Document:

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                                                                    EXHIBIT 10.1

                               KOHL'S CORPORATION

                               AMENDED & RESTATED

                           DEFERRED COMPENSATION PLAN

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                      <C>
ARTICLE I TITLE AND DEFINITIONS                                            1

   1.1 Title                                                               1

   1.2 Definitions                                                         1

ARTICLE II ELIGIBILITY AND PARTICIPATION                                   5

   2.1 Eligibility                                                         5

   2.2 Participant                                                         5

ARTICLE III DEFERRAL ELECTIONS                                             5

   3.1 Elections to Defer Compensation                                     5

   3.2 Investment Elections                                                6

ARTICLE IV ACCOUNTS AND TRUST FUNDING                                      7

   4.1 Deferral Accounts                                                   7

   4.2 Trust Funding                                                       7

ARTICLE V DISTRIBUTION OF DEFERRED COMPENSATION                            8

   5.1 Distribution Due to Termination of Employment                       8

   5.2 Early Distribution                                                  9

   5.3 Programmed Early Distributions                                      9

   5.4 Hardship Withdrawals                                               10

   5.5 Other Amounts                                                      11

ARTICLE VI ADMINISTRATION                                                 11

   6.1 Committee                                                          11

   6.2 Committee Action                                                   11

   6.3 Powers and Duties of the Committee                                 11

   6.4 Committee and Interpretation                                       12
</TABLE>

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<TABLE>
<S>                                                                      <C>
   6.5 Compensation and Expenses                                          12

   6.6 Liability                                                          12

   6.7 Quarterly Statements                                               12

   6.8 Disputes                                                           12

ARTICLE VII MISCELLANEOUS                                                 13

   7.1 Unsecured General Creditor                                         13

   7.2 Restriction Against Assignment                                     13

   7.3 Withholding                                                        13

   7.4 Amendment, Modification, Suspension or Termination                 14

   7.5 Governing Law                                                      14

   7.6 Receipt or Release                                                 14

   7.7 Payments on Behalf of Persons Under Incapacity                     14

   7.8 No Continued Right to Employment                                   14

   7.9 Information                                                        14
</TABLE>

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                               KOHL'S CORPORATION

                               AMENDED & RESTATED

                           DEFERRED COMPENSATION PLAN

     WHEREAS, Kohl's Department Stores, Inc. ("KDS") established the 1993
Non-Qualified Deferred Compensation Plan as amended; and

     WHEREAS, Kohl's Corporation desires to amend and restate the Kohl's
Corporation Deferred Compensation Plan as a master plan to permit certain of its
and its affiliate entities' senior management employees to provide supplemental
retirement income benefits through the deferral of salary, bonus and incentive
compensation; and

     WHEREAS, KDS, a subsidiary of Kohl's Corporation, desires to amend and
restate the 1993 Non-Qualified Deferred Compensation Plan, as amended, to
conform to the provisions of this Kohl's Corporation Deferred Compensation Plan;

     NOW, THEREFORE, Kohl's Corporation and KDS hereby adopt, amend and restate,
as the case may be, effective November 13, 2002, as follows:

                                    ARTICLE I

                              TITLE AND DEFINITIONS

     1.1. Title. This Plan shall be known as the Kohl's Corporation Deferred
Compensation Plan.

     1.2. Definitions. Whenever the following words and phrases are used in this
Plan, with the first letter capitalized, they shall have the meaning specified
below:

     a)   "Account" or "Accounts" shall mean a Participant's Deferral Account.

     b)   "Base Salary" shall mean a Participant's annual base salary, excluding
Performance Bonuses, Equity Share Awards and all other remuneration for services
rendered to the Company.

     c)   "Beneficiary" or "Beneficiaries" shall mean the person or persons,
including a trustee, personal representative or other fiduciary, last designated
in writing by a Participant in accordance with procedures established by the
Committee to receive the benefits specified hereunder in the event of the death
of a Participant. No beneficiary designation shall become effective until it is
filed with the Committee. Any designation shall be revocable at any time through
a written instrument filed by the Participant with the Committee with or without
the consent of the previous Beneficiary. If there is no such designation, then
the surviving spouse of the Participant shall be the Beneficiary. If there is no
surviving spouse to receive any benefits

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payable in accordance with the preceding sentence, the estate of the Participant
shall be the Beneficiary. In the event any amount is payable under the Plan to a
minor, then payment shall be made to the duly appointed and currently acting
guardian of the estate for the minor or, if no guardian of the estate for the
minor is duly appointed and currently acting within sixty (60) days after the
date the amount becomes payable (or such extended period as the Committee
determines is reasonably necessary to allow such guardian to be appointed),
payment shall be deposited with the court having jurisdiction over the estate of
the minor. The Company may condition any payment hereunder on the receipt of
such release as the Company may request. Payment by the Company pursuant to any
unrevoked Beneficiary designation, or to the spouse or estate of the Participant
if no such designation exists, of all benefits owed hereunder shall terminate
any and all liability of Company.

     d)   "Board of Directors" shall mean the Board of Directors of the Company.

     e)   "Code" shall mean the Internal Revenue Code of 1986, as amended.

     f)   "Committee" shall mean the Committee appointed by the Board of the
Company to administer the Plan.

     g)   "Company" shall mean Kohl's Corporation and any successor corporations
and each corporation which is an "affiliate" member of a controlled group of
corporations (within the meaning of Section 414(b) of the Code) of which Kohl's
Corporation is a component member, if the Board of the Company and the Board of
Directors of the applicable corporation provides that such corporation shall
participate in the Plan.

     h)   "Compensation" shall mean Base Salary, Performance Bonuses, Equity
Share Awards and other compensation that the Participant is entitled to receive
for services rendered to the Company.

     i)   "Competition with the Company" means that a Participant, directly or
indirectly, whether as a partner, officer, director, employee, manager,
consultant or otherwise, during the one (1) year period following the
Participant's Termination of Employment performs services for any organization
which is or owns or provides advice to a retail department or retail specialty
store selling goods competitive with the Company or any of its affiliates in any
area which is within five (5) miles of any retail store operated by the Company
or any of its affiliates.

     j)   "Credit Rate" for each Fund shall mean an amount equal to the net gain
or loss on the assets deemed invested in each Fund by the Participant during
each month.

     k)   "Declining Balance Method" is the method by which the Account is to be
distributed in installments (a "Distribution") to a Participant or his
beneficiary following the Termination of a Participant. According to the
Declining Balance Method, a Distribution will be equal to a portion of the
Account remaining undistributed immediately prior to the Distribution multiplied
by a fraction, the numerator of which shall be one (1) and the denominator of
which shall be the number of periods during which Distributions remain to be
paid, including the period for which

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the Distribution is being computed. Section V below shall govern the duration of
each period and the number of periods over which amounts credited to Accounts
may be distributed.

     l) "Deferral Account" shall mean the bookkeeping account maintained by the
Committee for each Participant that is credited with amounts equal to (1) the
portion of the Compensation the Participant elects to defer; and (2) net
earnings and losses on such amount as provided herein; less (3) prior
withdrawals, forfeitures and expenses allocated by the Committee to the Deferral
Account of the Participant.

     m) "Dependent" shall mean an individual described in Section 152(a) of the
Code.

     n) "Disability," if the Participant is covered by an individual or group
long-term policy paid for by the Company, shall mean total disability as defined
in such policy without regard to any waiting period. If the Participant is
covered by both an individual and a group policy, Disability occurs under this
Plan when total disability occurs under either the individual or the group
policy, also without regard to any waiting period. If the Participant is not
covered by such a policy, Disability shall mean the Participant is suffering a
sickness, accident or injury which, in the judgment of a physician satisfactory
to the Committee, prevents the Participant from performing substantially all of
his/her normal duties for the Company. As a condition to any benefits, the
Committee may require the Participant to submit to such physical or mental
evaluations and tests as the Committee deems appropriate.

     o) "Distributable Amount" shall mean the amounts credited to the Deferral
Account of a Participant.

     p) "Early Distribution" (Unscheduled In-Service Withdrawal), "Programmed
Early Distribution" (Scheduled In-Service Withdrawals), and "Hardship
Withdrawals" shall be in-service withdrawals with different applications. (See
Article V, Sections 5.2, 5.3 and 5.4 respectively).

     q) "Effective Date" shall mean August 1, 1998, the effective date of this
amendment, restatement and adoption.

     r) "Eligible Employee" shall mean such management employees that are
actively employed by the Company on a full time basis as are designated by the
Board for participation in this Plan.

     s) "Equity Share Award" shall mean amounts payable to a Participant under
the terms of the Equity Incentive Plan of Kohl's Department Stores, Inc., the
Management Incentive Plan of Kohl's Department Stores, Inc., and such other
incentive compensation arrangements as the Committee determines to be eligible
to be included as an Equity Share Award.

     t) "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

     u) "Fund" or "Funds" shall mean one or more of the investment funds
selected by the Committee from time to time.

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     v)   "Initial Election Period" for an Eligible Employee shall mean the
period from August 20, 1997 to September 30, 1997, or, if later, the thirty (30)
day period following the date the employee initially becomes an Eligible
Employee.

     w)   "Participant" shall mean any Eligible Employee who becomes a
Participant in accordance with Article II hereof.

     x)   "Payment Date" shall mean on the last day of the Company's fiscal
quarter (or such other date determined by the Committee) following the Company's
fiscal quarter in which Participant's Termination of Employment occurred.

     y)   "Performance Bonuses" shall mean the performance bonus earned during a
Plan Year, whether or not paid during such Plan Year as such performance bonuses
may be determined by the Company.

     z)   "Plan" shall mean the Kohl's Corporation Deferred Compensation Plan
set forth herein, as amended from time to time.

     aa)  "Plan Year" shall mean the twelve (12) consecutive monthly periods
beginning on January 1 and ending on December 31 of each year, or such shorter
period beginning on the date an Eligible Employee becomes a Participant and
ending on the last day of the calendar year.

     bb)  "Policy" shall mean any insurance policy purchased in connection with
this Plan.

     cc)  "Reasonable Cause" shall mean any of the following with respect to the
Participant's position of employment with the Company:

          (i)    Gross negligence, fraud or willful violation of any law or
     significant Company policy committed in connection with the position of the
     Participant with the Company; or

          (ii)   Failure to substantially perform (for reasons other than
     Disability) the duties reasonably assigned or appropriate to the position
     of the Participant.

     dd) "Retirement" shall mean:

          (i)    for employees hired before August 31, 1988, the date on which
     an employee attains age 65;

          (ii)   for employees hired after August 31, 1988, the later of the
     date on which an employee attains age 65 or the fifth anniversary of the
     employee's participation in the Company's retirement program; or

          (iii)  such other ages and length of service the Committee shall from
     time to time determine to allow Participants to qualify for normal
     retirement under the Plan.

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     ee)  "Early Retirement" shall mean the date on which an employee has been
employed by the Company for ten (10) years on or after the employee attains age
55.

     ff)  "Termination of Employment" shall mean the Participant ceases to be
actively employed by the Company for any reason on a full time basis.

     gg)  "Trust" shall mean the Trust created by the Company into which the
Company shall deposit funds pursuant to paragraph 4.2 of the Plan.

                                   ARTICLE II

                          ELIGIBILITY AND PARTICIPATION

     2.1. Eligibility. The Board shall from time to time determine the employees
of the Company that are Eligible Employees. The Committee shall promptly notify
each employee of the Company designated as an Eligible Employee of his/her right
to participate in the Plan. The designation of an employee of the Company as an
Eligible Employee for any Plan Year shall not confer upon such employee a right
to continue as an Eligible Employee in any other Plan Year.

     2.2. Participant. A Participant in the Kohl's Department Stores, Inc. 1993
Deferred Compensation Plan immediately prior to the Effective Date shall
continue such participation as a Participant in this Plan. An employee of the
Company who was an Eligible Employee prior to the Effective Date, but not a
Participant, may become a Participant in accordance with rules established by
the Committee. An employee of the Company who becomes an Eligible Employee may
become a Participant in the Plan in accordance with rules established by the
Committee.

                                   ARTICLE III

                               DEFERRAL ELECTIONS

     3.1. Elections to Defer Compensation.

     a)   General Rule. The amount of Compensation which an Eligible Employee
may elect to defer is Compensation earned on or after the effective date of the
election by the Eligible Employee to defer in accordance with this Article III.
The Eligible Employee shall generally be eligible to defer a percentage or
dollar amount of compensation which shall not exceed one hundred percent (100%)
of the Eligible Employee's Compensation, provided that the total amount deferred
by a Participant shall be limited in any calendar year, if necessary, to an
amount in excess of the amount required to satisfy social security tax
(including Medicare and any other applicable tax or similar assessment), income
tax and employee benefit plan withholding requirements as determined by the
Committee. The minimum deferral that may be made for any Plan Year by an
Eligible Employee shall not be less than Five Thousand Dollars ($5,000.00),
provided, however, the minimum deferral for the Initial Election Period for
participation pursuant to 3.1 shall be prorated based on the number of months of
participation remaining in the calendar year.

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     b)   Initial Election Period. The Committee shall establish rules regarding
(i) the participation by employees of the Company who were not Eligible
Employees prior to the Effective Date; (ii) the participation of employees of
the Company who were Eligible Employees prior to the Effective Date but were not
Participants; and (iii) additional deferrals of compensation by previous
Participants.

     c)   Annual Election. An employee's election during the Initial Election
Period to defer Base Salary shall be in effect for all Plan Years unless on or
before December 15th of the year prior to the applicable year the Participant
changes or terminates his/her election and such amended election shall be
applicable until amended or revoked as provided herein. An Eligible Employee's
election during the Initial Election Period to defer any other Compensation
shall be in effect only for the Plan Year to which such election relates. Any
subsequent election with respect to Compensation must be filed by December 15th
of the year prior to the year the Compensation is earned. The failure to make an
election with respect to any other Compensation earned during the Plan Year
shall result in no deferral of Compensation for such Plan Year. The Committee
shall from time to time promulgate rules applicable to elections to defer
Compensation.

     d)   Duration of Compensation Deferral Election. An Eligible Employee's
initial election in accordance with this Plan shall be effective on the first
day of the first pay period beginning after such Initial Election Period. An
Eligible Employee's election after the Initial Election Period in accordance
with this Plan shall be effective on the first day of the Plan Year following
such election.

     3.2. Investment Elections.

     a)   The Committee shall from time to time select types of investment Funds
and specific Funds available for investment designation by Participants with
respect to Deferral Accounts. The Committee shall notify Participants of the
type of Funds and the specific Funds selected from time to time. At the time of
making the deferral elections described in Section 3.1, each Participant shall
designate, on a form provided by the Committee, the types of investment funds
the Account of the Participant will be deemed to be invested in for purposes of
determining the Credit Rate to be credited to that Account. In making the
designation, a Participant may specify that all or any percentage of his/her
Deferral Account (in one percent (1%) or more whole percentage increments) be
deemed to be invested in one or more of the types of investment funds selected
by the Committee.

     Effective as of the end of any calendar month, a Participant may change the
investment designation made by filing an election by the 25th day of any
calendar month, on a form provided by the Committee, or, if available, by making
the change in investment designation on-line, on a web site established for this
purpose. Such change shall be effective as of the beginning of the next calendar
month. If a Participant fails to timely elect a type of Fund, he/she shall be
deemed to have elected the money market type of investment Fund or such other
Fund as the Committee may from time to time designate as the Fund to be employed
if no timely election is made. A Participant may make investment elections
either prior to or after Termination of Employment, or

                                       6

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in the event of a Participant's death, the Beneficiary designated by the
Participant may make investment elections.

     b)   Although the Participant may designate the type of investment Funds,
the Committee shall not be bound to invest such amount in any specific Fund and
shall have no liability to Participants for failure to so invest. The Committee
shall select from time to time, in its sole discretion, commercially available
investment Funds of the investment types determined from time to time by the
Committee. The Committee may from time to time select alternate Funds in
addition to or in replacement of Funds previously selected. The Credit Rate of
each such commercially available investment fund shall be used to determine the
amount of earnings or losses to be credited to the Account of the Participant.

                                   ARTICLE IV

                           ACCOUNTS AND TRUST FUNDING

     4.1. Deferral Accounts. The Committee shall establish and maintain a
Deferral Account for each Participant under the Plan. Each Participant's
Deferral Account shall be further divided into separate subaccounts ("Investment
Fund Subaccounts"), each of which corresponds to an investment Fund selected by
the Participant. A Participant's Deferral Account shall be credited as follows:

     a)   As of the last day of each month, the Committee shall credit the
Participant's Deferral Account with an amount equal to Compensation deferred by
the Participant during each pay period occurring in that month in accordance
with the deferral election of the Participant. Compensation that the Participant
has elected to be deemed to be invested in a certain type of Fund shall be
credited to the Investment Fund Subaccount as of the end of the month.

     b)   As of the last day of each month, each Investment Fund Subaccount of a
Participant's Deferral Account shall be credited with earnings or losses in an
amount equal to that determined by multiplying the balance credited to such
Investment Fund Subaccount as of the last day of the preceding month by the
Credit Rate for the applicable month for the corresponding Fund in which the
amount is deemed invested.

     4.2. Trust Funding. The Company has created a Trust into which the Company
shall deposit amounts equal to the amounts deferred by Participants. The Company
shall cause the Trust to be funded each month. The Company shall contribute to
the Trust an amount equal to the amount deferred by each Participant for each
month during the Plan Year.

     Although the principal of the Trust and any earnings thereon shall be held
separate and apart from other funds of Company and except as otherwise provided
herein, shall be used exclusively for the uses and purposes of Plan Participants
and beneficiaries as set forth therein, neither the Participants nor their
beneficiaries shall have any preferred claim on, or any beneficial ownership in,
any assets of the Trust prior to the time such assets are paid to the
Participants or beneficiaries as benefits and all amounts credited under this
Plan shall represent unsecured contractual rights of Plan Participants and
beneficiaries against the Company. Any assets held in

                                       7

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the Trust will be subject to the claims of general creditors of the Company
under federal and state law in the event of insolvency as defined in the Trust.

     Except as provided above and except for amounts forfeited by a Participant
hereunder, the assets of the Plan and Trust shall not inure to the benefit of
the Company other than in the case of insolvency as defined in the Trust and the
same shall be held for the purpose of providing benefits to Participants and
their beneficiaries and defraying reasonable expenses of administering the Plan
and Trust.

                                    ARTICLE V

                      DISTRIBUTION OF DEFERRED COMPENSATION

     5.1. Distribution Due to Termination of Employment. In the case of a
Termination of Employment of a Participant, the Distributable Amount shall be
paid to the Participant (and after his/her death to his/her Beneficiary) in the
form of calendar quarterly installments over fifteen years (15) years beginning
on his/her Payment Date on the Declining Balance Method. Notwithstanding the
foregoing, a Participant described in the preceding sentence may elect one of
the following optional forms of distribution provided that his/her election is
filed with the Committee at least one (1) year prior to his/her Termination of
Employment:

     a)   A lump sum distribution on the Participant's Payment Date; or

     b)   Calendar quarterly installments over a period of whole years as
selected by the Participant which is at least one (1) year but not more than
fourteen (14) years beginning on the Participant's Payment Date on the Declining
Balance Method.

Notwithstanding any election by a Participant, in the event (X) a Participant's
employment is terminated (i) voluntarily by the Participant (but not as a result
of Retirement or Early Retirement); or (ii) by the Company for Reasonable Cause,
(Y) the Participant engages in Competition with the Company following
Termination of Employment, or (Z) the Participant's Distributable Amount at any
time following Termination of Employment is not more than Twenty-Five Thousand
Dollars ($25,000.00), the Committee may determine that such Participant
Distributable Amount shall be paid in a lump-sum distribution.

     c)   In the case of a Participant who dies while employed by the Company,
the Company will pay the Participant such additional benefit, if any, as the
Committee may from time to time determine to pay from insurance benefits as a
result of the death of the Participant.

     d)   In the event a Participant dies after his Termination of Employment
and still has a balance in his/her Deferral Account, the balance of such
Deferral Account shall continue to be paid in quarterly installments for the
remainder of the period as elected by the Participant to the Beneficiary
designated by the Participant.

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     5.2. Early Distribution. A Participant shall be permitted to elect an Early
Distribution from his/her Deferral Account prior to the Payment Date, subject to
the following restrictions:

     a)   The election to take an Early Distribution shall be made by completing
a form prescribed by and filed with the Committee prior to the end of any
calendar month (the "Filing").

     b)   A Participant shall specify the amount the Participant has elected for
Early Distribution. The amount of the Early Distribution shall in all cases not
exceed ninety percent (90%) of the total Deferral Account as of the end of the
calendar month during which request is made. A Participant who elects an Early
Distribution shall permanently forfeit an amount equal to ten percent (10%) of
the amount elected for Early Distribution from such Participant's Deferral
Account. The Company shall have no obligations to the Participant or his/her
Beneficiary with respect to any forfeited amount.

     c)   The amount described in subsection (b) above shall be paid in a single
cash lump sum as soon as practicable after the end of the calendar month in
which the Early Distribution election is made.

     d)   If a Participant receives an Early Distribution, the Participant will
be ineligible to participate in the Plan for the balance of the Plan year during
which the Early Distribution occurs and for the following Plan Year.

     5.3. Programmed Early Distributions. A Participant shall be permitted to
elect a Programmed Early Distribution from his/her Deferral Account prior to the
Payment Date, subject to the following restrictions:

     a)   The election to take a Programmed Early Distribution shall be made by
submitting a Filing requesting such Distribution prior to the end of any
calendar month;

     b)   The amount of the Programmed Early Distribution shall be as specified
in the Filing;

     c)   The amount described in Subsection (b), above, shall be paid in a
single lump sum on the date set forth in the Filing, but in no event prior to
the end of the twenty-fourth (24th) full month after submittal of the Filing by
Participant;

     d)   So long as the balance in Participant's Deferred Account is a minimum
of $25,000 at the time of Participant's election to do so, Participant may elect
to receive the amount described in subsection (b) above in not less than two (2)
and no more than five (5) annual equal installments, payable over the period
specified by Participant in the Filing, commencing at the end of the
twenty-fourth (24th) full month after submittal of the Filing by Participant;

     e)   If a Participant receives an Early Distribution, the Participant will
be ineligible to participate in the Plan for the balance of the Plan year during
which the Early Distribution occurs and for the following Plan Year.

                                       9

<PAGE>

     5.4. Hardship Withdrawals.

     a)   Any Participant who has been determined by the Committee to have
incurred a "Financial Hardship" as defined herein may request and receive a
withdrawal of all or part of his/her Account balance.

     b)   In the event a Participant desires to withdraw an amount as a
Financial Hardship withdrawal:

               1)   The Participant shall deliver a request for such withdrawal
     to the Committee setting forth the amount requested and the factual basis
     for such hardship request. The request for withdrawal shall be in a form
     which complies with requirements, if any, established by the Committee.

               2)   If the Participant's request for Financial Hardship
     withdrawal is approved by the Committee, the distribution shall be made on
     the last day of the month following such approval and the Participant shall
     be ineligible to participate in the Plan for the balance of the Plan Year.

               3)   If the Participant's request for Financial Hardship
     withdrawal is denied by the Committee, in whole or in part, the Committee
     shall notify the Participant of such denial.

     c)   "Financial Hardship" is defined as an immediate and significant
financial need of the Participant where such Participant lacks other available
resources. Notwithstanding the foregoing, only the following financial needs
shall be considered immediate and significant:

               1)   Expenses incurred due to a sudden and unexpected illness or
     accident of the Participant or of a dependent of the Participant;

               2)   Loss of the Participant's property due to casualty; or

               3)   Such other similar, extraordinary and unforeseeable
     circumstances arising as a result of events beyond the control of the
     Participant.

     d)   Notwithstanding the foregoing, a distribution will be considered as
necessary to satisfy an immediate and significant financial need of the
Participant only if such need has not and cannot be relieved:

               1)   Through reimbursement or compensation by insurance or
     otherwise;

               2)   By liquidation of the assets of the Participant, to the
     extent the liquidation of such assets would not itself cause severe
     financial hardship;

               3)   Be cessation of deferrals under the Plan; or

                                       10

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               4)   By borrowing funds from any source, to the extent such
     borrowing of funds would not itself cause severe financial hardship.

     5.5. Other Amounts. Any amounts not required to be paid to the Participants
hereunder shall belong to the Company and no Participants shall have any rights
thereto.

                                   ARTICLE VI

                                 ADMINISTRATION

     6.1. Committee. The Committee shall be appointed by, and serve at the
pleasure of, the Board. The number of members comprising the Committee shall be
determined by the Board from time to time. A member of the Committee may resign
by delivering a written notice of resignation to the Board. The Board may remove
any member. Vacancies in the membership of the Committee shall be filled
promptly by the Board.

     6.2. Committee Action. The Committee shall act at meetings by affirmative
vote of a majority of the members of the Committee. Any action permitted to be
taken at a meeting may be taken without a meeting if a written consent to the
action is signed by all members of the Committee. A member of the Committee
shall not vote or act upon any matter which relates solely to himself/herself as
a Participant. The chairman or any other member or members of the Committee
designated by the chairman may execute any certificate or other written
direction on behalf of the Committee.

     6.3. Powers and Duties of the Committee. The Committee shall administer the
Plan in accordance with its terms, and shall have all powers necessary to
accomplish its purposes including, but not by way of limitation, the following:

     a)   To select the types of investments and the Funds in accordance with
Section 3.2 hereof;

     b)   To construe and interpret the provisions of this Plan;

     c)   To compute the amount of benefits payable to Participants and their
Beneficiaries.

     d)   To maintain all records that may be necessary for the administration
of the Plan;

     e)   To provide for the disclosure of all information and the filing of all
reports and statements to Participants, Beneficiaries or governmental agencies
as shall be required by law;

     f)   To make and publish rules, definitions and procedures for
administration of the Plan;

     g)   To appoint a plan administrator or any other agent, and to delegate to
them such powers and duties in connection with the administration of the Plan as
the Committee may from time to time prescribe; and

     h)   To take all actions necessary or in its best interests for the
administration of the Plan.

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     6.4. Committee and Interpretation. The Committee shall have full discretion
to construe and interpret the terms and provisions of this Plan, which
interpretations or construction shall be final and binding on all parties
including, but not limited to, the Company and any Participant or Beneficiary.

     6.5. Compensation and Expenses.

     a)   The members of the Committee shall serve without compensation for
their services hereunder.

     b)   The Committee is authorized at the expense of the Company to employ
such legal counsel as it may deem advisable to assist in the performance of its
duties hereunder. The Committee may require Participants to pay expenses and
fees incurred in connection with the administration of the Plan. To the extent
authorized by Company, expenses and fees in connection with the administration
of the Plan shall be paid by the Company.

     6.6. Liability. Neither the Committee nor any member of the Committee nor
the Company nor any other person who is acting on behalf of the Committee or the
Company shall be liable for any act or failure to act hereunder except for gross
negligence or fraud. Such persons shall be indemnified and held harmless against
any and all claims, damages, liabilities, costs and expenses (including
attorneys' fees) arising by reason of any good faith error of omission or
commission with respect to any responsibility, duty or action hereunder.

     6.7. Quarterly Statements. The Committee, under procedures established by
it, shall provide a statement with respect to each Account of the Participant on
a quarterly basis.

     6.8. Disputes.

     a)   An individual who believes that he/she is being denied a benefit to
which he/she is entitled under this Plan (hereinafter referred to as "Claimant")
may file a written request for such benefit with the Committee setting forth
his/her claim. The request must be addressed to the Chairman of the Committee at
its then principal place of business.

     b)   Upon receipt of a claim, the Committee shall deliver a reply within a
ninety (90) day period after receipt of the claim. The Committee may, however,
extend the reply period for an additional ninety (90) days by notice to the
Claimant.

If the claim is denied in whole or in part, the Committee shall inform the
Claimant in writing, using language calculated to be understood by the Claimant,
setting forth: (i) the specified reason or reasons for such denial; and (ii)
appropriate information as to the procedure to be followed if the Claimant
wishes to submit the claim for review.

     c)   Within sixty (60) days after the receipt by the Claimant of the
opinion of the Committee, the Claimant may request in writing that the Company
review the determination of the Committee. Such request must be addressed to the
secretary of the Company at its then principal place of business. The Claimant
or his/her duly authorized representative may, but need not, review the
pertinent documents and submit issues and comments in writing for

                                       12

<PAGE>

consideration by the Company. If the Claimant does not request a review within
such sixty (60) day period, the Claimant shall be barred and estopped from
challenging the Committee's determination.

     d)   Within ninety (90) days after the Company's receipt of a request for
review, after considering all materials presented by the Claimant, the Company
will inform the Participant in writing, in a manner calculated to be understood
by the Claimant, of its decision setting forth the specific reasons for the
decision. If special circumstances require that the ninety (90) day time period
be extended, the Company will so notify the Claimant and will render the
decision as soon as possible, but no later than one hundred eighty (180) days
after receipt of the request for review. The decision of the Company shall be
final, binding and conclusive upon Claimant.

                                   ARTICLE VII

                                  MISCELLANEOUS

     7.1. Unsecured General Creditor. Participants and their Beneficiaries,
heirs, successors, and assigns shall have no legal or equitable rights, claims
or interest in any specific property or assets of the Company. No assets of the
Company shall be held in any way as collateral security for the fulfilling of
the obligations of the Company under this Plan. Any and all of the Deferral
Accounts shall remain the Company's assets and shall remain the general
unpledged and unrestricted assets of the Company. The Company's obligation under
the Plan shall be merely that of an unfunded and unsecured promise of the
Company to pay money in the future, and the rights of the Participants and
Beneficiaries shall be no greater than those of unsecured general creditors. It
is the intention of the Company that this Plan be unfunded for purposes of the
Code and for purposes of Title I of ERISA.

     7.2. Restriction Against Assignment. The Company shall pay all amounts
payable hereunder only to the person or persons designated according to the Plan
and not to any other person or corporation. No part of a Participant's Accounts
shall be liable for the debts, contracts, engagements of any Participant,
his/her Beneficiary, or successors in interest, nor shall a Participant's
Accounts be subject to execution by levy, attachment, or garnishment or by any
other legal or equitable proceeding, nor shall any such person have any right to
alienate, anticipate, sell, transfer, commute, pledge, encumber, or assign any
benefits or payments hereunder in any manner whatsoever. If any Participant,
Beneficiary or successor in interest is adjudicated bankrupt or purports to
anticipate, alienate, sell, transfer, commute, assign, pledge, encumber, or
charge any distribution or payment from the Plan, voluntarily or involuntarily,
the Committee, in its sole discretion, may cancel such distribution or payment
(or any part thereof) to or for the benefit of such Participant, Beneficiary or
successor in interest in such manner as the Committee shall direct.

     7.3. Withholding. There shall be deducted from each payment made under the
Plan or any other Compensation payable to the Participant (or Beneficiary) all
taxes which are required to be withheld by the Company in respect to such
payment or this Plan. The Company shall have the right to reduce any payment (or
Compensation) by the amount of cash sufficient to provide the amount of said
taxes.

                                       13

<PAGE>

     7.4. Amendment, Modification, Suspension or Termination. The Company may
amend, modify, suspend or terminate the Plan in whole or in part, except that no
amendment, modification, suspension or termination shall have any retroactive
effect to reduce any amounts allocated to a Participant's Account (neither the
Policies themselves, nor the death benefit shall be treated as allocated to any
Account). In the event this Plan is terminated (other than as a result of a
Change in Control, as defined in the Trust), the amounts allocated to a
Participant's Account shall be distributed to the Participant or, in the event
of his/her death, his/her Beneficiary in a lump sum within thirty (30) days
following the date of Plan termination.

     Notwithstanding any provision contained in the Plan, in the event of a
Change in Control, as defined in the Trust, the provisions of the Trust with
regard to actions which may be taken in the event of a Change in Control shall
prevail over the terms and conditions set forth in the Plan. Notwithstanding
anything contained in the Plan or the Trust and notwithstanding any election
made by a Participant, all elections to defer Compensation made by a Participant
for amounts earned subsequent to a Change in Control shall terminate and be of
no force or effect.

     7.5. Governing Law. This Plan shall be construed, governed and administered
in accordance with the laws of the State of Wisconsin.

     7.6. Receipt or Release. Any payment to a Participant or the Participant's
Beneficiary in accordance with the provisions of the Plan shall, to the extent
thereof, be in full satisfaction of all claims against the Committee and the
Company. The Committee may require such Participant or Beneficiary, as a
condition precedent to such payment, to execute a receipt and release to such
effect.

     7.7. Payments on Behalf of Persons Under Incapacity. In the event that any
amount becomes payable under the Plan to a person who, in the sole judgment of
the Committee, is considered by reason of physical or mental condition to be
unable to give a valid receipt therefor, the Committee may direct that such
payment be made to any person found by the Committee, in its sole judgment, to
have assumed the care of such person.

     7.8. No Continued Right to Employment. The designation of a key employee as
an Eligible Employee under this Plan shall not be construed as conferring upon
such employee any right to remain employed by the Company or obligate the
Company to continue the employment of the employee or limit the right of the
Company to discipline the employee or terminate the employee's employment.
Termination of Employment of the Participant with the Company for any reason,
whether by action of the Company or employee, shall immediately terminate the
employee's participation in the Plan and all further obligations of the Company
under the Plan to the employee, except for obligations incurred prior to
Termination of Employment. In no event shall this Plan, by its terms or
implication, constitute an employment contract of any nature between the Company
and the employee.

     7.9. Information. Each person, whether a Participant, a duly designated
beneficiary of a Participant, a guardian or any other person, entitled to
receive payment under the Plan shall

                                       14

<PAGE>

provide the Committee with such information or documents as the Committee may
from time to time deem necessary or in its best interests in administering the
Plan.

                                       15<PAGE>

                                                                   EXHIBIT 10.10

                               KOHL'S CORPORATION
                              -------------------
                        2003 LONG-TERM COMPENSATION PLAN
                        --------------------------------

1. Purpose

     The purpose of the Plan is to allow the Company to attract and retain key
employees and directors of the Company and its subsidiaries and to provide
motivation to these individuals to put forth maximum efforts toward the
continued growth, profitability, and success of the Company and its Subsidiaries
by providing incentives through the ownership and performance of the Company's
Common Stock. Toward this objective, the Committee may grant various
equity-based Awards to Participants on the terms and subject to the conditions
set forth in the Plan. These Awards will provide Participants with a proprietary
interest in the growth and performance of the Company.

2. Definitions

     2.1. "Award" means any form of stock option, stock appreciation right,
Stock Award, performance unit, performance shares or other incentive award
granted under the Plan, whether singly, in combination, or in tandem, to a
Participant by the Committee pursuant to such terms, conditions, restrictions,
and/or limitations, if any, as the Committee may establish by the Award
Agreement or otherwise.

     2.2. "Award Agreement" means a written agreement between the Company and a
Participant that establishes the terms, conditions, restrictions, and/or
limitations applicable to an Award in addition to those established by this Plan
and by the Committee's exercise of its administrative powers.

     2.3. "Board" means the Board of Directors of the Company.

     2.4. "Cause" means termination of employment or service as a director upon:
(1) a Participant's repeated failure to perform his or her duties in a
competent, diligent and satisfactory manner as determined by the Company's Chief
Executive Officer in his reasonable judgment, (2) insubordination, (3) a
Participant's commission of any material act of dishonesty or disloyalty
involving the Company or a Subsidiary, (4) a Participant's chronic absence from
work other than by reason of a serious health condition, (5) a Participant's
commission of a crime which substantially relates to the circumstances of his or
her position with the Company or a Subsidiary or which has material adverse
effect on the Company or a Subsidiary, or (6) the willful engaging by a
Participant in conduct which is demonstrably and materially injurious to the
Company or a Subsidiary.

     2.5. "Change of Control" shall have the meaning set forth in Paragraph 18
below.

<PAGE>

     2.6. "Code" means the Internal Revenue Code of 1986, as amended from time
to time.

     2.7. "Committee" means the Compensation Committee of the Board, or such
other committee of directors designated by the Board, authorized to administer
the Plan under Paragraph 3 hereof. Membership of the Committee shall consist of
not less than two (2) independent directors and shall otherwise comply with the
requirements of the rules and regulations of the Securities and Exchange
Commission, the stock exchange on which the Company's Common Stock is traded,
Rule 16b-3 of the Exchange Act and Code Section 162(m).

     2.8. "Common Stock" means $.01 par value common shares of the Company.

     2.9. "Company" means Kohl's Corporation, a Wisconsin corporation.

     2.10. "Disability" means the inability of a Participant to perform his or
her normal duties as a full-time employee of the Company or a Subsidiary for a
continuous period of ninety (90) days by reason of physical or mental illness or
incapacity. If there is any dispute as to whether the termination of the
Participant's employment was due to his or her physical or mental illness or
incapacity, such question shall be submitted to a licensed physician for the
purpose of making such determination. An examination of the Participant shall be
made within thirty (30) days after written notice by the Committee or the
Participant by a licensed physician selected by the Committee. The Participant
shall submit to such examination and provide such information as such physician
may request and the determination of such physician as to the question of the
Participant's physical or mental condition shall be binding and conclusive on
all parties concerned for purposes of this Plan. The disability shall be deemed
to be continuing unless the Participant performs his or her regular duties for
his or her employer for a continuous period of ninety (90) days.

     2.11. "Exchange Act" means the Securities and Exchange Act of 1934, as
amended.

     2.12. "Market Value" of Common Stock shall mean the closing sale price of
Common Stock on the New York Stock Exchange - Composite Transactions, the
American Stock Exchange - Composite Transactions or other national or regional
exchange, or the mean of the closing bid and asked prices in the
over-the-counter market, as reported by the National Association of Securities
Dealers Automatic Quotation System ("NASDAQ").

     2.13. "Participant" means an employee or member of the Board of Directors
of the Company or a Subsidiary chosen by the Committee to receive an Award under
this Plan.

     2.14. "Plan" means the Kohl's Corporation 2003 Long Term Compensation Plan.

     2.15. "Retirement" means a Participant's termination of employment or
service as a director other than for Cause after the later to occur of (a)
attainment of age sixty (60); or (b) service with the Company and/or a
Subsidiary for a continuous period of ten (10) years.

                                        2

<PAGE>

     2.16. "Rule 16b-3" means Rule 16b-3 promulgated by the Securities and
Exchange Commission under Section 16 of the Exchange Act, as it may be amended
from time to time, and any successor rule.

     2.17. "Stock Award" means an award granted pursuant to Paragraph 10 hereof
in the form of shares of Common Stock, restricted shares of Common Stock, and/or
Units of Common Stock.

     2.18. "Subsidiary" means a corporation or other business entity in which
the Company directly or indirectly has a significant ownership interest, as
determined by the Committee, in the Committee's sole discretion.

     2.19. "Unit" means a bookkeeping entry used by the Company to record and
account for the grant of the following Awards until such time as the Award is
paid, cancelled, forfeited or terminated, as the case may be: Units of Common
Stock, performance units, and performance shares which are expressed in terms of
Units of Common Stock.

3. Administration

     The Plan shall be administered by the Committee. Subject to the terms of
the Plan, the Committee shall have the authority to: (a) interpret the Plan; (b)
establish such rules and regulations as it deems necessary for the proper
operation and administration of the Plan; (c) select Participants to receive
Awards under the Plan; (d) determine the form of an Award, whether a stock
option, stock appreciation right, Stock Award, performance unit, performance
share, or other incentive award established by the Committee in accordance with
the Plan, the number of shares or Units subject to the Award, all the terms,
conditions, restrictions and/or limitations, if any, of an Award, including the
time and conditions of exercise or vesting, and the terms of any Award
Agreement; (e) determine whether Awards will be granted singly, in combination
or in tandem; (f) determine the performance goals, if any, which will be
applicable to the Award; (g) grant waivers of Plan terms, conditions,
restrictions, and limitations; (h) accelerate the vesting, exercise, or payment
of an Award or the performance period of an Award when such action or actions
would be in the best interest of the Company; and (i) take any and all other
action it deems necessary or advisable for the proper operation or
administration of the Plan. In addition, in order to enable Participants who are
foreign nationals or are employed outside the United States or both to receive
Awards under the Plan, the Committee may adopt such amendments, procedures,
regulations, subplans and the like as are necessary or advisable, in the opinion
of the Committee, to effectuate the purposes of the Plan.

     The Committee shall also have the authority to grant Awards in replacement
of Awards previously granted under this Plan or any other executive compensation
plan of the Company or a Subsidiary.

     All determinations of the Committee shall be made by a majority of its
members, and its determinations shall be final, binding and conclusive on the
Company, Participants and any persons claiming an interest through a
Participant. The Committee, in its discretion, may delegate

                                       3

<PAGE>

its authority and duties under the Plan to the Chief Executive Officer and/or to
other senior officers of the Company under such conditions and/or limitations as
the Committee may establish; provided, however, that only the Committee may
select and grant Awards to Participants who are subject to Section 16 of the
Exchange Act.

4. Eligibility

     Any employee or member of the Board of Directors of the Company or a
Subsidiary chosen by the Committee shall be eligible to receive an Award.

5. Shares Available

     The aggregate number of shares of Common Stock which may be issued under
the Plan pursuant to the exercise or grant of Awards shall not exceed 15,000,000
shares of Common Stock, subject to adjustment as provided in Paragraph 20
hereof, all of which may be incentive stock options. Shares of Common Stock
issued hereunder may be treasury shares or authorized but unissued shares, or a
combination of the two. In no event (a) shall the aggregate number of shares
subject to Awards granted under the Plan that are not stock options or stock
appreciation rights, as set forth in Paragraphs 8 and 9 hereof respectively,
exceed 7,500,000 shares (subject to adjustment as provided in Paragraph 20
hereof), (b) shall any Participant be eligible to receive options or SARs, as
defined in Paragraph 9, below, for more than 1,500,000 shares during any
twelve-month period (subject to adjustment as provided in Paragraph 20 hereof),
or (c) shall any one Participant be eligible to receive an aggregate amount of
Awards, other than options or SARs, in an amount in excess of $2,500,000
(valuing the shares of Common Stock at their Market Value and other Awards at
their fair market value as determined by the Committee in its sole discretion,
on the business day immediately preceding the date of grant) during any
twelve-month period. For purposes of determining the maximum number of shares
available for issuance under the Plan, (i) any shares which are used in
settlement of tax withholding obligations with respect to an Award shall be
deemed not to have been issued, (ii) if any option is exercised by tendering
shares of Common Stock, either actually or by attestation, to the Company as
full or partial payment for such exercise under this Plan, only the number of
shares issued net of the shares tendered shall be deemed issued, and (iii) any
shares which have been issued as Stock Awards or performance shares, as set
forth in Paragraph 12 hereof, which are forfeited to the Company shall be
treated, following such forfeiture, as shares which have not been issued.

6. Term

     The Plan shall become effective as of the date of its approval by the
Company's shareholders. Awards shall not be granted pursuant to the Plan after
March 1, 2013.

7. Participation

     The Committee shall select, from time to time, those Participants who, in
the opinion of the Committee, can further the Plan's purposes. Once a
Participant is so selected, the Committee shall determine the type or types of
Awards to be made to the Participant and shall establish in

                                        4

<PAGE>

the related Award Agreements the terms, conditions, restrictions and/or
limitations, if any, applicable to the Awards in addition to those set forth in
this Plan and the administrative rules and regulations issued by the Committee.
Notwithstanding the foregoing, the term of Awards granted pursuant to the Plan
shall not exceed fifteen (15) years, with the exception of incentive stock
options, where the term shall not exceed ten (10) years (five (5) years in the
case of a greater than 10% shareholder).

8. Stock Options

     (a) Grants. Awards may be granted in the form of stock options. These stock
options may be incentive stock options within the meaning of Section 422 of the
Code or nonqualified stock options (i.e., stock options which are not incentive
stock options), or a combination of both.

     (b) Terms and Conditions of Options. An option shall be exercisable in
whole or in such installments and at such times as may be determined by the
Committee. The price at which a share of Common Stock may be purchased upon
exercise of a stock option shall be established by the Committee, but shall be
no less than 100% of the Market Value of a share of Common Stock, as determined
by the Committee, on the date of grant. The exercise price of a stock option
shall not be reduced by the Committee other than pursuant to Paragraph 20
hereof, without the consent of the Company's shareholders.

     (c) Restrictions Relating to Incentive Stock Options. Stock options issued
in the form of incentive stock options shall, in addition to being subject to
all applicable terms, conditions, restrictions and/or limitations established by
the Committee, comply with Section 422 of the Code. Further, the per share
option price of an incentive stock option shall not be less than 100% (or 110%
in the case of a greater than 10% shareholder) of the fair market value of a
share of Common Stock, as determined by the Committee, on the date of the grant.
Also, each option shall expire not later than ten years (or five years in the
case of a 10% or more shareholder) from its date of grant. All or any portion of
an option designated as an incentive stock option which does not meet the
requirements of Section 422 of the Code, including those set forth herein, will
be treated as a nonqualified stock option.

     (d) Additional Terms and Conditions. The Committee may, by way of the Award
Agreement or otherwise, establish such other terms, conditions, restrictions
and/or limitations, if any, of any stock option Award, provided they are not
inconsistent with the Plan.

     (e) Exercise Payment. At the election of the Committee, upon exercise, the
option price of a stock option may be paid in cash, shares of Common Stock
either directly or by attestation, a combination of the foregoing, or such other
consideration as the Committee may deem appropriate. The Committee shall
establish appropriate methods for accepting Common Stock and may impose such
conditions as it deems appropriate on the use of such Common Stock to exercise a
stock option.

9. Stock Appreciation Rights

                                        5

<PAGE>

     (a) Grants. Awards may be granted in the form of stock appreciation rights
("SARs"). A SAR may be granted in tandem with all or a portion of a related
stock option under the Plan (a "Tandem SAR"), or may be granted separately (a
"Freestanding SAR"). A Tandem SAR may be granted either at the time of the grant
of the related stock option or any time thereafter during the term of the stock
option. SARs shall entitle the recipient to receive a payment equal to the
appreciation in Market Value of a stated number of shares of Common Stock from
the exercise price to the Market Value on the date of exercise. In the case of
SARs granted in tandem with stock options granted prior to the grant of such
SARs, the appreciation in value is from the option price of such related stock
option to the Market Value on the date of exercise.

     (b) Terms and Conditions of Tandem SARs. A Tandem SAR shall be exercisable
to the extent, and only to the extent, that the related stock option is
exercisable, and the "exercise price" of such a SAR (the base from which the
value of the SAR is measured at its exercise) shall be the option price under
the related stock option. If a related stock option is exercised as to some or
all of the shares covered by the Award, the related Tandem SAR, if any, shall be
cancelled automatically to the extent of the number of shares covered by the
stock option exercise. Upon exercise of a Tandem SAR as to some or all of the
shares covered by the Award, the related stock option shall be cancelled
automatically to the extent of the number of shares covered by such exercise,
and such shares shall again be eligible for grant in accordance with Paragraph 5
hereof, except to the extent any shares of Common Stock are issued to settle the
SAR.

     (c) Terms and Conditions of Freestanding SARs. A Freestanding SAR shall be
exercisable in whole or in such installments and at such times as may be
determined by the Committee.

     (d) Deemed Exercise. The Committee may provide that a SAR shall be deemed
to be exercised at the close of business on the scheduled expiration date of
such SAR, if at such time the SAR by its terms remains exercisable and, if so
exercised, would result in a payment to the holder of such SAR.

     (e) Additional Terms-and Conditions. The Committee may, by way of the Award
Agreement or otherwise, determine such other terms, conditions, restrictions
and/or limitations, if any, of any SAR Award, provided they are not inconsistent
with the Plan.

10. Stock Awards

     (a) Grants. Awards may be granted in the form of Stock Awards. Stock Awards
shall be awarded in such numbers and at such times during the term of the Plan
as the Committee shall determine.

     (b) Award Restrictions. Stock Awards shall be subject to such terms,
conditions, restrictions, and/or limitations, if any, as the Committee deems
appropriate including, but not by way of limitation, performance goal
requirements, restrictions on transferability and continued

                                        6

<PAGE>

employment. The Committee may modify or accelerate the delivery of a Stock Award
under such circumstances as it deems appropriate.

     (c) Rights as Shareholders. During the period in which any restricted
shares of Common Stock are subject to the restrictions imposed under Paragraph
10(b), the Committee may, in its discretion, grant to the Participants to whom
such restricted shares have been awarded all or any of the rights of a
shareholder with respect to such shares, including, but not by way of
limitation, the right to vote such shares and to receive dividends.

     (d) Evidence of Award. Any Stock Award granted under the Plan may be
evidenced in such manner as the Committee deems appropriate, including, without
limitation, book-entry registration or issuance of a stock certificate or
certificates.

11. Performance Units

     (a) Grants. Awards may be granted in the form of performance units.
Performance units, as that term is used in this Plan, shall refer to Units
valued by reference to designated criteria established by the Committee, other
than Common Stock.

     (b) Performance Criteria. Performance units shall be contingent on the
attainment during a performance period of certain performance goals. The length
of the performance period, the performance goals to be achieved during the
performance period, and the measure of whether and to what degree such goals
have been attained shall be conclusively determined by the Committee in the
exercise of its absolute discretion. Performance goals may be revised by the
Committee, at such times as it deems appropriate during the performance period,
in order to take into consideration any unforeseen events or changes in
circumstances.

     (c) Additional Terms and Conditions. The Committee may, by way of the Award
Agreement or otherwise, determine such other terms, conditions, restrictions,
and/or limitations, if any, of any Award of performance units, provided they are
not inconsistent with the Plan.

12. Performance Shares

     (a) Grants. Awards may be granted in the form of performance shares.
Performance shares, as that term is used in this Plan, shall refer to shares of
Common Stock or Units which are expressed in terms of Common Stock.

     (b) Performance Criteria. Performance shares shall be contingent upon the
attainment during a performance period of certain performance goals. The length
of the performance period, the performance goals to be achieved during the
performance period, and the measure of whether and to what degree such goals
have been attained shall be conclusively determined by the Committee in the
exercise of its absolute discretion. Performance goals may be revised by the
Committee, at such times as it deems appropriate during the performance period,
in order to take into consideration any unforeseen events or changes in
circumstances.

                                        7

<PAGE>

     (c) Additional Terms and Conditions. The Committee may, by way of the Award
Agreement or otherwise, determine such other terms, conditions, restrictions
and/or limitations, if any, of any Award of performance shares, provided they
are not inconsistent with the Plan.

13. Performance Goals

     Notwithstanding any other provision hereof, the Committee may establish
performance goals in connection with the grant of any Award hereunder.
Performance goals established by the Committee may be based upon the performance
of the Market Value of the Common Stock in relation to its historical
performance and the performance of applicable market indices and market peer
groups, Company sales figures, cash flow, return on equity, and/or either
pre-tax or after-tax profit levels of the Company; and the Committee may, in its
discretion, determine whether an Award will be paid under any one or more of the
performance goals. Such performance goals shall be set by the Committee so as to
comply with the performance-based compensation provisions under Code 162(m), and
may be (but need not be) different for each performance period. The Committee
may set different goals for different Participants and for different Awards, and
performance goals may include standards for minimum attainment, target
attainment, and maximum attainment. In all cases, however, performance goals
shall include a minimum performance standard below which no part of the relevant
Award will be earned. After the end of a performance period, the Committee shall
certify in writing prior to payment of the Award that the relevant performance
goals and any other material terms of the Award were in fact satisfied.

14. Payment of Awards

     At the discretion of the Committee, payment of Awards may be made in cash,
Common stock, a combination of cash and Common Stock, or any other form of
property as the Committee shall determine, other than stock options and Stock
Awards, which shall be made in Common Stock. In addition, payment of Awards may
include such terms, conditions, restrictions and/or limitations, if any, as the
Committee deems appropriate, including, in the case of Awards paid in the form
of Common Stock, restrictions on transfer and forfeiture provisions. Further,
payment of Awards may be made in the form of a lump sum or installments, as
determined by the Committee.

15. Dividends and Dividend Equivalents

     If an Award is granted in the form of a Stock Award, stock option, or
performance share, or in the form of any other stock-based grant, the Committee
may choose, at the time of the grant of the award or any time thereafter up to
the time of the Award's payment, to include as part of such Award an entitlement
to receive dividends or dividend equivalents, subject to such terms, conditions,
restrictions, and/or limitations, if any, as the Committee may establish.
Dividends and dividend equivalents shall be paid in such form and manner (i.e.,
lump sum or installments), and at such time as the Committee shall determine.
All dividends or dividend equivalents which are not paid currently may, at the
Committee's discretion, accrue interest, be reinvested into additional shares of
Common Stock or, in the case of dividends or dividend equivalents credited

                                       8

<PAGE>

in connection with performance shares, be credited as additional performance
shares and paid to the Participant if and when, and to the extent that, payment
is made pursuant to such Award.

16. Deferral of Awards

     At the discretion of the Committee, payment of a Stock Award, performance
share, performance unit, dividend, dividend equivalent, or any portion thereof
may be deferred by a Participant until such time as the Committee may establish.
All such deferrals shall be accomplished by the delivery of a written,
irrevocable election by the Participant prior to such time payment would
otherwise be made, on a form provided by the Company. Further, all deferrals
shall be made in accordance with administrative guidelines established by the
Committee to ensure that such deferrals comply with all applicable requirements
of the Code and its regulations. Deferred payments shall be paid in a lump sum
or installments, as determined by the Committee. The Committee may also credit
interest, at such rates to be determined by the Committee, on cash payments that
are deferred and credit dividends or dividend equivalents on deferred payments
denominated in the form of Common Stock.

17. Termination of Service

     If a Participant's service with the Company or a Subsidiary terminates for
a reason other than death, Disability, Retirement, or any approved reason, all
unexercised, unearned, and/or unpaid Awards, including, but not by way of
limitation, Awards earned, but not yet paid, all unpaid dividends and dividend
equivalents, and all interest accrued on the foregoing shall be cancelled or
forfeited, as the case may be, unless the Participant's Award Agreement
provides, or the Committee determines, otherwise. The Committee shall have the
authority to promulgate rules and regulations to (a) determine what events
constitute Disability, Retirement, or termination for an approved reason for
purposes of the Plan, and (b) determine the treatment of a Participant under the
Plan in the event of the Participant's death, Disability, Retirement, or
termination for an approved reason.

18. Change of Control

     (a) Impact. In the event of a Change of Control (as defined below), the
following acceleration and valuation provisions shall apply:

          (i) All Awards outstanding on the date such Change of Control is
          determined to have occurred shall become immediately vested and fully
          exercisable and, if there were performance goals, that such
          performance goals had been attained at the target level or the
          equivalent thereof;

          (ii) All Awards which are not paid in Common Stock will be cashed out
          at the "Change of Control Price" (as defined below) reduced by the
          exercise price, if any, applicable to such Awards; and

          (iii) The Committee may, in its discretion, make such other provision
          relating to any Award, any unpaid dividend or dividend equivalent and
          all interest accrued

                                        9

<PAGE>

          thereon, any performance goal, or any Award deferred under Paragraph
          16 hereof which the Committee may deem equitable, including, but not
          limited to, adjusting the terms of an Award to reflect the Change of
          Control or causing the Award to be assumed, or new rights to be
          substituted therefor, by another entity.

     (b) Definitions.

          (i) "Change of Control" means the occurrence of (1) the acquisition
          (other than from the Company) by any person, entity, or group (within
          the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act),
          other than the Company, a subsidiary of the Company, or any employee
          benefit plan or plans sponsored by the Company or any subsidiary of
          the Company, directly or indirectly, of beneficial ownership (within
          the meaning of Exchange Act Rule 13d-3) of 33% or more of the then
          outstanding shares of common stock of the Company or voting securities
          representing 33% or more of the combined voting power of the Company's
          then outstanding voting securities ordinarily entitled to vote in the
          election of directors unless the Incumbent Board (as defined below),
          before such acquisition or within 30 days thereafter, deems such
          acquisition not to be a Change of Control; or (2) individuals who, as
          of the date this Plan is adopted by the Board, constitute the Board
          (as of such date, the "Incumbent Board") ceasing for any reason to
          constitute at least a majority of such Board; provided, however, that
          any person becoming a director subsequent to the date this Plan is
          adopted by the Board whose election, or nomination for election by the
          shareholders of the Company, was approved by a vote of at least a
          majority of the directors then comprising the Incumbent Board shall be
          for purposes of the Plan, considered as though such person were a
          member of the Incumbent Board but excluding, for this purpose, any
          such individual whose initial assumption of office occurs as a result
          of an actual or threatened election contest which was (or, if
          threatened, would have been) subject to Exchange Act Rule 14a-12(c);
          or (3) the consummation of any merger, consolidation or share exchange
          of the Company with any other corporation, other than a merger,
          consolidation or share exchange which results in more than 60% of the
          outstanding shares of the common stock, and voting securities
          representing more than 60% of the combined voting power of then
          outstanding voting securities entitled to vote generally in the
          election of directors, of the surviving, consolidated or resulting
          corporation being then beneficially owned, directly or indirectly, by
          the persons who were the Company's shareholders immediately prior to
          such transaction in substantially the same proportions as their
          ownership, immediately prior to such transaction, of the Company's
          then outstanding Common Stock or then outstanding voting securities,
          as the case may be; or (4) the consummation of any liquidation or
          dissolution of the Company or a sale or other disposition of all or
          substantially all of the assets of the Company.

          (ii) "Change of Control Price" means, as determined by the Committee,
          (1) the highest Market Value at any time within the 60-day period
          immediately preceding

                                       10

<PAGE>

          the date of determination of the Change of Control Price by the
          Committee, (2) the highest price paid or offered per share of Common
          Stock, as determined by the Committee, in any bona fide transaction or
          bona fide offer related to the Change of Control of the Company at any
          time within such 60-day period, or (3) some lower price as the
          Committee, in its discretion, determines to be a reasonable estimate
          of the fair market value of a share of Common Stock.

19. Nonassignability

     No Awards or any other payment under the Plan shall be subject in any
manner to alienation, anticipation, sale, transfer (except by will or the laws
of descent and distribution or pursuant to a qualified domestic relations order
as defined in the Code), assignment, pledge, or encumbrance, and during the
lifetime of the Participant, only the Participant may exercise rights under the
Plan. Following the death of the Participant, such individual, trust or estate
who or which by designation of the Participant or operation of law succeeds to
the rights of the Participant under the Plan upon the Participant's death, may
exercise the Participant's rights to the extent they are exercisable under the
Plan following the death of the Participant. All beneficiary designations shall
be made in such form and subject to such limitations as may from time to time be
acceptable to the Committee and delivered to and accepted by the Committee.

20. Adjustment Provisions

     If there is any change in the number of outstanding shares of Common Stock
through the declaration of stock dividends, stock splits or the like, the number
of shares available for Awards, the shares subject to any Award and the option
prices or exercise prices of Awards shall be automatically adjusted. If there is
any change in the number of outstanding shares of Common Stock through any
change in the capital of the Company, or through any other transaction referred
to in Section 424(a) of the Code, the Committee shall make appropriate
adjustments in the maximum number of shares of Common Stock which may be issued
under the Plan and any adjustments and/or modifications to outstanding Awards as
it deems appropriate. In the event of any other change in the capital structure
or in the Common Stock of the Company, or in the event of a merger,
consolidation, combination or exchange of shares, or the like, as a result of
which Common Stock is changed into another class, or securities of another
person, cash or other property, the exercise price, consideration to be
received, and other terms of an Award shall be adjusted as deemed equitable by
the Committee, in its sole discretion. The Committee shall have authority to
provide for, in appropriate cases upon the effectiveness of the transaction, (a)
waiver, in whole or in part, of remaining restrictions for vesting or earning,
and (b) the conversion of outstanding Awards into cash or other property to be
received in the transactions immediately or over the periods the Award would
have vested or been earned. Any adjustment, waiver, conversion or the like
carried out by the Committee under this Paragraph shall be conclusive and
binding for all purposes of the Plan. Notwithstanding the foregoing, any
increase in the number of shares of Common Stock subject to the Plan shall, if
required under Rule 16b-3 or Code Section 162(m), be subject to approval of the
Company's shareholders.

                                       11

<PAGE>

21. Withholding Taxes

     The Company shall be entitled to deduct from any payment under the Plan,
regardless of the form of such payment, the amount of all applicable income and
employment taxes required by law to be withheld with respect to such payment or
may require the Participant to pay to it such tax prior to and as a condition of
the making of such payment. In no event shall the Company withhold, or allow the
Participant to pay more than the minimum amount required by law. In accordance
with any applicable administrative guidelines it establishes, the Committee may
allow a Participant to pay the amount of taxes required by law to be withheld
from an Award by withholding from any payment of Common Stock due as a result of
such Award, or by permitting the Participant to deliver to the Company, shares
of Common Stock having a fair market value, as determined by the Committee,
equal to the amount of such required withholding taxes.

22. Noncompetition Provision

     Unless the Award Agreement specifies otherwise, a Participant shall forfeit
all unexercised, unearned, and/or unpaid Awards, including, but not by way of
limitation, Awards earned but not yet paid, all unpaid dividends and dividend
equivalents, and all interest, if any, accrued on the foregoing if, (a) in the
opinion of the Committee, the Participant, at any time during the period of
Participant's employment and for one (1) year thereafter, without the written
consent of the Company, engages directly or indirectly in any manner or capacity
as principal, agent, partner, officer, director, employee, or otherwise, in any
business or activity competitive with the business conducted by the Company or
any Subsidiary, in the geographic area in which the Company does business; or
(b) the Participant performs any act or engages in any activity which in the
opinion of the Chief Executive Officer of the Company is inimical to the best
interests of the Company. In addition, the Committee may, in its discretion,
condition the deferral of any Award, dividend, or dividend equivalent under
Paragraph 16 hereof on a Participant's compliance with the terms of this
Paragraph 22, and cause such a Participant to forfeit any payment which is so
deferred if the Participant fails to comply with the terms hereof.

23. Amendments to Awards

     The Committee may at any time unilaterally amend or terminate and cash out
any unexercised or unpaid Award, whether earned or unearned, including, but not
by way of limitation, Awards earned but not yet paid, and/or substitute another
Award of the same or different type, to the extent it deems appropriate;
provided, however, that any amendment to (but not termination of) an outstanding
Award which, in the opinion of the Committee, is materially adverse to the
Participant, or any amendment or termination which, in the opinion of the
Committee, may subject the Participant to liability under Section 16 of the
Exchange Act, shall require the Participant's consent.

24. Regulatory Approvals and Listings

                                       12

<PAGE>

     Notwithstanding anything contained in this Plan to the contrary, the
Company shall have no obligation to issue or deliver certificates of Common
Stock evidencing Stock Awards or any other Award resulting in the payment of
Common Stock prior to (a) the obtaining of any approval from any governmental
agency which the Company shall, in its sole discretion, determine to be
necessary or advisable, (b) the admission of such shares to listing on the stock
exchange on which the Common Stock may be listed, and (c) the completion of any
registration or other qualification of said shares under any state or federal
law or ruling of any governmental body which the Company shall, in its sole
discretion, determine to be necessary or advisable.

25. No Rights to Continued Service or Grants

     Participation in the Plan shall not give any Participant any right to
remain in the employ of the Company or any Subsidiary or to continue as a
director of the Company or any Subsidiary. The Company or, in the case of
service with a Subsidiary, the Subsidiary, reserves the right to terminate any
Participant at any time. Further, the adoption of this Plan shall not be deemed
to give any Participant or any other person any right to be selected as a
Participant or to be granted an Award or additional Awards.

26. Amendment

     The Board may suspend or terminate the Plan at any time, but the
termination or suspension shall not, without the consent of a Participant,
adversely affect the rights of such Participant under an outstanding Award then
held by the Participant, except to the extent permitted by Paragraph 23. In
addition, the Board may, from time to time, amend the Plan in any manner, but
may not without shareholder approval adopt any amendment that requires
shareholder approval under Rule 16b-3, Code Section 162(m), or any other
applicable provision of securities and/or tax law.

27. Governing Law

     The Plan shall be governed by and construed in accordance with the laws of
the State of Wisconsin without regard to its conflicts of law provisions.

28. No Right, Title, or Interest in Company Assets

     No Participant shall have any right in any fund or in any specific asset of
the Company by reason of being a Participant under this Plan, nor any rights as
a shareholder as a result of participation in the Plan until the date of
issuance of a stock certificate in the Participant's name, and, in the case of
restricted shares of Common Stock, such rights are granted to the Participant
under Paragraph 10(c) hereof. To the extent any person acquires a right to
receive payments from the Company under this Plan, such rights shall be no
greater than the rights of an unsecured creditor of the Company.

                                       13

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