Document:

WPS RESOURCES CORPORATION

DEFERRED COMPENSATION PLAN

As Amended and Restated Effective January 1, 2001

 

 

 

WPS RESOURCES CORPORATION

DEFERRED COMPENSATION PLAN

    The WPS Resources Corporation Deferred Compensation Plan (the
"Plan") has been adopted to promote the best interests of WPS
Resources Corporation (the "Company") and the stockholders of the
Company by attracting and retaining key management employees possessing a strong
interest in the successful operation of the Company and its subsidiaries or
affiliates and encouraging their continued loyalty, service and counsel to the
Company and its subsidiaries or affiliates. The Plan is amended and restated
effective January 1, 2001 as set forth herein.

    Except as expressly provided herein, the Plan, as herein amended and restated
effective January 1, 2001, applies to those employees who are actively employed
by the Company on January 1, 2001, and who have been designated for
participation by the Committee. Except as expressly provided herein,
distribution of benefits to an employee who retired from or terminated
employment with the Company prior to January 1, 2001, shall be governed by the
terms of the Plan as in effect on the date of the employee's retirement or
termination of employment.

    The Plan, as hereby amended and restated, is subject to shareholder approval
at the 2001 annual meeting of shareholders of the Company. In the event that
shareholder approval is not obtained, the Plan as hereby amended and restated
will be null and void, and the Plan as in effect on December 31, 2000 shall
continue.

 

ARTICLE I. DEFINITIONS AND CONSTRUCTION

     Section  1.01.
Definitions.

    The following terms have the meanings indicated below unless the context in
which the term is used clearly indicates otherwise:

    (a) Account: The record keeping account or accounts maintained to record the
interest of each Participant under the Plan. An Account is established for
record keeping purposes only and not to reflect the physical segregation of
assets on the Participant's behalf, and may consist of such subaccounts or
balances as the Committee may determine to be necessary or appropriate.

    (b) Act: The Securities Act of 1933, as interpreted by regulations and rules
issued pursuant thereto, all as amended and in effect from time to time. Any
reference to a specific provision of the Act shall be deemed to include
reference to any successor provision thereto.

    (c) Annual Bonus Deferral: See Section 1.01(l)(ii).

    (d) Available Investment Option: See Section 5.01(a).

    (e) Base Compensation: The base salary or wage payable by a Participating
Employer for services performed prior to reduction for contributions by the
Participant to this Plan or pre-tax or after-tax contributions by the
Participant to any other employee benefit plan maintained by a Participating
Employer, but exclusive of extraordinary payments such as overtime, bonuses,
meal allowances, reimbursed expenses, termination pay, moving pay, commuting
expenses, severance pay, non-elective deferred compensation payments or
accruals, stock options, the value of employer-provided fringe benefits or
coverage, all as determined in accordance with such uniform rules, regulations
or standards as may be prescribed by the Committee.

    (f) Base Compensation Deferral: See Section 1.01(l)(i).

    (g) Beneficiary: The person or entity designated by a Participant to be his
beneficiary for purposes of this Plan. If a Participant designates his spouse as
a beneficiary, such beneficiary designation automatically shall become null and
void on the date of the Participant's divorce or legal separation from such
spouse. If a valid designation of Beneficiary is not in effect at time of the
Participant's death, the estate of the Participant is deemed to be the sole
Beneficiary. If a Beneficiary dies while entitled to receive distributions from
the Plan, any remaining payments shall be paid to the estate of the Beneficiary.
Beneficiary designations shall be in writing, filed with the Committee, and in
such form as the Committee may prescribe for this purpose.

    (h) Board: The Board of Directors of the Company.

    (i) Code: The Internal Revenue Code of 1986, as interpreted by regulations
and rulings issued pursuant thereto, all as amended and in effect from time to
time. Any reference to a specific provision of the Code shall be deemed to
include reference to any successor provision thereto.

    (j) Committee: The Compensation and Nominating Committee of the Board.

    (k) Company: WPS Resources Corporation, or any successor corporation.

    (l) Deferral: An amount credited, in accordance with a Participant's
election, to the Participant's Account under the Plan in lieu of the current
payment of an equal amount of cash compensation to the Participant.

            (i) Base Compensation Deferral: A Deferral of a portion of a
            Participant's Base Compensation in accordance with Section 2.01.

            (ii) Annual Bonus Deferral: A Deferral of all or a portion of a
            Participant's annual bonus award in accordance with Section 2.02.

            (iii) LTIP Deferral: A Deferral of all or a portion of a
            Participant's performance share award under the WPS Resources
            Corporation 2001 Omnibus Incentive Compensation Plan, in accordance
            with Section 2.03.

    (m) ERISA: The Employee Retirement Income Security Act of 1974, as
interpreted by regulations and rulings issued pursuant thereto, all as amended
and in effect from time to time. Any reference to a specific provision of ERISA
shall be deemed to include reference to any successor provision thereto.

    (n) Exchange Act: The Securities Exchange Act of 1934, as interpreted by
regulations and rules issued pursuant thereto, all as amended and in effect from
time to time. Any reference to a specific provision of the Exchange Act shall be
deemed to include reference to any successor provision thereto.

    (o) Investment Options: The hypothetical investment accounts described in
Article IV and such other investment options as the Committee may from time to
time determine (which may, but need not, be based upon one or more of the
investment options available under the Wisconsin Public Service Corporation
Administrative Employees Savings Plan).

    (p) Investment Period: See Section 5.01(e).

    (q) LTIP Deferral: See Section 1.01(l)(iii).

    (r) Participant: Subject to Section 2.02, a common law employee of a
Participating Employer who has been designated by the Committee as being
eligible to participate in this Plan and, where the context so requires, a
former employee entitled to receive a benefit hereunder.

    (s) Participating Employer: The Company and any direct or indirect subsidiary
of the Company that, with the consent of the Committee, participates in the Plan
for the benefit of one or more Participants.

    (t) Stock Unit Accounts: The Incentive Stock Unit Account described in
Section 4.03 and the Base Stock Unit Account described in Section 4.04.

    (u) Trust: The WPS Resources Corporation Deferred Compensation Trust or other
funding vehicle which may from time to time be established, as amended and in
effect from time to time.

    (v) WPS Resources Stock: The common stock, $1.00 par value, of the Company.

    (w) WPS Resources Stock Units: The hypothetical shares of WPS Resources Stock
that are credited to the Stock Unit Accounts in accordance with Sections 4.03
and 4.04.

    

Section 1.02.
Construction and Applicable Law.

    (a) Wherever any words are used in the masculine, they shall be construed as
though they were used in the feminine in all cases where they would so apply;
and wherever any words are use in the singular or the plural, they shall be
construed as though they were used in the plural or the singular, as the case
may be, in all cases where they would so apply. Titles of articles and sections
are for general information only, and the Plan is not to be construed by
reference to such items.

    (b) This Plan is intended to be a plan of deferred compensation maintained
for a select group of management or highly compensated employees as that term is
used in ERISA, and shall be interpreted so as to comply with the applicable
requirements thereof. In all other respects, the Plan is to be construed and its
validity determined according to the laws of the State of Wisconsin to the
extent such laws are not preempted by federal law. In case any provision of the
Plan is held illegal or invalid for any reason, the illegality or invalidity
will not affect the remaining parts of the Plan, but the Plan shall, to the
extent possible, be construed and enforced as if the illegal or invalid
provision had never been inserted.

 

ARTICLE II. PARTICIPATION

     Section  2.01.
Eligibility.

    A Participant shall be eligible to participate in the Plan only if the
Participant is employed by a Participating Employer and if the Participant has
been designated for participation by the Committee.

    

Section 2.02.
Certain Transfers of Employment.

    If directed by the Committee, a Participant whose employment is transferred
to a corporation or other entity (the "Transferee Employer") that is
not a Participating Employer, but in which the Company or an affiliate of the
Company holds an ownership interest, then until the earliest to occur of (a) the
date on which the Participant ceases to be employed by such Transferee Employer,
(b) the date on which the Company or an affiliate of the Company no longer holds
an ownership interest in the Transferee Employer, or (c) such other date
determined by the Committee, the Participant shall be treated as if he or she
were still actively employed by a Participating Employer. The foregoing rule
shall apply only for the purpose of determining whether the Participant has
terminated employment for purposes of the distribution provisions of Article VI;
it shall not apply, and the Participant shall not be entitled to make additional
Deferrals, with respect to remuneration attributable to services rendered with
the Transferee Employer. The Committee may promulgate such additional rules as
may be necessary or desirable in connection with any such transfer of
employment.

 

ARTICLE III. DEFERRALS OF COMPENSATION

     Section  3.01.
Deferrals Of Base Compensation.

    (a) Initial Deferral Election. A Participant may elect, in such form
and manner as the Committee may prescribe, to defer payment of a portion of the
Base Compensation that would otherwise be paid to the Participant. A
Participant's election shall specify the percentage (in increments of 1% to a
maximum of 75% or such lesser amount or percentage as may be established by the
Committee) of the Participant's Base Compensation that the Participant wishes to
defer. A validly executed election shall become effective with respect to Base
Compensation earned by the Participant in the first payroll period that
commences on or after the date on which the Participant's deferral election is
received and accepted by the Committee, or as soon thereafter as practicable. A
Participant's deferral election, once effective, shall remain in effect until
modified by the Participant in accordance with subsection (b) below or otherwise
revoked in accordance with Plan rules.

    (b) Revised Deferral Election. A Participant may modify his then
current deferral election by filing a revised election form, properly completed
and signed, with the Committee. A validly executed revised election will be
effective with respect to Base Compensation earned by the Participant with the
first payroll period commencing on or after the date on which the Participant's
revised deferral election is received and accepted by the Committee, or as soon
thereafter as practicable. A Participant's revised deferral election, once
effective, shall remain in effect until again modified by the Participant under
this subsection (b) or otherwise revoked in accordance with Plan rules.

    

Section 3.02.
Deferrals of Annual Bonus Awards.

    (a) Election of Bonus Deferrals. A Participant may irrevocably elect,
in such form and manner as the Committee may prescribe, to defer payment of a
portion of the annual cash bonus that is awarded and that would otherwise be
paid to the Participant with respect to any year. A Participant's election shall
specify the percentage (in increments of 1% to a maximum of 100% or such lesser
amount or percentage as may be established by the Committee) of the
Participant's annual cash bonus that the Participant wishes to defer. A validly
executed election shall become effective with respect to the annual bonus that
may be awarded to the Participant with respect to a calendar year if the
Participant's deferral election is received and accepted by the Committee on or
before April 1 of that calendar year or within such other period as the
Committee may establish; provided that the Participant's deferral election with
respect to the 2001 annual bonus (that would otherwise be paid in 2002) may be
submitted within 45 days following the date on which shareholders of the Company
approve the Plan at the Company's 2001 annual meeting, or within such other
period as the Committee may establish. A Participant's election to defer an
annual bonus award shall be effective only for the year to which the election
relates, and shall not carry over from year to year.

    

Section 3.03.
Deferral of LTIP Performance Share Awards.

    A Participant may irrevocably elect, in such form and manner as the Committee
may prescribe, to defer payment of a portion of any performance shares awarded
to the Participant under the WPS Resources Corporation 2001 Onmibus Incentive
Compensation Plan. A Participant's election shall specify the whole number of
performance shares (up to 100% of such shares or such lesser number or
percentage as may be established by the Committee) of the Participant's award
that the Participant wishes to defer. A validly executed election shall become
effective with respect to performance shares to be earned by the Participant
with respect to any performance period under the WPS Resources Corporation 2001
Omnibus Incentive Compensation Plan if the Participant's deferral election is
received and accepted by the Committee on or before April 1 of the calendar year
in which the performance period begins, or within such other period as the
Committee may establish; provided that the Participant's deferral election with
respect to the performance period that begins in 2001 may be submitted within 45
days following the date on which shareholders of the Company approve the Plan at
the Company's 2001 annual meeting, or within such other period as the Committee
may establish. A Participant's election to defer a performance share award shall
be effective only for the performance period to which the election relates, and
a Participant's election does not carry over from performance period to
performance period. A Participant's LTIP Deferral will be automatically credited
to the Participant's Incentive Stock Unit Account.

    

Section 3.04.
Matching Contribution Credits.

    (a) Allocation of Credits. A Participant who is a participant in the
Wisconsin Public Service Corporation Administrative Employees' Savings Plan
("Savings Plan") and who makes Base Compensation Deferrals and/or
Annual Bonus Deferrals under this Plan shall be entitled to a matching
contribution credit, determined as of December 31 of each year, equal to the
difference (if any) between:

            (i) The value of the matching contribution that the Participant
            would have received under the Savings Plan, if Base Compensation
            Deferrals and Annual Bonus Deferrals made by the Participant under
            this Plan were instead treated as "compensation" under the
            Savings Plan for purposes of applying the Participant's deferral
            election under the Savings Plan; provided that all limits and
            restrictions otherwise imposed under the Savings Plan, including the
            maximum compensation limit under Section 401(a)(17) of the Code,
            shall continue to apply; and

            (ii) The value of the matching contribution actually received by
            the Participant for that year under the Savings Plan.

    (b) Investment of Credits. A Participant's matching contribution
credit will be automatically credited to the Participant's Incentive Stock Unit
Account.

    

Section 3.05.
Involuntary Termination of Deferral Elections.

    A Participant's deferral elections shall be automatically revoked upon the
Participant's termination of employment from the Participating Employers, unless
the Committee determines otherwise. In addition, if the Committee determines
that the Participant is no longer eligible to participate in the Plan or that
revocation of a Participant's eligibility is necessary or desirable in order for
the Plan to qualify under ERISA as a plan of deferred compensation for a select
group of management or highly compensated employees.

ARTICLE IV. HYPOTHETICAL INVESTMENT OPTIONS

     Section  4.01.
Reserve Account A.

    (a) Limited Purpose Account. Reserve Account A is limited to
compensation deferred by a Participant prior to January 1, 1996, together with
attributed earnings on such deferrals through December 31, 2000. Except for
attributed earnings as described below, no further deferrals, contributions or
credits of any kind will be made to this account on behalf of a Participant.

    (b) Crediting of Interest Equivalent. As of the end of each Plan Year,
the Account will be credited with an interest equivalent on the balance in the
account from time to time during the year. The annual interest equivalent will
be the sum (on a non-compounded basis) of the attributed earnings for each month
during the year based on the account balance as of the last day of the month.
Unless modified by the Committee, the interest equivalent rate for any month
will be the greater of:

            (i) one-half of one percent (0.5%); or

            (ii) one-twelfth (1/12) of the consolidated return on common
            shareholders' equity of the Company and all consolidated
            subsidiaries (ROE); provided, however, that unless the Committee
            determines otherwise, this Paragraph (ii) will not apply to a former
            Participant who terminates employment with a Participating Employer
            prior to attainment of age 55 and prior to the occurrence of a
            Change in Control (as defined in Section 8.01). For the months of
            April through September, ROE means the consolidated return on equity
            of the Company and all consolidated subsidiaries for the twelve (12)
            months ended on the preceding March 31 as calculated pursuant to the
            Company's standard accounting procedure for financial reporting to
            shareholders. For the months October through March, ROE means return
            on equity as described above for the twelve (12) months ended on the
            preceding September 30.

    (c) Revised Rate. Subject to Article VIII, the Committee may revise
the interest equivalent rate or the manner in which it is calculated, but in no
event shall the rate be less than six percent (6%) per annum. Any such revised
rate shall be effective with the calendar month following such action by the
Committee.

    

Section 4.02.
Reserve Account B.

    (a) Availability. Reserve Account B is an Available Investment Option
with respect to the deemed investment of Base Compensation Deferrals and Annual
Bonus Deferrals. It is credited with earnings equivalent based upon a percentage
of the Company's return on equity for the year.

    (b) Crediting of Interest Equivalent. As of the end of each calendar
quarter, the account will be credited with an interest equivalent on the balance
in the account from time to time during the year. The quarterly interest
equivalent will be the sum (on a non-compounded basis) of the attributed
earnings for each month during the quarter based on the account balance as of
the last day of each month. Unless modified by the Committee, the interest
equivalent rate for any month will be the greater of:

            (i) one-half of one percent (0.5%); or

            (ii) seventy percent (70%) of one-twelfth (1/12) of the
            consolidated return on common shareholders equity of the Company and
            all consolidated subsidiaries (ROE); provided, however, that unless
            the Committee determines otherwise, this Paragraph (ii) will not
            apply to a former Participant who terminates employment with a
            Participating Employer prior to attainment of age 55 and prior to
            the occurrence of a Change in Control (as defined in
            Section 8.01). For the months of April through September, ROE
            means the consolidated return on equity of the Company and all
            consolidated subsidiaries for the twelve (12) months ended on the
            preceding March 31 as calculated pursuant to the Company's standard
            accounting procedure for financial reporting to shareholders. For
            the months October through March, ROE means return on equity as
            described above for the twelve (12) months ended on the preceding
            September 30.

    (c) Revised Rate. Subject to Article VIII, the Committee may revise
the interest equivalent rate or the manner in which it is calculated, but in no
event shall the rate be less than six percent (6%) per annum. Any such revised
rate shall be effective with the calendar month following such action by the
Committee.

    

Section 4.03.
Incentive Stock Unit Account.

    (a) Limited Purpose "Buy Only" Account. The Incentive Stock
Unit Account is a "buy only" account limited to (i) Annual Bonus
Deferrals that the Participant elects to be credited to the Incentive Stock Unit
Account in accordance with Section 5.01(c), (ii) LTIP Deferrals pursuant to
Section 3.03, and (iii) matching contribution credits pursuant to Section 3.04.

    (b) Conversion to WPS Stock Units. As of the end of each month, all
eligible Deferrals made by or on behalf of a Participant during that month and
allocated to the Incentive Stock Unit Account and, for the month of December,
all of a Participant's matching contribution credits under Section 3.04 (the
"Incentive Stock Unit Convertible Amount") are converted, for record
keeping purposes, into whole and fractional WPS Resources Stock Units, with
fractional units calculated to four decimal places. The conversion shall be
accomplished by dividing each Participant's Incentive Stock Unit Convertible
Amount by the average purchase price of all shares of WPS Resources Stock
purchased during that month by or on behalf of the Trust and the WPS Resources
Corporation Stock Investment Plan. Likewise, any dividends that would have been
payable on the WPS Resources Stock Units credited to a Participant's Incentive
Stock Unit Account had such Units been actual shares of WPS Resources Stock
shall be converted, for record keeping purposes, into whole and fractional WPS
Resources Stock Units based on the average purchase price of all shares of WPS
Resources Stock purchased by or on behalf of the Trust and the WPS Resources
Corporation Stock Investment Plan during the month in which the dividend is
paid. Notwithstanding the foregoing, if for any month there are no open-market
purchases by or on behalf of the Trust and the WPS Resources Corporation Stock
Investment Plan, the conversion shall be accomplished based upon the closing
price of a share of WPS Resources Stock on the last date on the applicable month
on which a share of WPS Resources Stock was traded, as reported in the Wall
Street Journal's New York Stock Exchange Composite Transaction listing.

    

Section 4.04.
Base Stock Unit Account.

    (a) Availability. The Base Stock Unit Account is an Available
Investment Option with respect to the deemed investment of Base Compensation
Deferrals.

    (b) Conversion to WPS Stock Units. As of the end of each month, all
eligible Deferrals made by or on behalf of a Participant during that month and
allocated to the Base Stock Unit Account (the "Base Stock Unit Convertible
Amount") are converted, for record keeping purposes, into whole and
fractional WPS Resources Stock Units, with fractional units calculated to four
decimal places. The conversion shall be accomplished by dividing each
Participant's Base Stock Unit Convertible Amount by the average purchase price
of all shares of WPS Resources Stock purchased during that month by or on behalf
of the Trust and the WPS Resources Corporation Stock Investment Plan. Likewise,
any dividends that would have been payable on the WPS Resources Stock Units
credited to a Participant's Base Stock Unit Account had such Units been actual
shares of WPS Resources Stock shall be converted, for record keeping purposes,
into whole and fractional WPS Resources Stock Units based on the average
purchase price of all shares of WPS Resources Stock purchased by or on behalf of
the Trust and the WPS Resources Corporation Stock Investment Plan during the
month in which the dividend is paid. Notwithstanding the foregoing, if for any
month there are no open-market purchases by or on behalf of the Trust and the
WPS Resources Corporation Stock Investment Plan, the conversion shall be
accomplished based upon the closing price of a share of WPS Resources Stock on
the last date on the applicable month on which a share of WPS Resources Stock
was traded, as reported in the Wall Street Journal's New York Stock Exchange
Composite Transaction listing.

    (c) Conversion from WPS Stock Units. If a Participant elects under
Section 5.01(f) to reallocate all or any portion of his Base Stock Unit Account
among the other Available Investment Options, the WPS Resources Stock Units to
which such election relates shall be converted, for record keeping purposes,
into an amount equal to the product of such units and the closing price of a
share of WPS Resources Stock, on the most recent date prior to the effective
date of such reallocation on which a share of WPS Resources Stock was traded, as
reported in the Wall Street Journal's New York Stock Exchange Composite
Transaction listing.

    (d) Securities Law Restrictions. Notwithstanding anything to the
contrary herein, all elections under Section 5.01(f) by a Participant who is
subject to Section 16 of the Exchange Act are subject to review by the Committee
prior to implementation. Further, the following reallocation transactions under
Section 5.01(f) by a Participant who is subject to Section 16 of the Exchange
Act are prohibited: (i) elections to reallocate the deemed
investment of the affected Participant's Account into WPS Resources Stock Units
within six (6) months of an election to reallocate deemed investments out of WPS
Resources Stock Units; and (ii) elections to reallocate the deemed investment of
the affected Participant's Account out of WPS Resources Stock Units within six
(6) months of an election to reallocate deemed investments into WPS Resources
Stock Units (collectively, "Prohibited Transactions"). All Prohibited
Transactions are void. In accordance with Section 9.02, the Committee may
restrict additional transactions, or impose other rules and procedures, to the
extent deemed desirable by the Committee in order to comply with the Exchange
Act.

 

ARTICLE V. ACCOUNTING AND HYPOTHETICAL INVESTMENT ELECTIONS

     Section  5.01.
Hypothetical Investment of Participant Accounts.

    (a) Available Investment Options.

            (i) For purposes of directing the deemed investment of Base
            Compensation Deferrals under subsection (b) below and for purposes
            of reallocating the deemed investment of the Participant's Account
            under subsection (f) below, the Available Investment Options shall
            be all of the Investment Options other than Reserve Account A and
            the Incentive Stock Unit Account.

            (ii) For purposes of directing the deemed investment of Annual
            Bonus Deferrals under subsection (c) below, the Available Investment
            Options shall be all of the Investment Options other than Reserve
            Account A and the Base Stock Unit Account.

    (b) Deemed Investment of Base Compensation Deferrals. In accordance
with uniform rules prescribed by the Committee, each Participant shall
designate, in writing or in such other manner as the Committee may prescribe,
how Base Compensation Deferrals made while the designation is in effect are
credited among the Available Investment Options. When selecting more than one
Available Investment Option, the Participant shall designate, in whole multiples
of 10% or such other percentage determined by the Committee, the percentage of
his or her Base Compensation Deferrals to be credited to each Available
Investment Option. If the Participant fails to make a timely and complete
investment designation, he or she shall be deemed to have elected that 100% of
his or her Base Compensation Deferrals be credited to Reserve Account B or such
other of the Available Investment Options specified by the Committee for this
purpose. A Participant's election or deemed election shall become effective
beginning with the first payroll period commencing on or after the date on which
the election is received and accepted by the Committee, and shall remain in
effect unless and until modified by a subsequent election that becomes effective
in accordance with the rules of this subsection.

    (c) Deemed Investment of Annual Bonus Deferrals. In accordance with
uniform rules prescribed by the Committee, each Participant shall designate, in
writing or in such other manner as the Committee may prescribe, how Annual Bonus
Deferrals made while the designation is in effect are credited among the
Available Investment Options. When selecting more than one Available Investment
Option, the Participant shall designate, in whole multiples of 10% or such other
percentage determined by the Committee, the percentage of his or her Annual
Bonus Deferrals to be credited to each Available Investment Option; provided,
that with respect to any portion of the Annual Bonus Deferral that the
Participant allocates to the Incentive Stock Unit Account, the amount allocated
to such account will be 105% of the amount designated by the Participant for
deferral into the Incentive Stock Unit Account. If the Participant fails to make
a timely and complete investment designation, he or she shall be deemed to have
elected that 100% of his or her Annual Bonus Deferral be credited to Reserve
Account B or such other Investment Option specified by the Committee for this
purpose. A Participant's election or deemed election shall become effective with
respect to annual bonus amounts awarded on or after the date on which the
election is received and accepted by the Committee, and shall remain in effect
unless and until modified by a subsequent election that becomes effective in
accordance with the rules of this subsection. 

    (d) Deemed Investment of LTIP Deferrals. LTIP Deferrals under Section
3.03 and matching contribution credits under Section 3.04 are credited to the
Incentive Stock Unit Account. The Participant is not permitted to make an
investment election with respect to LTIP Deferrals and matching contribution
credits.

    (e) Allocation of Deemed Investment Gain or Loss. On a quarterly basis
or such other basis as the Committee may prescribe (the "Investment
Period"), the Account of each Participant will be credited (or charged)
based upon the investment gain (or loss) that the Participant would have
realized with respect to his or her Account had the Account been invested in
accordance with the terms of the Plan and where applicable, the Participant's
written election. Subject to the special rules set forth in Article IV with
respect to Reserve Account A, Reserve Account B, the Incentive Stock Unit
Account and the Base Stock Unit Account, the credit (or charge) shall be the
sum, separately calculated for each of the Investment Options, of the product
obtained by multiplying (i) the portion (if any) of the Participant's Account as
of the first day of the Investment Period that is deemed to have been invested
in each Investment Option, and (ii) the rate of return experienced by that
Investment Option during the Investment Period.  The Committee, in its
discretion, may prescribe alternate rules for the valuation of Participant
Accounts, including, without limitation, the application of unit accounting
principles.

    (f) Reallocation of Account. Subject to Section 4.04(d), and in
accordance with rules prescribed by the Committee, each Participant may elect to
reallocate his or her Account (other than the portion deemed to be invested in
Reserve Account A or the Incentive Stock Unit Account) among the Available
Investment Options. When selecting more than one Investment Option, the
Participant shall designate, in whole multiples of 10% or such other percentage
determined by the Committee, the percentage of his or her Account (other than
the portion that is deemed to be invested in Reserve Account A or the Incentive
Stock Unit Account) that is deemed to be invested in each Available Investment
Option after the investment reallocation is given effect. A Participant's
reallocation election made in any Investment Period shall become effective on
the first day of the next Investment Period, or as soon thereafter as is
practicable, and shall remain in effect unless and until modified by a
subsequent election that becomes effective in accordance with the rules of this
subsection. Other than a reallocation of a Participant's Account pursuant to a
revised investment election submitted by the Participant, the deemed investment
allocation of a Participant will not be adjusted to reflect differences in the
relative investment return realized by the various hypothetical Investment
Options that the Participant has designated.

    (g) The foregoing provisions of this Section shall be effective on the first
day of the month coincident with or next following the date on which
shareholders of the Company approve the Plan as hereby amended and restated, or
as soon thereafter as is practicable. Prior to implementation of the terms and
conditions of this Section, a Participant's Account shall be credited with
hypothetical investment gain or loss in accordance with the terms of the Plan as
in effect on December 31, 2000.

    

Section 5.02.
Accounts are For Record Keeping Purposes Only.

    Plan Accounts and the record keeping procedures described herein serve solely
as a device for determining the amount of benefits accumulated by a Participant
under the Plan, and shall not constitute or imply an obligation on the part of a
Participating Employer to fund such benefits. In any event, a Participating
Employer may, in its discretion, set aside assets equal to part or all of such
account balances and invest such assets in Company stock, life insurance or any
other investment deemed appropriate. Any such assets, including WPS Resources
Stock and any other assets held under the Trust, shall be and remain the sole
property of the Company and except to the extent that the Trust authorizes a
Participant to direct the trustee with respect to the voting of WPS Resources
Stock held in the Trust, a Participant shall have no proprietary rights of any
nature whatsoever with respect to such assets.

 

ARTICLE VI. DISTRIBUTION OF ACCOUNTS

     Section  6.01.
Distribution Election.

    (a) Election. A Participant, at the time he commences participation in
the Plan, shall make a distribution election with respect to his Account. The
election shall be in such form as the Committee may prescribe, and shall specify
the distribution commencement date, the distribution period, and the
distribution method applicable following the Participant's death. Any such
election shall be consistent with the following rules (or where the Participant
fails to make a selection, in accordance with the default rules set forth
below):

            (i) Distribution Commencement Date. Unless the Participant
            has selected a later commencement date (which in no event shall be
            later than the first distribution period following the Participant's
            attainment of age 72), distribution of a Participant's Accounts will
            commence within 60 days following the end of the calendar year in
            which the Participant terminates employment or service from all
            Participating Employers. For purposes of this Plan, a Participant
            who is disabled shall be deemed to have retired or terminated at the
            conclusion of benefits under all disability income plans sponsored
            by a Participating Employer or to which a Participating Employer
            contributes, unless otherwise determined by the Committee. Further,
            a Participant who ceases employment with a Participating Employer in
            connection with an early retirement (reduction in force) program
            sponsored by the Participating Employer shall, if a participant in
            the Wisconsin Public Service Administrative Employees Retirement
            Plan, be deemed to have retired upon commencement of retirement
            benefits under such plan.

            (ii) Distribution Period. Distributions will be made in 1
            to 15 annual installments, as elected by the Participant.

            (iii) Distribution of Remaining Account Following
            Participant's Death. In the event of the Participant's death,
            the Participant's remaining undistributed interest will be
            distributed to the Beneficiary designated by the Participant in
            either a single sum payment or in installments, as elected by the
            Participant. If the Participant has elected that death benefits be
            paid in a single sum, the payment shall be made no later than March
            1 following the calendar year in which occurs the Participant's
            death. If the Participant has elected that death benefits be paid in
            installments, (A) any installments previously commenced to the
            Participant shall continue to the Beneficiary and (B) if installment
            distributions had not commenced as of the date of the Participant's
            death, payments over the installment period elected by the
            Participant shall commence to the Beneficiary no later than March 1
            following the calendar year in which occurs the Participant's death.

    (b) Effectiveness of Election. A distribution election shall be deemed
made only when it is received and accepted as complete by the Committee, and
shall remain in effect until modified by the Participant in accordance with
Section 6.02 below or otherwise revoked in accordance with Plan rules.

    

Section 6.02.
Modified Distribution Election.

    A Participant may from time to time modify his distribution election by
filing a revised distribution election, properly completed and signed, with the
Committee. However, a revised distribution election will be given effect only if
the Participant remains employed by a Participating Employer for twelve (12)
consecutive months following the date that the revised election is received and
accepted as complete by the Committee.

    

Section 6.03.
Calculation of Annual Distribution Amount.

    (a) Pre-2001 Retirees. For any Participant whose retirement or
termination date is prior to January 1, 2001, distribution of the Participant's
Account will be calculated and made under the distribution provisions of the
Plan applicable to the Participant on the date of the Participant's retirement
or termination of employment.

    (b) Post-2000 Retirees. For a Participant who retires or terminates
employment after December 31, 2000, the annual distribution amount, unless the
Committee specifies a different or alternate method, shall be calculated as
follows:

            (i) The annual distribution amount for the Participant's Account,
            other than the portion of the Account that is deemed to be invested
            in the Stock Unit Accounts (the "Distributable Account"),
            shall be determined by dividing (A) the aggregate balance in the
            Distributable Account as of January 1 of the year for which the
            distribution is being made, by (B) the number of installment
            payments remaining to be made under the distribution period selected
            by the Participant. Distributions shall be made in cash. The amount
            of any distribution under this Paragraph (i) will be charged
            pro-rata against the Participant's interest in each Investment
            Option comprising the Distributable Account. Notwithstanding the
            foregoing, the last installment payment of the Distributable Account
            shall be adjusted to take into account deemed investment gains or
            losses for the period between the January 1 valuation date and
            the date of actual payment according to such methods and procedures
            adopted by the Committee.

            (ii) The annual distribution amount for each of the Stock Unit
            Accounts shall be determined on a share basis by dividing (A) the
            number of WPS Resources Stock Units credited to the relevant Stock
            Unit Account as of January 1 of the year for which the distribution
            is being made (subject to subsequent adjustment under
            Section 7.01), by (B) the number of installment payments
            remaining to be made under the distribution period selected by the
            Participant, and then rounding the quotient obtained for all but the
            final installment to the next lowest whole number of WPS Resources
            Stock Units. The Committee will then direct that the Participant
            receive shares of WPS Resources Stock and/or cash equal to the
            annual distribution amount. For any portion of the distribution that
            the Committee directs be satisfied by making a cash payment to the
            Participant, the cash payment shall be determined by multiplying the
            annual distribution amount (or the portion of the annual
            distribution amount being satisfied in cash) by the closing price of
            WPS Resources Stock on January 21 of the year in which the
            distribution is being made, as such share price is reported in the
            Wall Street Journal's New York Stock Exchange Composite Transactions
            listing. If January 21 falls on a Saturday, Sunday or holiday, the
            calculation of the cash portion of the distributions will be made
            based upon the closing price as reported for the immediately
            preceding business day. The amount of any distribution under this
            Paragraph (ii) will be charged pro-rata against the Participant's
            interest in the Incentive Stock Unit Account and the Base Stock Unit
            Account.

    

Section 6.04.
Time of Distribution.

    Subject to the provisions of Sections 7.01 and 8.02, each distribution
of WPS Resources Stock made to a Participant (or Beneficiary) shall be
distributed on January 22 (or if January 22 falls on a Saturday, Sunday or
holiday, the immediately following business day). For distribution and tax
reporting purposes, the value of WPS Resources Stock distributed shall equal the
number of shares distributed multiplied by the closing price of WPS Resources
Stock on January 21 (or if January 21 falls on a Saturday, Sunday or holiday,
the immediately preceding business day) of the year in which the distribution is
being made as reported in the Wall Street Journal's New York Stock Exchange
Composite Transaction listing. The cash portion of any distribution will be made
no later than March 1 of the year for which the distribution is being made.

    

Section 6.05.
Other Distribution Rules.

    (a) Limit on Shares. Subject to adjustment as provided in subsection
(c) below, the total number of authorized but previously unissued shares of WPS
Resources Stock which may be distributed to Participants or Beneficiaries
pursuant to the Plan shall be one hundred fifty thousand (150,000), which number
shall not be reduced by or as a result of (i) any cash distributions pursuant to
the Plan or (ii) the distribution to Participants or Beneficiaries pursuant to
the Plan of any outstanding shares of WPS Resources Stock purchased by or on
behalf of the Trust.

    (b) Tax Withholding. The amount actually distributed to the
Participant will be reduced by applicable income tax withholding. Unless the
Participant has made a contrary election, income tax on the entire annual
distribution amount will be withheld from the cash portion of the distribution,
and WPS Resources Stock will be used to satisfy withholding obligations only to
the extent that the cash portion of the distribution is insufficient for this
purpose.

    (c) Adjustments to Stock. In the event of any merger, reorganization,
consolidation, recapitalization, separation, liquidation, stock dividend,
split-up, share combination or other change in the corporate structure of the
Company or a Participating Employer affecting WPS Resources Stock, such
adjustment shall be made in the number and class of shares which may be
distributed pursuant to the Plan as may be determined to be appropriate and
equitable by the Committee in its sole discretion.

 

ARTICLE VII. RULES WITH RESPECT TO WPS RESOURCES STOCK

AND WPS RESOURCES STOCK UNITS

     Section  7.01.
Transactions Affecting WPS Resources Stock.

    In the event of any merger, share exchange, reorganization, consolidation,
recapitalization, stock dividend, stock split or other change in corporate
structure of the Company or a Participating Employer affecting WPS Resources
Stock, the Committee may make appropriate equitable adjustments with respect to
the WPS Resources Stock Units (if any) credited to the Stock Unit Accounts of
each Participant, including without limitation, adjusting the date as of which
such units are valued and/or distributed, as the Committee determines is
necessary or desirable to prevent the dilution or enlargement of the benefits
intended to be provided under the Plan.

    

Section 7.02.
No Shareholder Rights With Respect to WPS Resources Stock Units.

    Participants shall have no rights as a stockholder pertaining to WPS
Resources Stock Units credited to their Accounts. No WPS Resources Stock Unit
nor any right or interest of a Participant under the Plan in any WPS Resources
Stock Unit may be assigned, encumbered, or transferred, except by will or the
laws of descent and distribution. The rights of a Participant hereunder with
respect to any WPS Resources Stock Unit are exercisable during the Participant's
lifetime only by him or his guardian or legal representative.

 

ARTICLE VIII. SPECIAL RULES APPLICABLE IN THE EVENT OF A
CHANGE IN

 CONTROL OF THE COMPANY

     Section  8.01.
Definitions.

    For purposes of this Article VIII, the following terms shall have the
following respective meanings:

    (a) An "Affiliate" of, or a person "affiliated" with, a
specified person is a person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
the person specified and the term "Associate" used to indicate a
relationship with any person, means (i) any corporation or organization (other
than the registrant or a majority-owned subsidiary of the registrant) of which
such person is an officer or partner or is, directly or indirectly, the
beneficial owner of 10 percent or more of any class of equity securities, (ii)
any trust or other estate in which such person has a substantial beneficial
interest or as to which such person serves as trustee or in a similar fiduciary
capacity, and (iii) any relative or spouse of such person, or any relative of
such spouse, who has the same home as such person or who is a director or
officer of the registrant or any of its parents or subsidiaries.

    (b) A person shall be deemed to be the "Beneficial Owner" of any
securities:

            (i) which such Person or any of such Person's Affiliates or
            Associates has the right to acquire (whether such right is
            exercisable immediately or only after the passage of time) pursuant
            to any agreement, arrangement, or under-standing, or upon the
            exercise of conversion rights, exchange rights, or other rights,
            warrants or options, or otherwise; provided, however,
            that a Person shall not be deemed the Beneficial Owner of, or to
            beneficially own, (A) securities tendered pursuant to a tender or
            exchange offer made by or on behalf of such Person or any of such
            Person's Affiliates or Associates until such tendered securities are
            accepted for purchase or (B) securities issuable upon exercise of
            Rights pursuant to the terms of the Company's Rights Agreement with
            Firstar Trust Company, dated as of December 12, 1996, as amended
            from time to time (or any successor to such Rights Agreement) at any
            time before the issuance of such securities;

            (ii) which such Person or any of such Person's Affiliates or
            Associates, directly or indirectly, has the right to vote or dispose
            of or has "beneficial ownership" of (as determined
            pursuant to Rule 13d-3 of the General Rules and Regulations under
            the Act), including pursuant to any agreement, arrangement or
            understanding; provided, however, that a Person shall
            not be deemed the Beneficial Owner of, or to beneficially own, any
            security under this subparagraph (ii) as a result of an agreement,
            arrangement or understanding to vote such security if the agreement,
            arrangement or understanding: (A) arises solely from a revocable
            proxy or consent given to such Person in response to a public proxy
            or consent solicitation made pursuant to, and in accordance with,
            the applicable rules and regulations under the Act and (B) is not
            also then reportable on a Schedule 13D under the Act (or any
            comparable or successor report); or

            (iii) which are beneficially owned, directly or indirectly, by
            any other Person with which such Person or any of such Person's
            Affiliates or Associates has any agreement, arrangement or
            understanding for the purpose of acquiring, holding, voting (except
            pursuant to a revocable proxy as described in Paragraph (ii) above)
            or disposing of any voting securities of the Company.

    (c) A "Change in Control" shall be deemed to have occurred if:

            (i) any Person (other than any employee benefit plan of the
            Company or of any subsidiary of the Company, any Person organized,
            appointed or established pursuant to the terms of any such benefit
            plan or any trustee, administrator or fiduciary of such a plan) is
            or becomes the Beneficial Owner of securities of the Company
            representing at least 30% of the combined voting power of the
            Company's then outstanding securities;

            (ii) one-half or more of the members of the Board are not
            Continuing Directors;

            (iii) there shall be consummated any merger, consolidation, or
            reorganization of the Company with any other corporation as a result
            of which less than 50% of the outstanding voting securities of the
            surviving or resulting entity are owned by the former shareholders
            of the Company other than a shareholder who is an Affiliate or
            Associate of any party to such consolidation or merger;

            (iv) there shall be consummated any merger of the Company or
            share exchange involving the Company in which the Company is not the
            continuing or surviving corporation other than a merger of the
            Company in which each of the holders of the Company's Common Stock
            immediately prior to the merger have the same proportionate
            ownership of common stock of the surviving corporation immediately
            after the merger;

            (v) there shall be consummated any sale, lease, exchange or other
            transfer (in one transaction or a series of related transactions) of
            all, or substantially all, of the assets of the Company to a Person
            which is not a wholly owned subsidiary of the Company; or

            (vi) the shareholders of the Company approve any plan or proposal
            for the liquidation or dissolution of the Company.

    (d) "Continuing Directors" means (i) any member of the Board
of Directors of the Company who was a member of such Board on May 1, 1997,
(ii) any successor of a Continuing Director who is recommended to succeed a
Continuing Director by a majority of the Continuing Directors then on such
Board, and (iii) additional directors elected by a majority of the
Continuing Directors then on such Board.

    (e) "Person" means any individual, firm, partnership, corporation
or other entity, including any successor (by merger or otherwise) of such
entity, or a group of any of the foregoing acting in concert.

    

Section 8.02.
Amendments in Connection with a Change in Control.

    (a) Board Authority to Amend or Terminate Plan. Prior to the
occurrence of a Change in Control, the Board may exercise its authority under
Section 9.06, including, to the extent deemed necessary or desirable by the
Board in anticipation of a Change in Control, any of the following actions:

            (i) The Board may amend the Plan to eliminate WPS Resources
            Stock Units and cause the value of such units as of the Amendment
            Date (such value to be determined under Section 4.04(c)) to be
            reallocated to Reserve Account B. The term "Amendment
            Date" means the date on which an amendment to the Plan is
            validly adopted or the date on which the amendment is or purports to
            be effective, whichever is later.

            (ii) The Board may terminate the Plan and require that all
            benefits accrued to the date of termination (or such later date as
            the Board specifies) be distributed to Participants (or
            Beneficiaries), in a single sum regardless of a Participant's prior
            election as to the form and timing of benefit payments.

    (b) Automatic Amendments. Unless terminated by the Board pursuant to
subsection (a)(ii), the Plan shall automatically be amended upon a Change
in Control to provide that:

            (i) the rate of interest equivalent to be credited with respect
            to Reserve Account A for each month following the Change in Control
            shall be the greater of (A) the rate of interest equivalent
            otherwise applicable with respect to Reserve Account A if such
            amount were calculated based upon the consolidated return on common
            shareholders equity of the Company (including for this purpose any
            successor corporation that is the survivor of a merger with the
            Company or any successor to that corporation) and all subsidiaries,
            and (B) a rate equal to two (2) percentage points above the prime
            lending rate at Firstar Bank, N.A. (or any successor thereto) as of
            the last business day of that month; and

            (ii) the rate of interest equivalent to be credited with respect
            to Reserve Account B for each month following the Change in Control
            shall be the greater of (A) the rate of interest equivalent
            otherwise applicable with respect to Reserve Account B if such
            amount were calculated based upon the consolidated return on common
            shareholders equity of the Company (including for this purpose any
            successor corporation that is the survivor of a merger with the
            Company or any successor to that corporation) and all subsidiaries,
            and (B) a rate equal to two (2) percentage points above the prime
            lending rate at Firstar Bank, N.A. (or any successor thereto) as of
            the last business day of that month. The minimum rate of interest
            equivalent under clause (B) shall cease to apply on the third
            anniversary of the Change in Control in the event that the
            Participant is actively employed by the Company (or any subsidiary
            or affiliate of the Company) on such date.

    (c) Prohibition on Certain Amendments. Notwithstanding the foregoing,
on or after the effective date of a Change in Control, the Board or Company may
not, without the written consent of the affected Participant (or in the case of
a deceased Participant, the Participant's Beneficiary) amend the Plan or take an
action to terminate the Plan that would:

            (i) Result in a decrease in the number of, or a change in the
            type of, Available Investment Options that were made available under
            the Plan immediately prior to the Change of Control; or

            (ii) Cause the Accounts to be valued under Section 5.01(e) less
            frequently than quarterly; or

            (iii) Impair or otherwise limit a Participant's rights to
            reallocate his Accounts under Section 5.01(f) as in effect on the
            date immediately prior to the Change in Control; or

            (iv) Decrease the interest rate credited under Reserve Account A
            or Reserve Account B as determined pursuant to subsection (b) above,
            except as specifically provided therein; or

            (v) Eliminate the distribution options made available under
            Section 6.02 or otherwise terminate any distribution elections then
            in effect.

    

Section 8.03.
Maximum Payment Limitation.

    (a) Limit on Payments. Except as provided in subsection (b) below, if
any portion of the payments or benefits described in this Plan or under any
other agreement with or plan of the Company (in the aggregate, "Total
Payments"), would constitute an "excess parachute payment", then
the Total Payments to be made to the Participant shall be reduced such that the
value of the aggregate Total Payments that the Participant is entitled to
receive shall be one dollar ($1) less than the maximum amount which the
Participant may receive without becoming subject to the tax imposed by Section
4999 of the Code or which the Company may pay without loss of deduction under
Section 280G(a) of the Code; provided that this Section shall not apply in the
case of a Participant who has in effect a valid employment contract providing
that the Total Payments to the Participant shall be determined without regard to
the maximum amount allowable under Section 280G of the Code. The terms
"excess parachute payment" and "parachute payment" shall
have the meanings assigned to them in Section 280G of the Code, and such
"parachute payments" shall be valued as provided therein. Present
value shall be calculated in accordance with Section 280G(d)(4) of the Code.
Within forty (40) days following delivery of notice by the Company to the
Participant of its belief that there is a payment or benefit due the Participant
which will result in an excess parachute payment as defined in Section 280G of
the Code, the Participant 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
Participant in his sole discretion (which may be regular outside counsel to the
Company), which opinion 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 determined without regard to the
limitations of this Section. As used in this Section, the term "Base Period
Income" means an amount equal to the Participant's "annualized
includible compensation for the base period" as defined in Section
280G(d)(1) of the Code. 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, which determination shall be evidenced in a certificate of
such auditors addressed to the Company and the Participant. Such opinion shall
be addressed to the Company and the Participant and shall be binding upon the
Company and the Participant. If such opinion determines that there would be an
excess parachute payment, the payments hereunder that are includible in Total
Payments or any other payment or benefit determined by such counsel to be
includible in Total Payments shall be reduced or eliminated as specified by the
Participant in writing delivered to the Company within thirty days of his
receipt of such opinion or, if the Participant fails 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 legal counsel so requests in connection with the opinion
required by this Section, the Participant and the Company shall obtain, at the
Company's expense, and the legal 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 Participant. If
the provisions of Sections 280G and 4999 of the Code (or any successor
provisions) are repealed without succession, then this Section shall be of no
further force or effect.

    (b) Employment Contract Governs. The provisions of subsection (a)
above shall not apply to a Participant whose employment is governed by an
employment contract that provides for Total Payments in excess of the limitation
described in subsection (a) above.

    

Section 8.04.
Resolution of Disputes.

    If, after a Change in Control, (a) a dispute arises with respect to the
enforcement of the Participant's rights under the Plan, or (b) any legal
proceeding shall be brought to enforce or interpret any provision contained in
the Plan or to recover damages for breach of the Plan, in either case so long as
the Participant is not acting in bad faith or otherwise pursuing a course of
action that a reasonable person would determine to be frivolous, the Participant
shall recover from the Company any reasonable attorneys' fees and necessary
costs and disbursements incurred as a result of such dispute or legal proceeding
("Expenses"), and prejudgment interest on any money judgment obtained
by the Participant calculated at the rate of interest announced by Firstar Bank
Milwaukee, Milwaukee, Wisconsin (or any successor thereto), from time to time as
its prime or base lending rate from the date that payments to the Participant
should have been made under this Plan. Within ten (10) days after the
Participant's written request therefor, the Company shall pay to the
Participant, or such other person or entity as the Participant may designate in
writing to the Company, the Participant's Expenses in advance of the final
disposition or conclusion of any such dispute or legal proceeding. In the case
of a deceased Participant, this Section shall apply with respect to the
Participant's Beneficiary or estate.

 

ARTICLE IX. GENERAL PROVISIONS

     Section  9.01.
Administration.

    The Committee shall administer and interpret the Plan and supervise
preparation of Participant elections, forms, and any amendments thereto. To the
extent necessary to comply with applicable conditions of Rule 16b-3, the
Committee shall consist of not less than two members of the Board, each of whom
is also a director of the Company and qualifies as a "non-employee
director" for purposes of Rule 16b-3. If at any time the Committee shall
not be in existence or not be composed of members of the Board who qualify as
"non-employee directors", then all determinations affecting
Participants who are subject to Section 16 of the Exchange Act shall be made by
the full Board, and all determinations affecting other Participants shall be
made by the Board or an officer of the Board. The Committee may, in its
discretion, delegate any or all of its authority and responsibility; provided
that the Committee shall not delegate authority and responsibility with respect
to non-ministerial functions that relate to the participation by Participants
who are subject to Section 16 of the Exchange Act at the time any such delegated
authority or responsibility is exercised. To the extent of any such delegation,
any references herein to the Committee shall be deemed references to such
delegee. Interpretation of the Plan shall be within the sole discretion of the
Committee and shall be final and binding upon each Participant and Beneficiary.
The Committee may adopt and modify rules and regulations relating to the Plan as
it deems necessary or advisable for the administration of the Plan. If any
delegee of the Committee shall also be a Participant or Beneficiary, any
determinations affecting the delegee's participation in the Plan shall be made
by the Committee.

    

Section 9.02.
Restrictions to Comply with Applicable Law.

    (a) General Restrictions. Notwithstanding any other provision of the
Plan, the Company shall have no liability to deliver any shares of WPS Resources
Stock under the Plan or make any payment unless such delivery or payment would
comply with all applicable laws and the applicable requirements of any
securities exchange or similar entity. In addition, transactions under the Plan
are intended to comply with all applicable conditions of Rule 16b-3 under the
Exchange Act. The Committee shall administer the Plan so that transactions under
the Plan will be exempt from Section 16 of the Exchange Act, and shall have the
right to restrict any transaction, or impose other rules and requirements, to
the extent it deems necessary or desirable for such exemption to be met.

    (b) Restriction on Transfer. Shares of WPS Resources Stock issued
under the Plan may not be sold or otherwise disposed of except (i) pursuant to
an effective registration statement under the Act, or in a transaction which, in
the opinion of counsel for the Company, is exempt from registration under the
Act; and (ii) in compliance with state securities laws. Further, as a condition
to issuance of shares of WPS Resources Stock under the Plan, the Participant,
his Beneficiary or his heirs, legatees or legal representatives, as the case may
be, shall execute and deliver to the Company a restrictive stock transfer
agreement in such form, and subject to such terms and conditions, as shall be
reasonably determined or approved by the Committee, which agreement, among other
things, may impose certain restrictions on the sale or other disposition of any
shares of stock acquired under the Plan. The Committee may waive the foregoing
restrictions, in whole or in part, in any particular case or cases or may
terminate such restrictions whenever the Committee determines that such
restrictions afford no substantial benefit to the Company.

    (c) Additional Restrictions; Legends. All shares of WPS Resources
Stock delivered under the Plan shall be subject to such stock transfer orders
and other restrictions as the Committee may deem advisable under the Plan and
any applicable federal or state securities laws, and the Committee may cause a
legend or legends to be put on any certificates to make appropriate references
to such restrictions.

    

Section 9.03.
Claims Procedures.

    (a) If a Participant or Beneficiary believes that he or she has not received
the full benefit provided for in the Plan, the Participant or Beneficiary file a
claim for benefits with the Committee. If the Committee denies the claim, the
Committee shall deliver to the claimant a written explanation setting forth the
specific reasons for the denial, pertinent references to the Plan section on
which the denial is based, such other information as may be pertinent and a
description of the procedures to be followed by the claimant in obtaining a
review of his or her claim. For purposes of this paragraph, the claimant's claim
shall be deemed filed when presented in writing to the Committee and the
Committee's explanation shall be provided to the claimant within ninety (90)
days of the date the claim is filed.

    (b) The claimant shall be provided sixty (60) days following his or her
receipt of the denial of the claim to file a written request for appeal to the
Committee. The claimant and his or her representative may present additional
information or documents pertinent to the Committee's review. The Committee
shall decide the issue on appeal, which decision shall be final, and furnish the
claimant with a written decision of his or her claim on review within sixty (60)
days of receipt of claimant's request for appeal. The Committee's decision shall
indicate the specific reasons for the decision and the pertinent provisions of
the Plan on which the decision is based. If the Committee does not furnish a
written decision to the claimant within such sixty (60) day period, the claim
shall be deemed denied on appeal.

    

Section 9.04.
Participant Rights Unsecured.

    (a) Unsecured Claim. The right of a Participant or his Beneficiary to
receive a distribution hereunder shall be an unsecured claim, and neither the
Participant nor any Beneficiary shall have any rights in or against any amount
credited to his Account or any other specific assets of a Participating
Employer. The right of a Participant or Beneficiary to the payment of benefits
under this Plan shall not be assigned, encumbered, or transferred, except by
will or the laws of descent and distribution. The rights of a Participant
hereunder are exercisable during the Participant's lifetime only by him or his
guardian or legal representative.

    (b) Contractual Obligation. The Company may authorize the creation of
a trust or other arrangements to assist it in meeting the obligations created
under the Plan. However, any liability to any person with respect to the Plan
shall be based solely upon any contractual obligations that may be created
pursuant to the Plan. No obligation of a Participating Employer shall be deemed
to be secured by any pledge of, or other encumbrance on, any property of a
Participating Employer. Nothing contained in this Plan and no action taken
pursuant to its terms shall create or be construed to create a trust of any
kind, or a fiduciary relationship between a Participating Employer and any
Participant or Beneficiary, or any other person.

    

Section 9.05.
Income Tax Withholding.

    No later than the date as of which an amount first becomes includible in the
gross income of the Participant for Federal income tax purposes, the Participant
shall pay or make arrangements satisfactory to the Committee regarding the
payment of, any Federal, state, local or foreign taxes of any kind required by
law to be withheld with respect to such amount.

    

Section 9.06.
Amendment or Termination of Plan.

    There shall be no time limit on the duration of the Plan. Except as otherwise
limited pursuant to Section 8.02, the Board (or where specified herein, the
Committee) may at any time amend or terminate the Plan, including but not
limited to modifying the terms and conditions applicable to (or otherwise
eliminating) Deferrals to be made on or after the amendment or termination date;
provided, however, that no amendment or termination may reduce or eliminate any
Account balance accrued to the date of such amendment or termination (except as
such Account balance may be reduced as a result of investment losses allocable
to such Account).

    

Section 9.07.
Administrative Expenses.

    Costs of establishing and administering the Plan will be paid by the
Participating Employers.

    

Section 9.08.
Effect on Other Employee Benefit Plans.

    Deferrals credited to a Participant's Account under this Plan shall not be
considered "compensation" for the purpose of computing benefits under
any qualified retirement plan maintained by a Participating Employer, but shall
be considered compensation for welfare benefit plans, such as life and
disability insurance programs sponsored by a Participating Employer, unless
otherwise specifically provided by the terms of such plan.

    

Section 9.09.
Successors and Assigns.

    This Plan shall be binding upon and inure to the benefit of the Participating
Employers, their successors and assigns and the Participants and their heirs,
executors, administrators, and legal representatives.WPS RESOURCES CORPORATION

2001 OMNIBUS INCENTIVE COMPENSATION PLAN

 

Section 1. PURPOSE AND DEFINITIONS

        (a) Purpose. The purpose of the WPS Resources
Corporation 2001 Omnibus Incentive Compensation Plan is to promote the interests
of the Company and its shareholders by (a) attracting and retaining executives
and other key employees of outstanding training, experience and ability; (b)
motivating them, by means of performance-related incentives, to achieve
performance goals; and (c) enabling them to participate in the growth and
financial success of the Company. It is intended that this purpose be effected
via performance-based incentives and through awards or grants of stock options
and various other rights with respect to shares of the Company's common stock,
as provided herein, to such eligible employees (as defined in subsection (b)
below).

        (b) Definitions. The following terms shall have the
following respective meanings unless the context requires otherwise:

           
(1) An "Affiliate" of, or a person
"affiliated" with, a specified person is a person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by, or
is under common control with, the person specified and the term
"Associate" used to indicate a relationship with any person, means (i)
any corporation or organization (other than the registrant or a majority-owned
subsidiary of the registrant) of which such person is an officer or partner or
is, directly or indirectly, the beneficial owner of 10 percent or more of any
class of equity securities, (ii) any trust or other estate in which such person
has a substantial beneficial interest or as to which such person serves as
trustee or in a similar fiduciary capacity, and (iii) any relative or spouse of
such person, or any relative of such spouse, who has the same home as such
person or who is a director or officer of the registrant or any of its parents
or subsidiaries.

           
(2) The term "Annual Performance Right" shall mean
the right to receive up to the amount of compensation described in the
Participant's award agreement, taking into account the Target Award and the
Performance Formula, upon the attainment of one or more specified Performance
Goals, subject to the terms and conditions of the award agreement and the Plan.

           
(3) A person shall be deemed to be the "Beneficial
Owner" of any securities:

  
            (A) which such Person or any of such Person's
            Affiliates or Associates has the right to acquire (whether such
            right is exercisable immediately or only after the passage of time)
            pursuant to any agreement, arrangement, arrangement or
            understanding, or upon the exercise of conversion rights, exchange
            rights, rights, warrants or options, or otherwise; provided, however,
            that a Person shall not be deemed the Beneficial Owner of, or to
            beneficially own, (A) securities tendered pursuant to a tender or
            exchange offer made by or on behalf of such Person or any of such
            Person's Affiliates or Associates until such tendered securities are
            accepted for purchase or (B) securities issuable upon exercise of
            Rights pursuant to the terms of the Company's Rights Agreement with
            Firstar Trust Company, dated as of December 12, 1996, as amended
            from time to time (or any successor to such Rights Agreement) at any
            time before the issuance of such securities;

            (B) which such Person or any of such Person's
            Affiliates or Associates, directly or indirectly, has the right to
            vote or dispose of or has "beneficial ownership" of (as
            determined pursuant to Rule 13d-3 of the General Rules and
            Regulations under the Act), including pursuant to any agreement,
            arrangement or understanding; provided, however, that
            a Person shall not be deemed the Beneficial Owner of, or to
            beneficially own, any security under this subparagraph (ii) as a
            result of an agreement, arrangement or understanding to vote such
            security if the agreement, arrangement or understanding: (A) arises
            solely from a revocable proxy or consent given to such Person in
            response to a public proxy or consent solicitation made pursuant to,
            and in accordance with, the applicable rules and regulations under
            the Act and (B) is not also then reportable on a Schedule 13D under
            the Act (or any comparable or successor report); or

            (C) which are beneficially owned, directly or
            indirectly, by any other Person with which such Person or any of
            such Person's Affiliates or Associates has any agreement,
            arrangement or understanding for the purpose of acquiring, holding,
            voting (except pursuant to a revocable proxy as described in Section
            paragraph (B) above) or disposing of any voting securities of the
            Company.

  

           
(4) The term "Board" shall mean the Board of
Directors of the Company.

           
(5) The term "Change in Control" shall mean the
occurrence of any one of the following:

  
            (A) any Person (other than any employee benefit
            plan of the Company or of any subsidiary of the Company, any Person
            organized, appointed or established pursuant to the terms of any
            such benefit plan or any trustee, administrator or fiduciary of such
            a plan) is or becomes the Beneficial Owner of securities of the
            Company representing at least 30% of the combined voting power of
            the Company's then outstanding securities;

            (B) one-half or more of the members of the Board
            are not Continuing Directors;

            (C) there shall be consummated any merger,
            consolidation, or reorganization of the Company with any other
            corporation as a result of which less than 50% of the outstanding
            voting securities of the surviving or resulting entity are owned by
            the former shareholders of the Company other than a shareholder who
            is an Affiliate or Associate of any party to such consolidation or
            merger;

            (D) there shall be consummated any merger of the
            Company or share exchange involving the Company in which the Company
            is not the continuing or surviving corporation other than a merger
            of the Company in which each of the holders of the Company's Common
            Stock immediately prior to the merger have the same proportionate
            ownership of common stock of the surviving corporation immediately
            after the merger;

            (E) there shall be consummated any sale, lease,
            exchange or other transfer (in one transaction or a series of
            related transactions) of all, or substantially all, of the assets of
            the Company to a Person which is not a wholly owned subsidiary of
            the Company; or

            (F) the shareholders of the Company approve any
            plan or proposal for the liquidation or dissolution of the Company.

  

           
(6) The term "Code" shall mean the Internal Revenue
Code of 1986, or any successor thereto, as the same may be amended and in effect
from time to time.

           
(7) The term "Committee" shall mean the committee
appointed pursuant to Section 2 to administer the Plan.

           
(8) The term "Company" shall mean WPS Resources
Corporation, or any successor thereto.

           
(9) The term "Continuing Director" shall mean (i)
any member of the Board of Directors of the Company who was a member of such
Board on May 1, 1997, (ii) any successor of a Continuing Director who is
recommended to succeed a Continuing Director by a majority of the Continuing
Directors then on such Board, and (iii) additional directors elected by a
majority of the Continuing Directors then on such Board.

           
(10) The term "Covered Executive" shall mean, with
respect to each taxable year of the Company, an individual who, on the last day
of the taxable year, is the Chief Executive Officer of the Company or among the
four highest compensated officers of the Company or any Subsidiary (other than
the Chief Executive Officer), as determined pursuant to the executive
compensation disclosure rules under the Exchange Act.

           
(11) The term "Employee" shall mean an employee of
the Company or any Subsidiary. The term "Employee" shall also be
deemed to include any person who is an employee of any joint venture corporation
or partnership, or comparable entity, in which the Company or Subsidiary has a
substantial equity interest.

           
(12) The term "Exchange Act" shall mean the
Securities Exchange Act of 1934, or any successor thereto, as the same may be
amended and in effect from time to time.

           
(13) The term "Fair Market Value" shall mean the
average of the highest and lowest sale prices at which a share of Stock shall
have been sold regular way on the New York Stock Exchange on the date of grant
of any Option or Stock Appreciation Right or other relevant valuation date. In
the event that any Option or Stock Appreciation Right shall be granted, or other
relevant valuation date shall occur, on a date on which there were no such sales
of Stock on the New York Stock Exchange, the Fair Market Value of a share of
Stock shall be deemed to be the average of the highest and lowest sale prices on
the next preceding day on which there were such sales.

           
(14) The term "Final Award" shall mean the amount
of compensation or the number of shares of Stock to be awarded finally to the
Participant who holds an Annual Performance Right or a Performance Stock Right,
as determined by the Committee taking into account the extent to which the
Participant has achieved the Performance Goals.

           
(15) The term "Option" or "Options" shall
mean the option to purchase Stock in accordance with Section 6 and such other
terms and conditions as may be prescribed by the Committee. An Option may be
either an "incentive stock option", as such term is defined in the
Code, or shall otherwise be designated as an option entitled to favorable
treatment under the Code ("ISO") or a "nonqualified stock
option" ("NQO"). ISOs and NQOs are individually called an
"Option" and collectively called "Options".

           
(16) The term "Other Stock-Based Awards" shall mean
awards of Stock or other rights made in accordance with Section 7.

           
(17) The term "Participant" shall mean an Employee
who has been designated for participation in the Plan.

           
(18) The term "Performance Goals" shall mean, with
respect to any Annual Performance Right or Performance Stock Right granted to a
Participant who is a Covered Executive, a performance measure that is based upon
one or more of the following objective business criteria established by the
Committee with respect to the Company and/or any Subsidiary, division, business
unit or component thereof: asset charge, asset turnover, return on sales,
capital employed in the business, capital spending, cash flow, cost structure
improvements, complexity reductions, customer loyalty, diversity, earnings
growth, earnings per share, economic value-added, environmental health, safety,
increase in customer base, market share, net cash balance, net income, net
income margin, net operating cash flow, operating profit margin, operations and
maintenance reduction, productivity, response time, profits before tax,
quality/customer satisfaction, return on assets, return on capital, return on
equity, return on net operating assets, return on sales, revenue growth, sales
margin, sales volume, system reliability, total shareholder return, variable
margin and working capital. With respect to any Annual Performance Right or
Performance Stock Right granted to a Participant who is not a Covered Executive,
performance goals may be based on one or more of the business criteria described
above or any other criteria based on individual, business unit, Subsidiary,
group or Company performance selected by the Committee. The Performance Goals
may be expressed in absolute terms or relate to the performance of other
companies or to an index.

           
(19) The term "Performance Formula" shall mean a
formula to be applied in relation to the Performance Goals in determining the
percentage, not to exceed 200%, of the Target Award earned by the Participant
with respect to a Plan Award.

           
(20) The term "Performance Period" shall mean the
period of time for which performance with respect to one or more Performance
Goals with respect to any Annual Performance Right or Performance Stock Right is
to be measured, with such period commencing not earlier than 90 days prior to
the date of grant of such Annual Performance Right or Performance Stock Right.

           
(21) The terms "Performance Stock Rights" or
"Performance Shares" shall mean the right to receive, without payment
to the Company, up to the number of shares of Stock described in the
Participant's award agreement, taking into account the Target Award and the
Performance Formula, upon the attainment of one or more specified Performance
Goals, subject to the terms and provisions of the award agreement and the Plan.

           
(22) The term "Person" shall mean any individual,
firm, partnership, corporation or other entity, including any successor (by
merger or otherwise) of such entity, or a group of any of the foregoing acting
in concert.

           
(23) The term "Plan" shall mean the WPS Resources
Corporation 2001 Omnibus Incentive Compensation Plan as the same may be amended
and in effect from time to time.

           
(24) The term "Plan Awards" shall mean awards or
grants of incentive compensation, whether in cash or in the form of stock
options or various other rights with respect to shares of Stock.

           
(25) The term "Right" shall mean an Annual
Performance Right or a Performance Stock Right, as required by the context.

           
(26) The term "Stock Appreciation Right" shall mean
the right to receive, without payment to the Company, an amount of cash or Stock
as determined in accordance with Section 6, based on the amount by which the
Fair Market Value of a share of Stock on the relevant valuation date exceeds the
grant price.

           
(27) The term "Subsidiary" shall mean (A) any
corporation a majority of the voting stock of which is owned directly or
indirectly by the Company or (B) any limited liability company a majority of the
membership interest of which is owned, directly or indirectly, by the Company.

           
(28) The term "Stock" shall mean shares of the
Company's common stock, par value $1.00 per share.

           
(29) The term "Target Award" shall mean the amount
of compensation or the number of shares of Stock, subject to adjustment pursuant
to Section 12, to be earned by a Participant under an Annual Performance Right
or a Performance Stock Right if all of the Performance Goals are achieved.

Section 2. ADMINISTRATION

        (a) Committee. The Plan shall be administered by the
Compensation and Nominating Committee of the Board consisting of not less than
two (2) members of the Board who meet the "outside" director
requirements of Section 162(m) of the Code and the "non-employee
director" requirements of Rule 16b-3(b)(3) under the Exchange Act, or by
any other committee appointed by the Board, provided the members of such
committee meet such requirements. The Committee shall administer the Plan and
perform such other functions as are assigned to it under the Plan. The Committee
is authorized, subject to the provisions of the Plan, from time to time, to
establish such rules and regulations as it may deem appropriate for the proper
administration of the Plan, and to make such determinations under, and such
interpretations of, and to take such steps in connection with, the Plan and the
Plan Awards as it may deem necessary or advisable, in each case in its sole
discretion. The Committee's decisions and determinations under the Plan need not
be uniform and may be made selectively among Participants, whether or not they
are similarly situated. Any authority granted to the Committee may also be
exercised by the Board, except to the extent that the grant or exercise of such
authority would cause any qualified performance-based award to cease to qualify
for exemption under Section 162(m) of the Code. To the extent that any permitted
action taken by the Board conflicts with any action taken by the Committee, the
Board action shall control.

        (b) Delegation of Authority. The Committee may
delegate any or all of its powers and duties under the Plan, including, but not
limited to, its authority to make awards under the Plan or to grant waivers
pursuant to Section 9, to one or more other committees (including a committee
consisting of two or more corporate officers) as it shall appoint, pursuant to
such conditions or limitations as the Committee may establish; provided,
however, that the Committee shall not delegate its authority to (1) act on
matters affecting any Participant who is subject to the reporting requirements
of Section 16(a) of the Exchange Act, or the liability provisions of Section
16(b) of the Exchange Act (any such Participant being called a "Section 16
Person") or (2) amend or modify the Plan pursuant to the provisions of
Section 15(b). To the extent of any such delegation, the term
"Committee" when used herein shall mean and include any such delegate.

        (c) Eligibility of Committee Members. No person while
a member of the Committee shall be eligible to hold or receive a Plan Award.

Section 3. ANNUAL PERFORMANCE RIGHTS AND FINAL AWARDS

        (a) Grant of Annual Performance Rights. The Committee,
at any time and from time to time while the Plan is in effect, may grant or
authorize the granting of, Annual Performance Rights to such officers of the
Company and any Subsidiary, and other Employees, whether or not members of the
Board, as it may select and in such amount as it shall designate, subject to the
provisions of this Section 3.

        (b) Maximum Awards. The maximum amount that may be
granted to a Covered Executive as a Final Award with respect to one or more
Annual Performance Rights during any calendar year during any part of which the
Plan is in effect, whether such Final Award is payable in cash or credited to
the Covered Executive's account under the WPS Resources Corporation Deferred
Compensation Plan in accordance with subsection (d) below, shall be $1 million.

        (c) Terms and Provisions of Annual Performance Rights.
Prior to the grant of any Annual Performance Right, the Committee shall
determine the terms and provisions of such Right, including, without limitation
(1) the Target Award; (2) one or more Performance Goals to be used to measure
performance under such Right, and the Performance Formula to be applied against
the Performance Goals in determining the amount of compensation earned under
such Right as a percentage of the Target Award; (3) the Performance Period, and
(4) the effect of the Participant's termination of employment or death. Within
90 days of commencement of a Performance Period, the Committee may establish a
minimum threshold objective for any Performance Goal for such Performance Period
which, if not met, would result in no Final Award being made to any Participant
with respect to such Performance Goal for such Performance Period. During and
after the Performance Period, but prior to the Committee's final determination
of the Participant's Final Award as provided in subsection (d), the Committee
may adjust the Performance Goals, Performance Formula and Target Award and
otherwise modify the terms and provisions of a Right granted to a Participant
who is not a Covered Executive, subject to the terms and conditions of the Plan.
Each Right shall be evidenced by an award agreement in such form as the
Committee may determine.

        (d) Final Awards.

           
(1) As soon as practicable following the completion of the
Performance Period relating to any Annual Performance Right, but not later than
12 months following such completion, the Committee shall determine the extent to
which the Participant achieved the Performance Goals and the amount of
compensation to be awarded as a Final Award to the Participant who holds such
Right. In making such determination, the Committee shall apply the applicable
Performance Formula for the Participant for the Performance Period against the
accomplishment of the related Performance Goals. The Committee may, in its sole
discretion, reduce the amount of any Final Award that otherwise would be awarded
to any Participant for any Performance Period. In addition, the Committee may,
in its sole discretion, increase the amount of any Final Award that otherwise
would be awarded to any Participant who is not a Covered Executive. Any such
determination shall take into account (A) the extent to which the Performance
Goals provided in such Right were, in the Committee's sole opinion, achieved,
(B) the individual performance of such Participant during the related
Performance Period and (C) such other factors as the Committee may deem
relevant, including, without limitation, any change in circumstances or
unforeseen events, relating to the Company, the economy or otherwise, since the
date of grant of such Right. The Committee shall notify such Participant of such
Participant's Final Award as soon as practicable following such determination.

           
(2) Following the determination of each Final Award, unless
the Participant has elected to defer all or a portion of the Final Award in
accordance with the procedures set forth in the WPS Resources Corporation
Deferred Compensation Plan, the Final Award will be payable to the Participant
in cash.

Section 4. STOCK AVAILABLE FOR PLAN AWARDS

        (a) Stock Subject to Plan. The Stock to be subject to
or related to Plan Awards may be either authorized and unissued or held in the
treasury of the Company. The maximum number of shares of Stock with respect to
which Plan Awards may be granted under the Plan, subject to adjustment in
accordance with the provisions of Section 12, shall be two million
(2,000,000) shares; (2) the maximum number of
shares subject to Options, with or without any related Stock Appreciation
Rights, or Stock Appreciation Rights (not related to Options) that may be
granted pursuant to Section 6 to any Covered Executive during any calendar year
during any part of which the Plan is in effect shall be 150,000 subject to
adjustment in accordance with the provision of Section 12; and (3) the maximum
number of shares of Stock that may be granted as Final Awards pursuant to
Section 5 to any Covered Executive during any calendar year during any part of
which the Plan is in effect shall be 50,000, 
subject to adjustment in accordance with the
provision of Section 12.

    (b) Computation of Stock Available for Plan Awards.
For the purpose of computing the total number of shares of Stock remaining
available for Plan Awards at any time while the Plan is in effect, there shall
be debited against the total number of shares determined to be available
pursuant to subsections (a) and (c) of this Section 4, (1) the maximum number of
shares of Stock subject to issuance upon exercise of Options or Stock
Appreciation Rights granted under this Plan, (2) the maximum number of shares of
Stock issuable under Performance Stock Rights granted under this Plan, and (3)
the number of shares of Stock related to Other Stock-Based Awards granted under
this Plan, as determined by the Committee in each case as of the dates on which
such Plan Awards were granted.

    (c) Terminated, Expired or Forfeited Plan Awards. The
shares involved in the unexercised or undistributed portion of any terminated,
expired or forfeited Plan Award shall be made available for further Plan Awards.
Any shares of Stock made available for Plan Awards pursuant to this subsection
(c) shall be in addition to the shares available pursuant to subsection (a) of
this Section 4. Notwithstanding the foregoing, in the event any Option or Stock
Appreciation Right granted to a Covered Executive is canceled, the number of
shares of Stock subject to such canceled Option or Stock Appreciation Right
shall continue to count against the individual limit specified in subsection
(a), in accordance with the requirements of Code Section 162(m).

Section 5. PERFORMANCE STOCK RIGHTS AND FINAL AWARDS

    (a) Grant of Performance Stock Rights. The Committee,
at any time and from time to time while the Plan is in effect, may grant, or
authorize the granting of, Rights to such officers of the Company and any
Subsidiary, and other key salaried Employees, whether or not members of the
Board, as it may select and for such numbers of shares as it shall designate,
subject to the provisions of this Section 5 and Section 4.

    (b) Terms and Provisions of Performance Stock Rights.
Prior to the grant of any Right, the Committee shall determine the terms and
provisions of each Right, including, without limitation (1) the Target Award;
(2) one or more Performance Goals to be used to measure performance under such
Right, and the Performance Formula to be applied against the Performance Goals
in determining the number of shares of Stock earned under such Right as a
percentage of the Target Award; (3) the Performance Period; (4) the period of
time, if any, during which the disposition of shares of Stock issuable under
such Right shall be restricted as provided in subsection (a) of Section 10, provided,
however, that the Committee may establish restrictions applicable to any
Right at the time of or at any time prior to the granting of the related Final
Award rather than at the time of granting such Right; and (5) the effect of the
Participant's termination of employment or death. Within 90 days of commencement
of a Performance Period, the Committee may establish a minimum threshold
objective for any Performance Goal for such Performance Period which, if not
met, would result in no Final Award being made to any Participant with respect
to such Performance Goal for such Performance Period. During and after the
Performance Period, but prior to the Committee's final determination of the
Participant's Final Award as provided in subsection (d), the Committee may
adjust the Performance Goals, Performance Formula and Target Award and otherwise
modify the terms and provisions of a Right granted to a Participant who is not a
Covered Executive, subject to the terms and conditions of the Plan. Each Right
shall be evidenced by an award agreement in such form as the Committee may
determine.

    (c) Dividend Equivalents on Stock Performance Rights.

        (1) If the Committee shall determine, each Participant to
whom a Right is granted shall be entitled to receive payment of the same amount
of cash that such Participant would have received as cash dividends if, on each
record date during the Performance Period relating to such Right, such
Participant had been the holder of record of a number of shares of Stock equal
to 100% of the related Target Award (as adjusted pursuant to Section 12). Any
such payment may be made at the same time as a dividend is paid or may be
deferred until the date that a Final Award is determined, as determined by the
Committee in its sole discretion. Such cash payments are hereinafter called
"dividend equivalents".

        (2) Notwithstanding the provisions of subsection (c)(1), the
Committee may determine that, in lieu of receiving all or any portion of any
such dividend equivalent in cash, a Participant shall receive an award of full
shares of Stock having a Fair Market Value approximately equal to the portion of
such dividend equivalent that was not paid in cash. Certificates for shares of
Stock so awarded may be issued as of the payment date for the related cash
dividend or may be deferred until the date that the Final Award is determined,
and the shares of Stock covered thereby may be subject to the terms and
conditions of the Right to which it relates (including but not limited to the
attainment of the Performance Goals) and the terms and conditions of the Plan
(including but not limited to Sections 5, 9, 10 and 12), all as determined by
the Committee in its sole discretion.

        (d) Final Awards.

        As soon as practicable following the completion of the
Performance Period relating to any Right, but not later than 12 months following
such completion, the Committee shall determine the extent to which the
Participant achieved the Performance Goals and the number of shares of Stock to
be awarded as a Final Award to the Participant who holds such Right. Each Final
Award shall represent only full shares of Stock, and any fractional share that
would otherwise result from such Final Award calculation shall be disregarded.
In making such determination, the Committee shall apply the applicable
Performance Formula for the Participant for the Performance Period against the
accomplishment of the related Performance Goals. The Committee may, in its sole
discretion, reduce the amount of any Final Award that otherwise would be awarded
to any Participant for any Performance Period. In addition, the Committee may,
in its sole discretion, increase the amount of any Final Award that otherwise
would be awarded to any Participant who is not a Covered Executive. Any such
determination shall take into account (A) the extent to which the Performance
Goals provided in such Right were, in the Committee's sole opinion, achieved,
(B) the individual performance of such Participant during the related
Performance Period and (C) such other factors as the Committee may deem
relevant, including, without limitation, any change in circumstances or
unforeseen events, relating to the Company, the economy or otherwise, since the
date of grant of such Right. The Committee shall notify such Participant of such
Participant's Final Award as soon as practicable following such determination.

            
(1) Following the determination of each Final Award, unless
the Participant has elected to defer all or a portion of the Final Award in
accordance with the procedures set forth in the WPS Resources Corporation
Deferred Compensation Plan or unless the Committee has directed an alternate
form of distribution, the Company shall issue or cause to be issued certificates
for the number of shares of Stock representing such Final Award, registered in
the name of the Participant who received such Final Award. Such Participant
shall thereupon become the holder of record of the number of shares of Stock
evidenced by such certificates, entitled to dividends, voting rights and other
rights of a holder thereof, subject to the terms and provisions of the Plan,
including, without limitation, the provisions of this subsection (d) and
Sections 9, 10 and 12. The Committee may require that such certificates bear
such restrictive legend as the Committee may specify and be held by the Company
in escrow or otherwise pursuant to any form of agreement or instrument that the
Committee may specify. If the Committee has determined that deferred dividend
equivalents shall be payable to a Participant with respect to any Right pursuant
to subsection (c) of this Section 5, then concurrently with the issuance of such
certificates, the Company shall deliver to such Participant a cash payment or
additional shares of Stock in settlement of such dividend equivalents.

 Section 6. OPTIONS AND STOCK APPRECIATION RIGHTS

        (a) Grant of Options.

           
(1) The Committee, at any time and from time to time while
the Plan is in effect, may authorize the granting of Options to such officers of
the Company and any Subsidiary, and other key salaried Employees, whether or not
members of the Board, as it may select, and for such numbers of shares as it
shall designate, subject to the provisions of this Section 6 and Section 4.
Each Option granted pursuant to the Plan shall be a NQO unless designated by the
Committee at the time of grant as an ISO.

           
(2) The date on which an Option shall be granted shall be the
date of authorization of such grant or such later date as may be determined by
the Committee at the time such grant is authorized. Any individual may hold more
than one Option.

        (b) Price. In the case of each Option granted under
the Plan the option price shall be the Fair Market Value of Stock on the date of
grant of such Option; provided, however, that the Committee may in its
discretion fix an option price in excess of the Fair Market Value of Stock on
such date.

        (c) Grant of Stock Appreciation Rights.

           
(1) The Committee, at any time and from time to time while
the Plan is in effect, may authorize the granting of Stock Appreciation Rights
to such officers of the Company and any Subsidiary, and other key salaried
Employees, whether or not members of the Board, as it may select, and for such
numbers of shares as it shall designate, subject to the provisions of this
Section 6 and Section 4. Each Stock Appreciation Right may relate to all or
a portion of a specific Option granted under the Plan and may be granted
concurrently with the Option to which it relates or at any time prior to the
exercise, termination or expiration of such Option (a "Tandem SAR"),
or may be granted independently of any Option, as determined by the Committee.
If the Stock Appreciation Right is granted independently of an Option, the grant
price of such Stock Appreciation Right shall be the Fair Market Value of Stock
on the date of grant; provided, however, that the Committee may, in its
discretion, fix a grant price in excess of the Fair Market Value of Stock on
such grant date.

           
(2) Upon exercise of a Stock Appreciation Right, the
Participant shall be entitled to receive, without payment to the Company, either
(A) that number of shares of Stock determined by dividing (i) the total number
of shares of Stock subject to the Stock Appreciation Right being exercised by
the Participant, multiplied by the amount by which the Fair Market Value of a
share of Stock on the day the right is exercised exceeds the grant price (such
amount being hereinafter referred to as the "Spread"), by (ii) the
Fair Market Value of a share of Stock on the exercise date; or (B) cash in an
amount determined by multiplying (i) the total number of shares of Stock subject
to the Stock Appreciation Right being exercised by the Participant, by (ii) the
amount of the Spread; or (C) a combination of shares of Stock and cash, in
amounts determined as set forth in clauses (A) and (B) above, as determined by
the Committee in its sole discretion; provided, however, that, in the
case of a Tandem SAR, the total number of shares which may be received upon
exercise of a Stock Appreciation Right for Stock shall not exceed the total
number of shares subject to the related Option or portion thereof, and the total
amount of cash which may be received upon exercise of a Stock Appreciation Right
for cash shall not exceed the Fair Market Value on the date of exercise of the
total number of shares subject to the related Option or portion thereof.

        (d) Terms and Conditions.

           
(1) Each Option and Stock Appreciation Right granted under
the Plan shall be exercisable on such date or dates, during such period, for
such number of shares and subject to such further conditions as shall be
determined pursuant to the provisions of the award agreement with respect to
such Option and Stock Appreciation Right; provided, however, that a
Tandem SAR shall not be exercisable prior to or later than the time the related
Option could be exercised; and provided, further, that in any event no
Option or Stock Appreciation Right shall be exercised beyond ten years from the
date of grant.

           
(2) The Committee may impose such conditions as it may deem
appropriate upon the exercise of an Option or a Stock Appreciation Right,
including, without limitation, a condition that the Stock Appreciation Right may
be exercised only in accordance with rules and regulations adopted by the
Committee from time to time.

           
(3) With respect to Options issued with Tandem SARs, the
right of a Participant to exercise the Tandem SAR shall be cancelled if and to
the extent the related Option is exercised, and the right of a Participant to
exercise an Option shall be cancelled if and to the extent that shares covered
by such Option are used to calculate shares or cash received upon exercise of
the Tandem SAR.

           
(4) If any fractional share of Stock would otherwise be
payable to a Participant upon the exercise of an Option or Stock Appreciation
Right, the Participant shall be paid a cash amount equal to the same fraction of
the Fair Market Value of the Stock on the date of exercise.

        (e) Award Agreement. Each Option and Stock
Appreciation Right shall be evidenced by an award agreement in such form and
containing such provisions not inconsistent with the provisions of the Plan as
the Committee from time to time shall approve.

        (f) Payment for Option Shares.

           
(1) Payment for shares of Stock purchased upon exercise of an
Option granted hereunder shall be made in such manner as is provided in the
applicable award agreement, which may include payment through a cash-less
exercise executed through a broker.

           
(2) Unless the Committee shall provide otherwise in any award
agreement, any payment for shares of Stock purchased upon exercise of an Option
granted hereunder may be made in cash, by delivery of shares of Stock
beneficially owned by the Participant, or by a combination of cash and Stock, at
the election of the Participant; provided, however, that any shares of
Stock so delivered shall have been beneficially owned by the Participant for a
period of not less than six months prior to the date of exercise. Any such
shares of Stock so delivered shall be valued at their Fair Market Value on the
date of such exercise. The Committee shall determine whether and if so the
extent to which actual delivery of share certificates to the Company shall be
required.

Section 7. STOCK AND OTHER STOCK-BASED AWARDS

        (a) Grants of Other Stock-Based Awards. The Committee,
at any time and from time to time while the Plan is in effect, may grant Other
Stock-Based Awards to such officers of the Company and its Subsidiaries, and
other key salaried Employees, whether or not members of the Board, as it may
select. Such Plan Awards pursuant to which Stock is or may in the future be
acquired, or Plan Awards valued or determined in whole or part by reference to,
or otherwise based on, Stock, may include, but are not limited to, awards of
restricted Stock or Plan Awards denominated in the form of "stock
units", grants of so-called "phantom stock" and options
containing terms or provisions differing in whole or in part from Options
granted pursuant to Section 6. Other Stock-Based Awards may be granted either
alone, in addition to, in tandem with or as an alternative to any other kind of
Plan Award, grant or benefit granted under the Plan or under any other employee
plan of the Company, including a plan of any acquired entity.

        (b) Terms and Conditions. Subject to the provisions of
the Plan, the Committee shall have the authority to determine the time or times
at which Other Stock-Based Awards shall be made, the number of shares of Stock
or stock units and the like to be granted or covered pursuant to such Plan
Awards (subject to the provisions of Section 4) and all other terms and
conditions of such Plan Awards, including, but not limited to, whether such Plan
Awards shall be payable or paid in cash, Stock or otherwise.

        (c) Consideration for Other Stock-Based Awards. In the
discretion of the Committee, any Other Stock-Based Award may be granted as a
Stock bonus for no consideration other than services rendered.

Section 8. CASH AWARDS TO EMPLOYEES OF FOREIGN SUBSIDIARIES
OR BRANCHES OR JOINT VENTURES

        In order to facilitate the granting of Plan Awards to
Participants who are foreign nationals or who are employed outside of the United
States of America, the Committee may provide for such special terms and
conditions, including without limitation substitutes for Plan Awards, as the
Committee may consider necessary or appropriate to accommodate differences in
local law, tax policy or custom. Such substitutes for Plan Awards may include a
requirement that the Participant receive cash, in such amount as the Committee
may determine in its sole discretion, in lieu of any Plan Award or share of
Stock that would otherwise have been granted to or delivered to such Participant
under the Plan. The Committee may approve any supplements to, or amendments,
restatements or alternative versions of the Plan as it may consider necessary or
appropriate for purposes of this Section 8 without thereby affecting the terms
of the Plan as in effect for any other purpose, and the Secretary or other
appropriate officer of the Company may certify any such documents as having been
approved and adopted pursuant to properly delegated authority; provided,
however, that no such supplements, amendments, restatements or alternative
versions shall include any provision that is inconsistent with the terms of the
Plan as then in effect. Participants subject to the laws of a foreign
jurisdiction may request copies of, or the right to view, any materials that are
required to be provided by the Company pursuant to the laws of such
jurisdiction.

Section 9. PAYMENT OF PLAN AWARDS AND CONDITIONS THEREON

        (a) Effect of Competitive Activity. Anything contained
in the Plan to the contrary notwithstanding, if the employment of any
Participant shall terminate, for any reason other than death, while any Plan
Award granted to such Participant is outstanding hereunder, and such Participant
has not yet received the compensation or Stock covered by such Plan Award or
otherwise received the full benefit of such Plan Award, such Participant, if
otherwise entitled thereto, shall receive such Stock or compensation or benefit
only if, during the entire period from the date of such Participant's
termination to the date of such receipt, such Participant shall have (1) made
himself or herself available, upon request, at reasonable times and upon a
reasonable basis, to consult with, supply information to and otherwise cooperate
with the Company or any Subsidiary with respect to any matter that shall have
been handled by him or her or under his or her supervision while he or she was
in the employ of the Company or of any Subsidiary, and (2) refrained from
engaging in any activity that is directly or indirectly in competition with any
activity of the Company or any Subsidiary.

        (b) Nonfulfillment of Competitive Activity Conditions:
Waivers Under the Plan. In the event of a Participant's non-fulfillment of
any condition set forth in subsection (a) of this Section 9, such Participant's
rights under any Plan Award shall be forfeited and cancelled forthwith; provided,
however, that the nonfulfillment of such condition may at any time (whether
before, at the time of or subsequent to termination of employment) be waived in
the following manner:

           
(1) with respect to any such Participant who at any time
shall have been a Section 16 Person, such waiver may be granted by the
Committee upon its determination that in its sole judgment there shall not have
been and will not be any substantial adverse effect upon the Company or any
Subsidiary by reason of the nonfulfillment of such condition; and

           
(2) with respect to any other such Participant, such waiver
may be granted by the Committee (or any delegate thereof) upon its determination
that in its sole judgment there shall not have been and will not be any such
substantial adverse effect.

        (c) Effect of Inimical Conduct. Anything contained in
the Plan to the contrary notwithstanding, all rights of a Participant under any
Plan Award shall cease on and as of the date on which it has been determined by
the Committee that such Participant at any time (whether before or subsequent to
termination of such Participant's employment) acted in a manner inimical to the
best interests of the Company or any Subsidiary.

        (d) Tax and Other Withholding. Prior to any
distribution of cash, Stock or Other Stock-Based Awards (including payments
under Section 5(c)) to any Participant, appropriate arrangements (consistent
with the Plan and any rules adopted hereunder) shall be made for the payment of
any taxes and other amounts required to be withheld by federal, state or local
law.

        (e) Substitution. The Committee, in its sole
discretion, may substitute a Plan Award (except ISOs) for another Plan Award or
Plan Awards of the same or different type.

Section 10. NON-TRANSFERABILITY OF PLAN AWARDS; RESTRICTIONS
ON DISPOSITION AND EXERCISE OF PLAN AWARDS

        (a) Restrictions on Transfer of Rights or Final Awards.
No Right or, until the expiration of any restriction period imposed by the
Committee, no shares of Stock covered by any Final Award, shall be transferred,
pledged, assigned or otherwise disposed of by a Participant, except as permitted
by the Plan, without the consent of the Committee, otherwise than by will or the
laws of descent and distribution; provided, however, that the Committee
may permit, on such terms as it may deem appropriate, use of Stock included in
any Final Award as partial or full payment upon exercise of an Option under the
Plan or a stock option under any other stock option plan of the Company prior to
the expiration of any restriction period relating to such Final Award.

        (b) Restrictions on Transfer of Options or Stock
Appreciation Rights. Unless the Committee determines otherwise, no Option or
Stock Appreciation Right shall be transferable by a Participant otherwise than
by will or the laws of descent and distribution, and during the lifetime of a
Participant the Option or Stock Appreciation Right shall be exercisable only by
such Participant or such Participant's guardian or legal representative.

        (c) Restrictions on Transfer of Certain Other Stock-Based
Awards. Unless the Committee determines otherwise, no Other Stock-Based
Award shall be transferable by a Participant otherwise than by will or the laws
of descent and distribution, and during the lifetime of a Participant any such
Other Stock-Based Award shall be exercisable only by such Participant or such
Participant's guardian or legal representative.

        (d) Attachment and Levy. No Plan Award shall be
subject, in whole or in part, to attachment, execution or levy of any kind, and
any purported transfer in violation hereof shall be null and void. Without
limiting the generality of the foregoing, no domestic relations order purporting
to authorize a transfer of a Plan Award, or to grant to any person other than
the Participant the authority to exercise or otherwise act with respect to a
Plan Award, shall be recognized as valid.

Section 11. DESIGNATION OF BENEFICIARIES

    Anything contained in the Plan to the contrary
notwithstanding, a Participant may file with the Company a written designation
of a beneficiary or beneficiaries under the Plan, subject to such limitations as
to the classes and number of beneficiaries and contingent beneficiaries and such
other limitations as the Committee from time to time may prescribe. A
Participant may from time to time revoke or change any such designation of
beneficiary. Any designation of a beneficiary under the Plan shall be
controlling over any other disposition, testamentary or otherwise; provided,
however, that if the Committee shall be in doubt as to the
entitlement of any such beneficiary to receive any Right, Final Award, Option,
Stock Appreciation Right or Other Stock-Based Award, or if applicable law
requires the Company to do so, the Committee may recognize only the legal
representative of such Participant, in which case the Company, the Committee and
the members thereof shall not be under any further liability to anyone. In the
event of the death of any Participant, the term "Participant" as used
in the Plan shall thereafter be deemed to refer to the beneficiary designated
pursuant to this Section 11 or, if no such designation is in effect, the
executor or administrator of the estate of such Participant, unless the context
otherwise requires.

Section 12. MERGER, CONSOLIDATION, STOCK DIVIDENDS, ETC.

        (a) Adjustments. In the event of any merger,
consolidation, reorganization, stock split, stock dividend or other event
affecting Stock, an appropriate adjustment shall be made in the total number of
shares available for Plan Awards and in all other provisions of the Plan that
include a reference to a number of shares, and in the numbers of shares covered
by, and other terms and provisions (including, but not limited to the grant or
exercise price of any Plan Award) of outstanding Plan Awards.

        (b) Committee Determinations. The foregoing
adjustments and the manner of application of the foregoing provisions shall be
determined by the Committee in its sole discretion. Any such adjustment may
provide for the elimination of any fractional share which might otherwise become
subject to a Plan Award.

Section 13. ACCELERATION OF PAYMENT OR MODIFICATION OF PLAN
AWARDS

        (a) Acceleration and Modification. The Committee, in
the event of the death of a Participant or in any other circumstance, may
accelerate distribution of any Plan Award in its entirety or in a reduced
amount, or modify any Plan Award, in each case on such basis and in such manner
as the Committee may determine in its sole discretion.

        (b) Change in Control. Notwithstanding any other
provision of the Plan, unless the Committee determines otherwise at the time of
grant, upon the occurrence of a Change in Control, (1) any Plan Awards
outstanding as of the date of such Change in Control, and that are not then
vested, shall become fully vested if vesting is based solely upon length of the
employment relationship, or shall become fully vested at the Target Level (or if
greater, the then projected Final Award) prorated for the portion of the
Performance Period that has been completed as of the date of the Change in
Control, (2) any restrictions or other conditions applicable to any outstanding
Awards shall lapse, and such Plan Awards shall become free of all restrictions
and conditions; and (3) any such Plan Awards shall be immediately paid to the
Participant.

Section 14. RIGHTS AS A STOCKHOLDER

    A Participant shall not have any rights as a stockholder with
respect to any Stock covered by any Plan Award until such Participant shall have
become the holder of record of such Stock.

Section 15. TERM, AMENDMENT, MODIFICATION AND TERMINATION OF
THE PLAN AND AGREEMENTS

        (a) Term. Unless terminated earlier pursuant to
subsection (b), the Plan shall terminate on December 31, 2010.

        (b) Amendment, Modification and Termination of Plan.
The Board may, from time to time, amend or modify the Plan or any outstanding
Plan Award, including without limitation, to authorize the Committee to make
Plan Awards payable in other securities or other forms of property of a kind to
be determined by the Committee, and such other amendments as may be necessary or
desirable to implement such Plan Awards, or may terminate the Plan or any
provision thereof; provided, however, that no such action of the Board,
without approval of the stockholders, may (1) increase the total number of
shares of Stock with respect to which Plan Awards may be granted under the Plan
or the individual limits specified in Section 4(a), (2) extend the term of the
Plan as set forth in paragraph (a) of this Section 15, (3) permit any person
while a member of the Committee or any other committee of the Board
administering the Plan to be eligible to receive or hold a Plan Award, or (4)
permit the Company to decrease the grant price of any outstanding Option or
Stock Appreciation Right.

        (c) Limitation and Survival. No amendment to or
termination of the Plan or any provision hereof, and no amendment or
cancellation of any outstanding Plan Award, by the Board or the stockholders of
the Company, shall, without the written consent of the affected Participant,
adversely affect any outstanding Plan Award. The Committee's authority to act
with respect to any outstanding Plan Award, and a Participant's ability to
exercise an outstanding Plan award, shall survive termination of the Plan.

        (d) Amendments for Changes in Law. Notwithstanding the
foregoing provisions, the Board shall have the authority to amend outstanding
Plan Awards and the Plan to take into account changes in law and tax and
accounting rules as well as other developments, and to grant Plan Awards that
qualify for beneficial treatment under such rules, without stockholder approval.

Section 16. INDEMNIFICATION AND EXCULPATION

        (a) Indemnification. Each person who is or shall have
been a member of the Board, the Committee, or of any other committee of the
Board administering the Plan or of any committee appointed by the foregoing
committees, shall be indemnified and held harmless by the Company against and
from any and all loss, cost, liability or expense that may be imposed upon or
reasonably incurred by such person in connection with or resulting from any
claim, action, suit or proceeding to which such person may be or become a party
or in which such person may be or become involved by reason of any action taken
or failure to act under the Plan and against and from any and all amounts paid
by such person in settlement thereof (with the Company's written approval) or
paid by such person in satisfaction of a judgment in any such action, suit or
proceeding, except a judgment in favor of the Company based upon a finding of
such person's lack of good faith; subject, however, to the condition
that, upon the institution of any claim, action, suit or proceeding against such
person, such person shall in writing give the Company an opportunity, at its own
expense, to handle and defend the same before such person undertakes to handle
and defend it on such person's behalf. The foregoing right of indemnification
shall not be exclusive of any other right to which such person may be entitled
as a matter of law or otherwise, or any power that the Company may have to
indemnify or hold such person harmless.

        (b) Exculpation. Each member of the Board, the
Committee, or of any other committee of the Board administering the Plan or any
committee appointed by the foregoing committees, and each officer and employee
of the Company, shall be fully justified in relying or acting in good faith upon
any information furnished in connection with the administration of the Plan by
any appropriate person or persons other than such person. In no event shall any
person who is or shall have been a member of the Board, the Committee, or of any
other committee of the Board administering the Plan or of any committee
appointed by the foregoing committees, or an officer or employee of the Company,
be held liable for any determination made or other action taken or any omission
to act in reliance upon any such information, or for any action (including the
furnishing of information) taken or any failure to act, if in good faith.

Section 17. EXPENSES OF PLAN

    The entire expense of offering and administering the Plan
shall be borne by the Company and its participating Subsidiaries; provided, that
the costs and expenses associated with the redemption or exercise of any Plan
Award, including but not limited to commissions charged by any agent of the
Company, may be charged to the Participants.

Section 18. FINALITY OF DETERMINATIONS

    Each determination, interpretation, or other action made or
taken pursuant to the provisions of the Plan by the Board, the Committee or any
committee of the Board administering the Plan or any committee appointed by the
foregoing committees, shall be final and shall be binding and conclusive for all
purposes and upon all persons, including, but without limitation thereto, the
Company, the stockholders, the Committee and each of the members thereof, and
the directors, officers, and employees of the Company and its Subsidiaries, the
Participants, and their respective successors in interest.

Section 19. NO RIGHTS TO CONTINUED EMPLOYMENT OR TO PLAN AWARD

        (a) No Right to Employment. Nothing contained in this
Plan, or in any booklet or document describing or referring to the Plan, shall
be deemed to confer on any Participant the right to continue as an Employee or
director of the Company or Subsidiary, whether for the duration of any
Performance Period, the duration of any vesting period under a Plan Award, or
otherwise, or affect the right of the Company or Subsidiary to terminate the
employment of any Participant for any reason.

        (b) No Right to Award. No Employee or other person
shall have any claim or right to be granted a Plan Award under the Plan. Having
received an Award under the Plan shall not give a Participant or any other
person any right to receive any other Plan Award under the Plan. A Participant
shall have no rights in any Plan Award, except as set forth herein and in the
applicable award grant.

Section 20. GOVERNING LAW AND CONSTRUCTION

    The Plan and all actions taken hereunder shall be governed
by, and the Plan shall be construed in accordance with the laws of the State of
Wisconsin without regard to the principle of conflict of laws. Titles and
headings to Sections are for purposes of reference only, and shall in no way
limit, define or otherwise affect the meaning or interpretation of the Plan.

 Section 21. SECURITIES AND STOCK EXCHANGE REQUIREMENTS

        (a) Restrictions on Resale. Notwithstanding any other
provision of the Plan, no person who acquires Stock pursuant to the Plan may,
during any period of time that such person is an affiliate of the Company
(within the meaning of the rules and regulations of the Securities Exchange
Commission) sell or otherwise transfer such Stock, unless such offer and sale or
transfer is made (1) pursuant to an effective registration statement under the
Securities Act of 1933 ("1933 Act"), which is current and includes the
Stock to be sold, or (2) pursuant to an appropriate exemption from the
registration requirements of the 1933 Act, such as that set forth in Rule 144
promulgated pursuant thereto.

    (b) Registration, Listing and Qualification of Shares of
Common Stock. Notwithstanding any other provision of the Plan, if at any
time the Committee shall determine that the registration, listing or
qualification of the Stock covered by a Plan Award upon any securities exchange
or under any foreign, federal, state or local law or practice, or the consent or
approval of any governmental regulatory body, is necessary or desirable as a
condition of, or in connection with, the granting of such Plan Award or the
purchase or receipt of Stock in connection therewith, no Stock may be purchased,
delivered or received pursuant to such Plan Award unless and until such
registration, listing, qualification, consent or approval shall have been
effected or obtained free of any condition not acceptable to the Committee. Any
person receiving or purchasing Stock pursuant to a Plan Award shall make such
representations and agreements and furnish such information as the Committee may
request to assure compliance with the foregoing or any other applicable legal
requirements. The Company shall not be required to issue or deliver any
certificate or certificates for Stock under the Plan prior to the Committee's
determination that all related requirements have been fulfilled. The Company
shall in no event be obligated to register any securities pursuant to the 1933
Act or applicable state or foreign law or to take any other action in order to
cause the issuance and delivery of such certificates to comply with any such
law, regulation, or requirement.

Section 22. EFFECTIVE DATE

     Subject to Section 23 below, the Plan shall become effective
January 1, 2001.

Section 23. VOTE REQUIRED

     The affirmative vote of the holders of a majority of the
total votes cast on the proposal to approve the Plan at the 2001 annual meeting
of shareholders of the Company will be required for approval of the Plan.

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