Document:

EXECUTIVE EMPLOYMENT AND CONSULTING AGREEMENT

          THIS  AGREEMENT  is made as of the 31st day of  December, 1999, by and
between State Financial Services Corporation,  a Wisconsin corporation ("SFSC"),
and JEROME J. HOLZ ("Executive").

          WHEREAS,  Executive currently serves as Chairman of the Board and Vice
President of SFSC, and in such capacities, Executive consults on a regular basis
with  management  of SFSC  concerning  matters of strategic  planning,  business
development and company policies;

          WHEREAS,  Executive has been a director of SFSC since its inception in
1984,  a  director  of the State  Financial  Bank  (Wisconsin),  a  wholly-owned
subsidiary  of SFSC (the  "Bank"),  since 1960,  a director  of State  Financial
Bank-Waterford,  a  wholly-owned  subsidiary of SFSC,  since 1995, a director of
State Financial Bank (Illinois),  a wholly-owned subsidiary of SFSC, since 1998,
and a director of Home Federal  Savings of Elgin, a  wholly-owned  subsidiary of
SFSC, since 1998, and in each such position Executive has materially contributed
to SFSC's success;

          WHEREAS, the nature of the services provided by Executive to SFSC have
in recent years become more  consultative  and such services  increasingly  have
been  requested  by SFSC and  provided by  Executive  more on an as needed basis
rather than on a day-to-day basis; and

          WHEREAS,  SFSC wishes to  establish  this  Agreement  for  purposes of
promoting in Executive the  strongest  interest in the  successful  operation of
SFSC,  to facilitate  an orderly  transition  upon the cessation or reduction of
certain  duties  by  Executive,  and  to  provide  to  Executive  benefits  upon
retirement  or  disability in  consideration  of: (a) past services  provided by
Executive  to SFSC and its  affiliates;  (b)  Executive's  commitment  to remain
employed by SFSC and the  services to be performed  for SFSC until  December 31,
1999 (the "Retirement  Date"); (c) consulting and other services to be performed
for SFSC  subsequent  to the  Retirement  Date;  and (d) other  commitments  and
agreements made by Executive herein;

          NOW, THEREFORE, in consideration of the premises, terms and conditions
hereinafter set forth, the parties hereto agree as follows:

          1.  Duties During Employment Period.

              Executive  shall  continue to serve  SFSC,  for the  remainder  of
calendar year 1999 and ending on the Retirement Date (the "Employment  Period"),
as an  executive  officer with the title of Vice  President  of SFSC.  After the
Retirement Date, Executive shall cease to be an executive officer or employee of
SFSC.

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              During the Employment  Period,  Executive shall have the following
duties, together with such other duties, subject to Executive's availability, as
the SFSC's  President or Board of Directors may  reasonably  assign from time to
time:

              (a)  Executive shall perform duties  respecting  customer  service
and account retention for the Bank's high net worth clientele (the "Clientele").

              (b)  Executive shall assist customer  service staff with difficult
Clientele and with Clientele inquiries or problems.

              (c)  Executive  shall be  available  for  consultation  on all new
products,  regulations  and  policies  applicable  to  SFSC,  the  Bank  or  the
Clientele,  and shall  participate  as  requested in regular  staff  meetings to
evaluate  and discuss  methods,  changes and  problems  in the  acquisition  and
retention of Clientele.

              (d)  Executive  shall be available for  consultation  on strategic
business  alliances,  acquisitions,  divestitures,  joint  ventures  and similar
business combinations and transactions as such are from time to time considered,
negotiated and consummated by the officers or Board of Directors of SFSC.

              (e)  Executive shall assist SFSC  management in the  establishment
and implementation of goals for the acquisition and retention of Clientele.

              (f)  Executive   shall  maintain  his   memberships  in  community
organizations  and  participate  generally in the activities and affairs of such
organizations with a view toward furthering the interests of SFSC, and Executive
shall seek opportunities to join other similar organizations consistent with his
interests and availability; and

              (d)  At the request  of  the  President  or  Board  of  Directors,
Executive  shall  participate  in ceremonial  activities of SFSC,  including the
annual Christmas party,  periodic employee social  gatherings,  branch openings,
award presentations, recognition functions, and the like.

              During the  Employment  Period,  Executive  shall  devote his best
efforts  and  attention  to  SFSC's  business  or  the  business  of  any of its
affiliates, except during usual vacation periods.

          2.  Duties as Chairman of the Board. Executive shall continue to serve
SFSC as Chairman of the Board until the earlier of his  resignation,  removal or
death or such time that his successor is duly elected and  qualified;  provided,
however,  that Executive  shall not serve as Chairman of the Board of SFSC after
December 31, 2004. During such time as Executive serves as Chairman of the Board
of SFSC,  Executive  agrees to accept and serve in the  capacity of a reasonable
number of other director  and/or  chairman  positions at SFSC  affiliates as the
President or Board of Directors of SFSC may request from time to time.

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          3.  Duties After Retirement Date.

              Beginning  January  1,  2000  and  continuing  until  the  end  of
Executive's life (the "Consulting Period"), Executive shall be available to SFSC
and its Board of Directors  and the  executive  officers of SFSC for  consulting
services respecting SFSC's business and the Clientele,  at such times and places
as may be mutually  convenient to and agreed by Executive  and SFSC.  During the
Consulting  Period,  Executive  shall serve as a "good will  ambassador"  in the
general  community,  and shall use his best  efforts to  preserve  the  business
relationships  between  SFSC,  the Bank and the  Bank's  customers  and to refer
potential customers to the Bank.  Executive shall continue to perform the duties
described in subsection 1(c) through 1(g), except that Executive shall no longer
be responsible to assist in the  administrative  and  organizational  aspects of
SFSC,  and it is  understood  that  Executive's  general  level of activities on
behalf of SFSC will be substantially  reduced.  SFSC shall not request Executive
to perform any services  which are  inconsistent  with his  previous  duties and
experience as an executive of SFSC or which would  unreasonably  interfere  with
his normal  activities  in  retirement.  Consulting  services may be provided by
telephone,  and nothing  herein shall be  construed  to require the  Executive's
residence or continued location in the Milwaukee area.

          4.  Compensation.

              4.1.  Compensation for Executive.

                    (a)  During the  Employment  Period,  SFSC shall continue to
pay to  Executive,  and  Executive  shall  continue to accept from SFSC, a total
annual  compensation in accordance  with such rates,  terms and conditions as in
effect between SFSC and Executive as of the date hereof.

                    (b)  SFSC shall pay to Executive, and Executive shall accept
from SFSC, a total  annual  compensation  in the amount of One Hundred  Thousand
Dollars  ($100,000)  (or proration  thereof) for each year (or portion  thereof)
after the Retirement Date for which Executive serves as Chairman of the Board of
SFSC.  While  Executive  serves as Chairman  of the Board of SFSC,  he shall not
receive  additional  director or committee fees for his service as a Director or
committee member for SFSC or any affiliate of SFSC. After Executive ceases to be
Chairman of the Board of SFSC, he shall be compensated for any continued service
as a Director or committee  member of SFSC or any  affiliate of SFSC in the same
manner as any outside Director.

                    (c)  Throughout the  Consulting  Period,  subject to Section
4.1(d) below, SFSC shall pay to Executive, and Executive shall accept from SFSC,
an annual  consulting  compensation  of Two  Hundred  and Twenty  Five  Thousand
Dollars ($225,000),  a portion of which shall constitute  deferred  compensation
for services rendered prior to the Retirement Date and the balance shall be paid
in  respect  of  Executive's  continuing  duties  and  obligations  set forth in
paragraph 2 of this Agreement.

                    (d)  If, during the  Consulting  Period,  as a result of the
Executive's  disability  due to  physical  or  mental  illness  or  injury,  the
Executive  shall have been absent from

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the Executive's  duties  hereunder on a full-time basis for a period of 182 days
and, within thirty days after the Company notifies the Executive in writing that
it intends to reduce the Executive's compensation,  the Executive shall not have
returned to the performance of the Executive's consulting duties hereunder, then
the  Company  may reduce  the  Executive's  compensation  for  purposes  of this
Agreement to an annual amount of $100,000,  effective  upon the first day of the
calendar month following the expiration of the 30-day period following notice to
the Executive.

                    All  compensation  payable to  Executive  under this Section
4.1:(i)  shall  be  payable  in  regular  periodic  installments  under  and  in
accordance  with SFSC's payroll plan in effect from time to time, and (ii) shall
cease upon  Executive's  death,  except for any unpaid amounts  attributable  to
periods prior to the first day of the month of Executive's  death,  which unpaid
amounts shall be promptly paid by SFSC to Executive's estate.

                    Executive shall receive no other monetary  compensation from
SFSC  after the  Employment  Period,  except (i) as the Board of  Directors  may
approve in its sole  discretion for services or performance  beyond  Executive's
obligations  under this  Agreement and (ii) under SFSC's  Deferred  Compensation
Agreement,  dated  December 9, 1980,  and SFSC's Stock  Incentive  Plan,  to the
extent each is applicable to directors,  for such time as Executive  serves as a
director of SFSC or any of its affiliates.  Except as otherwise provided in this
Agreement,  Executive  hereby waives his right to participate in SFSC's deferred
compensation  programs  at any  time in the  future  (except  to the  extent  of
benefits  accrued as of the date hereof).  Executive also understands that after
the end of the  Employment  Period he shall have no rights to continue in active
participation  in the SFSC  retirement  plans  (except to the extent of benefits
accrued  to the  end of  the  Employment  Period),  and in the  event  he may be
determined to be an employee of SFSC following the Employment Period,  Executive
waives his right to  participate in such plans  following the Employment  Period
and  further  waives his right to receive  any  further  payments in lieu of his
participation  in the SFSC retirement plans including  payments  attributable to
periods  prior to the date hereof  (except to the extent of benefits  accrued to
the end of the Employment Period).

              4.2. Fringe Benefits.

                    Throughout the Consulting Period,  SFSC shall provide, at no
cost to Executive,  for his lifetime,  supplemental  Medicare insurance coverage
and prescription  medication coverage that is reasonably acceptable to Executive
and  comparable to the coverage in effect for  Executive on the date hereof.  To
that end, SFSC shall reimburse  Executive for premium  payments  Executive makes
under such  supplemental  Medicare  insurance  coverage  arrangement  and/or for
prescription  medication coverage.  However, SFSC reserves the right at any time
and at SFSC's sole  discretion to provide,  at no cost to Executive,  in lieu of
such  reimbursement  for  premium  payments,   supplemental  Medicare  insurance
coverage  comparable to the coverage in effect for Executive on the date hereof.
Except as otherwise  provided in this  Agreement,  Executive  shall  continue to
participate  in all fringe  benefit  programs of the SFSC during the  Employment
Period and shall cease to  participate  in such programs  during the  Consulting
Period.  Executive's  failure  or  inability  to  perform  services  to  SFSC as

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contemplated  in this  Agreement  shall not affect SFSC's  obligation to provide
supplemental Medicare insurance coverage and prescription medication coverage as
provided in this Section 4.2.

              4.3.  Expenses.

                    During the Employment Period and the Consulting Period, SFSC
shall reimburse  Executive for all reasonable  documented  expenses  incurred by
Executive in  performance of his duties under this  Agreement,  except that SFSC
shall not be required to reimburse  Executive after the Retirement Date for club
dues and club expenses  (other than  documented club expenses which are incurred
by Executive in the performance of his duties and approved by SFSC).

              4.4.  Disability.

                    No separate provision is made for a disability benefit under
this  Agreement.  However,  for purposes of this  Agreement,  Executive shall be
considered,  notwithstanding  any such  disability,  to  continue to be employed
until the Retirement Date and Executive  shall continue to receive  compensation
payments  pursuant to Section 4.1 for the duration of the Employment  Period and
the Consulting Period.

              4.5.  Release.

                    Except  as  specifically   provided  in  this  Agreement  or
hereafter  specifically  approved by the Board of Directors  of SFSC,  Executive
agrees to release and forever  discharge  SFSC and all of its present and former
directors,  officers,  shareholders,  and its and their successors,  assigns and
representatives from any and all claims to compensation,  monetary or otherwise,
which Executive may have now or in the future.

          5.  Change in Control of SFSC.

              In the event there is a Change in Control (as hereinafter defined)
of  SFSC  during  the  Consulting  Period,  the  Executive  shall,  at his  sole
discretion,  be entitled to receive,  and SFSC shall promptly pay, all remaining
consulting compensation as provided in Section 4.1(c) (or 4.1(d), if applicable)
above in one lump sum payment  computed on the basis of the present value of the
remaining  consulting  compensation for the remainder of the  consultant's  then
actuarial life expectancy. The life expectancy computations under this Section 5
shall  be made  pursuant  to  applicable  Internal  Revenue  Service  rules  and
regulations (Table 90CM) and the present value computations shall use a discount
rate of 8%.

              A "Change  in  Control"  shall be deemed to have  occurred  if the
event set forth in any one of the following paragraphs shall have occurred:

              (a)  Any person (other  than (A) SFSC or any of its  subsidiaries,
(B) a trustee or other fiduciary  holding  securities under any employee benefit
plan of SFSC or any of its subsidiaries,  (C) an underwriter temporarily holding
securities  pursuant  to an  offering of

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such  securities  or (D) a corporation  owned,  directly or  indirectly,  by the
stockholders of SFSC in substantially the same proportions as their ownership of
stock in the SFSC ("Excluded Persons")) is or becomes the "Beneficial Owner" (as
such term is defined in Rule 13d-3 under the Securities Exchange Act of 1934, as
amended  (the  "Act")),  directly  or  indirectly,  of  securities  of SFSC (not
including in the  securities  beneficially  owned by such person any  securities
acquired  directly  from SFSC or its  affiliates  after June 1, 1999 pursuant to
express  authorization by the Board that refers to this exception)  representing
25% or more of either the then outstanding shares of common stock of SFSC or the
combined voting power of SFSC's then outstanding voting securities; or

              (b)  The following  individuals cease for any reason to constitute
a majority of the number of directors then serving: individuals who, on December
1, 1999, constituted the Board and any new director (other than a director whose
initial  assumption  of office  is in  connection  with an actual or  threatened
election contest, including but not limited to a consent solicitation,  relating
to the election of  directors of SFSC,  as such terms are used in Rule 14a-11 of
Regulation  14A under the Act) whose  appointment  or  election  by the Board or
nomination  for  election by SFSC's  stockholders  was  approved by a vote of at
least  two-thirds  (2/3) of the  directors  then still in office who either were
directors on December 1, 1999 or whose  appointment,  election or nomination for
election was previously so approved; or

              (c)  The stockholders of SFSC approve a merger,  consolidation  or
share  exchange of SFSC with any other  corporation  or approve the  issuance of
voting  securities of SFSC in connection with a merger,  consolidation  or share
exchange  of SFSC (or any direct or  indirect  subsidiary  of SFSC)  pursuant to
applicable stock exchange requirements,  other than (A) a merger,  consolidation
or  share  exchange  which  would  result  in  the  voting  securities  of  SFSC
outstanding  immediately  prior to such merger,  consolidation or share exchange
continuing to represent  (either by remaining  outstanding or by being converted
into voting  securities of the surviving  entity or any parent thereof) at least
50% of the  combined  voting  power  of the  voting  securities  of SFSC or such
surviving  entity or any  parent  thereof  outstanding  immediately  after  such
merger, consolidation or share exchange, or (B) a merger, consolidation or share
exchange  which  would  result  in the  voting  securities  of SFSC  outstanding
immediately prior to such merger,  consolidation or share exchange continuing to
represent  (either by remaining  outstanding  or by being  converted into voting
securities  of the surviving  entity or any parent  thereof) at least 25% of the
combined voting power of the voting  securities of SFSC or such surviving entity
or any parent thereof outstanding  immediately after such merger,  consolidation
or share  exchange,  but only if the  individuals  described in subsection  (ii)
above cease for any reason to  constitute  a majority of the number of directors
of SFSC or such  surviving  entity or any parent  thereof (for  purposes of this
determination  SFSC  shall be deemed to  include  such  surviving  entity or any
parent thereof); or

              (d)  The   stockholders   of  SFSC  approve  a  plan  of  complete
liquidation  or  dissolution of SFSC or an agreement for the sale or disposition
by SFSC of all or  substantially  all of SFSC's assets (in one  transaction or a
series of related  transactions  within any  period of 24  consecutive  months),
other than a sale or disposition by SFSC of all or  substantially  all of SFSC's
assets  to an entity at least 75% of the  combined  voting  power of the

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voting  securities  of which  are owned by  persons  in  substantially  the same
proportions as their ownership of SFSC immediately prior to such sale.

              Notwithstanding  the  foregoing,  no "Change in Control"  shall be
deemed to have occurred if there is  consummated  any  transaction  or series of
integrated  transactions  immediately  following which the record holders of the
common  stock  of SFSC  immediately  prior  to such  transaction  or  series  of
transactions continue to have substantially the same proportionate  ownership in
an entity that owns all or substantially  all of the assets or voting securities
of SFSC immediately following such transaction or series of transactions.

          6.  Further Obligations of the Executive.

              (a)  Competition.  The Executive agrees that during the Consulting
Period,  the Executive shall not, without the written consent of SFSC,  directly
or indirectly, as an employee,  owner, partner, agent or otherwise,  participate
in any  manner  (or assist or advise  any other  person)  in the  business  of a
commercial bank (or of a business in direct  competition with commercial  banks,
such as a  savings  and loan  association,  mortgage  bank or  consumer  finance
company,  leasing  company,  credit union or commercial or consumer lender) at a
place of business  within the State of  Wisconsin or Illinois or within 50 miles
of any business operation of SFSC or any affiliate of SFSC;  provided,  however,
that Executive may be employed by any affiliate of SFSC. The restrictions herein
do not bar the  Executive  from  ownership  of  securities  bought and sold on a
public market.

              (b)  Confidential   Information.   During   and   following   the
Executive's  employment by SFSC,  including the Consulting Period, the Executive
shall hold in confidence and not directly or indirectly  disclose or use or copy
or make lists of any confidential information or proprietary data of SFSC or the
Bank,  except to the extent  authorized  in writing by the Board of Directors of
SFSC or  required  by any  court  or  administrative  agency,  other  than to an
employee  of SFSC or the  Bank or a  person  to whom  disclosure  is  reasonably
necessary or appropriate in connection  with the performance by the Executive of
duties as an executive of SFSC.  Confidential  information shall not include any
information  known  generally  to the  pubic  or any  information  of a type not
otherwise  considered  confidential by persons engaged in the same business or a
business similar to that of SFSC. All records, files, documents and materials or
copies  thereof,  relating to SFSC's business which the Executive shall prepare,
or use,  or come into  contact  with,  shall be and remain the sole  property of
SFSC.

          7.  Assignment of Benefits.

              Unless  ordered by a court of  competent  jurisdiction,  Executive
shall not have any right to assign the right to receive any benefits  hereunder,
and  in  the  event  of  any  assignment  or  transfer,   whether  voluntary  or
involuntary,  except pursuant to an order of a court of competent  jurisdiction.
In the event  Executive  attempts such a transfer or assignment,  SFSC shall not
have any further liability hereunder.

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<PAGE>

          8.  Taxes.

              SFSC shall deduct from all payments made  hereunder all applicable
federal or state taxes required by law to be withheld from such payments.

          9.  Amendment.

              The parties may amend,  modify and  supplement  this  Agreement in
such manner as they may agree upon in writing.

          10. Construction.

              This  Agreement  shall be governed by and  construed in accordance
with the laws of the State of Wisconsin.

          11. Notice.

              Any notice  required or permitted to be made under this  Agreement
shall be sufficient if sent by certified  mail,  postage  prepaid,  addressed to
SFSC at 10708 West Janesville Road,  Hales Corners,  Wisconsin 53130, and to the
Executive at 4567 N. Sawyer Rd., Oconomowoc Lake, Wisconsin 53066.

          12. Captions.

              The  captions  at the head of a  section  or a  paragraph  of this
Agreement  are designed  for  convenience  of  reference  only and are not to be
resorted to for the purpose of interpreting any provision of this Agreement.

          13. Severability.

              The  invalidity  of  any  portion  of  this  Agreement  shall  not
invalidate  the remainder  thereof,  and said  remainder  shall continue in full
force and effect.

          14. Binding Effect.

              This  Agreement  shall  be  binding  upon and  shall  inure to the
benefit of the Executive and SFSC and its  successors.  The term  "successor" as
used herein  shall  include any person,  firm,  corporation,  or other  business
entity  which at any time,  by merger,  consolidation,  purchase  or  otherwise,
acquires all or substantially all of SFSC's stock,  assets or business.  No sale
of substantially  all of SFSC's assets shall be made without the buyer expressly
assuming the obligation of this Agreement.  SFSC further agrees that it will not
be a party to any merger,  consolidation or reorganization  unless and until its
obligations hereunder are expressly assumed by the successor or successors.

                                      -8-
<PAGE>

          15. Entire Agreement.

              This Agreement  contains the entire  understanding  of the parties
respecting  the subject  matter hereof and supersedes all other oral and written
agreements.

              IN  WITNESS  WHEREOF,  this  Agreement  has been  executed  by the
parties as of the date first set forth above.

                                        STATE FINANCIAL SERVICES CORPORATION

                                        By:_____________________________________
                                           Michael J. Falbo
                                           President and Chief Executive Officer

                                        Attest:_________________________________

                                        Title:__________________________________

                                        EXECUTIVE

                                        ________________________________________
                                        Jerome J. Holz

                                      -9-KEY EXECUTIVE EMPLOYMENT AND SEVERANCE AGREEMENT

          THIS AGREEMENT, is made and entered into as of the 1st day of October,
1999,  by  and  between  STATE  FINANCIAL  SERVICES  CORPORATION,   a  Wisconsin
corporation  (hereinafter  referred to as the "Company"),  and _________________
(hereinafter referred to as the "Executive").

                              W I T N E S S E T H :

          WHEREAS,  the Executive is employed by the Company and/or a subsidiary
of the Company in a key executive  capacity,  and the  Executive's  services are
valuable to the conduct of the business of the Company;

          WHEREAS,   the  Board  of  Directors  of  the  Company  (the  "Board")
recognizes  that  circumstances  may arise in which a change in  control  of the
Company occurs,  through  acquisition or otherwise,  thereby causing uncertainty
about  the  Executive's  future  employment  with the  Company  and/or  any such
subsidiary without regard to the Executive's  competence or past  contributions,
which  uncertainty may result in the loss of valuable  services of the Executive
to the  detriment of the Company and its  shareholders,  and the Company and the
Executive wish to provide  reasonable  security to the Executive against changes
in the Executive's relationship with the Company in the event of any such change
in control;

          WHEREAS,  the Company and the Executive desire that any proposal for a
change in  control or  acquisition  of the  Company  will be  considered  by the
Executive  objectively  and with  reference  only to the best  interests  of the
Company and its shareholders; and

          WHEREAS,  the Executive  will be in a better  position to consider the
Company's best interests if the Executive is afforded  reasonable  security,  as
provided in this Agreement, against altered conditions of employment which could
result from any such change in control or acquisition.

          NOW,  THEREFORE,  in  consideration of the foregoing and of the mutual
covenants and agreements  hereinafter  set forth,  the parties  hereto  mutually
covenant and agree as follows:

          1.  Definitions.

              (a)  Act.  The term "Act"  means the  Securities  Exchange  Act of
1934, as amended.

              (b)  Accrued Benefits.  The term "Accrued  Benefits" shall include
the following amounts,  payable as described herein: (i) all base salary for the
time period ending with the Termination Date; (ii) reimbursement for any and all
monies advanced in connection with the Executive's employment for reasonable and
necessary  expenses  incurred by the  Executive on

<PAGE>

behalf of the Company  and its  Affiliates  for the time period  ending with the
Termination  Date;  (iii) any and all other cash earned through the  Termination
Date and deferred at the  election of the  Executive or pursuant to any deferred
compensation  plan then in effect;  (iv)  notwithstanding  any  provision of any
bonus or incentive  compensation  plan  applicable to the Executive,  a lump sum
amount,  in cash,  equal to the sum of (A) any bonus or  incentive  compensation
that has been  allocated or awarded to the  Executive for a fiscal year or other
measuring  period under the plan that ends prior to the Termination Date but has
not yet been paid  (pursuant  to Section 5(f) or  otherwise)  and (B) a pro rata
portion to the Termination  Date of the aggregate value of all contingent  bonus
or incentive  compensation  awards to the Executive for all uncompleted  periods
under the plan  calculated as to each such award as if the Goals with respect to
such bonus or incentive  compensation award had been attained; and (v) all other
payments and benefits to which the Executive or in the event of the  Executive's
death, the Executive's surviving spouse or other beneficiary) may be entitled as
compensatory  fringe  benefits  or under  the terms of any  benefit  plan of the
Employer,  including severance payments under the Employer's  severance policies
and practices in the form most favorable to the Executive that were in effect at
any time during the one-year  period  prior to the  Effective  Date.  Payment of
Accrued  Benefits  shall be made  promptly  in  accordance  with the  Employee's
prevailing  practice  with  respect to clauses (i) and (ii) or, with  respect to
clauses  (iii),  (iv) and (v),  pursuant  to the  terms of the  benefit  plan or
practice establishing such benefits.

              (c)  Affiliate  and   Associate.   The  terms   "Affiliate"   and
"Associate"  shall have the respective  meanings  ascribed to such terms in Rule
12b-2 of the General Rules and Regulations of the Act.

              (d)  Annual Cash Compensation. The term "Annual Cash Compensation"
shall  mean the sum of (A) the  Executive's  Annual  Base  Salary,  plus (B) the
highest of (1) the annual  bonus or incentive  compensation  award earned by the
Executive under any cash bonus or incentive  compensation plan of the Company or
any of its  Affiliates  during the three  complete  fiscal  years of the Company
immediately  preceding  the  Termination  Date  or,  if  more  favorable  to the
Executive,  during the three  complete  fiscal years of the Company  immediately
preceding  the  Effective   Date;  (2)  the   Executive's   bonus  or  incentive
compensation  Targeted Bonus for the fiscal year in which the  Termination  Date
occurs;  or (3) the highest average annual bonus and/or  incentive  compensation
earned  during  the  three  complete  fiscal  years of the  Company  immediately
preceding the Termination  Date (or, if more favorable to the Executive,  during
the  three  complete  fiscal  years of the  Company  immediately  preceding  the
Effective  Date)  under any cash  bonus or  incentive  compensation  plan of the
Company or any of its  Affiliates  by the group of executives of the Company and
its  Affiliates  participating  under such plan during  such  fiscal  years at a
status or position  comparable  to that at which the Executive  participated  or
would have participated  pursuant to the Executive's most senior position at any
time  during the year  preceding  the  Effective  Date or  thereafter  until the
Termination Date, plus (C) the Company  Contribution to the ESOP, Money Purchase
Pension Plan and Supplemental  Executive Plan for the fiscal year of the Company
out of the three complete  fiscal years prior to the  Termination  Date in which
the combined Company Contribution was highest.

                                      -2-
<PAGE>

              (e)  Cause.  The Company may terminate the Executive's  employment
after  the  Effective  Date for  "Cause"  only if the  conditions  set  forth in
paragraphs  (i) and (ii) have been met and the Company  otherwise  complies with
this Agreement:

                   (i)   (A)  the Executive  has  committed  any  act of  fraud,
     embezzlement  or theft in  connection  with the  Executive's  Tduties as an
     Executive  or in the  course of  employment  with the  Company  and/or  its
     subsidiaries;  (B) the Executive has  willfully and  continually  failed to
     perform substantially the Executive's duties with the Company or any of its
     Affiliates  (other than any such failure  resulting from  incapacity due to
     physical or mental illness or injury, regardless of whether such illness or
     injury is job-related) for an appropriate  period,  which shall not be less
     than 30 days, after the Chief Executive  Officer of the Company (or, if the
     Executive  is then Chief  Executive  Officer,  the Board) has  delivered  a
     written  demand  for   performance  to  the  Executive  that   specifically
     identifies the manner in which the Chief  Executive  Officer (or the Board,
     as the case may be) believes the Executive has not substantially  performed
     the Executive's  duties; (C) the Executive has willfully engaged in illegal
     conduct or gross misconduct that is materially and  demonstrably  injurious
     to the Company;  (D) the Executive has willfully and  wrongfully  disclosed
     any trade secret or other confidential information of the Company or any of
     its  Affiliates;  or (E)  the  Executive  has  engaged  in any  Competitive
     Activity;  and in any  such  case  the  act or  omission  shall  have  been
     determined by the Board to have been materially  harmful to the Company and
     its subsidiaries taken as a whole.

                   For purposes of this provision,  (1) no act or failure to act
     on the part of the  Executive  shall be considered  "willful"  unless it is
     done,  or  omitted  to be done,  by the  Executive  in bad faith or without
     reasonable  belief that the Executive's  action or omission was in the best
     interests  of the Company  and (2) any act,  or failure to act,  based upon
     authority  given pursuant to a resolution duly adopted by the Board or upon
     the instructions of the Chief Executive  Officer or a senior officer of the
     Company  or based  upon the  advice of  counsel  for the  Company  shall be
     conclusively  presumed to be done,  or omitted to be done, by the Executive
     in good faith and in the best interests of the Company.

                   (ii)  (A) The Company  terminates the Executive's  employment
     by delivering a Notice of Termination  to the  Executive,  (B) prior to the
     time the Company has terminated the  Executive's  employment  pursuant to a
     Notice of Termination,  the Board, by the affirmative vote of not less than
     three-quarters  (3/4) of the entire  membership of the Board, has adopted a
     resolution  finding that the  Executive  was guilty of conduct set forth in
     this definition of Cause, and specifying the particulars thereof in detail,
     at a meeting of the Board  called and held for the  purpose of  considering
     such  termination   (after  reasonable  notice  to  the  Executive  and  an
     opportunity for the Executive, together with the Executive's counsel, to be
     heard  before  the  Board)  and (C)  the  Company  delivers  a copy of such
     resolution to the Executive  with the Notice of Termination at the time the
     Executive's employment is terminated.

                                      -3-
<PAGE>

In the event of a dispute regarding whether the Executive's  employment has been
terminated  for Cause,  no claim by the Company that the Company has  terminated
the Executive's  employment for Cause in accordance with this Agreement shall be
given effect unless the Company  establishes  by clear and  convincing  evidence
that the  Company  has  complied  with the  requirements  of this  Agreement  to
terminate the Executive's employment for Cause.

              (f)  Change in Control.  A "Change in  Control" shall be deemed to
have  occurred  if the event set  forth in any one of the  following  paragraphs
shall have occurred:

                   (i)   any Person (other  than (A) the  Company  or any of its
     subsidiaries, (B) a trustee or other fiduciary holding securities under any
     employee  benefit  plan of the Company or any of its  subsidiaries,  (C) an
     underwriter  temporarily holding securities pursuant to an offering of such
     securities  or (D) a  corporation  owned,  directly or  indirectly,  by the
     stockholders of the Company in substantially  the same proportions as their
     ownership of stock in the Company  ("Excluded  Persons")) is or becomes the
     "Beneficial  Owner" (as such term is defined in Rule 13d-3  under the Act),
     directly or indirectly,  of securities of the Company (not including in the
     securities  beneficially  owned  by such  Person  any  securities  acquired
     directly from the Company or its Affiliates  after June 1, 1999 pursuant to
     express   authorization  by  the  Board  that  refers  to  this  exception)
     representing  25% or more of either the then  outstanding  shares of common
     stock of the Company or the  combined  voting power of the  Company's  then
     outstanding voting securities; or

                   (ii)  the  following  individuals  cease  for any  reason  to
     constitute a majority of the number of directors then serving:  individuals
     who, on June 1, 1999,  constituted  the Board and any new  director  (other
     than a director whose initial assumption of office is in connection with an
     actual or  threatened  election  contest,  including  but not  limited to a
     consent solicitation, relating to the election of directors of the Company,
     as such  terms  are used in Rule  14a-11 of  Regulation  14A under the Act)
     whose  appointment  or election by the Board or nomination  for election by
     the Company's  stockholders  was approved by a vote of at least  two-thirds
     (2/3) of the  directors  then still in office who either were  directors on
     June 1, 1999 or whose appointment,  election or nomination for election was
     previously so approved; or

                   (iii) the  stockholders  of  the  Company  approve  a merger,
     consolidation  or share exchange of the Company with any other  corporation
     or approve the issuance of voting  securities  of the Company in connection
     with a merger,  consolidation  or share  exchange  of the  Company  (or any
     direct or indirect  subsidiary of the Company) pursuant to applicable stock
     exchange  requirements,  other  than (A) a merger,  consolidation  or share
     exchange  which  would  result  in the  voting  securities  of the  Company
     outstanding  immediately  prior  to such  merger,  consolidation  or  share
     exchange  continuing to represent  (either by remaining  outstanding  or by
     being  converted  into voting  securities  of the  surviving  entity or any
     parent  thereof) at least 50% of the  combined  voting  power of the voting
     securities of the Company or such  surviving  entity or any parent  thereof
     outstanding immediately after such merger, consolidation or share exchange,
     or (B) a merger,  consolidation or share exchange

                                      -4-
<PAGE>

     which would  result in the voting  securities  of the  Company  outstanding
     immediately   prior  to  such  merger,   consolidation  or  share  exchange
     continuing  to  represent  (either  by  remaining  outstanding  or by being
     converted  into voting  securities  of the  surviving  entity or any parent
     thereof) at least 25% of the combined voting power of the voting securities
     of the Company or such surviving  entity or any parent thereof  outstanding
     immediately after such merger, consolidation or share exchange, but only if
     the individuals  described in subsection (ii) above cease for any reason to
     constitute  a majority  of the number of  directors  of the Company or such
     surviving entity or any parent thereof (for purposes of this  determination
     the Company shall be deemed to include such surviving  entity or any parent
     thereof); or

                   (iv)  the  stockholders  of the  Company  approve  a plan  of
     complete  liquidation or dissolution of the Company or an agreement for the
     sale or  disposition  by the  Company  of all or  substantially  all of the
     Company's  assets (in one  transaction or a series of related  transactions
     within  any  period  of 24  consecutive  months),  other  than  a  sale  or
     disposition  by the Company of all or  substantially  all of the  Company's
     assets to an entity at least 75% of the combined voting power of the voting
     securities  of  which  are  owned  by  Persons  in  substantially  the same
     proportions  as their  ownership of the Company  immediately  prior to such
     sale.

              Notwithstanding  the  foregoing,  no "Change in Control"  shall be
deemed to have occurred if there is  consummated  any  transaction  or series of
integrated  transactions  immediately  following which the record holders of the
common stock of the Company  immediately  prior to such transaction or series of
transactions continue to have substantially the same proportionate  ownership in
an entity that owns all or substantially  all of the assets or voting securities
of the Company immediately following such transaction or series of transactions.

              (g)  Code.  The term "Code"  means the  Internal  Revenue  Code of
1986, including any amendments thereto or successor tax codes thereof.

              (h)  Competitive  Activity.   The  Executive  shall  engage  in  a
"Competitive  Activity" if the Executive  participates  in the management of, is
employed by or owns any interest in any business enterprise at a location within
the United States that engages in  substantial  competition  with the Company or
its  subsidiaries,   where  such  enterprise's  revenues  from  any  competitive
activities amount to 10% or more of such enterprise's  consolidated net revenues
and sales for its most recently completed fiscal year; provided,  however,  that
owning stock or other  securities  of a  competitor  amounting to less than five
percent  of the  outstanding  capital  stock of such  competitor  shall not be a
"Competitive Activity".

              (i)  Covered Termination. The term "Covered Termination" means any
termination of the Executive's employment during the Employment Period where the
Termination  Date or the date Notice of  Termination is delivered is any date on
or prior to the end of the Employment Period.

                                      -5-
<PAGE>

              (j)  Effective  Date.  The  term  "Effective  Date" shall mean the
first date on which a Change in Control  occurs.  Anything in this  Agreement to
the  contrary  notwithstanding,  if (i) a Change  in  Control  occurs,  (ii) the
Executive's employment with the Employer terminates (whether by the Company, the
Executive or otherwise) within one-year prior to the Change in Control and (iii)
it is reasonably  demonstrated by the Executive that (A) any such termination of
employment by the Employer (1) was at the request of a third party who has taken
steps reasonably calculated to effect a Change in Control or (2) otherwise arose
in connection with or in  anticipation  of a Change in Control,  or (B) any such
termination  of  employment  by  the  Executive  took  place  subsequent  to the
occurrence  of an event  described  in clause  (ii),  (iii),  (iv) or (v) of the
definition  of "Good  Reason" which event (1) occurred at the request of a third
party who has taken steps reasonably calculated to effect a Change in Control or
(2)  otherwise  arose in  connection  with or in  anticipation  of a  Change  in
Control, then for all purposes of this Agreement the term "Effective Date" shall
mean the day immediately prior to the date of such termination of employment.

              (k)  Employer.  The term "Employer"  means the Company  and/or any
subsidiary of the Company that employed the Executive  immediately  prior to the
Effective Date.

              (l)  Good Reason.  The  Executive  shall have a "Good  Reason" for
termination  of  employment  on or after  the  Effective  Date if the  Executive
determines in good faith that any of the following events has occurred:

                   (i)   any breach of this Agreement by the  Company, including
     specifically  any breach by the  Company  of its  agreements  contained  in
     Section 4,  Section 5 or Section 6, other than an  isolated,  insubstantial
     and  inadvertent  failure  not  occurring  in bad  faith  that the  Company
     remedies promptly after receipt of notice thereof given by the Executive;

                   (ii)  any   reduction  in   the   Executive's   base  salary,
     percentage  of base salary  available  as incentive  compensation  or bonus
     opportunity  or benefits,  in each case relative to those most favorable to
     the Executive in effect at any time during the one-year period prior to the
     Effective Date or, to the extent more favorable to the Executive,  those in
     effect after the Effective Date;

                   (iii) a material  adverse  change,  without  the  Executive's
     prior written consent, in the Executive's working conditions or status with
     the  Company or the  Employer  from such  working  conditions  or status in
     effect during the one-year  period prior to the  Effective  Date or, to the
     extent more favorable to the Executive, those in effect after the Effective
     Date,  including but not limited to (A) a material  change in the nature or
     scope of the Executive's  titles,  authority,  powers,  functions,  duties,
     reporting requirements or responsibilities,  or (B) a material reduction in
     the level of support  services,  staff,  secretarial and other  assistance,
     office space and accoutrements, but excluding for this purpose an isolated,
     insubstantial  and  inadvertent  event not  occurring in bad faith that the
     Company  remedies  promptly  after  receipt of notice  thereof given by the
     Executive;

                                      -6-
<PAGE>

                   (iv)  the relocation of the  Executive's  principal  place of
     employment to a location more than 25 miles from the Executive's  principal
     place of employment on the date one year prior to the Effective Date;

                   (v)   the  Employer  requires  the  Executive  to  travel  on
     Employer  business to a materially  greater extent than was required during
     the one-year period prior to the Effective Date;

                   (vi)  failure by the Company to obtain the agreement referred
     to in Section 16(a) as provided therein;

                   (vii) the Executive has continued the Executive's  employment
     through the first anniversary of the Change in Control; provided,  however,
     that the  Executive  may exercise the  Executive's  rights to terminate the
     Executive's  employment  under  this  clause  (vii)  only if the  Executive
     delivers the Notice of Termination  during the 60 days following such first
     anniversary; or

                   (viii) the Company or the Employer terminates the Executive's
     employment  after a Change  in  Control  without  delivering  a  Notice  of
     Termination in accordance with Section 12;

provided that (A) any such event occurs  following the Effective  Date or (B) in
the case of any event described in clauses (ii),  (iii), (iv) or (v) above, such
event occurs on or prior to the Effective Date under circumstances  described in
clause  (iii)(B)(l) or (iii)(B)(2) of the definition of "Effective Date." In the
event of a dispute  regarding  whether the Executive  terminated the Executive's
employment for "Good Reason" in accordance with this Agreement,  no claim by the
Company that such termination does not constitute a Covered Termination shall be
given effect unless the Company  establishes  by clear and  convincing  evidence
that such termination does not constitute a Covered Termination. Any election by
the Executive to terminate the Executive's  employment for Good Reason shall not
be deemed a voluntary termination of employment by the Executive for purposes of
any other employee benefit or other plan.

              (m)  Normal Retirement  Date.  The term "Normal  Retirement  Date"
means the date the Executive  reaches "Normal  Retirement Age" as defined in the
State Financial Services Corporation Money Purchase Pension Plan as in effect on
the date  hereof,  or the  corresponding  date under any  successor  plan of the
Employer as in effect on the Effective Date.

              (n)  Notice of Termination. The term "Notice of Termination" means
a written notice as contemplated by Section 12.

              (o)  Person.  The term "Person"  shall have the  meaning  given in
Section  3(a)(9) of the Act,  as modified  and used in Sections  13(d) and 14(d)
thereof.

              (p)  Termination  Date.  Except as  otherwise  provided in Section
9(b) and Section 16(a), the term "Termination Date" means (i) if the Executive's
employment is terminated by the Executive's  death,  the date of death;  (ii) if
the   Executive's   employment  is  terminated  by

                                       -7-
<PAGE>

reason of voluntary  early  retirement,  as agreed in writing by the Company and
the  Executive,  the date of such  early  retirement  that is set  forth in such
written  agreement;  (iii)  if the  Executive's  employment  is  terminated  for
purposes  of this  Agreement  by reason of  disability  pursuant  to Section 11,
thirty days after the Notice of  Termination is given;  (iv) if the  Executive's
employment  is  terminated  by the  Executive  voluntarily  (other than for Good
Reason), the date the Notice of Termination is given; and (v) if the Executive's
employment  is  terminated  by the Company  (other than by reason of  disability
pursuant to Section 11) or by the Executive  for Good Reason,  thirty days after
the Notice of Termination is given. Notwithstanding the foregoing,

              (A)  If the  Executive shall  in  good  faith  give  a  Notice  of
Termination  for Good  Reason and the  Company  notifies  the  Executive  that a
dispute  exists  concerning  the  termination   within  the  fifteen-day  period
following  receipt  thereof,  then  the  Executive  may  elect to  continue  the
Executive's  employment  during such dispute and the  Termination  Date shall be
determined under this paragraph. If the Executive so elects and it is thereafter
determined  that the Executive  terminated the  Executive's  employment for Good
Reason in accordance with this Agreement, then the Termination Date shall be the
earlier of (1) the date on which the dispute is finally  determined,  either (x)
by mutual written  agreement of the parties or (y) in accordance with Section 21
or (2) the date of the  Executive's  death. If the Executive so elects and it is
thereafter  determined  that the Executive  did not  terminate  the  Executive's
employment  for  Good  Reason  in  accordance  with  this  Agreement,  then  the
employment of the Executive hereunder shall continue after such determination as
if the  Executive had not delivered  the Notice of  Termination  asserting  Good
Reason and there shall be no  Termination  Date arising out of such  Notice.  In
either case, this Agreement continues, until the Termination Date, if any, as if
the Executive had not delivered the Notice of Termination  except that, if it is
finally determined that the Executive terminated the Executive's  employment for
Good Reason in accordance  with this  Agreement,  then the Executive shall in no
case be denied the benefits  described  in Section 8  (including  a  Termination
Payment) based on events occurring after the Executive delivered the Executive's
Notice of Termination.

              (B)  If an opinion is required to be delivered pursuant to Section
8(a)(ii) and such opinion shall not have been  delivered,  then the  Termination
Date shall be the date on which such opinion is delivered.

              (C)  Except as  provided  in  paragraph  (A)  above,  if the party
receiving  the Notice of  Termination  notifies  the other  party that a dispute
exists  concerning  the  termination  within the  fifteen-day  period  following
receipt thereof and it is finally determined that termination of the Executive's
employment  for the reason  asserted  in such Notice of  Termination  was not in
accordance  with this  Agreement,  then (1) if such Notice was  delivered by the
Executive,  then the Executive will be deemed to have voluntarily terminated the
Executive's  employment  other than for Good  Reason by means of such Notice and
(2) if  delivered  by the  Company,  then the  Company  will be  deemed  to have
terminated the Executive's employment other than by reason of death,  disability
or Cause by means of such Notice.

                                      -8-
<PAGE>

          2.  Termination  or  Cancellation  Prior to the  Effective  Date.  The
Employer  and the  Executive  shall  each  retain  the  right to  terminate  the
employment  of the  Executive at any time prior to the  Effective  Date.  If the
Executive's  employment is terminated  prior to the  Effective  Date,  then this
Agreement  shall be  terminated  and cancelled and of no further force or effect
and any and all rights and obligations of the parties  hereunder shall cease. In
addition,  this Agreement  shall  terminate upon the Executive  ceasing to be an
officer of the Employer  prior to a Change in Control  unless the  Executive can
reasonably  demonstrate that such change in status occurred under  circumstances
described in clause  (iii)(B)(l)  or (iii)(B)(2) of the definition of "Effective
Date" in Section 1 hereof.

          3.  Employment Period. If the Executive is employed by the Employer on
the  Effective  Date,  then the Company  will,  or will cause the  Employer  to,
continue  thereafter to employ the Executive  during the  Employment  Period (as
hereinafter  defined),  and the  Executive  will  remain  in the  employ  of the
Employer,  in  accordance  with and subject to the terms and  provisions of this
Agreement.  For purposes of this Agreement, the term "Employment Period" means a
period (i)  commencing  on the  Effective  Date,  and (ii)  ending at 11:59 p.m.
Milwaukee  Time on the  earlier  of the  third  anniversary  of such date or the
Executive's Normal Retirement Date.

          4.  Duties.  During the Employment Period, the Executive shall, in the
most  significant  capacities  and  positions  held by the Executive at any time
during  the  one-year  period  preceding  the  Effective  Date or in such  other
capacities and positions as may be agreed to by the Company and the Executive in
writing, devote the Executive's best efforts and all of the Executive's business
time,  attention and skill to the business and affairs of the Employer,  as such
business and affairs now exist and as they may hereafter be conducted.

          5.  Compensation. During the Employment Period, the Executive shall be
compensated as follows:

              (a)  The Executive shall receive, at reasonable intervals (but not
less often than monthly) and in accordance with such standard policies as may be
in effect immediately prior to the Effective Date, an annual base salary in cash
equivalent of not less than twelve times the  Executive's  highest  monthly base
salary for the twelve-month period immediately  preceding the month in which the
Effective  Date  occurs or, if higher,  annual base salary at the rate in effect
immediately  prior to the  Effective  Date  (which  base  salary  shall,  unless
otherwise agreed in writing by the Executive, include the current receipt by the
Executive of any amounts which,  prior to the Effective  Date, the Executive had
elected to defer,  whether such compensation is deferred under Section 401(k) of
the Code or  otherwise),  subject to upward  adjustment as provided in Section 6
(such salary amount as adjusted  upward from time to time is hereafter  referred
to as the "Annual Base Salary").

              (b)  The Executive shall receive fringe benefits at least equal in
value to those provided for the Executive at any time during the one-year period
immediately preceding the Effective Date or, if more favorable to the Executive,
those provided  generally at any time after the Effective Date to any executives
of the Company  and its  Affiliates  of  comparable  status and  position to the
Executive.  The  Executive  shall  be  reimbursed,  at  such  intervals  and

                                      -9-
<PAGE>

in  accordance  with  such  standard  policies  that are most  favorable  to the
Executive that were in effect at any time during the one-year period immediately
preceding  the  Effective  Date or, if more  favorable to the  Executive,  those
provided generally at any time after the Effective Date to any executives of the
Company and its  Affiliates of comparable  status and position to the Executive,
for any and all monies advanced in connection  with the  Executive's  employment
for reasonable and necessary expenses incurred by the Executive on behalf of the
Company and its Affiliates, including travel expenses.

              (c)  The Executive and/or the Executive's family,  as the case may
be, shall be included,  to the extent  eligible  thereunder  (which  eligibility
shall  not be  conditioned  on the  Executive's  salary  grade  or on any  other
requirement  that  excludes  executives  of the  Company and its  Affiliates  of
comparable  status and position to the  Executive  unless such  exclusion was in
effect  for such plan or an  equivalent  plan on the date one year  prior to the
Effective Date), in any and all welfare benefit plans,  practices,  policies and
programs  providing benefits for the Company's salaried employees in general or,
if more  favorable to the  Executive,  to any  executives of the Company and its
Affiliates of comparable status and position to the Executive, including but not
limited to group life  insurance,  hospitalization,  medical  and dental  plans;
provided, that, (i) in no event shall the aggregate level of benefits under such
plans,  practices,  policies and programs in which the  Executive is included be
less than the aggregate level of benefits under plans,  practices,  policies and
programs of the type referred to in this Section 5(c) in which the Executive was
participating at any time during the one-year period  immediately  preceding the
Effective Date and (ii) in no event shall the aggregate  level of benefits under
such plans, practices, policies and programs be less than the aggregate level of
benefits under plans,  practices,  policies and programs of the type referred to
in this  Section  5(c)  provided  at any time  after the  Effective  Date to any
executive of the Company and its Affiliates of comparable status and position to
the Executive.

              (d)  The Executive shall annually be entitled to not less than the
amount of paid  vacation and not fewer than the number of paid holidays to which
the  Executive  was  entitled  annually at any time during the  one-year  period
immediately preceding the Effective Date or such greater amount of paid vacation
and number of paid holidays as may be made  available  annually to the Executive
or any other  executive of the Company and its  Affiliates of comparable  status
and position to the Executive at any time after the Effective Date.

              (e)  The  Executive  shall  be  included  in all  plans  providing
additional  benefits to any  executives  of the Company  and its  Affiliates  of
comparable  status and position to the  Executive,  including but not limited to
deferred  compensation,  split-dollar life insurance,  retirement,  supplemental
retirement,  stock  option,  stock  appreciation,  stock  bonus and  similar  or
comparable plans;  provided,  that, (i) in no event shall the aggregate level of
benefits  under such plans be less than the  aggregate  level of benefits  under
plans of the type  referred to in this Section 5(e) in which the  Executive  was
participating at any time during the one-year period  immediately  preceding the
Effective  Date;  (ii) in no event shall the aggregate  level of benefits  under
such plans be less than the aggregate  level of benefits  under the plans of the
type  referred to in this Section 5(c)  provided at any time after the Effective
Date to the  Executive  or any  executive of the Company and its  Affiliates  of
comparable  status  and  position

                                      -10-
<PAGE>

to the Executive; and (iii) the Company's obligation to include the Executive in
bonus or incentive compensation plans shall be determined by Section 5(f).

              (f)  To assure that the Executive will have an opportunity to earn
incentive compensation after the Effective Date, the Executive shall be included
in a bonus plan of the Company that shall satisfy the standards  described below
(the "Bonus  Plan").  Bonuses under the Bonus Plan shall be payable with respect
to achieving such financial or other goals reasonably related to the business of
the  Company,  including  the  Employer,  as the Company  shall  establish  (the
"Goals"),  all of  which  Goals  shall  be  attainable,  prior to the end of the
Employment  Period,  with  approximately  the same degree of  probability as the
goals under the Employer's  annual  incentive  plan currently in effect,  or the
successor to such plan, in the form most  favorable to the Executive that was in
effect at any time during the one-year  period prior to the Effective  Date (the
"Existing Plan") and in view of the Company's  existing and projected  financial
and business circumstances  applicable at the time. The amount of the bonus (the
"Bonus  Amount")  that the  Executive  is  eligible to earn under the Bonus Plan
shall be no less than the amount of the Executive's  highest  maximum  potential
award under the Existing  Plan at any time during the  one-year  period prior to
the Effective Date or, if higher,  any maximum  potential  award under the Bonus
Plan or any other  bonus or  incentive  compensation  plan in  effect  after the
Effective  Date for the  Executive  or for any  executive of the Company and its
Affiliates of comparable status and position to the Executive (such bonus amount
herein referred to as the "Targeted  Bonus"),  and if the Goals are not achieved
(and, therefore,  the entire Targeted Bonus is not payable), then the Bonus Plan
shall  provide  for a payment  of a Bonus  Amount not less than a portion of the
Targeted  Bonus  reasonably  related  to that  portion  of the  Goals  that were
achieved.  Payment of the Bonus  Amount (i) shall be in cash,  unless  otherwise
agreed by the  Executive,  and (ii) shall not be  affected  by any  circumstance
occurring subsequent to the end of the Employment Period,  including termination
of the Executive's employment.

          6.  Annual Compensation Adjustments. During the Employment Period, the
Board of Directors of the Company (or an  appropriate  committee  thereof)  will
consider and appraise, at least annually,  the contributions of the Executive to
the  Employer,  and in  accordance  with  the  Company's  practice  prior to the
Effective Date, due  consideration  shall be given,  at least  annually,  to the
upward  adjustment of the Executive's  Annual Base Salary (i) commensurate  with
increases  generally given to other executives of the Company and its Affiliates
of comparable status and position to the Executive, and (ii) as the scope of the
Company's operations or the Executive's duties expand.

          7.  Termination During Employment Period.

              (a)  Right to Terminate.  During the  Employment  Period,  (i) the
Company shall be entitled to terminate the Executive's employment (A) for Cause,
(B) by reason of the Executive's  disability  pursuant to Section 11, or (C) for
any other  reason,  and (ii) the  Executive  shall be entitled to terminate  the
Executive's  employment for any reason. Any such termination shall be subject to
the procedures set forth in Section 12 and shall be subject to any  consequences
of  such  termination  set  forth  in this  Agreement.  Any  termination  of the

                                      -11-
<PAGE>

Executive's  employment  during the  Employment  Period by the Employer shall be
deemed a termination by the Company for purposes of this Agreement.

              (b)  Termination  for Cause or Without Good Reason.  If there is a
Covered Termination for Cause or due to the Executive's  voluntarily terminating
the Executive's  employment other than for Good Reason, then the Executive shall
be entitled to receive only Accrued Benefits.

              (c)  Termination Giving Rise to a Termination Payment. If there is
a Covered  Termination by the Executive for Good Reason, or by the Company other
than by reason of (i) death,  (ii)  disability  pursuant to Section 11, or (iii)
Cause,  then the Executive  shall be entitled to receive,  and the Company shall
promptly pay,  Accrued  Benefits and, in lieu of further base salary for periods
following the Termination Date, as liquidated  damages and additional  severance
pay and in  consideration  of the covenant of the Executive set forth in Section
13(a), the Termination Payment pursuant to Section 8(a).

          8.  Payments Upon Termination.

              (a)  Termination Payments.

                   (i)   Subject to  the  limits set forth in Section  8(a)(ii),
     for  purposes of this  Agreement,  the  "Termination  Payment"  shall be an
     amount equal to the Annual Cash  Compensation  multiplied  by the number of
     years or fractional  portion  thereof  remaining in the  Employment  Period
     determined as of the Termination Date, except that the Termination  Payment
     shall  not be less  than  the  amount  of  Annual  Cash  Compensation.  The
     Termination  Payment shall be paid to the Executive in cash  equivalent not
     later than ten business  days after the  Termination  Date.  The  Executive
     shall not be required to mitigate the amount of the Termination  Payment by
     securing other employment or otherwise,  nor will such Termination  Payment
     be reduced by reason of the Executive  securing other employment or for any
     other  reason.  The  Termination  Payment shall be in addition to any other
     severance  payments to which the Executive is entitled  under the Company's
     severance  policies  and  practices  in  the  form  most  favorable  to the
     Executive that were in effect at any time during the one-year  period prior
     to the Effective Date.

                   (ii)  Notwithstanding  any other provision of this Agreement,
     if any portion of the  Termination  Payment or any other payment under this
     Agreement,  or under any other agreement with or plan of the Company or the
     Employer (in the aggregate "Total  Payments"),  would constitute an "excess
     parachute  payment,"  then the Total  Payments to be made to the  Executive
     shall be reduced such that the value of the aggregate  Total  Payments that
     the Executive is entitled to receive shall be One Dollar ($1) less than the
     maximum amount which the Executive may receive without  becoming subject to
     the tax imposed by Section 4999 of the Code (or any successor provision) or
     which the Company may pay without loss of deduction  under Section  280G(a)
     of the Code (or any successor  provision).  For purposes of this Agreement,
     the terms "excess  parachute  payment" and "parachute  payments" shall have
     the

                                      -12-
<PAGE>

     meanings  assigned  to them in Section  280G of the Code (or any  successor
     provision),  and such  "parachute  payments"  shall be valued  as  provided
     therein.  Present value for purposes of this Agreement  shall be calculated
     in  accordance  with  Section  1274(b)(2)  of the  Code  (or any  successor
     provision).   Within  sixty  days  following  delivery  of  the  Notice  of
     Termination  or notice by the Company to the  Executive  of its belief that
     there is a payment or benefit  due the  Executive  which will  result in an
     excess  parachute  payment as  defined in Section  280G of the Code (or any
     successor  provision),  the  Executive  and the Company,  at the  Company's
     expense,  shall  obtain the  opinion  (which  need not be  unqualified)  of
     nationally  recognized  tax counsel  selected by the Company's  independent
     auditors  and  acceptable  to  the  Executive  in  the   Executive's   sole
     discretion,  which sets forth (A) the amount of the Base Period Income, (B)
     the  amount  and  present  value of Total  Payments  and (C) the amount and
     present  value of any  excess  parachute  payments  without  regard  to the
     limitations of this Section 8(a)(ii). As used in this Section 8(a)(ii), the
     term  "Base  Period  Income"  means  an  amount  equal  to the  Executive's
     "annualized  includible  compensation  for the base  period"  as defined in
     Section 280G(d)(l) of the Code (or any successor  provision).  For purposes
     of such opinion,  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
     (or any successor provisions),  which determination shall be evidenced in a
     certificate  of such auditors  addressed to the Company and the  Executive.
     Such opinion shall be dated as of the Termination Date and addressed to the
     Company  and the  Executive  and shall be binding  upon the Company and the
     Executive.  If such  opinion  determines  that  there  would  be an  excess
     parachute  payment,  then the  Termination  Payment  hereunder or any other
     payment determined by such counsel to be includible in Total Payments shall
     be reduced or eliminated as specified by the Executive in writing delivered
     to the  Company  within  thirty  days of the  Executive's  receipt  of such
     opinion or, if the  Executive  falls to so notify the Company,  then as the
     Company shall reasonably determine, so that under the bases of calculations
     set forth in such opinion  there will be no excess  parachute  payment.  If
     such counsel so requests in  connection  with the opinion  required by this
     Section,  the  Executive  and the Company  shall  obtain,  at the Company's
     expense,  and the counsel may rely on in providing the opinion,  the advice
     of a  firm  of  recognized  executive  compensation  consultants  as to the
     reasonableness of any item of compensation to be received by the Executive.
     Notwithstanding  the foregoing,  the  provisions of this Section  8(a)(ii),
     including the calculations, notices and opinions provided for herein, shall
     be based upon the conclusive presumption that the following are reasonable:
     (1) the  compensation  and  benefits  provided for in Section 5 and (2) any
     other  compensation,  including  but not limited to the  Accrued  Benefits,
     earned  prior to the  Termination  Date by the  Executive  pursuant  to the
     Company's  compensation  programs if such payments  would have been made in
     the  future  in any  event,  even  though  the  timing of such  payment  is
     triggered  by the  Change  in  Control  or  the  Termination  Date.  If the
     provisions  of  Sections  280G  and  4999 of the  Code  (or  any  successor
     provisions) are repealed  without  succession,  then this Section  8(a)(ii)
     shall be of no further force or effect.

                                      -13-
<PAGE>

              (b)  Additional  Benefits.  If there is a Covered  Termination and
the Executive is entitled to Accrued Benefits and the Termination Payment,  then
the Executive shall be entitled to the following additional benefits:

                   (i)   Until the earlier of the end of the  Employment  Period
     or such time as the Executive has obtained new employment and is covered by
     benefits  which  in the  aggregate  are at  least  equal  in  value  to the
     following  benefits,  the Executive  shall  continue to be covered,  at the
     expense  of  the   Company,   by  the  most   favorable   life   insurance,
     hospitalization,  medical and dental  coverage and other  welfare  benefits
     provided to the  Executive and the  Executive's  family during the one-year
     period  immediately  preceding the Effective Date or at any time thereafter
     or, if more favorable to the Executive,  coverage as was required hereunder
     with  respect  to the  Executive  immediately  prior to the date  Notice of
     Termination is given.

                   (ii)  The Executive  shall  receive,  at the  expense  of the
     Company,  outplacement  services,  on an individualized basis at a level of
     service  commensurate  with the  Executive's  most  senior  status with the
     Company  during the  one-year  period prior to the  Effective  Date (or, if
     higher,  at any time after the  Effective  Date),  provided by a nationally
     recognized  executive  placement  firm  selected  by the  Company  with the
     consent of the Executive,  which consent will not be unreasonably withheld:
     provided that the cost to the Company of such services shall not exceed 15%
     of the Executive's Annual Base Salary.

                   (iii) The Company  shall bear up to $10,000 in the  aggregate
     of fees and expenses of  consultants  and/or legal or  accounting  advisors
     engaged by the Executive to advise the Executive as to matters  relating to
     the computation of benefits due and payable under this Section 8.

          9.  Death.

              (a)  Except as provided in Section 9(b), in the event of a Covered
Termination due to the Executive's  death,  the  Executive's  estate,  heirs and
beneficiaries  shall receive all the Executive's  Accrued  Benefits  through the
Termination Date.

              (b)  If the Executive  dies after a Notice of Termination is given
(i)  by the  Company  or  (ii)  by the  Executive  for  Good  Reason,  then  the
Executive's  estate,  heirs and beneficiaries  shall be entitled to the benefits
described in Section 9(a) and,  subject to the provisions of this Agreement,  to
such Termination Payment to which the Executive would have been entitled had the
Executive  lived.  In such  event,  the  Termination  Date shall be thirty  days
following the giving of the Notice of Termination, subject to extension pursuant
to the definition of "Termination Date" in Section 1(p).

          10. Retirement.  If, during  the Employment  Period, the Executive and
the Employer  shall execute an agreement  providing for the early  retirement of
the Executive from the Employer,  or the Executive  shall  otherwise give notice
that the  Executive is  voluntarily  choosing to retire early from the Employer,
then the Executive shall receive Accrued Benefits through the Termination  Date;
provided,  that if the Executive's employment is terminated by the Executive for
Good Reason or by the Company other than by reason of death, disability or

                                      -14-
<PAGE>

Cause and the  Executive  also,  in  connection  with such  termination,  elects
voluntary early retirement, then the Executive shall also be entitled to receive
a Termination Payment pursuant to Section 8(a).

          11. Termination for Disability. If, during the Employment Period, as a
result of the Executive's disability due to physical or mental illness or injury
(regardless  of whether such illness or injury is  job-related),  the  Executive
shall have been  absent from the  Executive's  duties  hereunder  on a full-time
basis  for a period of 182 days  and,  within  thirty  days  after  the  Company
notifies the Executive in writing that it intends to terminate  the  Executive's
employment  (which  notice  shall  not  constitute  the  Notice  of  Termination
contemplated below), the Executive shall not have returned to the performance of
the  Executive's  duties  hereunder on a full-time  basis,  then the Company may
terminate the Executive's  employment for purposes of this Agreement pursuant to
a Notice of Termination.  If the Executive's employment is terminated on account
of the  Executive's  disability  in  accordance  with  this  Section,  then  the
Executive  shall receive  Accrued  Benefits in accordance  with Section 8(a) and
shall  remain  eligible for all  benefits  provided by any long term  disability
programs of the  Employer in effect at the time the Company  sends notice to the
Executive of its intent to terminate pursuant to this Section.

          12. Termination  Notice  and  Procedure.

              (a)  Any termination  of the  Executive's  employment  during  the
Employment  Period by the Company or the Executive  (other than a termination of
the Executive's  employment  referenced in the second sentence of the definition
of  "Effective  Date" in Section 1(j) hereof) shall be  communicated  by written
Notice of Termination to the Executive,  if such Notice is given by the Company,
and to the Company, if such Notice is given by the Executive,  all in accordance
with the following procedures and those set forth in Section 22:

                   (i)   If such termination is for  disability,  Cause  or Good
     Reason,  the Notice of Termination  shall indicate in reasonable detail the
     facts and circumstances alleged to provide a basis for such termination.

                   (ii)  Any Notice of  Termination  by the  Company  shall have
     been  approved,  prior  to  the  giving  thereof  to  the  Executive,  by a
     resolution  duly adopted by a majority of the  directors of the Company (or
     any successor  corporation) then in office, a copy of which shall accompany
     the Notice.

                   (iii) If  the  Notice  is  given  by the  Executive  for Good
     Reason,  then the Executive may cease  performing  the  Executive's  duties
     hereunder  on or after  the date 15 days  after the  delivery  of Notice of
     Termination  (unless the Notice of  Termination is based upon clause (viii)
     of the  definition  of "Good  Reason"  in Section  1(l),  in which case the
     Executive  may cease  performing  his  duties  at the time the  Executive's
     employment is  terminated)  and shall in any event cease  employment on the
     Termination  Date, if any, arising from the delivery of such Notice. If the
     Notice is given by the Company, then the Executive may cease performing the
     Executive's  duties  hereunder  on the date of  receipt  of the  Notice  of
     Termination, subject to the Executive's rights hereunder.

                                      -15-
<PAGE>

                   (iv)  The  recipient  of  any  Notice  of  Termination  shall
     personally  deliver or mail in accordance with Section 22 written notice of
     any dispute relating to such Notice of Termination to the party giving such
     Notice within fifteen days after receipt  thereof.  After the expiration of
     such fifteen days, the contents of the Notice of  Termination  shall become
     final and not subject to dispute.

Notwithstanding the foregoing,  (A) if the Executive  terminates the Executive's
employment  after a Change in Control  without  complying  with this Section 12,
then the Executive will be deemed to have voluntarily terminated the Executive's
employment  other than for Good  Reason and deemed to have  delivered  a written
Notice  of  Termination  to that  effect to the  Company  as of the date of such
termination  and (B) if the Company or the Employer  terminates the  Executive's
employment  after a Change in Control  without  complying  with this Section 12,
then the Company will be deemed to have  terminated the  Executive's  employment
other  than by reason of death,  disability,  or Cause and the  Company  will be
deemed to have  delivered a written  Notice of Termination to that effect to the
Executive as of the date of such termination.  Under circumstances  described in
clause (B) above, the Executive may, but shall not be obligated to, also deliver
a Notice of  Termination  based upon clause  (viii) of the  definition  of "Good
Reason" in Section  1(l) for the  purpose of  subjecting  such Notice to Section
12(a)(iv).

              (b)  If a Change in Control occurs and the Executive's  employment
with  the  Employer  terminates  (whether  by  the  Company,  the  Executive  or
otherwise)  within  one-year prior to the Change in Control,  then the executive
may assert that such  termination is a Covered  Termination by sending a written
Notice of Termination to the Company at any time prior to the first  anniversary
of the Change in Control in  accordance  with the  procedures  set forth in this
Section 12(b) and those set forth in Section 22. If the  Executive  asserts that
the Executive terminated the Executive's  employment for Good Reason or that the
Company  terminated  the  Executive's  employment  other than for  disability or
Cause,  then the Notice of Termination  shall indicate in reasonable  detail the
facts and  circumstances  alleged  to provide a basis for such  assertions.  The
Company shall  personally  deliver or mail in accordance with Section 22 written
notice of any dispute  relating to such Notice of  Termination  to the Executive
within 15 days after receipt thereof.  After the expiration of such 15 days, the
contents  of the Notice of  Termination  shall  become  final and not subject to
dispute.

          13. Further Obligations of the Executive.

              (a)  Competition.  The Executive  agrees that, in the event of any
Covered  Termination  where the Executive is entitled to (and receives)  Accrued
Benefits and the Termination  Payment,  the Executive shall not, for a period of
six months after the Termination Date, without the prior written approval of the
Company's Board of Directors, engage in any Competitive Activity.

              (b)  Confidentiality.   During   and  following  the   Executive's
employment by the  Employer,  the  Executive  shall hold in  confidence  and not
directly or indirectly disclose or use or copy or make lists of any confidential
information or proprietary data of the Company (including that of the Employer),
except to the extent  authorized  in writing  by the Board of

                                      -16-
<PAGE>

Directors  of the  Company or required  by any court or  administrative  agency,
other  than to an  employee  of the  Company or a person to whom  disclosure  is
reasonably  necessary or appropriate in connection  with the  performance by the
Executive of duties as an executive of the Company or the Employer. Confidential
information  shall not include any information  known generally to the public or
any  information  of a type not  otherwise  considered  confidential  by persons
engaged in the same business or a business  similar to that of the Company.  All
records,  files,  documents and materials,  or copies  thereof,  relating to the
business of the Company which the Executive shall prepare,  or use, or come into
contact with,  shall be and remain the sole property of the Company and shall be
promptly  returned  to the  Company  upon  termination  of  employment  with the
Employer.

          14. Expenses and Interest. If, after the Effective Date, (i) a dispute
arises with  respect to the  enforcement  of the  Executive's  rights under this
Agreement,  (ii) any legal or arbitration proceeding shall be brought to enforce
or interpret any  provision  contained  herein or to recover  damages for breach
hereof,  or (iii) any tax audit or proceeding is commenced that is  attributable
in part to the  application  of Section 4999 of the Code, in any case so long as
the Executive is not acting in bad faith,  then the Company shall  reimburse the
Executive  for  any  reasonable   attorneys'   fees  and  necessary   costs  and
disbursements  incurred  as a  result  of such  dispute,  legal  or  arbitration
proceeding or tax audit or proceeding ("Expenses"),  and prejudgment interest on
any money judgment or arbitration award obtained by the Executive  calculated at
the rate published in The Wall Street  Journal,  from time to time, as the prime
rate from the date that  payments to the  Executive  should have been made under
this Agreement.  Within ten days after the Executive's written request therefor,
the Company  shall pay to the  Executive,  or such other person or entity as the
Executive may designate in writing to the Company,  the  Executive's  reasonable
Expenses in advance of the final  disposition or conclusion of any such dispute,
legal or arbitration proceeding.

          15. Payment Obligations Absolute.  The Company's obligation during and
after the  Employment  Period to pay the  Executive  the amounts and to make the
benefit  and  other   arrangements   provided   herein  shall  be  absolute  and
unconditional and shall not be affected by any circumstances, including, without
limitation, any setoff, counterclaim,  recoupment,  defense or other right which
the Company may have against the Executive or anyone else. Except as provided in
Section 14, all amounts  payable by the Company  hereunder shall be paid without
notice or demand.  Each and every payment made hereunder by the Company shall be
final,  and the Company will not seek to recover all or any part of such payment
from the Executive,  or from whomsoever may be entitled thereto,  for any reason
whatsoever.

          16. Successors.

              (a)  If  the  Company   sells,   assigns  or   transfers   all  or
substantially  all of its  business  and assets to any Person or if the  Company
merges into or  consolidates  or otherwise  combines (where the Company does not
survive  such  combination)  with  any  Person  (any  such  event,  a  "Sale  of
Business"),  then the Company shall assign all of its right,  title and interest
in this  Agreement as of the date of such event to such Person,  and the Company
shall cause such Person, by written  agreement in form and substance  reasonably
satisfactory to the Executive, to expressly assume and agree to perform from and
after the date of such  assignment  all of the terms,  conditions and provisions
imposed by this  Agreement  upon the  Company.  Failure of the Company to obtain
such  agreement  prior to the effective

                                      -17-
<PAGE>

date of such Sale of Business shall be a breach of this  Agreement  constituting
"Good Reason" hereunder, except that for purposes of implementing the foregoing,
the date upon which such Sale of Business becomes  effective shall be deemed the
Termination  Date.  In case of such  assignment by the Company and of assumption
and  agreement  by such  Person,  as used in  this  Agreement,  "Company"  shall
thereafter  mean such Person which executes and delivers the agreement  provided
for in this  Section 16 or which  otherwise  becomes  bound by all the terms and
provisions of this Agreement by operation of law, and this Agreement shall inure
to the benefit of, and be enforceable by, such Person.  The Executive  shall, in
the  Executive's  discretion,  be entitled to proceed against any or all of such
Persons,  any Person which  theretofore  was such a successor to the Company (as
defined  in the  first  paragraph  of this  Agreement)  and the  Company  (as so
defined) in any action to enforce any rights of the Executive hereunder.  Except
as provided in this  Subsection,  this Agreement  shall not be assignable by the
Company.  This Agreement shall not be terminated by the voluntary or involuntary
dissolution of the Company.

              (b)  This Agreement and all rights of the Executive shall inure to
the  benefit  of and  be  enforceable  by  the  Executive's  personal  or  legal
representatives, executors, administrators, heirs and beneficiaries. All amounts
payable to the Executive  under Sections 7, 8, 9, 10, 11 and 14 if the Executive
had  lived  shall  be  paid,  in the  event  of the  Executive's  death,  to the
Executive's  estate,  heirs and  representatives;  provided,  however,  that the
foregoing  shall not be construed to modify any terms of any benefit plan of the
Employer,  as such terms are in effect on the  Effective  Date,  that  expressly
govern benefits under such plan in the event of the Executive's death.

          17. Severability.  The  provisions of this Agreement shall be regarded
as  divisible,  and if any of said  provisions  or any part hereof are  declared
invalid or unenforceable by a court of competent jurisdiction, then the validity
and  enforceability  of the remainder of such provisions or parts hereof and the
applicability thereof shall not be affected thereby.

          18. Amendment.  This  Agreement  may not be amended or modified at any
time except by written instrument executed by the Company and the Executive.

          19. Withholding.  The  Employer  shall be  entitled  to withhold  from
amounts  to be paid to the  Executive  hereunder  any  federal,  state  or local
withholding  or other taxes or charges which it is from time to time required to
withhold;  provided,  that the amount so  withheld  shall not exceed the minimum
amount required to be withheld by law. The Employer shall be entitled to rely on
an opinion of nationally recognized tax counsel if any question as to the amount
or requirement of any such withholding shall arise.

          20. Certain  Rules  of  Construction.  No party shall be considered as
being responsible for the drafting of this Agreement for the purpose of applying
any rule construing  ambiguities  against the drafter or otherwise.  No draft of
this Agreement  shall be taken into account in construing  this  Agreement.  Any
provision of this  Agreement  which  requires an  agreement in writing  shall be
deemed to require that the writing in question be signed by the Executive and an
authorized representative of the Company.

                                      -18-
<PAGE>

          21. Governing Law; Resolution of Disputes.

              (a)  This Agreement and the rights and obligations hereunder shall
be governed by and construed in  accordance  with the internal laws of the State
of Wisconsin  (excluding any choice of law rules that may direct the application
of the  laws of  another  jurisdiction)  except  that  Section  21(b)  shall  be
construed in  accordance  with the Federal  Arbitration  Act if  arbitration  is
chosen by the Executive as the method of dispute resolution.

              (b)  Any  dispute  arising out of  this  Agreement  shall,  at the
Executive's  election,  be  determined  by  arbitration  under  the rules of the
American Arbitration  Association then in effect (but subject to any evidentiary
standards  set forth in this  Agreement),  in which case both  parties  shall be
bound by the arbitration  award, or by litigation.  Whether the dispute is to be
settled  by  arbitration  or  litigation,  the  venue  for  the  arbitration  or
litigation shall be Milwaukee, Wisconsin or, at the Executive's election, if the
Executive  is  no  longer  residing  or  working  in  the  Milwaukee,  Wisconsin
metropolitan  area, in the judicial district  encompassing the city in which the
Executive resides;  provided, that, if the Executive is not then residing in the
United States, the election of the Executive with respect to such venue shall be
either Milwaukee,  Wisconsin or in the judicial district  encompassing that city
in the United States among the thirty cities having the largest  population  (as
determined  by the most  recent  United  States  Census  data  available  at the
Termination  Date) that is closest to the  Executive's  residence.  The  parties
consent to  personal  jurisdiction  in each trial  court in the  selected  venue
having subject matter jurisdiction notwithstanding their residence or situs, and
each party  irrevocably  consents  to service of process in the manner  provided
hereunder for the giving of notices.

          22. Notice.  Notices  given  pursuant to  this  Agreement  shall be in
writing and, except as otherwise provided by Section 12(a)(iii), shall be deemed
given when  actually  received  by the  Executive  or  actually  received by the
Company's  Secretary or any officer of the Company other than the Executive.  If
mailed,  such notices shall be mailed by United  States  registered or certified
mail,  return receipt  requested,  addressee only,  postage  prepaid,  if to the
Company,  Attention:  Secretary (or, if the Executive is then Secretary,  to the
Chief Executive Officer),  10708 West Janesville Road, Hales Corners,  Wisconsin
53130,  or if to the Executive,  at the address set forth below the  Executive's
signature  to this  Agreement,  or to such  other  address  as the  party  to be
notified shall have theretofore given to the other party in writing.

              (a)  Additional Payment. (a) If, notwithstanding the provisions of
Section 8a(ii), but subject to subsection (b), it is ultimately  determined by a
court or pursuant to a final  determination by the Internal Revenue Service that
any portion of Total  Payments is subject to the tax (the "Excise  Tax") imposed
by Section 4999 of the Code (or any successor provision), then the Company shall
pay to the Executive an additional amount (the "Gross-Up Payment") such that the
net amount  retained by the Executive  after deduction of any Excise Tax and any
interest  charges or penalties in respect of the  imposition  of such Excise Tax
(but not any federal,  state or local income tax) on the Total Payments, and any
federal, state and local income tax and Excise Tax upon the payment provided for
by this  Section  23 shall  be equal to the  Total  Payments.  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

                                      -19-
<PAGE>

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  rates of taxation in
the state and  locality of the  Executive's  domicile for income tax purposes on
the date the Gross-Up  Payment is made, net of the maximum  reduction in federal
income  taxes  that could be  obtained  from  deduction  of such state and local
taxes.

              (b)  If legislation  is enacted that would  require the  Company's
shareholders to approve this Agreement, prior to a Change in Control, due solely
to the provision contained in subsection (a) of this Section 23, then

                   (i)   from and after such time as shareholder  approval would
     be  required,  until  shareholder  approval is obtained as required by such
     legislation, subsection (a) shall be of no force and effect;

                   (ii)  if the Company seeks shareholder  approval of any other
     agreement providing similar benefits to any other executive of the Company,
     then the Company shall seek  shareholder  approval of this Agreement at the
     same shareholders'  meeting or meetings at which the shareholders  consider
     any such other agreement; and

                   (iii) the  Company  and the  Executive  shall use their  best
     efforts to consider  and agree in writing upon an amendment to this Section
     23 such that, as amended,  this Subsection would provide the Executive with
     the benefits  intended to be afforded to the  Executive by  subsection  (a)
     without requiring shareholder approval.

          23. No Waiver. The Executive's or the Company's failure to insist upon
strict  compliance with any provision of this Agreement or the failure to assert
any right the Executive or the Company may have  hereunder,  including,  without
limitation,  the right of the Executive to terminate employment for Good Reason,
shall  not be  deemed  to be a waiver  of such  provision  or right or any other
provision or right of this Agreement.

          24. Headings. The headings herein contained are for reference only and
shall  not  affect  the  meaning  or  interpretation  of any  provision  of this
Agreement.

                                      -20-
<PAGE>

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first written above.

                                            STATE FINANCIAL SERVICES CORPORATION

                                            By:_________________________________
                                               Name:
                                               Title:

                                            EXECUTIVE

                                            ______________________________(SEAL)
                                               Name:

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