reaches age 65 as though he were covered by the medical coverage
     continuation rules of the Consolidated Omnibus Budget Reconciliation Act of
     1985, as amended ("COBRA") for that entire period.

5.   Release. As a condition to the receipt of the benefits described in the
     first clause of the first sentence of Section 3 hereof, the Employee shall
     execute such release as the Employer shall specify.

6.   Governing Law. This Agreement shall be governed by the internal laws of the
     State of Wisconsin.


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7.   Binding Effects. The rights and obligations of the Employer hereunder shall
     inure to the benefit of and shall be binding upon the respective successors
     and assigns of Employer.

8.   Non-waiver. The waiver by Employer of a breach of any provision of this
     Agreement shall not operate or be construed as a waiver of any other or
     subsequent breach by the Employee.

9.   Approval. This Agreement shall be subject to the approval of the
     Nominating, Compensation and Governance Committee of the Board of Directors
     of the Employer.

10.  Headings. Headings are for convenience of reference only.


BRIGGS & STRATTON CORPORATION

By       /s/ C. B. Rogers, Jr.                     /s/ R. H. Eldridge
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         C. B. Rogers, Jr., Chairman               Robert H. Eldridge (Employee)
         Nominating, Compensation and
         Governance Committee