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                                                                   Exhibit 10.48

                          EXECUTIVE SEVERANCE AGREEMENT


                         UNITED WISCONSIN SERVICES, INC.

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CONTENTS

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<TABLE>
<S>                                                                          <C>
Article 1. Establishment, Term, and Purpose                                    1

Article 2. Definitions                                                         1

Article 3. Loss of Eligibility under this Agreement                            5

Article 4. Severance Benefits                                                  5

Article 5. Form and Timing of Severance Benefits                               8

Article 6. Excise Tax Equalization Payment                                     8

Article 7. The Company's Payment Obligation                                    9

Article 8. Legal Remedies                                                     10

Article 9. Outplacement Assistance                                            10

Article 10. Successors and Assignment                                         11

Article 11. Miscellaneous                                                     11
</TABLE>

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                          EXECUTIVE SEVERANCE AGREEMENT

     THIS AGREEMENT is made and entered into as of the 16th day of October,
2000, by and between United Wisconsin Services, Inc. (hereinafter referred to as
the "Company") and Mary Traver (hereinafter referred to as the "Executive").

     WHEREAS, the Board of Directors of the Company has approved the Company
entering into severance agreements with certain key executives of the Company;

     WHEREAS, the Executive is a key executive of the Company;

     WHEREAS, should the possibility of a Change in Control of the Company
arise, the Board believes it is imperative that the Company and the Board should
be able to rely upon the Executive to continue in his or her position, and that
the Company should be able to receive and rely upon the Executive's advice, if
requested, as to the best interests of the Company without concern that the
Executive might be distracted by the personal uncertainties and risks created by
the possibility of a Change in Control; and

     WHEREAS, should the possibility of a Change in Control arise, in addition
to his or her regular duties, the Executive may be called upon to assist in the
assessment of such possible Change in Control, advise management and the Board
as to whether such Change in Control would be in the best interests of the
Company, and to take such other actions as the Board might determine to be
appropriate.

     NOW, THEREFORE, to assure the Company that it will have the continued
dedication of the Executive and the availability of his or her advice and
counsel notwithstanding the possibility, threat, or occurrence of a Change in
Control of the Company, and to induce the Executive to remain in the employ of
the Company, and for other good and valuable consideration, the Company and the
Executive agree as follows:

ARTICLE 1. ESTABLISHMENT, TERM, AND PURPOSE

     This Agreement will commence on the Effective Date and, subject to Article
3, shall continue in effect for three (3) full years. However, at the end of
such three (3) year period and, if extended, at the end of each additional year
thereafter, the term of this Agreement shall be extended automatically for one
(1) additional year, unless the Committee delivers written notice six (6) months
prior to the end of such term, or extended term, to the Executive, that the
Agreement will not be extended. In the latter case, the Agreement will terminate
at the end of the term, or extended term, then in progress, or as provided in
Article 3.

     However, in the event a Change in Control occurs during the original or any
extended term, this Agreement will remain in effect for the longer of: (i)
twenty-four (24) months beyond the month in which such Change in Control
occurred; or (ii) until all obligations of the Company hereunder have been
fulfilled, and until all benefits required hereunder have been paid to the
Executive.

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ARTICLE 2. DEFINITIONS

     Whenever used in this Agreement, the following terms shall have the
meanings set forth below and, when the meaning is intended, the initial letter
of the word is capitalized.

     2.1  "BASE SALARY" means the salary of record paid to the Executive by the
Company as annual salary, excluding amounts received under incentive or other
bonus plans, whether or not deferred.

     2.2  "BENEFICIAL OWNER" shall have the meaning ascribed to such term in
Rule 13d-3 of the General Rules and Regulations under the Exchange Act, but
excluding those whose status arises from the holding of proxies and including
option holders on a fully diluted basis.

     2.3  "BENEFICIARY" means the persons or entities designated or deemed
designated by the Executive pursuant to Section 11.2 herein.

     2.4  "BOARD" means the Board of Directors of the Company.

     2.5  "CAUSE" means: (a) the Executive's willful and continued failure to
substantially perform his or her duties with the Company (other than any such
failure resulting from Disability or occurring after issuance by the Executive
of a Notice of Termination for Good Reason), after a written demand for
substantial performance is delivered to the Executive that specifically
identifies the manner in which the Company believes that the Executive has
willfully failed to substantially perform his or her duties, and after the
Executive has failed to resume substantial performance of his or her duties on a
continuous basis within thirty (30) calendar days of receiving such demand; (b)
the Executive willfully engaging in conduct (other than conduct covered under
(a) above) which is demonstrably and materially injurious to the Company,
monetarily or otherwise; or (c) the Executive having been convicted of a felony
(as evidenced by binding and final judgment, order or decree of a court of
competent jurisdiction, in effect after exhaustion of all rights of appeal)
which substantially impairs the Executive's ability to perform his or her duties
or responsibilities. For purposes of this subparagraph, the Executive's actions
or failures to act will be deemed "willful" only if done or omitted in bad faith
and without reasonable belief that the action or omission was in the best
interests of the Company.

     2.6  "CHANGE IN CONTROL" of the Company shall have the following meanings:

          (a)  Any Person (other than the Company, Blue Cross & Blue Shield
               United of Wisconsin ("BCBSUW") or any of their respective
               subsidiaries), a trustee or other fiduciary holding securities
               under an employee benefit plan of the Company, or a corporation
               owned directly or indirectly by the shareowners of the Company in
               substantially the same proportions as their ownership of stock of
               the Company), or an underwriter temporarily holding securities
               pursuant to an offering of securities, becomes the Beneficial
               Owner, directly or indirectly, of securities of the Company
               (excluding from the securities beneficially owned by such

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               Person any securities acquired directly from the Company or its
               affiliates pursuant to express authorization by the Board citing
               this exception) representing twenty percent (20%) or more of the
               combined voting power of the Company's then outstanding voting
               securities and representing more than the voting power then held
               by the shareowner that was the largest shareowner at the time
               conversion occurred; or

          (b)  During any period of two (2) consecutive years (not including any
               period prior to the Effective Date), individuals who at the
               beginning of such period constitute the Board (and any new
               director, whose election by the Company's shareowners was
               approved by a vote of at least two-thirds (2/3) of the directors
               then still in office who either were directors at the beginning
               of the period or whose election or nomination for election was so
               approved), (collectively the "Continuing Directors"), cease for
               any reason to constitute a majority thereof; provided, however,
               that individuals who are appointed to the Board pursuant to or in
               accordance with the terms of an agreement related to a merger,
               consolidation, or share exchange involving the Company (or any
               direct or indirect subsidiary of the Company) shall not be
               Continuing Directors for purposes of this Agreement until after
               such individuals are first nominated for election by a vote of at
               least two-thirds (2/3) of the then Continuing Directors and are
               thereafter elected as directors by the shareowners of the Company
               at a meeting of shareowners held following consummation of such
               merger, consolidation, or share exchange; or

          (c)  Any of the following occurs: (i) the Directors (and, if needed,
               the Company's shareowners) approve a plan of complete liquidation
               of the Company; or [ii] the sale, lease, exchange, transfer or
               other disposition of all or substantially all the Company's
               assets; or (iii) a merger, consolidation, share exchange, or
               reorganization of the Company with or involving any other
               corporation, other than a merger, consolidation, share exchange
               or reorganization that would result in the voting securities of
               the Company outstanding immediately prior thereto continuing to
               represent (either by remaining outstanding or by being converted
               into voting securities of the surviving entity), more than fifty
               percent (50%) of the combined voting power of the voting
               securities of the Company (or such surviving entity) outstanding
               immediately after such merger, consolidation, share exchange or
               reorganization.

     However, in no event shall a "Change in Control" be deemed to have
occurred, with respect to an Executive, if the Executive is part of a purchasing
group which consummates the Change-in-Control transaction. An Executive shall be
deemed "part of a purchasing group" for purposes of the preceding sentence if
the Executive is an equity participant in the purchasing company or group
(except for: (i) passive ownership of less than three percent (3%) of the stock
of the purchasing company; or (ii) ownership of equity participation in the
purchasing company or group which is otherwise not

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significant, as determined prior to the Change in Control by a majority of the
nonemployee directors).

     Additionally, in no event shall a "Change in Control" be deemed to have
occurred, solely by reason of a merger, consolidation, or reorganization of the
Company with BCBSUW.

     2.7  "CODE" means the United States Internal Revenue Code of 1986, as
amended, and any successors thereto.

     2.8  "COMMITTEE" means the Management Review Committee of the Board or any
other committee appointed by the Board to perform the functions of the
Management Review Committee or any successor committee which performs the
functions of the Management Review Committee or, in the absence of one, by the
Board.

     2.9  "COMPANY" means United Wisconsin Services, Inc., a Wisconsin
corporation, or any successor thereto as provided in Article 10 herein.

     2.10 "DISABILITY" means a complete and permanent disability as determined
by the Committee in accordance with the UWSI/BCBSUW Long-Term Disability Plan.

     2.11 "EFFECTIVE DATE" means the date of this Agreement set forth above.

     2.12 "EFFECTIVE DATE OF TERMINATION" means the date on which a Qualifying
Termination occurs.

     2.13 "EXCHANGE ACT" means the United States Securities Exchange Act of
1934, as amended.

     2.14 "GOOD REASON" shall mean, without the Executive's express written
consent, the occurrence of any one or more of the following:

          (a)  The assignment of the Executive to duties materially inconsistent
               with the Executive's authorities, duties, responsibilities, and
               status (including offices and reporting requirements) as an
               employee of the Company, or a reduction or alteration in the
               nature or status of the Executive's authorities, duties, or
               responsibilities from the greater of those in effect (i) on the
               Effective Date; (ii) during the fiscal year immediately preceding
               the year of the Change in Control; or (iii) immediately preceding
               the Change in Control;

          (b)  Any breach of this Agreement by the Company, other than an
               isolated, insubstantial or inadvertent failure which is not taken
               in bad faith and which the Company or any successor remedies
               promptly after notice from the Executive;

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          (c)  The Executive's principal office is moved to a location that is
               more than fifty (50) miles farther from the Executive's home than
               the principal office location immediately prior to the Change in
               Control;

          (d)  A reduction by the Company in the Executive's Base Salary as in
               effect on the Effective Date or as the same shall be increased
               from time to time;

          (e)  A material reduction in the Executive's level of participation in
               any of the Company's short- and/or long-term incentive
               compensation plans, or employee benefit or retirement plans,
               policies, practices, or arrangements in which the Executive
               participates from the greater of the levels in place on: (i) the
               Effective Date; (ii) the fiscal year immediately preceding the
               Change in Control; or (iii) immediately preceding the Change in
               Control;

          (f)  The failure of the Company to obtain a satisfactory agreement
               from any successor to the Company to assume and agree to perform
               this Agreement, as contemplated in Article 10 herein; or

          (g)  Any termination of Executive's employment by the Company that is
               not effected pursuant to a Notice of Termination.

     The existence of Good Reason shall not be affected by the Executive's
temporary incapacity due to physical or mental illness not constituting a
Disability. The Executive's Retirement shall constitute a waiver of the
Executive's rights with respect to any circumstance constituting Good Reason.
The Executive's continued employment shall not constitute a waiver of the
Executive's rights with respect to any circumstance constituting Good Reason.

     2.15 "NOTICE OF TERMINATION" means a written notice which shall indicate
the specific provision in this Agreement governing the Executive's termination
of employment and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated.

     2.16 "PERSON" shall have the meaning ascribed to such term in Section
3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a "group" as provided in Section 13(d).

     2.17 "PROFIT SHARING PLAN" means the United Wisconsin Services, Inc. and
Blue Cross & Blue Shield United of Wisconsin Profit Sharing Plan.

     2.18 "QUALIFYING TERMINATION" means termination of the Executive's
employment under one of the circumstances described in Section 4.2 below.

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     2.19 "RETIREMENT" shall have the meaning ascribed to such term in the
Company's tax-qualified defined benefit pension plan or under the successor or
replacement of such plan if it is then no longer in effect. "Retirement" shall
be deemed to occur only if it is pursuant to a mandatory retirement provision in
such plan or if the Executive and the Company agree in writing that "Retirement"
has occurred for purposes of this Agreement. (Retirement pursuant to a mandatory
retirement provision added on or after a date six months prior to a Change in
Control will not be treated as mandatory retirement for purposes of this
Agreement.)

     2.20 "SEVERANCE BENEFITS" means the payment of severance compensation as
provided in Section 4.3 herein.

ARTICLE 3. LOSS OF ELIGIBILITY UNDER THIS AGREEMENT

     In the event Executive's job classification is reduced, the Committee, in
its sole discretion, may cancel this Agreement by written notice delivered to
the Executive. A cancellation occurring later than six (6) months prior to a
Change in Control shall be null and void.

ARTICLE 4. SEVERANCE BENEFITS

     4.1  RIGHT TO SEVERANCE BENEFITS. The Executive shall be entitled to
receive from the Company Severance Benefits, as described in Section 4.3 herein,
if the Executive incurs a Qualifying Termination during the six (6) month period
immediately prior to a Change in Control or within twenty-four (24) calendar
months following a Change in Control.

     The Executive shall not be entitled to receive Severance Benefits if he or
she is terminated for Cause, or if his or her employment with the Company ends
due to death, Disability, or Retirement or due to termination of employment by
the Executive without Good Reason.

     4.2  QUALIFYING TERMINATION OF EMPLOYMENT. Upon the occurrence of any one
or more of the following events the Company shall pay Severance Benefits to the
Executive under this Agreement:

          (a)  Termination of the Executive's employment by the Company for
               reasons other than Cause.

          (b)  Termination by the Executive for Good Reason pursuant to a Notice
               of Termination delivered to the Company by the Executive.

     4.3  DESCRIPTION OF SEVERANCE BENEFITS. In the event the Executive becomes
entitled to receive Severance Benefits as provided in Sections 4.1 and 4.2
herein, the Company shall pay to the Executive and provide him or her with the
following:

          (a)  An amount equal to two (2) times the highest rate of the
               Executive's annualized Base Salary in effect at any time up to
               and including the Effective Date of Termination.

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          (b)  An amount equal to two (2) times the Executive's target award
               under the annual bonus plan and the Profit Sharing Plan
               established for the plan year in which the Executive's Effective
               Date of Termination occurs, or the prior plan year if a target
               award has not been established for the plan year in which the
               Executive's Effective Date of Termination occurs.

          (c)  A continuation of the welfare benefits of health care, life and
               accidental death and dismemberment, and disability insurance
               coverage (collectively, "Supplemental Benefits") for two (2) full
               years after the Effective Date of Termination. These benefits
               shall be provided at the same cost to the Executive (if any), and
               at the same coverage level, as in effect as of the Executive's
               Effective Date of Termination. However, in the event the premium
               cost and/or level of coverage shall change for all management
               employees with respect to Supplemental Benefits, the cost and/or
               coverage level, likewise, shall change for the Executive in a
               corresponding manner. COBRA-related benefits will begin as of the
               end of the three year period (or upon earlier discontinuance
               described below).

               The continuation of any or all these welfare benefits shall be
               discontinued prior to the end of the two (2) year period in the
               event the Executive has available substantially similar benefits
               at a comparable cost from a subsequent employer. The Executive
               must supply all information reasonably requested by the Company
               pursuant to this subsection.

          (d)  An amount equal to the Executive's unpaid targeted annual bonus,
               established for the plan year in which the Executive's Effective
               Date of Termination occurs, multiplied by a fraction, the
               numerator of which is the number of days completed in the
               then-existing fiscal year through the Effective Date of
               Termination, and the denominator of which is three hundred
               sixty-five (365).

          (e)  An amount equal to the Executive's unpaid allocation from the
               Profit Sharing Plan, established for the plan year in which the
               Executive's Effective Date of Termination occurs, multiplied by a
               fraction, the numerator of which is the number of days completed
               in the then-existing fiscal year through the Effective Date of
               Termination, and the denominator of which is three hundred
               sixty-five (365).

     Incentive awards granted under the United Wisconsin Services, Inc. Equity
Incentive Plan, the United Wisconsin Services, Inc. Stock Appreciation Rights
Plan and other incentive arrangements adopted by the Company shall be governed
by the terms of the applicable plan.

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     The aggregate benefits accrued by the Executive as of the Effective Date of
Termination under the UWSI/BCBSUW Pension Plan, the UGS Pension Plan, the
UWSI/BCBSUW 401(k) Plan, and other qualified savings and retirement plans
sponsored by the Company shall be governed by the terms of the applicable plan.
For purposes of the UWSI/BCBSUW Supplemental Executive Retirement Plan, such
benefits shall be calculated under the assumption that the minimum service
requirement under Section 4.1 of the UWSI/BCBSUW Supplemental Executive
Retirement Plan (vesting requirement) shall be deemed to have been satisfied as
of the date of a Qualifying Termination and the Executive's employment continued
following the Effective Date of Termination for two (2) full years (i.e., two
(2) additional years of service credits shall be added); provided, however, that
for purposes of determining "final average pay" under such program, the
Executive's actual pay history as of the Effective Date of Termination shall be
used.

     For purposes of the UWSI/BCBSUW Retiree Medical Plan, such benefits shall
be calculated under the assumption that the Executive's employment continued
following the Effective Date of Termination for three (3) full years (i.e.,
three (3) additional years of service credits shall be added and the Executive's
age advanced to correspond).

     Compensation which has been deferred under the UWSI/BCBSUW Deferred
Compensation Plan or other plans sponsored by the Company, as applicable,
together with all interest that has been credited with respect to any such
deferred compensation balances, shall be governed by the terms of the applicable
plan.

     4.4  TERMINATION FOR DISABILITY. In the event the Executive's employment is
terminated due to Disability, the Executive shall not be entitled to the
Severance Benefits described in Section 4.3. The terms and conditions of the
Executive's employment rights under that circumstance shall be determined
without regard to this Agreement.

     4.5  TERMINATION FOR RETIREMENT OR DEATH. If the Executive's employment is
terminated by reason of his or her Retirement or death, the Executive shall not
be entitled to the Severance Benefits described in Section 4.3. The terms and
conditions of the Executive's employment rights under those circumstances are to
be determined without regard to this Agreement.

     4.6  TERMINATION FOR CAUSE OR BY THE EXECUTIVE OTHER THAN FOR GOOD REASON.
          If the Executive's employment is terminated either: (a) by the Company
          for Cause; or (b) by the Executive other than for Good Reason, the
          Company shall pay the Executive the amounts specified in Section 4.8
          and the Company shall have no further obligations to the Executive
          under this Agreement.

     4.7  NOTICE OF TERMINATION. Any termination of employment by the Company or
          by the Executive for Good Reason shall be communicated by a Notice of
          Termination. If the Executive is providing the notice, it should be
          delivered to a member of the Committee. If the Company is providing
          notice, it should be delivered to the Executive.

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     4.8  PAYMENT OF ACCRUED COMPENSATION AND BENEFITS. In all events, Executive
          shall, upon termination of employment with the Company, be paid an
          amount equal to Executive's unpaid Base Salary, accrued vacation pay
          and any other accrued but unpaid compensation in cash or cash
          equivalents within ten (10) days of the termination except where the
          terms of the compensation arrangement or plan govern instead of this
          Agreement and specifically provide for later payment.

ARTICLE 5. FORM AND TIMING OF SEVERANCE BENEFITS

     5.1  FORM AND TIMING OF SEVERANCE BENEFITS. The Severance Benefits
described in Sections 4.3(a), 4.3(b), 4.3(d), and 4.3(e) herein shall be paid in
cash or cash equivalents to the Executive in a single lump sum as soon as
practicable following the Effective Date of Termination, (or, if later, the date
of the Change in Control) but in no event beyond ten (10) days from such date.
The Severance Benefits described in Section 4.3(c) shall be paid at the times
due under each applicable plan.

     5.2  WITHHOLDING OF TAXES. The Company shall be entitled to withhold from
any amounts payable under this Agreement all taxes as legally shall be required
(including, without limitation, any United States Federal taxes and any other
state, city, or local taxes).

ARTICLE 6. EXCISE TAX EQUALIZATION PAYMENT

     6.1  EXCISE TAX EQUALIZATION PAYMENT. In the event that the Executive
becomes entitled to Severance Benefits or any other payment or benefit under
this Agreement, or under any other agreement with or plan of the Company (in the
aggregate, the "Total Payments"), if all or any part of the Total Payments will
be subject to the tax (the "Excise Tax") imposed by Section 4999 of the Code (or
any similar tax that may hereafter be imposed), the Company shall pay to the
Executive in cash an additional amount (the "Gross-Up Payment") such that the
net amount retained by the Executive after deduction of any Excise Tax upon the
Total Payments and any federal, state, and local income tax, penalties,
interest, and Excise Tax upon the Gross-Up Payment provided for by this Section
6.1 (including FICA and FUTA), shall be equal to the Total Payments. Such
payment shall be made by the Company to the Executive as soon as practical
following the Effective Date of Termination, but in no event beyond thirty (30)
days from such date. Notwithstanding the foregoing, however, that the
Executive's Severance Benefits shall be grossed up only in the event that
application of the gross-up feature would result in the Executive receiving
additional after-tax Change in Control amounts of at least $100,000. In the
event that a gross-up of the Executive's Severance Benefits under this Agreement
would result in less than $100,000 additional after-tax Change in Control
related amounts, the Executive's Severance Benefits shall be capped at the
maximum amount that may be paid without incurring Excise Tax.

     6.2  TAX COMPUTATION. For purposes of determining whether any of the Total
Payments will be subject to the Excise Tax and the amounts of such Excise Tax:

          (a)  Any other payments or benefits received or to be received by the
               Executive in connection with a Change in Control of the Company
               or

<PAGE>

               the Executive's termination of employment (whether pursuant to
               the terms of this Agreement or any other plan, arrangement, or
               agreement with the Company, or with any Person whose actions
               result in a Change in Control of the Company or any Person
               affiliated with the Company or such Persons) shall be treated as
               "parachute payments" within the meaning of Section 280G(b)(2) of
               the Code, and all "excess parachute payments" within the meaning
               of Section 280G(b)(1) shall be treated as subject to the Excise
               Tax, unless in the opinion of a nationally recognized tax counsel
               selected by the Company's independent auditors and reasonably
               acceptable to the Executive: (i) such other payments or benefits
               (in whole or in part) do not constitute parachute payments; (ii)
               such excess parachute payments (in whole or in part) represent
               reasonable compensation for services actually rendered within the
               meaning of Section 280G(b)(4) of the Code in excess of the base
               amount within the meaning of Section 280G(b)(3) of the Code; or
               (iii) are otherwise not subject to the Excise Tax;

          (b)  The amount of the Total Payments which shall be treated as
               subject to the Excise Tax shall be equal to the lesser of: (i)
               the total amount of the Total Payments; or (ii) the amount of
               excess parachute payments within the meaning of Section
               280G(b)(1) (after applying clause (a) above); and

          (c)  The value of any noncash benefits or any deferred payment or
               benefit shall be determined by the Company's independent auditors
               in accordance with the principles of Sections 280G(d)(3) and (4)
               of the Code.

     For purposes of determining the amount of the Gross-Up Payment, the
Executive shall be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation in the calendar year in which the Gross-Up
Payment is to be made, and state and local income taxes at the highest marginal
rate of taxation in the state and locality of the Executive's residence on the
Effective Date of Termination, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes.

     6.3  SUBSEQUENT RECALCULATION. In the event the Internal Revenue Service
          adjusts the computation of the Company under Section 6.2 herein so
          that the Executive did not receive the greatest net benefit, the
          Company shall reimburse the Executive for the full amount necessary to
          make the Executive whole, plus a market rate of interest, as
          determined by the national tax counsel referred to above.

     6.4  COSTS OF CALCULATIONS. The Company agrees to bear all costs associated
          with, and to indemnify and hold harmless, the national tax counsel of
          and from any and all claims, damages, and expenses resulting from or
          relating to its determination pursuant to this Article 6, except for
          claims, damages, or

<PAGE>

          expenses resulting from the gross negligence or willful misconduct of
          such firm.

ARTICLE 7. THE COMPANY'S PAYMENT OBLIGATION

     7.1  PAYMENT OBLIGATIONS ABSOLUTE. The Company's obligation to make the
payments and the arrangements provided for herein shall be absolute and
unconditional, and shall not be affected by any circumstances, including,
without limitation, any offset, counterclaim, recoupment, defense, or other
right which the Company may have against the Executive or anyone else. All
amounts payable by the Company hereunder shall be paid without notice or demand.
Subject to the provision set forth in Section 8.1 and 8.2, each and every
payment made hereunder by the Company shall be final, and the Company shall not
seek to recover all or any part of such payment from the Executive or from
whomsoever may be entitled thereto, for any reasons whatsoever.

     The Executive shall not be obligated to seek other employment in mitigation
of the amounts payable or arrangements made under any provision of this
Agreement, and the obtaining of any such other employment shall in no event
effect any reduction of the Company's obligations to make the payments and
arrangements required to be made under this Agreement, except to the extent
provided in Section 4.3(c) herein.

     7.2  CONTRACTUAL RIGHTS TO BENEFITS. This Agreement establishes and vests
in each Executive a contractual right to the benefits to which he or she is
entitled hereunder. However, nothing herein contained shall require or be deemed
to require, or prohibit or be deemed to prohibit, the Company to segregate,
earmark, or otherwise set aside any funds or other assets, in trust or
otherwise, to provide for any payments to be made or required hereunder.

ARTICLE 8. LEGAL REMEDIES

     8.1  PAYMENT OF LEGAL FEES. To the extent permitted by law, the Company
shall pay all legal fees, costs of litigation, prejudgment interest, and other
expenses incurred in good faith by the Executive as a result of the Company's
refusal to provide the Severance Benefits to which the Executive becomes
entitled under this Agreement, or as a result of the Company's contesting the
validity, enforceability, or interpretation of this Agreement, or as a result of
any conflict (including conflicts related to the calculation of parachute
payments) between the parties pertaining to this Agreement; provided, however,
that the Company shall be reimbursed by the Executive for all such fees and
expenses in the event the Executive fails to prevail with respect to any one (1)
material issue of dispute in connection with such legal action. The Executive
shall not be liable for the Company's fees or costs related to any such
litigation.

     8.2  ARBITRATION. Executive shall have the right and option to elect (in
lieu of litigation) to have any dispute or controversy arising under or in
connection with this Agreement settled by arbitration, conducted before a panel
of three (3) arbitrators sitting in a location selected by the Executive within
fifty (50) miles from the location of his or her employment with the Company, in
accordance with the rules of the American Arbitration Association then in
effect.

<PAGE>

     Judgment may be entered on the award of the arbitrator in any court having
proper jurisdiction. All expenses of such arbitration, including the fees and
expenses of the counsel for the Executive, shall be borne by the Company;
provided, however, that the Company shall be reimbursed by the Executive for all
such fees and expenses in the event the Executive fails to prevail with respect
to any one (1) material issue of dispute in connection with such legal action.
The Executive shall not be liable for the Company's fees or costs related to any
such arbitration.

ARTICLE 9. OUTPLACEMENT ASSISTANCE

     Following a Qualifying Termination (as described in Section 4.2 herein),
the Executive shall be reimbursed by the Company for the costs of all
outplacement services obtained by the Executive within the two (2) year period
after the Effective Date of Termination; provided, however, that the total
reimbursement shall be limited to an amount equal to fifteen percent (15%) of
the Executive's Base Salary as of the Effective Date of Termination.

ARTICLE 10. SUCCESSORS AND ASSIGNMENT

     10.1 SUCCESSORS TO THE COMPANY. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
of all or substantially all of the business and/or assets of the Company or of
any division or subsidiary thereof to expressly assume and agree to perform the
Company's obligations under this Agreement in the same manner and to the same
extent that the Company would be required to perform them if no such succession
had taken place. Failure of the Company to obtain such assumption and agreement
prior to the effective date of any such succession shall be a breach of this
Agreement and shall entitle Executives to compensation from the Company in the
same amount and on the same terms as they would be entitled to hereunder if they
had terminated their employment with the Company voluntarily for Good Reason.
Except for the purposes of implementing the foregoing, the date on which any
such succession becomes effective shall be deemed the Effective Date of
Termination.

     10.2 ASSIGNMENT BY THE EXECUTIVE. This Agreement shall inure to the benefit
of and be enforceable by the Executive's personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees, and
legatees. If the Executive dies (prior to receipt of all amounts due under
Sections 4.3(a), (b), (d) or (e) and 4.8, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement to
the Executive's Beneficiary. If the Executive has not named a Beneficiary, then
such amounts shall be paid to the Executive's devisee, legatee, or other
designee, or if there is no such designee, to the Executive's estate.

ARTICLE 11. MISCELLANEOUS

     11.1 EMPLOYMENT STATUS. Except as may be provided under any other agreement
between the Executive and the Company, the employment of the Executive by the
Company is "at will," and may be terminated by either the Executive or the
Company at any time, subject to applicable law.

<PAGE>

     11.2 BENEFICIARIES. The Executive may designate one or more persons or
entities as the primary and/or contingent Beneficiaries of any Severance
Benefits owing to the Executive under this Agreement. Such designation must be
in the form of a signed writing acceptable to the Committee. The Executive may
make or change such designations at any time.

     11.3 SEVERABILITY. In the event any provision of this Agreement shall be
held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Agreement, and the Agreement shall be
construed and enforced as if the illegal or invalid provision had not been
included. Further, the captions of this Agreement are not part of the provisions
hereof and shall have no force and effect.

     11.4 MODIFICATION. No provision of this Agreement may be modified, waived,
or discharged unless such modification, waiver, or discharge is agreed to in
writing and signed by the Executive and by the Company, or by the respective
parties' legal representatives and successors.

     11.5 APPLICABLE LAW. To the extent not preempted by the laws of the United
States, the laws of the state of Wisconsin shall be the controlling law in all
matters relating to this Agreement.

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement on this 16th
day of October, 2000.


     United Wisconsin Services, Inc.         Executive: /s/ Mary Traver
                                                       -------------------------
                                                            Mary Traver

By: /s/ Thomas R. Hefty
   --------------------------
Its: Chairman, CEO and President


Attest: /s/ Susan K. Fiegel
       ----------------------