Document:

SNAP-ON INCORPORATED

                            DEFERRED AWARD AGREEMENT

          THIS AGREEMENT  ("Agreement")  is made and entered into as of March 1,
1999  by  and  between  SNAP-ON   INCORPORATED,   a  Delaware  corporation  (the
"Company"), and _________, an employee of the Company (the "Key Employee").

                              W I T N E S S E T H :

          WHEREAS,   on  January  21,  1999,  the   Organization  and  Executive
Compensation Committee of the Board of Directors of the Company (such committee,
whether  acting as such or through  the ad hoc  committee  of the Board to which
such committee  delegated its authority in connection with this  Agreement,  the
"Committee")  approved  the grant (the  "Grant") to the Key  Employee of _______
(the "Grant  Number")  shares of the  Company's  common stock  ("Common  Stock")
pursuant to the Company's 1986 Incentive  Stock Program,  as amended (the "Stock
Program"), to be effective March 1, 1999; and

          WHEREAS,  in accordance with the terms of the Grant,  the Key Employee
elected to defer receipt of all of the shares  subject to the Grant by executing
an Election to Defer Compensation (the "Deferral Election") prior to the Grant's
effective date, which the Company countersigned prior to such date;

          WHEREAS,  the Deferral  Election  provides that the Grant will also be
subject to the terms of a "Deferred Award Agreement," the form of which is to be
determined  by the  Company,  and this  Agreement  is  intended  to serve as the
additional agreement contemplated by the Deferral Election; and

          WHEREAS, the Company has in effect the Snap-on  Incorporated  Deferred
Compensation Plan, as amended (the "Deferral Plan").

          NOW, THEREFORE,  in consideration of the premises and of the covenants
and agreements  herein set forth, the parties hereby mutually covenant and agree
as follows:

          1.  Share Units. Subject to the terms and conditions set forth herein,

              (a) As of March 1, 1999, the Company shall  establish and maintain
bookkeeping  accounts  for the Key  Employee  relating  to the  Grant  under the
Deferral Plan consisting of a "Cash Account" and a "Share Account."

              (b) As of March 1,  1999,  there  shall be  credited  to the Share
Account a number of Share Units (as defined in the  Deferral  Plan) equal to the
Grant  Number.  From and after the time of such credit,  the Key Employee  shall
have the rights  afforded  under the Deferral  Plan in respect of Share Units so
credited,  except  that  such  Share  Units  shall be  subject  to  vesting  and
forfeiture as set forth below.

<PAGE>

          2.  Vesting and Forfeiture Based on Performance.  Subject to the terms
and conditions set forth herein,

              (a) Unless the Key Employee has  previously  forfeited  such Share
Units,  one-half of the Share Units  credited under  subsection  1(b) (the "1999
Units") will vest upon the Committee's  determination  that the Company achieved
its target cost  savings  from  Project  Simplify of $30 million in fiscal 1999.
Conversely,  upon the Committee's determination that the Company did not achieve
that target, the Key Employee will forfeit this half of the Grant.

              (b) Unless the Key Employee has  previously  forfeited  such Share
Units,  one-half of the Share Units  credited under  subsection  1(b) (the "2000
Units") will vest upon the Committee's  determination  that the Company achieved
its target cost  savings  from  Project  Simplify of $60 million in fiscal 2000.
Conversely,  upon the Committee's determination that the Company did not achieve
that target, the Key Employee will forfeit this half of the Grant.

              (c) The accounting  charge related to this Grant and other similar
grants  that the  Committee  approved  at the time of this  Grant  will not be a
"cost" that will be part of the cost savings  calculation  as an offset  against
cost savings otherwise realized.

              (d) On the  basis  of  information  available  to  the  Committee
concerning  the level of cost savings the Company has  achieved,  the  Committee
will confirm whether the cost savings  targets have been reached  promptly after
such  information  is available and  communicate  its  determination  to the Key
Employee.

          3.  Forfeiture  Based on Employment  Status.  Subject to the terms and
conditions set forth herein,

              (a) In addition to any rights of the Company  under Section 9, the
Key Employee will forfeit any Share Units credited under  subsection  1(b) as to
which the  Committee  has not made its  vesting  determination  under  Section 2
("Unvested  Units") if the Key  Employee's  employment  with the  Company or its
subsidiaries is terminated for any reason prior to such determination unless the
Committee determines, on such terms and conditions, if any, as the Committee may
impose,  that there may  nonetheless be vesting of all or a portion of the Award
at the time of such  determination  or at any  other  time.  Absence  of the Key
Employee on leave approved by a duly elected officer of the Company,  other than
the Key Employee, shall not be considered a termination of employment during the
period of such leave.

              (b) Notwithstanding  the foregoing,  in the case of termination of
employment as a result of death or Total Disability (as defined below),  (i) the
Grant shall vest or be forfeited in respect of the 1999 Units in accordance with
Section 2(a) as if  employment  continued if the death or  disability  occurs in
1999 or in 2000 prior to the  Committee's  determination  under Section 2(a) and
(ii) the Grant  shall  vest or be  forfeited  in  respect  of the 2000  Units in
accordance  with  Section  2(b)  as if  employment  continued  if the  death  or
disability  occurs  in 2000 or in 2001  prior to the  Committee's  determination
under Section 2(b).

                                      -2-
<PAGE>

              (c) As used  herein,  "Total  Disability"  means the  complete and
permanent  inability  of the Key Employee to perform all of his duties under the
terms of his employment with the Company,  as determined by the Committee or any
successor to such committee that  administers the Stock Program (as the same may
be  amended),  or if no such  committee  has  been  appointed,  by the  Board of
Directors of the Company (such body, the "Determining Committee") upon the basis
of such  evidence,  including  independent  medical  reports  and  data,  as the
Determining Committee deems appropriate or necessary.

          4.  Dividends.  Dividends  on the Common Stock will result in a credit
to the Cash Account  pursuant to Section 5.3(c) of the Deferral  Plan.  However,
the Key Employee will forfeit such credit and any related Growth  Increments (as
defined in the Deferral Plan) upon any forfeiture of the related Share Units.

          5.  No Diversification.  Notwithstanding  Section  5.3(a) and  Section
5.3(d) of the Deferral Plan, (a) the Key Employee shall not have any right under
Section  5.3(d) of the Deferral Plan to convert all or a portion of any Unvested
Units into an amount to be credited to the Cash Account and (b) the Key Employee
shall not have any right under  Section  5.3(a) of the Deferral  Plan to convert
all or a portion  of any  amount  credited  to the Cash  Account  in  respect of
Unvested Units into an amount to be credited to the Share Account.

          6.  Deferral Period.

              (a) The deferral  period with respect to the Grant for purposes of
Section 4.2 of the  Deferral  Plan shall  extend until the date set forth on the
signature page hereto.

              (b) Notwithstanding the deferral period specified,  but subject to
Section 11 and to any election that the Key Employee  makes in  accordance  with
the Deferral Plan,  payments shall begin  following the earliest to occur of (i)
death,  (ii)  total  and  permanent  disability,   (iii)  retirement,   or  (iv)
termination of employment.

          7.  Manner of Payment. Deferred amounts shall be paid in a lump sum or
in installments as set forth on the signature page hereto.

          8.  Changes in Deferral Period and Manner of Payment. The Key Employee
may change the manner in which the deferred amount will be paid and/or delay the
date such payments are to commence by written  election made in accordance  with
the Deferral Plan.

          9.  Detrimental Activity.

              (a) Activity  During  Employment.  If, prior to termination of the
Key  Employee's  employment  with the  Company  or during  the  one-year  period
following  termination of the Key Employee's  employment  with the Company,  the
Company becomes aware that,  prior to termination,  the Key Employee had engaged
in detrimental activity, then the Committee in its sole discretion, for purposes
of this Agreement,  may  characterize or  recharacterize  termination of the Key
Employee's  employment as a termination  to which this Section 9 applies and may
determine or redetermine the date of such termination, and the Key

                                      -3-
<PAGE>

Employee's  rights with respect to the Grant shall be  determined  in accordance
with the Committee's determination.

              (b) Activity  Following  Termination.  If, within the  three-month
period following the Key Employee's  termination of employment with the Company,
the Company  becomes  aware that the Key  Employee  has  engaged in  detrimental
activity subsequent to termination,  then the Key Employee's rights with respect
to the Grant shall be  determined in accordance  with any  determination  by the
Committee under this Section 9.

              (c) Remedies.  If  the Key  Employee  has  engaged in  detrimental
activity as described in subsections (a) and (b), then the Committee may, in its
discretion,  cancel any (or all) amounts  credited to the Key  Employee's  Share
Account  and/or  Cash  Account  in  respect  of the Grant  and/or  cause the Key
Employee to return any cash or property  actually  realized by the Key  Employee
(directly or  indirectly)  in respect of the Grant,  in each case whether or not
the  Committee  has made a vesting  determination  under  Section  2 in  respect
thereof  before or after the date the Key  Employee  engaged in the  detrimental
activity  or  before  or  after  the  date  of   termination  as  determined  or
redetermined under subsection (a).

              (d) Allegations  of  Activity.  If an  allegation  of  detrimental
activity by the Key Employee is made to the  Committee,  then the  Committee may
suspend  the Key  Employee's  rights  in  respect  of the  Grant to  permit  the
investigation of such allegation.

              (e) Definition  of  "Detrimental  Activity".  For purposes of this
Agreement,  "detrimental  activity"  means  activity  that is  determined by the
Committee  in its sole  discretion  to be  detrimental  to the  interests of the
Company or any of its  subsidiaries,  including  but not  limited to  situations
where the Key Employee (i) divulges  trade  secrets of the Company,  proprietary
data  or  other  confidential  information  relating  to the  Company  or to the
business of the Company or any subsidiaries,  (ii) enters into employment with a
competitor  under  circumstances  suggesting that the Key Employee will be using
unique or special knowledge gained as an employee of the Company to compete with
the  Company,  (iii) uses  information  obtained  during the course of his prior
employment with the Company for his own purposes,  such as for the  solicitation
of business and competition with the Company, (iv) is determined to have engaged
(whether  or not  prior  to  termination  due to  retirement)  in  either  gross
misconduct or criminal activity harmful to the Company,  or (v) takes any action
that harms the business interests,  reputation or goodwill of the Company and/or
its subsidiaries.

          10. Beneficiary.  The person whose  name appears on the signature page
hereof after the caption  "Beneficiary," if any, shall be the beneficiary of the
Key Employee designated pursuant to Section 7 of the Deferral Plan.

          11. Change in  Control.  In the  event of a "Change  of  Control"  (as
defined in the Deferral Plan), any Unvested Units shall immediately vest, unless
the Key Employee has previously forfeited such Share Units, and the Key Employee
shall be entitled to payments in respect thereof in accordance with Section 16.2
of the Deferral Plan and/or applicable provisions of the Stock Program.

                                      -4-
<PAGE>

          12. Voting  Rights.   Until  such  time,  if   any,  as   certificates
representing  shares  of Common  Stock  are  delivered  to the Key  Employee  in
accordance  with the Deferral Plan, the Key Employee shall have no voting rights
in respect of the Grant or Share Units.

          13. Tax  Withholding.  The  Company  and the Key  Employee  shall have
rights  with  respect  to tax  withholding  as set  forth in  Section  13 of the
Deferral Plan. Without limitation, the Company shall be entitled to withhold any
taxes due and payable in accordance with Section 3121(v) of the Internal Revenue
Code from any payments due to the Key Employee.

          14. Adjustments  in  Event of  Change  in  Stock.  In the event of any
reclassification,  subdivision or combination of shares of Common Stock,  merger
or  consolidation  of the  Company or sale by the Company of all or a portion of
its assets,  or other  event  which  could,  in the  judgment of the  Committee,
distort the  implementation  of the Grant or the  realization of its objectives,
the Committee may make such  adjustments in the number of Share Units under this
Agreement, or in the terms, conditions or restrictions of this Agreement, as the
Committee deems equitable; provided that in the absence of express action by the
Committee,  adjustments  that apply  generally to Share Units credited under the
Deferral Plan shall apply  automatically to the number of Share Units under this
Agreement.

          15. Powers of Company Not  Affected.  The existence of the Grant shall
not affect in any way the right or power of the Company or its  stockholders  to
make or authorize any combination, subdivision or reclassification of the Common
Stock  or  any  reorganization,  merger,  consolidation,  business  combination,
exchange of shares,  or other change in the Company's  capital  structure or its
business,  or  any  issue  of  bonds,  debentures  or  stock  having  rights  or
preferences equal, superior or affecting the Common Stock or the rights thereof,
or dissolution or liquidation of the Company,  or any sale or transfer of all or
any part of its assets or business,  or any other  corporate act or  proceeding,
whether of a similar  character or otherwise.  Nothing in this  Agreement  shall
confer upon the Key  Employee  any right to continue  in the  employment  of the
Company  or  interfere  with or limit in any way the  right  of the  Company  to
terminate the Key Employee's employment at any time.

          16. Interpretation  by  Committee.  The  Key Employee  agrees that any
dispute or  disagreement  that may arise in connection with this Agreement shall
be  resolved  by  the  Committee,   in  its  sole   discretion,   and  that  any
interpretation  by the  Committee  of the  terms of this  Agreement,  the  Stock
Program or the Deferral Plan and any  determination  made by the Committee under
this Agreement or such plans may be made in the sole discretion of the Committee
and shall be final, binding, and conclusive.

          17. Miscellaneous.

              (a) This  Agreement  shall be governed and construed in accordance
with the laws of the State of Wisconsin  applicable to contracts  made and to be
performed therein between residents thereof.

                                      -5-
<PAGE>

              (b) This  Agreement  may not be amended or modified  except by the
written consent of the parties hereto.

              (c) The captions of this Agreement are inserted for convenience of
reference only and shall not be taken into account in construing this Agreement.

              (d) Any notice,  filing or delivery  hereunder  or with respect to
the Grant shall be given to the Key  Employee at either his usual work  location
or his home address as  indicated  in the records of the  Company,  and shall be
given to the  Committee  or the  Company  at  10801  Corporate  Drive,  Kenosha,
Wisconsin 53142, Attention:  Secretary. All such notices shall be given by first
class mail, postage pre-paid, or by personal delivery.

              (e) This Agreement  shall be binding upon and inure to the benefit
of the Company  and its  successors  and  assigns and shall be binding  upon and
inure to the  benefit of the Key  Employee,  his  beneficiary  and the  personal
representative(s) and heirs of the Key Employee.

          18. Deferral Matters.

              (a) The Key  Employee  understands  that (i) as a  result  of this
Agreement,  no restricted  stock,  cash or other property will be deliverable to
the Key Employee in respect of the Grant until the date  identified  pursuant to
Section 6, and (ii) all amounts  deferred  pursuant to this  Agreement  shall be
reflected  in an  unfunded  account  established  for  the Key  Employee  by the
Company,  payment of the Company's obligation will be from general funds, and no
special  assets  (stock,  cash or  otherwise)  have been or will be set aside as
security for this obligation.

              (b) The  Key  Employee   understands   and  agrees  that  the  Key
Employee's  rights  to  payments  hereunder  are not  subject  in any  manner to
anticipation,  alienation, sale, transfer,  assignment,  pledge, encumbrance, or
garnishment   by  the  Key   Employee's   creditors  or  the  creditors  of  his
beneficiaries, whether by operation of law or otherwise, and any attempted sale,
transfer,  assignment, pledge, or encumbrance with respect to such payment shall
be null and void,  and shall be without legal effect and shall not be recognized
by the Company.

              (c) The Key  Employee  understands  and  agrees  that his right to
receive  payments  hereunder  is that of a general,  unsecured  creditor  of the
Company,  and that this  Agreement  constitutes a mere promise by the Company to
pay such  benefits in the future.  Further,  it is the  intention of the parties
hereto that the  arrangements  hereunder  be unfunded  for tax  purposes and for
purposes of Title I of ERISA.

                                      -6-
<PAGE>

          IN WITNESS  WHEREOF,  the  Company has caused  this  instrument  to be
executed by its duly authorized officer and its corporate seal hereunto affixed,
and the Key Employee has hereunto  affixed his hand and seal, all on the day and
year set forth below.

                                      SNAP-ON INCORPORATED

                                      By:   __________________________________
                                      Title:

                                      Key Employee:

                                      ____________________________________(Seal)
                                      ____________________

                                      Beneficiary: ____________________________

                                      Address of Beneficiary:

                                      _________________________________________

                                      _________________________________________

                                      Beneficiary Tax Identification

                                      No. _____________________________________

                              DEFERRAL PLAN MATTERS

                             DATE PAYMENTS COMMENCE

Specified Date: ______________________________________________________________
                               (Not earlier than 3/1/2004)

                                 FORM OF PAYMENT

        ____ Lump sum payment.

        ____ Annual installment payments for _______ years (not to exceed 10).

                                      -7-

<PAGE>

                              SNAP-ON INCORPORATED

                           RESTRICTED STOCK AGREEMENT

          THIS AGREEMENT  ("Agreement")  is made and entered into as of March 1,
1999  by  and  between  SNAP-ON   INCORPORATED,   a  Delaware  corporation  (the
"Company"), and _________, an employee of the Company (the "Key Employee").

                              W I T N E S S E T H :

          WHEREAS,   on  January  21,  1999,  the   Organization  and  Executive
Compensation Committee of the Board of Directors of the Company (such committee,
whether  acting as such or through  the ad hoc  committee  of the Board to which
such committee  delegated its authority in connection with this  Agreement,  the
"Committee")  approved  the grant (the  "Grant") to the Key  Employee of _______
(the "Grant  Number")  shares of the  Company's  common stock  ("Common  Stock")
pursuant to the Company's 1986 Incentive  Stock Program,  as amended (the "Stock
Program"), to be effective March 1, 1999; and

          WHEREAS, the Grant contemplated that the Grant will also be subject to
the terms of an award  agreement,  the form of which is to be  determined by the
Company,  and this  Agreement is intended to serve as the  additional  agreement
contemplated by the Grant.

          NOW, THEREFORE,  in consideration of the premises and of the covenants
and agreements  herein set forth, the parties hereby mutually covenant and agree
as follows:

          1.  Restricted  Shares.  Subject to the terms and conditions set forth
herein,  as of March 1, 1999,  the Company  hereby  awards to the Key Employee a
number of shares of Common Stock (the  "Restricted  Shares")  equal to the Grant
Number  which shall be subject to vesting  and  forfeiture  as set forth  below.
Except  as  otherwise   provided  herein,  no  Restricted  Share  may  be  sold,
transferred or otherwise  alienated or hypothecated  until such Restricted Share
vests as provided herein.

          2.  Escrow.

              (a) The Company shall cause  certificates for Restricted Shares to
be  issued  as soon as  practicable  in the  name of the Key  Employee,  but the
Company,  as escrow  agent,  shall hold such shares in escrow.  Upon issuance of
such certificates, (i) the Company shall give the Key Employee a receipt for the
Restricted  Shares held in escrow  which will state that the Company  holds such
Restricted Shares in escrow for the account of the Key Employee,  subject to the
terms of this  Agreement,  and (ii) the Key  Employee  shall give the  Company a
stock power for such Restricted Shares duly endorsed in blank which will be held
in escrow for use in the event such Restricted  Shares are forfeited in whole or
in part.

              (b) Unless  theretofore  forfeited as provided herein,  Restricted
Shares and any other property held in escrow  pursuant to this  Agreement  shall
cease to be held in escrow, and

<PAGE>

the Company shall release such certificates for such Restricted  Shares, and any
related property held in escrow (without interest),  to the Key Employee,  or in
the case of his death, to his  Beneficiary  (as  hereinafter  defined) when such
Restricted  Shares  vest as provided  herein at which time such shares  shall be
freely transferable by the Key Employee or his Beneficiary.

              (c) Restricted  Shares  and  any  other  property  held in  escrow
pursuant to this Agreement shall cease to be held in escrow, and the Company may
assume possession  thereof in its own right, when the Key Employee forfeits such
Restricted Shares as provided herein.

          3.  Vesting and Forfeiture Based on Performance.  Subject to the terms
and conditions set forth herein,

              (a) Unless  the   Key  Employee  has  previously   forfeited  such
Restricted  Shares,  one-half of the Restricted  Shares (the "1999 Shares") will
vest upon the  Committee's  determination  that the Company  achieved its target
cost savings from  Project  Simplify of $30 million in fiscal 1999.  Conversely,
upon the Committee's determination that the Company did not achieve that target,
the Key Employee will forfeit this half of the Grant.

              (b) Unless   the  Key  Employee  has  previously   forfeited  such
Restricted  Shares,  one-half of the Restricted  Shares (the "2000 Shares") will
vest upon the  Committee's  determination  that the Company  achieved its target
cost savings from  Project  Simplify of $60 million in fiscal 2000.  Conversely,
upon the Committee's determination that the Company did not achieve that target,
the Key Employee will forfeit this half of the Grant.

              (c) The accounting  charge related to this Grant and other similar
grants  that the  Committee  approved  at the time of this  Grant  will not be a
"cost" that will be part of the cost savings  calculation  as an offset  against
cost savings otherwise realized.

              (d) On  the  basis  of  information  available  to  the  Committee
concerning  the level of cost savings the Company has  achieved,  the  Committee
will confirm whether the cost savings  targets have been reached  promptly after
such  information  is available and  communicate  its  determination  to the Key
Employee.

          4.  Forfeiture  Based on Employment  Status.  Subject to the terms and
conditions set forth herein,

              (a) In addition to any rights of the Company  under Section 5, the
Key Employee  will forfeit any  Restricted  Shares as to which the Committee has
not made its vesting  determination  under Section 3 ("Unvested  Shares") if the
Key Employee's employment with the Company or its subsidiaries is terminated for
any reason prior to such determination unless the Committee determines,  on such
terms and  conditions,  if any,  as the  Committee  may  impose,  that there may
nonetheless  be  vesting  of all or a  portion  of the Award at the time of such
determination  or at any  other  time.  Absence  of the Key  Employee  on  leave
approved by a duly elected officer of the Company,  other than the Key Employee,
shall not be  considered a termination  of employment  during the period of such
leave.

                                      -2-
<PAGE>

              (b) Notwithstanding  the foregoing,  in the case of termination of
employment as a result of death or Total Disability (as defined below),  (i) the
Grant shall vest or be  forfeited  in respect of the 1999  Shares in  accordance
with Section 3(a) as if employment  continued if the death or disability  occurs
in 1999 or in 2000 prior to the Committee's determination under Section 3(a) and
(ii) the Grant  shall vest or be  forfeited  in  respect  of the 2000  Shares in
accordance  with  Section  3(b)  as if  employment  continued  if the  death  or
disability  occurs  in 2000 or in 2001  prior to the  Committee's  determination
under Section 3(b).

              (c) As used  herein,  "Total  Disability"  means the  complete and
permanent  inability  of the Key Employee to perform all of his duties under the
terms of his employment with the Company,  as determined by the Committee or any
successor to such committee that  administers the Stock Program (as the same may
be  amended),  or if no such  committee  has  been  appointed,  by the  Board of
Directors of the Company (such body, the "Determining Committee") upon the basis
of such  evidence,  including  independent  medical  reports  and  data,  as the
Determining Committee deems appropriate or necessary.

          5.  Detrimental Activity.

              (a) Activity  During  Employment.  If, prior to termination of the
Key  Employee's  employment  with the  Company  or during  the  one-year  period
following  termination of the Key Employee's  employment  with the Company,  the
Company becomes aware that,  prior to termination,  the Key Employee had engaged
in detrimental activity, then the Committee in its sole discretion, for purposes
of this Agreement,  may  characterize or  recharacterize  termination of the Key
Employee's  employment as a termination  to which this Section 5 applies and may
determine or redetermine  the date of such  termination,  and the Key Employee's
rights with  respect to the Grant shall be  determined  in  accordance  with the
Committee's determination.

              (b) Activity  Following  Termination.  If, within the  three-month
period following the Key Employee's  termination of employment with the Company,
the Company  becomes  aware that the Key  Employee  has  engaged in  detrimental
activity subsequent to termination,  then the Key Employee's rights with respect
to the Grant shall be  determined in accordance  with any  determination  by the
Committee under this Section 5.

              (c) Remedies.  If the  Key  Employee  has  engaged in  detrimental
activity as described in subsections (a) and (b), then the Committee may, in its
discretion, declare that the Key Employee has forfeited the Grant in whole or in
part and cause the Company to assume  possession  of any or all property held in
escrow in respect of the Grant in its own right and/or cause the Key Employee to
return any cash or property actually  realized by the Key Employee  (directly or
indirectly)  in respect of the Grant,  in each case whether or not the Committee
has made a vesting  determination  under Section 3 in respect  thereof before or
after the date the Key Employee engaged in the detrimental activity or before or
after the date of termination  as determined or  redetermined  under  subsection
(a).

                                      -3-
<PAGE>

              (d) Allegations  of  Activity.  If an  allegation  of  detrimental
activity by the Key Employee is made to the  Committee,  then the  Committee may
suspend  the Key  Employee's  rights  in  respect  of the  Grant to  permit  the
investigation of such allegation.

              (e) Definition  of  "Detrimental  Activity".  For purposes of this
Agreement,  "detrimental  activity"  means  activity  that is  determined by the
Committee  in its sole  discretion  to be  detrimental  to the  interests of the
Company or any of its  subsidiaries,  including  but not  limited to  situations
where the Key Employee (i) divulges  trade  secrets of the Company,  proprietary
data  or  other  confidential  information  relating  to the  Company  or to the
business of the Company or any subsidiaries,  (ii) enters into employment with a
competitor  under  circumstances  suggesting that the Key Employee will be using
unique or special knowledge gained as an employee of the Company to compete with
the  Company,  (iii) uses  information  obtained  during the course of his prior
employment with the Company for his own purposes,  such as for the  solicitation
of business and competition with the Company, (iv) is determined to have engaged
(whether  or not  prior  to  termination  due to  retirement)  in  either  gross
misconduct or criminal activity harmful to the Company,  or (v) takes any action
that harms the business interests,  reputation or goodwill of the Company and/or
its subsidiaries.

          6.  Change  in  Control.  In the event of a "Change  of  Control"  (as
defined in the Stock  Program),  any  Unvested  Shares shall  immediately  vest,
unless the Key Employee has previously forfeited such Restricted Shares.

          7.  Voting Rights; Dividends and Other Distributions.

              (a) While the Restricted Shares are subject to restrictions  under
Section 1 and prior to any  forfeiture  thereof,  the Key  Employee may exercise
full voting rights for the Restricted  Shares registered in his name and held in
escrow hereunder.

              (b) While the  Restricted  Shares are subject to the  restrictions
under  Section 1 and prior to any  forfeiture  thereof,  all dividends and other
distributions paid with respect to the Restricted Shares shall be held in escrow
pursuant  to  Section 2 and shall be  subject  to the same  restrictions  as the
Restricted Shares with respect to which they were paid.

              (c) Subject to the provisions of this Agreement,  the Key Employee
shall have, with respect to the Restricted  Shares,  all other rights of holders
of Common Stock.

          8.  Tax Withholding; Repurchase.

              (a) It shall be a condition  of the  obligation  of the Company to
issue or  release  from  escrow  Restricted  Shares to the Key  Employee  or the
Beneficiary, and the Key Employee agrees, that the Key Employee shall pay to the
Company, upon its demand, such amount as may be requested by the Company for the
purpose of satisfying its liability to withhold federal,  state, or local income
or other  taxes  incurred  by reason of the Award or as a result of the  vesting
hereunder or shall provide evidence satisfactory to the Company that the Company
has no liability to withhold.

                                      -4-
<PAGE>

              (b) At each time the Company is obligated to issue or release from
escrow  Restricted  Shares  to the  Key  Employee  or the  Beneficiary,  the Key
Employee or the  Beneficiary,  as the case may be, may elect to have the Company
repurchase up to 40% of the  Restricted  Shares to be so issued or released at a
price  equal to the Fair  Market  Value (as  defined  below) on the Tax Date (as
defined  below).  The election  must be delivered to the Company  within 30 days
after the Tax Date.  If the  number of  shares  so  determined  shall  include a
fractional  share,  then the Company shall not be obligated to  repurchase  such
fractional  share.  All  elections  shall  be made in a form  acceptable  to the
Company. As used herein, (i) "Tax Date" means the date on which the Key Employee
must  include in his gross  income tax  purposes  the fair  market  value of the
Restricted Shares and (ii) "Fair Market Value" means the per share closing price
on the date in question  in the  principal  market in which the Common  Stock is
then traded or, if no sales of Common  Stock have taken place on such date,  the
closing price on the most recent date on which selling prices were quoted.

          9.  Beneficiary.

              (a) The person  whose name  appears on the  signature  page hereof
after  the  caption  "Beneficiary"  or  any  successor  that  the  Key  Employee
designates  in  accordance  herewith  (the  person  who  is the  Key  Employee's
Beneficiary  at the time of his death herein  referred to as the  "Beneficiary")
shall be entitled to receive such portion, if any, of the Restricted Shares that
vests following the death of the Key Employee. The Key Employee may from time to
time  revoke  or  change  his  Beneficiary  without  the  consent  of any  prior
Beneficiary  by  filing a new  designation  with the  Committee.  The last  such
designation that the Committee receives shall be controlling; provided, however,
that no designation,  or change or revocation thereof, shall be effective unless
received by the Committee  prior to the Key  Employee's  death,  and in no event
shall any designation be effective as of a date prior to such receipt.

              (b) If no such Beneficiary designation is in effect at the time of
the Key  Employee's  death,  or if no  designated  Beneficiary  survives the Key
Employee or if such  designation  conflicts  with law,  then the Key  Employee's
estate  shall be  entitled  to receive the  portion,  if any, of the  Restricted
Shares that vests  following the death of the Key Employee.  If the Committee is
in doubt as to the right of any person to receive such Restricted  Shares,  then
the  Company  may retain  such  Restricted  Shares,  without  liability  for any
interest thereon, until the Committee determines the person entitled thereto, or
the Company  may  deliver  such  Restricted  Shares to any court of  appropriate
jurisdiction,  and such delivery shall be a complete  discharge of the liability
of the Company therefor.

          10. Adjustments  in  Event of  Change  in  Stock.  In the event of any
reclassification,  subdivision or combination of shares of Common Stock,  merger
or  consolidation  of the  Company or sale by the Company of all or a portion of
its assets,  or other  event  which  could,  in the  judgment of the  Committee,
distort the  implementation  of the Grant or the  realization of its objectives,
the Committee may make such adjustments in the number of Restricted Shares under
this Agreement,  or in the terms,  conditions or restrictions of this Agreement,
as the Committee deems equitable; provided that in the absence of express action

                                      -5-
<PAGE>
by the Committee,  adjustments that apply generally to Restricted Shares granted
under the Stock Program shall apply automatically to the Restricted Shares under
this Agreement.

          11. Powers of Company Not  Affected.  The existence of the Grant shall
not affect in any way the right or power of the Company or its  stockholders  to
make or authorize any combination, subdivision or reclassification of the Common
Stock  or  any  reorganization,  merger,  consolidation,  business  combination,
exchange of shares,  or other change in the Company's  capital  structure or its
business,  or  any  issue  of  bonds,  debentures  or  stock  having  rights  or
preferences equal, superior or affecting the Common Stock or the rights thereof,
or dissolution or liquidation of the Company,  or any sale or transfer of all or
any part of its assets or business,  or any other  corporate act or  proceeding,
whether of a similar  character or otherwise.  Nothing in this  Agreement  shall
confer upon the Key  Employee  any right to continue  in the  employment  of the
Company  or  interfere  with or limit in any way the  right  of the  Company  to
terminate the Key Employee's employment at any time.

          12. Certificate  Legend.  Each certificate for Restricted Shares shall
bear the following legend:

        The sale or other  transfer of the shares of stock  represented  by this
        certificate,  whether  voluntary,  or by operation of law, is subject to
        certain  restrictions  set forth in the Restricted Stock Award Agreement
        between Snap-on  Incorporated and the registered owner hereof. A copy of
        such   Agreement   may  be  obtained   from  the  Secretary  of  Snap-on
        Incorporated.

When the restrictions imposed by Section 1 terminate,  the Key Employee shall be
entitled to have the foregoing legend removed from the certificates representing
such Restricted Shares.

          13. Interpretation  by  Committee.  The  Key Employee  agrees that any
dispute or  disagreement  that may arise in connection with this Agreement shall
be  resolved  by  the  Committee,   in  its  sole   discretion,   and  that  any
interpretation  by the  Committee  of the terms of this  Agreement  or the Stock
Program and any determination made by the Committee under this Agreement or such
plan may be made in the sole  discretion  of the  Committee  and shall be final,
binding, and conclusive.

          14. Miscellaneous.

              (a) This  Agreement  shall be governed and construed in accordance
with the laws of the State of Wisconsin  applicable to contracts  made and to be
performed therein between residents thereof.

              (b) This  Agreement  may not be amended or modified  except by the
written consent of the parties hereto.

              (c) The captions of this Agreement are inserted for convenience of
reference only and shall not be taken into account in construing this Agreement.

                                      -6-
<PAGE>

              (d) Any notice,  filing or delivery  hereunder  or with respect to
the Grant shall be given to the Key  Employee at either his usual work  location
or his home address as  indicated  in the records of the  Company,  and shall be
given to the  Committee  or the  Company  at  10801  Corporate  Drive,  Kenosha,
Wisconsin 53142, Attention:  Secretary. All such notices shall be given by first
class mail, postage pre-paid, or by personal delivery.

              (e) This Agreement  shall be binding upon and inure to the benefit
of the Company  and its  successors  and  assigns and shall be binding  upon and
inure to the  benefit of the Key  Employee,  the  Beneficiary  and the  personal
representative(s)  and heirs of the Key  Employee,  except that the Key Employee
may not transfer any interest in any  Restricted  Shares prior to the release of
the restrictions imposed by Section 1.

          IN WITNESS  WHEREOF,  the  Company has caused  this  instrument  to be
executed by its duly authorized officer and its corporate seal hereunto affixed,
and the Key Employee has hereunto  affixed his hand and seal, all on the day and
year set forth below.

                                        SNAP-ON INCORPORATED

                                        By: ___________________________________
                                        Title:

                                        Key Employee:

                                         _________________________________(Seal)
                                         ______________________

                                         Beneficiary: __________________________

                                         Address of Beneficiary:

                                         _______________________________________

                                         _______________________________________

                                         Beneficiary Tax Identification

                                         No. ___________________________________

                                      -7-EXHIBIT 10.7
                                                                    ------------

                           MGIC INVESTMENT CORPORATION
                      1991 STOCK INCENTIVE PLAN, AS AMENDED

          1. Purpose. The purpose of the MGIC Investment  Corporation 1991 Stock
Incentive  Plan,  as  amended  to March 6, 1997 and as  proposed  to be  further
amended in  accordance  with  amendments  adopted  by the Board (as  hereinafter
defined) on March 6, 1997 (the "Amended Plan"), is to secure for MGIC Investment
Corporation  (the "Company") and its subsidiaries the benefits of the additional
incentive  inherent in the  ownership of the Company's  Common Stock,  $1.00 par
value (the "Common Stock"),  by certain key employees and executive  officers of
the Company and its subsidiaries and directors of the Company, who are important
to the  success  and the growth of the  business  of the Company and to help the
Company secure and retain the services of such persons.  In addition to granting
stock options ("Options"), the Amended Plan provides for a deposit share program
("Deposit Share Program") and for the award of Common Stock,  subject to certain
terms,  conditions and restrictions  ("Restricted  Stock").  It is intended that
certain of the  Options  issued  pursuant to the  Amended  Plan will  constitute
incentive  stock  Options  ("Incentive  Stock  Options")  within the  meaning of
Section 422 of the Internal  Revenue Code of 1986, as amended (the "Code"),  and
the remainder of the Options issued pursuant to the Amended Plan will constitute
nonstatutory  Options. The Options and Restricted Stock are hereinafter referred
to collectively as "Awards".

          2. Administration.

          (a) Stock  Award  Committee.  The Amended  Plan shall be  administered
     under  the  supervision  of the  Board of  Directors  of the  Company  (the
     "Board"),  which shall exercise its powers,  to the extent herein provided,
     through the agency of the Stock Award  Committee (the  "Committee"),  which
     shall consist of at least two members and shall be appointed from among the
     members of the Board.  Any member of the Committee may resign or be removed
     by the Board and new members may be appointed  by the Board.  Additionally,
     the  Committee  shall be  constituted  so as to  satisfy  at all  times the
     outside  director  requirement of Code Section  162(m) and the  regulations
     thereunder or any substitute provision therefor.

          (b) Rules and Regulations. The Committee, from time to time, may adopt
     rules and  regulations  for carrying out the provisions and purposes of the
     Amended Plan. The  interpretation  and construction of any provision of the
     Amended Plan by the Committee shall be final, conclusive and binding on all
     interested  parties.  In  order  to  carry  out its  responsibilities,  the
     Committee  may execute such  documents and enter into such  agreements  and
     make all  determinations  deemed  necessary or advisable to effectuate  the
     purposes of the Amended Plan.

<PAGE>

          (c) Authority. The Committee shall have all the powers vested in it by
     the terms of the Amended Plan, such powers to include  exclusive  authority
     (subject to the terms of the Amended Plan and applicable law) to select the
     persons to be granted Awards under the Amended Plan, to determine the type,
     size and terms of Awards to be made to each person  selected,  to determine
     the time when  Awards  will be  granted  and to  establish  objectives  and
     conditions for earning Awards.  The Committee shall determine which Options
     are to be Incentive Stock Options and which are to be nonstatutory  Options
     and  shall in each case  enter  into a written  Option  agreement  with the
     recipient  thereof  (an  "Option  Agreement")  setting  forth the terms and
     conditions  of the  grant  and  the  exercise  of the  subject  Option,  as
     determined  by the  Committee in  accordance  with the Amended Plan. To the
     extent that the aggregate fair market value of Common Stock with respect to
     which Incentive Stock Options under the Amended Plan and any other plans of
     the  Company  or  its  subsidiaries  are  exercisable  by an  Employee  (as
     hereinafter  defined) for the first time during any  calendar  year exceeds
     $100,000,  such Options shall be treated as Options which are not Incentive
     Stock  Options.  To the  extent  the Code is  amended  from time to time to
     provide additional or different limitations on the grant of Incentive Stock
     Options,  the  foregoing  limitation  shall  be  considered  to be  amended
     accordingly.   The  Committee  shall  have  full  power  and  authority  to
     administer  and  interpret  the  Amended  Plan  and to  adopt  such  rules,
     regulations,  agreements, guidelines and instruments for the administration
     of the Amended  Plan and for the conduct of its  business as the  Committee
     deems necessary or advisable. The Committee's interpretation of the Amended
     Plan,  and all  actions  taken  and  determinations  made by the  Committee
     pursuant to the powers vested in it, shall be conclusive and binding on all
     parties   concerned,   including  the  Company,   its   subsidiaries,   its
     shareholders, Participants (as defined in Section 4 below) and any employee
     of the Company or its  subsidiaries.  The Committee may delegate  duties to
     any person or persons; provided, that, no delegation of duties is permitted
     with respect to (i) any grant,  award or other acquisition from the Company
     if the person or persons to whom duties are delegated would not satisfy the
     standard of Rule 16b-3(d)(1) under the Securities  Exchange Act of 1934, as
     amended,  or any  substitute  provision  therefor  or the  requirements  of
     Section  162(m) of the Code and (ii) any  disposition to the Company if the
     person or  persons to whom  duties  are  delegated  would not  satisfy  the
     standard of Rule 16b-3(d)(1).

          (d) Records.  The  Committee  shall  maintain a written  record of its
     proceedings.  A majority of the Committee members shall constitute a quorum
     for any meeting.  Any  determination or action of the Committee may be made
     or taken by a  majority  of the  members  present at any such  meeting,  or
     without a meeting by a resolution or written memorandum concurred in by all
     of the members then in office.

                                      -2-
<PAGE>

          3. Stock Subject to Awards.  The aggregate  number of shares of Common
Stock for which  Awards may be granted  under the Amended  Plan shall not exceed
7,000,000 shares,  subject to adjustment as provided in Section 8 below. If, and
to the extent that,  Options  granted under the Amended Plan terminate or expire
without having been exercised,  or shares of Restricted  Stock under the Amended
Plan are forfeited,  the shares covered by such terminated or expired Options or
forfeited  Restricted  Stock,  as the case may be, may be the subject of further
grants under the Amended Plan.  Restricted  Stock granted under the Amended Plan
and shares issued upon the exercise of any Option granted under the Amended Plan
may be, at the Company's  discretion,  shares of authorized and unissued  Common
Stock,  shares  of  issued  Common  Stock  held  in the  Company's  treasury  or
reacquired shares or any combination thereof. The foregoing notwithstanding, the
maximum number of shares of Restricted  Stock for which Awards may be granted is
400,000 shares.

          4. Persons Eligible. Under the Amended Plan, (i) Awards may be granted
to any key  employee or  executive  officer of the Company who is an employee of
the Company or its subsidiaries,  including any employee who is also a member of
the Board (an "Employee")  and (ii) shares of Restricted  Stock shall be awarded
to each  Non-Employee  Director  under the Deposit  Share  Program,  as provided
herein.  "Non-Employee  Director"  means a  member  of the  Board  who is not an
employee of the Company or of any person,  directly or indirectly,  controlling,
controlled  by or under  common  control with the Company and is not a member of
the Board  representing  a holder of any class of securities of the Company.  In
determining  the  Employees  to whom  Awards are to be granted and the number of
shares to be covered by an Award,  the Committee  shall take into  consideration
the Employee's present and potential  contribution to the success of the Company
and such other  factors  as the  Committee  may deem  proper  and  relevant.  An
Employee  receiving an Award,  and a Non-Employee  Director  receiving shares of
Restricted Stock under the Amended Plan are individually hereinafter referred to
as a "Participant". In no event may Awards be granted to any one Participant for
more than twenty percent (20%) of the aggregate number of shares of Common Stock
for which  Awards may be granted  under the  Amended  Plan,  including  for this
purpose Awards granted to such  Participant  which are  subsequently  cancelled,
forfeited or otherwise terminated.

          5. Provisions Applicable to Options.

          (a) Price and Type of  Options.  The  purchase  price of each share of
     Common  Stock under any Option  granted  under the Amended Plan shall be as
     determined by the Committee in its sole  discretion,  but shall not be less
     than the Fair Market Value thereof  (determined  in a manner  equivalent to
     the determination under Section 6(e), unless in the case of Incentive Stock
     Options,  the Code  requires a different  method,  in which case the method
     required by the Code shall be followed for Incentive  Stock Options) on the
     date of grant.  The type of Option  granted  shall be as  determined by the
     Committee, but any Incentive Stock Options granted shall be subject to such
     terms and conditions as are required for the  qualification  as such by the
     Code on the date of grant. Any Options

                                      -3-
<PAGE>
     granted  under the Amended  Plan shall be clearly  identified  as Incentive
     Stock Options or nonstatutory stock Options.

          (b) Exercisability of Options.  The Committee shall determine when and
     to what extent an Option shall be vested, including continuation of vesting
     after retirement at a specified age and with a specified number of years of
     service;  and  may  provide  for  Options  to be  vested  based  upon  such
     performance  related  goals as the Committee in its sole  discretion  deems
     appropriate   ("Performance   Goals").  The  Committee  may,  in  its  sole
     discretion, also provide that some or all Options granted shall immediately
     become vested or  exercisable  as of a date fixed by the  Committee  upon a
     change in control of the  Company  as  defined by the  Committee  or in the
     event  of a sale,  lease or  transfer  of all or  substantially  all of the
     Company's assets, equity securities or businesses, or merger, consolidation
     or other business  combination of the Company. The Committee may also if it
     so elects make any such action  contingent  upon  consummation of the event
     which prompted the action.

          (c)  Termination  of Options.  The  unexercised  portion of any Option
     granted  under the Amended  Plan shall  automatically  and  without  notice
     terminate  and become null and void at the time of the earliest to occur of
     the following:

               (i) Thirty (30) days after the  termination of the  Participant's
          employment  with the  Company  and all  subsidiaries  thereof  for any
          reason (including,  without limitation,  disability, or termination by
          the Company and all subsidiaries thereof, with or without cause) other
          than by reason of the Participant's death, retirement from the Company
          and all  subsidiaries  thereof after  reaching age 55 and after having
          been  employed by the Company or any  subsidiary  thereof for at least
          seven (7) years or a leave of absence approved by the Company;

               (ii) (x) except as  provided  in (y),  three  hundred  sixty-five
          (365) days after the termination of the Participant's  employment with
          the   Company   and  all   subsidiaries   thereof  by  reason  of  the
          Participant's death, or by reason of the Participant's retirement from
          the Company and all  subsidiaries  thereof  after  reaching age 55 and
          after having been  employed by the Company or any  subsidiary  thereof
          for at least seven (7) years;  or (y) in the case of such  retirement,
          such longer period as the Committee may provide for a Participant;

               (iii)Thirty  (30) days after expiration or termination of a leave
          of absence  approved by the  Company  unless the  Participant  becomes
          reemployed  with the  Company or any  subsidiary  prior to such 30-day
          period

                                      -4-
<PAGE>

          in which event the Option shall continue in effect in accordance  with
          its terms;

               (iv)  The  expiration  of  the  Option  Period  (as   hereinafter
          defined); or

               (v) In  whole  or in  part,  at such  earlier  time  or upon  the
          occurrence of such earlier  event as the  Committee in its  discretion
          may have provided upon the granting of such Option.

          (d) Term of Options. The term of each Option granted under the Amended
Plan will be for such period (herein  referred to as the "Option Period") of not
less than  seven (7)  years  and not more than ten (10)  years as the  Committee
shall  determine.  With respect to Incentive  Stock  Options,  such term may not
exceed ten (10) years or such other term provided in the Code. Each Option shall
be subject to earlier termination as described under "Termination of Options" in
subparagraph  (c) above.  An Option shall be considered  granted on the date the
Committee  acts to grant the  Option or such date  thereafter  as the  Committee
shall specify.

          (e) Exercise of Options. Options granted under the Amended Plan may be
exercised by the  Participant,  as to all or part of the shares covered thereby,
in accordance with the terms of such Participant's  Option Agreement.  A partial
exercise of an Option may not be made with respect to fewer than ten (10) shares
unless the shares  purchased  are the total number then  available  for purchase
under the Option.  A Participant  shall  exercise such Option by delivering  ten
(10) days' (or such shorter  period as the Company  shall  permit) prior written
notice of the  exercise  thereof  on a form  prescribed  by the  Company  to the
Secretary  of the  Company at its  principal  office,  specifying  the number of
shares to be purchased.  The purchase  price of the shares as to which an Option
shall be exercised  shall be paid in full in cash or its  equivalent at the time
of exercise.

          The Participant shall be responsible for paying all withholding taxes,
if any,  applicable to any Option  exercise and the Company shall have the right
to take any action  necessary to insure that the  Participant  pays the required
withholding  taxes.  Upon payment of the Option  purchase price and the required
withholding  taxes,  the  Company  shall cause a  certificate  for the shares so
purchased to be delivered to the Participant.

          (f) Stock Withholding.  Notwithstanding  the terms of subparagraph (e)
above, a Participant shall be permitted to satisfy the Company's withholding tax
requirements  by electing to have the Company  withhold  shares of Common  Stock
otherwise  issuable to the  Participant  or to deliver to the Company  shares of
Common  Stock  having  a fair  market  value on the date  income  is  recognized
pursuant  to the  exercise  of an  Option  equal to the  amount  required  to be
withheld.  The election  shall be made in writing and shall be made according to
such rules and in such form as the Committee may determine.

                                      -5-
<PAGE>

          (g)  Exercise  of  Options   following   Participant's   Death.  If  a
Participant dies ("Deceased Participant") while in the employ of the Company, or
during any longer  period  applicable  to a Deceased  Participant  under Section
5(c)(ii)(y),  and if the Deceased  Participant's  death occurs prior to the date
the Option  terminates,  regardless of whether the Option is subject to exercise
under the terms of the Option,  such Option shall become  immediately vested and
exercisable by the personal  representative  of the Deceased  Participant or the
person to whom the  Deceased  Participant's  rights  under the  Option  would be
transferred by law or applicable laws of descent and distribution. The Committee
may also provide as to Options  outstanding as of January 1, 1994 for a right to
surrender the Option to the Company at a price equal to the  difference  between
the aggregate Option price and the fair value of the Common Stock subject to the
Option as of the  Deceased  Participant's  death.  The  surrender  shall also be
subject to such terms and  conditions as are determined by the Committee and set
forth in the Option Agreement.

          (h)  Non-Transferability  of  Options.  Except to the extent as may be
permitted  under  rules  established  by the  Committee,  an Option or any right
evidenced  thereby shall not be transferable  otherwise than by will or the laws
of descent and distribution,  and shall be exercisable  during the Participant's
lifetime only by him or by his guardian or legal representative.

          (i)  Rights of  Participant.  The  Participant  shall have none of the
rights of a shareholder of the Company with respect to the shares subject to any
Option  granted under the Amended Plan until a certificate or  certificates  for
such shares shall have been issued upon the exercise of any Option.

          6.  Restricted  Stock  Awards.   The  Committee  may  make  awards  of
Restricted Stock  ("Restricted Stock Awards") to Participants who are Employees,
and shall make Awards to  Non-Employee  Directors,  subject to the provisions of
this Section 6.

          (a)  Restricted  Stock  Agreements.  Restricted  Stock Awards shall be
     evidenced by Restricted Stock agreements  ("Restricted  Stock  Agreements")
     which shall conform to the requirements of the Amended Plan and may contain
     such other  provisions (such as provisions for the protection of Restricted
     Stock  in  the  event  of   mergers,   consolidations,   dissolutions   and
     liquidations  affecting either the Restricted Stock Agreement or the Common
     Stock issued thereunder) as the Committee shall deem advisable.

          (b) Payment of Restricted Stock Awards.  Restricted Stock Awards shall
     be made by  delivering  to the  Participant  or an Escrow Agent (as defined
     below) a certificate or certificates for such shares of Restricted Stock of
     the Company, as determined by the Committee  ("Restricted  Shares"),  which
     Restricted Shares shall be registered in the name of such Participant.  The
     Participant  shall have all of the rights of a holder of Common

                                      -6-
<PAGE>

          Stock  with  respect  to  such  Restricted  Shares  except  as to such
          restrictions as appear on the face of the  certificate.  The Committee
          may  designate  the Company or one or more of its  employees to act as
          custodian or escrow agent for the certificates ("Escrow Agent").

          (c) Terms,  Conditions and  Restrictions.  Restricted  Shares shall be
     subject to such terms and  conditions,  including  vesting  and  forfeiture
     provisions,  if any, and to such restrictions  against resale,  transfer or
     other  disposition as may be provided in this Amended Plan and,  consistent
     therewith,  as may be determined by the Committee at such time as it grants
     a Restricted Stock Award to a Participant.  Any new or different Restricted
     Shares or other securities resulting from any adjustment of such Restricted
     Shares  pursuant  to Section 8 hereof  shall be subject to the same  terms,
     conditions  and  restrictions  as  the  Restricted  Shares  prior  to  such
     adjustment.  The  Committee  may  in  its  discretion,  remove,  modify  or
     accelerate the release of restrictions on any Restricted Shares as it deems
     appropriate.  In the event of the  Participant's  death,  all  transfers or
     other restrictions to which the Participant's Restricted Shares are subject
     shall   immediately   lapse,   and   the   Deceased   Participant's   legal
     representative  or  person  receiving  such  Restricted  Shares  under  the
     Deceased  Participant's  will or under the laws of descent and distribution
     shall  take  such  Restricted  Shares  free of any such  transfer  or other
     restrictions.

          (d) Dividends and Voting Rights.  Except as otherwise  provided by the
     Committee,  during the  restricted  period the  Participant  shall have the
     right to receive  dividends from and to vote the  Participant's  Restricted
     Shares.

          (e) Deposit Share  Program.  Subject to the provisions set forth below
     and  subject  to  rules  established  by  the  Committee,  pursuant  to the
     Company's Deposit Share Program,  (1) Employees may elect to acquire shares
     of Common Stock with a Fair Market Value up to a percentage  designated  by
     the Committee of cash bonuses under the  Company's  incentive  compensation
     programs designated by the Committee,  and (2) Non-Employee Directors shall
     be entitled  to acquire  shares of Common  Stock with a Fair  Market  Value
     equal to up to 100% of the compensation of such  Non-Employee  Director for
     service as a director of the Company,  including for service as a member of
     a Committee of the Board, during the preceding calendar year (in each case,
     "Deposit  Shares").  Deposit  Shares shall be issued in an amount which the
     Deposit Share  Participant  (as defined in Section 6(e)(i) below) elects to
     use to acquire  Common  Stock  (subject to limits  provided in this Section
     6(e))  divided by the Fair Market  Value of a share of Common  Stock on the
     Award Date (as defined in Section 6(e)(ii) below). For purposes hereof, the
     term "Fair Market Value" shall be as determined  by the  Committee,  except
     that during any period the Common Stock is traded on a recognized exchange,
     Fair Market  Value shall be based upon the last sales price of Common Stock
     on the  principal  securities  exchange  on which the same is traded on the
     Award Date or if no sales of Common  Stock  have taken  place on such date,
     the last sales  price on the first date

                                      -7-
<PAGE>
     following the Award Date on which sales occur.  Deposit Share  Participants
     electing to deposit Deposit Shares with the Company under the Deposit Share
     Program and receive  Restricted Stock Awards in connection  therewith shall
     do so as follows:

          (i) The  Committee  shall notify each  Participant  who is an Employee
     selected to participate in the Deposit Share Program and each  Non-Employee
     Director (such Employees and Non-Employee Directors together referred to as
     "Deposit  Share  Participants")  of  the  maximum  amount  which  they  are
     permitted to use to acquire  Common  Stock to be deposited  with the Escrow
     Agent,  and Deposit Share  Participants may choose to deposit any number of
     Deposit  Shares they are  permitted to deposit  under the  Committee  rules
     (Deposit Shares so acquired and deposited are herein sometimes  referred to
     as the "Original Deposit").

          (ii) Deposit Share  Participants must make their irrevocable  election
     on or  before  the  date  designated  by the  Committee  or if no  date  is
     designated,  then at least  thirty (30) days prior to the Award  Date.  The
     Award  Date  ("Award  Date")  for  each  year  in  which  a  Deposit  Share
     Participant is eligible to receive  Deposit Shares shall be February 15, or
     the Monday following  February 15 in any year in which February 15 falls on
     a Saturday or Sunday,  unless the  Committee  designates a different  Award
     Date. The Award Date for Employees and  Non-Employee  Directors need not be
     the same.  The  Committee  shall have the  discretion  to waive any date or
     deadline established pursuant to this section. The Committee may also allow
     a Deposit Share Participant who is an Employee to acquire Deposit Shares in
     lieu of a bonus,  or to  deliver  a check  equal to the  dollar  amount  of
     bonuses  for which the  Deposit  Share  Participant  may  purchase  Deposit
     Shares,  in which case the full amount of the cash bonus  (less  applicable
     withholding)  will be paid to the Employee and the Employee shall deliver a
     check  to the  Company,  subject  to  the  limitations  established  by the
     Committee.

          (iii) All  elections  shall be in writing and filed with the Committee
     or its designee.  Such elections  may, if permitted by the Committee,  also
     specify one of the  following  alternatives  regarding  the manner in which
     dividends are paid on all deposited stock (including Deposit Shares, shares
     purchased with dividends,  if any, and matching Restricted Shares (but only
     if the Committee allows dividends on such Restricted  Shares to be paid and
     credited)):

               (1) Dividends  shall be  accumulated  by the Escrow Agent for the
          purchase  of  additional  shares for the Deposit  Share  Participant's
          account; or

               (2)  Dividends  shall  be paid  currently  to the  Deposit  Share
          Participant.

                                      -8-
<PAGE>

     A Deposit Share Participant shall be deemed to have elected Alternative (1)
     unless or until the Deposit Share  Participant  delivers  written notice to
     the Company selecting  Alternative (2) as the method by which dividends are
     to be paid and credited.

          (iv) As soon as practicable following an Original Deposit, the Company
     shall  match the Deposit  Shares  deposited  with the Escrow  Agent for the
     Deposit Share Participant's  account by depositing (1) for an Employee,  up
     to one (1) Restricted Share for each Deposit Share in the Original Deposit,
     as determined by the Committee,  and (2) for a Non-Employee  Director,  one
     and  one-half  (1-1/2)  Restricted  Share  for  each  Deposit  Share in the
     Original  Deposit.  Restricted  Shares shall be  distributed to the Deposit
     Share  Participant  entitled thereto as promptly as practicable  after they
     vest.

          (v) With respect to Employees,  the Restricted Shares deposited by the
     Company  shall  vest in  accordance  with the  schedule  determined  by the
     Committee.  With respect to Non-Employee  Directors,  the Restricted Shares
     shall vest on the third  anniversary  of the date of the  Award.  Awards of
     Restricted   Stock  that  are  not  vested  shall  be  forfeited  upon  the
     Non-Employee  Director  ceasing to be a  director  of the  Company  for any
     reason,  except in the case of death, as hereinafter  provided in Section 6
     (e)  (ix),  except  in the  case of a  Permissible  Event  (as  hereinafter
     defined)  or  except  as  otherwise   provided  by  the  Committee.   If  a
     Non-Employee  Director  ceases to be a director by reason of a  Permissible
     Event,  the Restricted  Shares shall continue to vest during the balance of
     the  three-year  vesting  period if (1) no later than the date on which the
     Non-Employee  Director  ceases  to  be  a  director  of  the  Company,  the
     Non-Employee  Director  enters into an agreement  approved by the Committee
     under  which the  Non-Employee  Director  agrees  not to  compete  with the
     Company or its  subsidiaries  during the balance of such period and (2) the
     Non-Employee  Director  complies with the agreement.  Any Restricted Shares
     that do not vest by reason of a Permissible Event shall be forfeited unless
     otherwise  provided  by the  Committee.  A  Permissible  Event shall be any
     termination of service as a director of the Company by reason of:

               (1) the  Non-Employee  Director  being  ineligible  for continued
          service as a director of the Company  under the  Company's  retirement
          policy; or

               (2)  the  Non-Employee  Director's  taking  a  position  with  or
          providing  services  to  a  governmental,  charitable  or  educational
          institution whose policies prohibit  continued service on the Board or
          due to the  fact  that  continued  service  as a  director  would be a
          violation of law.

                                      -9-
<PAGE>

     The  Company  may,  in  its  sole  discretion,  provide  that  some  or all
     Restricted Stock shall immediately  become vested in the circumstances with
     respect to immediate vesting of Options contemplated by Section 5(b).

          (vi) Shares purchased with dividends paid on deposited stock (Original
     Deposit,  Restricted  Stock or any shares  purchased with dividends) may be
     withdrawn from a Deposit Share Participant's account at any time.

          (vii) A Deposit Share Participant's  interests in the Original Deposit
     or the Restricted Stock may not be sold,  pledged,  assigned or transferred
     in any manner,  other than by will or the laws of descent and distribution,
     so long as such  shares  are held by the Escrow  Agent,  and any such sale,
     pledge,  assignment  or other  transfer  shall be null and void;  provided,
     however,  a pledge  of the  Deposit  Share  Participant's  interest  in the
     Original  Deposit  or a  transfer  of such  Participant's  interest  in the
     Original Deposit (any permitted  transfer not being considered a withdrawal
     of the  Original  Deposit) or in the  Restricted  Stock may be permitted in
     accordance  with rules which the  Committee  may  establish.  To the extent
     Restricted  Shares become vested, at the same time as Restricted Shares are
     released  by the Escrow  Agent,  the  Escrow  Agent  shall  also  release a
     percentage  (computed to the nearest whole percent) of the Original Deposit
     equal to the number of Restricted  Shares then being  released,  divided by
     the number of  Restricted  Shares  deposited by the Company with respect to
     the Original Deposit.

          (viii) Any or all of the  Original  Deposit  may be  withdrawn  at any
     time. Such withdrawal shall cause a forfeiture of any non-vested Restricted
     Shares  attributable  to the Deposit  Shares being  withdrawn.  Any Deposit
     Shares  withdrawn  shall be  deemed to have been  withdrawn  under  Section
     6(e)(vi)  to the  extent  there are any such  shares,  and then  under this
     Section 6(e)(viii).

          (ix) In the event the employment with the Company or its  subsidiaries
     of a Deposit Share  Participant who is an Employee is terminated during the
     vesting  period by reason of the Deposit  Share  Participant's  death,  the
     vesting  requirements  shall  be  deemed  fulfilled  upon  the date of such
     termination of employment.  In the event a Non-Employee  Director's service
     as a director of the  Company is  terminated  during the vesting  period by
     reason of the Non-Employee Director's death, the vesting requirements shall
     be deemed to be fulfilled on the date of such termination of service.

          (x) In the event the employment with the Company and its  subsidiaries
     of a Deposit Share  Participant who is an Employee is terminated during the
     vesting period for any reason other than death, the Restricted  Shares,  to
     the extent not  otherwise  vested,  shall  automatically  be forfeited  and
     returned to the Company

                                      -10-
<PAGE>
     unless the Committee shall, in its sole discretion, otherwise provide.

          (xi) At the  request  of a  Non-Employee  Director  who has during the
     preceding  calendar  year  elected to defer  compensation  described in the
     first sentence of Section 6(e) into Phantom Stock (as defined  below),  the
     amount that would  otherwise  be  deposited  shall be reduced by the amount
     specified  by such  Director up to the amount of  compensation  so deferred
     (the "Reduction Amount").  For purposes of determining the number of shares
     of  Restricted  Stock to be  matched  for  such a  Director  under  Section
     6(e)(iv),  the Original  Deposit  shall be deemed to be equal to the sum of
     the amount, if any, actually  deposited plus the Reduction Amount,  divided
     by the Fair Market Value.  For all other  purposes of Section 6(e),  (A) in
     the case of a  Non-Employee  Director who makes an actual  deposit and also
     has a Reduction Amount,  the Original Deposit shall be determined only with
     respect to the amount actually deposited,  and (B) a Non-Employee  Director
     who makes no actual  deposit  shall be deemed to have no Original  Deposit.
     "Phantom  Stock"  means a phantom  stock  account with respect to shares of
     Common  Stock  under  a  deferred  compensation  plan of the  Company  that
     provides  that no  distribution  or transfer  may be made from such account
     during the vesting  period  applicable to the  Non-Employee  Director under
     Section   6(e)(v)  above  other  than  a  distribution   arising  from  the
     Non-Employee Director ceasing to be a director of the Company.

          7. Right to  Terminate  Employment.  Nothing in the Amended Plan or in
any Award  granted  under the Amended Plan to a  Participant  who is an Employee
shall confer upon any such  Participant  the right to continue in the employment
of  the  Company  or  affect  the  right  of the  Company  to  terminate  such a
Participant's  employment  at any time,  nor cause any Award  granted  to become
exercisable as a result of the election by the Company of its right to terminate
at any  time the  employment  of such a  Participant  subject,  however,  to the
provisions  of  any  agreement  of  employment  between  the  Company  and  such
Participant.  Nothing in the Amended  Plan or in any Award of  Restricted  Stock
under the Amended Plan to a Participant  who is a  Non-Employee  Director  shall
confer upon such Director the right to continue as a member of the Board.

          8. Dilution and Other  Adjustments.  In the event of any change in the
outstanding  shares  of  the  Company  ("capital  adjustment")  for  any  reason
including,   but  not   limited   to,   any   stock   split,   stock   dividend,
recapitalization, merger, consolidation, reorganization, combination or exchange
of shares or other similar event,  an adjustment in the number or kind of shares
of  Common  Stock  subject  to,  the  Option  price  per  share  under,  and (if
appropriate)  the terms and  conditions  of,  any  outstanding  Award,  shall be
modified or  provided  for by the  Committee  in a manner  consistent  with such
capital adjustment, and the shares reserved for issuance under this Amended Plan
shall likewise be modified.  The  determination  of the Committee as to any such
adjustment shall be conclusive and binding for all purposes of the Amended Plan.

                                      -11-
<PAGE>

          9. Form of Agreements with Participants.  Each Option Agreement and/or
Restricted Stock Agreement to be executed by a Participant shall be in such form
as the Committee shall in its discretion determine.

          10. Legend on Certificates; Restrictions on Transfer. The Company may,
to the extent  deemed  necessary or  advisable,  endorse an  appropriate  legend
referring  to any  restrictions  imposed by state law or the  Securities  Act of
1933, as amended,  upon the certificate or certificates  representing any shares
issued or transferred to the Participant pursuant to Awards.

          11.  Securities Act Compliance.  Notwithstanding  any provision of the
Amended Plan to the contrary,  the Committee  shall take whatever  action it may
consider  necessary or appropriate to comply with the Securities Act of 1933, as
amended,  or any other then applicable  securities law,  including  limiting the
granting and exercise of Options or the issuance of shares thereunder.

          12.  Amendment,  Expiration and Termination of the Amended Plan. Under
the Amended Plan, Awards may be granted at any time and from time to time before
the  tenth  anniversary  date of  adoption  of  amendments  to this  Plan by the
Company's  Board of  Directors  on January 27, 1994 (the date on which this Plan
was last previously amended) at which time the Amended Plan will expire,  except
as to Awards then outstanding. The foregoing notwithstanding, no Incentive Stock
Options may be granted  after  January 1, 2001.  The Amended Plan will remain in
effect with respect to outstanding  Awards until such Awards have been exercised
or have  expired,  as the case may be. The  Amended  Plan may be  terminated  or
modified  at any time by the Board of  Directors  before the  expiration  of the
Amended  Plan,  except  with  respect to any Awards then  outstanding  under the
Amended Plan, provided that any increase in the maximum number of shares subject
to Awards  specified in Section 3 or in Section 4 hereof shall be subject to the
approval of the Company's shareholders unless made pursuant to the provisions of
Section 8 hereof.  No amendment of the Amended Plan shall  adversely  affect any
right of any Participant with respect to any Award theretofore granted under the
Amended Plan.

          13.  Effective  Date.  If the  Amended  Plan  is not  approved  by the
Company's   shareholders  prior  to  September  1,  1997,  the  MGIC  Investment
Corporation 1991 Stock Incentive Plan as in effect immediately prior to March 6,
1997 shall remain in effect and shall not be deemed to have been amended.

          14.  Governing Law. The Amended Plan and any Option  Agreement  and/or
Restricted Stock Agreement shall be governed by and construed in accordance with
the internal  substantive laws, and not the choice of law rules, of the State of
Wisconsin.

                                      -12-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]