Document:

EXHIBIT 10.3

                      AMERICAN MEDICAL SECURITY GROUP, INC.
                              EQUITY INCENTIVE PLAN
                    NONQUALIFIED STOCK OPTION AWARD AGREEMENT

     You have been selected to be a Participant in the American Medical Security
Group, Inc. Equity Incentive Plan (the "Plan"), as specified below:

PARTICIPANT: _________________________
DATE OF GRANT: _______________________
DATE OF EXPIRATION: __________________
NUMBER OF SHARES COVERED BY THIS OPTION: _____________ Shares
OPTION PRICE: _________________ per Share

     THIS  AGREEMENT,  effective  as of the Date of Grant  set forth  above,  is
between  American  Medical  Security Group,  Inc., a Wisconsin  corporation (the
"Company")  and the  Participant  named above  pursuant to the provisions of the
Plan. Unless otherwise  indicated,  capitalized terms used herein shall have the
meanings  assigned  to such terms  under the Plan,  a copy of which is  attached
hereto and incorporated  herein. In consideration of the foregoing,  the parties
hereto agree as follows:

     1.  GRANT OF  STOCK OPTION.  The Company  hereby grants to  Participant the
option (the "Option(s)") to purchase the number of Shares of common stock of the
Company set forth above at the above-stated  Option Price,  which is one hundred
percent  (100%) of the Fair  Market  Value on the Date of Grant,  subject to the
terms and conditions of the Plan and this  Agreement.  This award is intended to
be a Nonqualified  Stock Option,  and therefore is not subject to Section 422 of
the Code.

     2.  VESTING OF STOCK OPTION.Except as hereinafter provided, with respect to
the Options granted hereunder, vesting shall occur at a rate of thirty-three and
one third percent  (33-1/3%) per year beginning on the first  anniversary of the
Date of Grant and each  subsequent  anniversary  date  thereafter,  provided the
Participant remains a Director of the Company.

     3.  EXERCISABILITY OF OPTION. The Options are exercisable at any time after
six months  following the Date of Grant, in whole or in part, but only if all of
the following conditions are met at the time of exercise:

          (a) The Options to be  exercised  are vested as described in Section 2
     above;

          (b) The date of  exercise is on or before the Date of  Expiration  set
     forth above;

          (c) The Options to be exercised are exercised only in compliance  with
     the Company's then current Insider Trading Policy; and

          (d) Participant is a Director of the Company or any  present or future
     parent,  subsidiary  or Affiliate  of the  Company;  or, if he or she is no
     longer  a  Director,  the  date  of  exercise  is in  accordance  with  the
     provisions of this Agreement and the Plan.

     4.  TERMINATION OF DIRECTORSHIP  BY DEATH.  In the event the  Participant's
tenure as a Director is terminated by reason of death,  all outstanding  Options
granted  pursuant to this Agreement shall  immediately  vest one hundred percent
(100%),  and shall remain  exercisable for a period ending on the earlier of (i)
the Date of Expiration  identified above, or (ii) one (1) year after the date of
the Participant's death.

     5.  TERMINATION  OF   DIRECTORSHIP   BY  DISABILITY.   In   the  event  the
Participant's  tenure as a Director is terminated by reason of  Disability,  all
outstanding  Options granted  pursuant to this Agreement shall  immediately vest
one  hundred  percent  (100%)  as of the date the  Compensation  Committee  (the
"Committee") determines the definition of Disability to have been satisfied, and
shall remain  exercisable  for a period ending on the earlier of (i) the Date of
Expiration  identified  above, or (ii) one (1) year after the date the Committee
determines the definition of Disability to have been satisfied.

     6.  TERMINATION  OF   DIRECTORSHIP   BY  RETIREMENT.   In   the  event  the
Participant's  tenure as a Director is terminated  by reason of  Retirement  (as
hereinafter defined), all outstanding Options granted pursuant to this Agreement
shall immediately vest one hundred percent (100%),  and shall remain exercisable
for a period  ending on the  earlier  of (i) the Date of  Expiration  identified
above, or (ii) the end of the third (3rd) year following the date of termination
of the  Participant's  tenure as a Director by reason of Retirement.  Retirement
shall mean (a) a Director's  determination  after serving a full three-year term
not to stand for reelection to the Board of Directors at the next annual meeting
of the Board,  (b) the inability of the Director to stand for  reelection to the
Board  due  to  age  guidelines  adopted  by  the  Board,  or  (c) a  Director's
resignation from the Board after reaching seventy (70) years of age.

     7.  DIRECTORSHIP   TERMINATION   FOLLOWED  BY  DEATH.  In   the  event  the
Participant's  tenure  as a  Director  terminates  by reason  of  Disability  or
Retirement,  and within the exercise  period allowed by the Committee  following
such termination the Participant dies, then the remaining  exercise period under
outstanding Options shall equal the longer of: (i) one (1) year following death;
or (ii) the remaining  portion of the exercise period which was triggered by the
termination as a Director.

     8.  TERMINATION OF  DIRECTORSHIP  FOR OTHER REASONS.  If the  Participant's
tenure  as  a  Director  shall  terminate  for  any  reason  other  than  death,
Disability,  or Retirement  (and other than for Cause),  all Options held by the
Participant  which are not vested as of the effective  date of  termination as a
Director immediately shall be forfeited to the Company.  However, the Committee,
in its sole  discretion,  shall  have the right to  immediately  vest all or any
portion of such  Options  subject to such  terms as the  Committee,  in its sole
discretion, deems appropriate.

     Options  which are  vested as of the  effective  date of  termination  as a
Director may be exercised by the Participant  within the period beginning on the
effective date of  termination  as a Director,  and ending on the earlier of (i)
the Date of Expiration  identified  above, or (ii) six (6) months after the date
of termination as a Director.

     If the  Participant's  tenure  as a  Director  shall be  terminated  by the
Company for Cause, all outstanding  Options held by the Participant  immediately
shall be forfeited  to the Company and no  additional  exercise  period shall be
allowed, regardless of the vested status of the Options.

     9.  CHANGE IN  CONTROL.  In the event of a Change in Control (as defined in
the Plan) which occurs  prior to the  Participant's  termination  as a Director,
Participant's  right to exercise  the  Options  shall vest fully as of the first
date that the  definition  of Change in Control  has been  fulfilled,  and shall
become  immediately  exercisable in accordance  with the terms of this Agreement
and the Plan, without regard to the six month wait under Section 3 hereof.

     10. RESTRICTIONS  ON TRANSFER.  The Options may not  be sold,  transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or
by the  laws of  descent  and  distribution  and  shall  be  exercisable  during
Participant's    lifetime   only   by   Participant   or   Participant's   legal
representative, except that the Options may be transferred by the Participant to
the Participant's  spouse,  children or grandchildren or a trust for the benefit
of such  spouse,  children  or  grandchildren.  In the  event  the  Options  are
transferred, they shall remain subject to this Agreement and the Plan.

     11. RECAPITALIZATION. In the event there is any change in the Shares of the
Company through the  declaration of stock dividends or through  recapitalization
resulting  in stock  split-ups  or through  merger,  consolidation,  exchange of
shares,  or  otherwise,  the number and class of Shares  subject to the Options,
and/or  the  Option  Price,  shall  be  adjusted  as  may  be  determined  to be
appropriate and equitable by the Committee,  in its sole discretion,  to prevent
dilution or enlargement of rights.

     12. PROCEDURE  FOR  EXERCISE OF  OPTIONS.  The Options may be  exercised by
giving written notice to the Company at its executive offices,  addressed to the
attention of its Secretary. Such notice is to be received by the Secretary on or
before the date on which the Options are to be exercised.  Such notice (a) shall
be  signed by the  Participant  or his or her  legal  representative;  (b) shall
specify the number of full Shares then elected to be  purchased  with respect to
the Option and the total purchase price; and (c) shall be accompanied by payment
in full of the Option Price of the Shares to be purchased.

     The  Option  Price upon  exercise  of the  Options  shall be payable to the
Company  in  full  either  (a)  in  cash  or  its  equivalent  (acceptable  cash
equivalents shall be determined at the sole discretion of the Committee); (b) by
tendering  previously  acquired  Shares  (held at least  six  months)  having an
aggregate  Fair Market Value at the time of exercise equal to the total price of
the  Shares  for  which the  Option is being  exercised;  (c)  unless  otherwise
determined by the Committee, through a "cashless exercise" procedure under which
there is delivery to a  securities  broker of an  irrevocable  direction to sell
Shares and to deliver all or part of the sales proceeds to the Company, pursuant
to the terms and  conditions  specified in the Plan; or (d) by a combination  of
(a), (b) and (c).

     As promptly as  practicable  after receipt of such notice and payment,  the
Company shall cause to be issued and delivered to the  Participant or his or her
legal  representative,  as the  case  may be,  certificates  for the  Shares  so
purchased,  which may, if appropriate,  be endorsed with appropriate restrictive
legends.  The Company shall maintain a record of all  information  pertaining to
Participant's  rights under this  Agreement,  including the number of Shares for
which the Option is  exercisable.  If the Option  shall have been  exercised  in
full, this Agreement shall be returned to the Company and canceled.

     Notwithstanding  the foregoing,  the Company need not issue or deliver such
Shares unless and until, in the opinion of the Company's counsel, all applicable
requirements of law, including  registration of such Shares under the Securities
Act of  1933  pertaining  to the  sale  and  issuance  of  such  Shares  and all
applicable listing requirements of any national securities exchange on which the
Shares are listed, have been complied with.

     13. RIGHTS  AS A  STOCKHOLDER.  Participant  shall  have   no  rights  as a
stockholder  of the Company  with  respect to the Shares  subject to this Option
Agreement  until  such time as the  purchase  price has been paid and the Shares
have been issued and delivered to him or her.

     14. TENURE AS A DIRECTOR.  This Agreement shall not confer upon Participant
any right to continuance of tenure as a Director of the Company,  nor shall this
Agreement  interfere in any way with the Company's right to terminate his or her
tenure at any time.

     15. MISCELLANEOUS.

          (a) This Agreement and the rights of Participant hereunder are subject
     to all the terms and  conditions  of the Plan,  as the same may be  amended
     from  time  to  time,  as  well as to such  rules  and  regulations  as the
     Compensation  Committee  may adopt  for  administration  of the  Plan.  The
     Committee  shall have the right to impose  such  restrictions  on any Share
     acquired pursuant to the exercise of the Options, as it may deem advisable,
     including,  without  limitation,   restrictions  under  applicable  federal
     securities  laws,  under the  requirements  of any stock exchange or market
     upon which such Shares are then listed  and/or  traded,  and under any blue
     sky or state securities laws applicable to such Shares.

          It is  expressly  understood  that  the  Committee  is  authorized  to
     administer,  construe, and make all determinations necessary or appropriate
     to the administration of the Plan and this Agreement, all of which shall be
     binding upon Participant.  Any inconsistency between this Agreement and the
     Plan shall be resolved in favor of the Plan.

          (b) With the approval of the Board of  Directors  of the Company,  the
     Committee may terminate, amend, or modify the Plan; provided, however, that
     no such  termination,  amendment,  or  modification  of the Plan may in any
     material way adversely affect  Participant's  vested rights with respect to
     Options granted under this Agreement.

          (c) This  Agreement  may  be  amended  by  written  agreement  of  the
     Participant and the Company at any time.

          (d) In the event federal, state, or local taxes become required by law
     to be withheld with respect to any exercise of  Participant's  rights under
     this  Agreement,  the  Company  shall  have  the  authority,   without  the
     Participant's  written  consent,  to deduct or  withhold,  or  require  the
     Participant to remit to the Company,  an amount  sufficient to satisfy such
     taxes.

          Participant may elect, unless otherwise determined by the Committee in
     its sole discretion, to satisfy the withholding requirement, in whole or in
     part, by having the Company withhold Shares having an aggregate Fair Market
     Value, on the date the tax is to be determined, equal to the minimum amount
     required to be withheld. All elections shall be irrevocable and in writing,
     and shall be signed by  Participant,  and shall be made in accordance  with
     rules set forth in Section 15.2 of the Plan.

          (e) Participant  agrees to take all steps necessary to comply with all
     applicable  provisions  of federal and state  securities  law in exercising
     Participant's rights under this Agreement.

          (f) The  Plan and this  Agreement  are not  intended  to  qualify  for
     treatment under the provisions of the Employee  Retirement  Income Security
     Act of 1974, as amended, ("ERISA").

          (g) This Agreement shall be subject to all applicable  laws, rules and
     regulations, and to such approvals by any governmental agencies or national
     securities exchanges as may be required.

          (h) To the extent not preempted by federal law, this  Agreement  shall
     be governed by, and construed in  accordance  with the laws of the State of
     Wisconsin without regard to principles of conflicts of law.

     IN WITNESS  WHEREOF,  the parties  have caused this Option  Agreement to be
executed as of the Date of Grant.

                                           AMERICAN MEDICAL SECURITY GROUP, INC.

                                           By:__________________________________
                                              John R. Wirch
                                              Vice President, Human Resources

                                           _____________________________________
                                           ParticipantEXHIBIT 10.6

                      AMERICAN MEDICAL SECURITY GROUP, INC.
                      DIRECTORS DEFERRED COMPENSATION PLAN

SECTION I - PURPOSES OF PLAN

     American  Medical  Security  Group,  Inc. (the  "Company") has adopted this
Directors  Deferred  Compensation  Plan (the  "Plan") for the benefit of certain
outside  directors  of the  Company  who wish to defer the  receipt of  eligible
compensation  which they may  otherwise be entitled to receive from the Company.
The Plan is  intended  to enable the  Company to  attract,  retain and  motivate
qualified  Directors and to enhance the long-term  mutuality of interest between
Directors and shareholders of the Company.

SECTION II - DEFINITIONS

     When used in this Plan, the following  terms shall have the definitions set
forth in this Section:

2.1       "ACCOUNT(S)"  shall  mean a  Participant's  fully  vested  Stock  Unit
          Account and/or Interest Account.

2.2       "BENEFICIARY" shall mean the person,  persons, or entity designated by
          the Participant to receive any benefits  payable under this Plan on or
          after the Participant's  death. Each Participant shall be permitted to
          name, change or revoke the Participant's  designation of a Beneficiary
          in  writing  on  a  form  and  in  the   manner   prescribed   by  the
          Administrator,  provided,  however,  that the designation on file with
          the  Administrator  at the time of the  Participant's  death  shall be
          controlling.  Should a  Participant  fail to make a valid  Beneficiary
          designation or leave no named Beneficiary surviving,  any benefits due
          shall  be paid to such  Participant's  spouse,  if  living;  or if not
          living,  then any  benefits  due  shall be paid to such  Participant's
          estate.

2.3       "BOARD" or "BOARD OF  DIRECTORS"  shall mean the Board of Directors of
          the Company.

2.4       "CHANGE IN  CONTROL"  shall have the same  meaning as set forth in the
          American Medical Security Group, Inc. Equity Incentive Plan, as may be
          amended from time to time.

2.5       "COMMITTEE"  shall  mean the  Compensation  Committee  of the Board of
          Directors.

2.6       "COMPANY" shall mean American Medical Security Group, Inc.

2.7       "COMPENSATION"  shall  mean  the  annual  retainer  fees  earned  by a
          Director  for  service as a  Director,  any  retainer  fee earned by a
          Director for service as a member of a committee of the Board,  and any
          fees earned by a Director for  attendance  at meetings of the Board of
          Directors  and  any of  its  committees,  but  excluding  any  expense
          reimbursements made to a Director.

2.8       "DIRECTOR"  shall mean an elected  member of the Board of Directors of
          the Company who is not an employee of the  Company.  A Director who is
          an officer or  assistant  officer of the Company  and who  receives no
          compensation  for service in such  capacity is a Director for purposes
          of this Plan.

2.9       "EFFECTIVE DATE" shall mean January 1, 2000.

2.10      "EXCHANGE  ACT" shall mean the  Securities  Exchange  Act of 1934,  as
          amended.

2.11      "FAIR  MARKET  VALUE"  shall mean the closing  price for Shares on the
          relevant date, or (if there were no sales on such date) the average of
          the closing prices on the nearest day before and the nearest day after
          the  relevant  date,  on a stock  exchange  or over  the  counter,  as
          determined by the Administrator.

2.12      "INTEREST ACCOUNT" shall mean the bookkeeping  account  established to
          record  the  interests  of a  Participant  with  respect  to  deferred
          Compensation that is not deemed invested in Units.

2.13      "PARTICIPANT" shall mean a Director who commences participation in the
          Plan under Plan  Section 4.1 and any  Director or former  Director who
          previously  participated  in the  Plan  and is  entitled  to  benefits
          hereunder.

2.14      "PLAN" shall mean this American Medical Security Group, Inc. Directors
          Deferred Compensation Plan, as may be amended from time to time.

2.15      "SHARES" shall mean the shares of common stock of the Company.

2.16      "STOCK UNIT ACCOUNT" shall mean, with respect to a Participant who has
          elected  to  have  deferred   amounts  deemed  invested  in  Units,  a
          bookkeeping account established to record such Participant's  interest
          under the Plan related to such Units.

2.17      "UNIT" shall mean a contractual obligation of the Company to deliver a
          Share to a Participant or Beneficiary as provided herein.

SECTION III - ADMINISTRATION

3.1       ADMINISTRATION.  The Plan shall be  administered by the Committee (the
          "Administrator").  The Administrator shall have all authority that may
          be appropriate for  administering  the Plan,  including the discretion
          and authority to interpret the Plan and to adopt rules and regulations
          for   implementing,   amending  and   carrying   out  the  Plan.   All
          determinations  and  decisions  of the  Administrator  shall be final,
          conclusive, and binding on all parties.

3.2       ADJUSTMENT  FOR  CORPORATE  TRANSACTIONS.  In the  event of any  stock
          dividend, extraordinary cash dividend, liquidation,  recapitalization,
          reorganization,    merger,    consolidation,    split-up,    spin-off,
          combination,  exchange  of  shares,  or  other  corporate  transaction
          affecting  the capital  structure  of the Company,  the  Administrator
          shall make such  adjustments  to the number of Units  credited to each
          Director's  Stock Unit Account as  determined  to be  appropriate  and
          equitable by the Administrator,  in its sole discretion,  to preserve,
          or to prevent  enlargement  of  Participant  rights  and the  benefits
          available under the Plan.

SECTION IV - PARTICIPATION AND PARTICIPANT DEFERRALS

4.1       ELECTION TO DEFER.  On or before  December 31, 1999 or any  subsequent
          December  31, a Director  who chooses to become a  Participant  in the
          Plan may  irrevocably  elect to defer  some or all of such  Director's
          Compensation  payable with respect to the calendar year  following the
          year in  which  such  election  is  made,  and to have  such  deferred
          Compensation credited, in whole or in part, to a Stock Unit Account or
          an Interest Account established on behalf of such Director. Any person
          who shall become a Director  during any calendar  year may elect,  not
          later than the 30th day after his or her term as a Director begins, to
          defer  payment of all or any part of his or her  Compensation  payable
          for the portion of such calendar year following such election.

4.2       METHOD OF  ELECTION.  A  deferral  election  shall be made by  written
          notice  filed  with  the  Corporate  Secretary  of the  Company.  Such
          election shall continue in effect with respect to Compensation payable
          for subsequent calendar years unless and until the Participant revokes
          or modifies  such  election by written  notice filed with the Company.
          Any such  revocation  or  modification  of a deferral  election  shall
          become  effective as of the first day of the calendar  year  following
          the  year  in  which  such  notice  is  given  and  applies   only  to
          Compensation payable for services rendered  thereafter.  A Participant
          who has revoked an election to defer  Compensation  under the Plan may
          at any time file a new  election  to defer  Compensation  payable  for
          services to be rendered in the  calendar  year  following  the year in
          which such election is filed.

SECTION V - CREDITS TO ACCOUNTS.

5.1       INVESTMENT ELECTION. At the time a Participant elects to defer receipt
          of  Compensation  pursuant  to  Section  4.1,  the  Participant  shall
          irrevocably  designate in writing the portion of such  Compensation to
          be credited to the Interest  Account (or such other  account as may be
          established from time to time by the Administrator) and the portion to
          be  credited  to the Stock Unit  Account.  If a  Participant  fails to
          notify the Corporate  Secretary as to how to allocate any Compensation
          between the Interest and Stock Unit  Accounts,  100% of such  deferred
          Compensation  shall be credited to the  Interest  Account.  By written
          notice filed with the Corporate  Secretary of the Company prior to the
          end of a calendar  year, a Director may change the manner in which the
          Compensation  payable with respect to services  rendered after the end
          of such  calendar  year are  allocated  among the  Accounts.  However,
          amounts credited to the  Participant's  Interest Account or Stock Unit
          Account prior to the effective  date of any election  change shall not
          be affected  by such  change and shall  continue to be credited to the
          Account  to  which  such  amounts  were   credited   pursuant  to  the
          Participant's prior election.  In no event may any previously deferred
          amounts be  transferred  between the Interest and Stock Unit Accounts,
          except as may be provided otherwise by Section 5.4.

5.2       INTEREST ACCOUNT.  Any Compensation  allocated to the Interest Account
          shall be credited to the  Interest  Account as of the last day of each
          calendar  year  quarter  (after the  crediting  of  interest  for such
          quarter).  Amounts credited to the Interest Account as of the last day
          of each calendar  quarter shall be credited with interest based on the
          performance of the Lehman Brothers  Intermediate  Government/Corporate
          Bond  Index,  unless  another  index  or  rate  is  determined  by the
          Administrator.  Interest shall be credited to a Participant's Interest
          Account  through  the end of the quarter  preceding  the date that the
          Participant's   entire   benefit  under  the  Plan  is  paid  to  such
          Participant, consistent with Section VI.

5.3       STOCK  UNIT  ACCOUNT.  Any  Compensation  allocated  to the Stock Unit
          Account  shall be deemed to be  invested in a number of Units equal to
          the  quotient of (i) the amount of such  Compensation  divided by (ii)
          the Fair Market  Value on the last  trading day of the  calendar  year
          quarter  during which the  Compensation  being  allocated to the Stock
          Unit Account would otherwise have been paid. Fractional Units shall be
          credited,  but shall be rounded to the nearest  hundredth  percentile,
          with amounts equal to or greater than .005 rounded up and amounts less
          than .005  rounded  down.  Whenever a  dividend  other than a dividend
          payable in the form of Shares is declared  with respect to the Shares,
          the  number of Units in the  Director's  Stock Unit  Account  shall be
          increased by a number of Units  determined by dividing (i) the product
          of (A) the number of Units in the Director's Stock Unit Account on the
          related  dividend record date, and (B) the amount of any cash dividend
          declared by the  Company on a Share (or,  in the case of any  dividend
          distributable  in property  other than Shares,  the per share value of
          such dividend, as determined by the Company for purposes of income tax
          reporting),  by (ii) the Fair  Market  Value on the  related  dividend
          payment date. In the case of any dividend  declared on Shares which is
          payable  in  Shares,  the  Director's  Stock  Unit  Account  shall  be
          increased  by the  number  of Units  equal to the  product  of (i) the
          number of Units credited to the  Director's  Stock Unit Account on the
          related dividend record date, and (ii) the number of Shares (including
          any fraction thereof) distributable as a dividend on a Share.

5.4       INVESTMENT TRANSFERS.  A Participant may, by written notice filed with
          the Corporate Secretary of the Company,  elect to transfer some or all
          of  the  amounts  credited  to  the  Participant's  Interest  Account,
          determined as of the quarterly  date  coincident  with or  immediately
          preceding the date the notice is received by the Corporate  Secretary,
          to the  Participant's  Stock Unit Account.  Such bookkeeping  transfer
          shall be effected as soon as practicable  after such written notice is
          received by the Corporate Secretary and such transferred amounts shall
          be deemed to be invested in a number of Units equal to the quotient of
          (i) the  transferred  amount  divided by (ii) the Fair Market Value on
          the trading day coincident with or immediately  preceding the date the
          transfer is effected. No more than one transfer under this Section 5.4
          may be made in any calendar year.

5.5       STATEMENTS.  The  Administrator  shall provide each Participant with a
          statement   detailing  the  amounts  credited  to  the   Participant's
          bookkeeping  Accounts under the Plan. Such statement shall be provided
          annually or more frequently as determined by the Administrator.

SECTION VI - DISTRIBUTIONS

6.1       DISTRIBUTION.  Subject to the provisions of Section 6.3 and 6.4 below,
          after a  Participant's  termination  of service  as a Director  of the
          Company for any reason  (including  retirement,  death,  disability or
          other termination), the Participant's interest in his Accounts will be
          determined  and  paid  to the  Participant  (or in  the  event  of the
          Participant's death, to the Participant's Beneficiary) at the time and
          in the manner as specified in the Participant's  payment election made
          pursuant to Section 6.2. Payment shall be made either in the form of a
          single sum or substantially  equal annual installment  payments not to
          exceed ten (10) years.  Absent an election under Section 6.2,  payment
          of a  Participant's  interest in the  Participant's  Accounts shall be
          made in a lump sum payment and shall  commence as soon as  practicable
          after the first business day of the calendar year quarter  immediately
          following the date on which the  Participant  ceases to be a Director.
          In the case of any  distribution  being  made in annual  installments,
          each  installment  after  the first  installment  shall be paid on the
          anniversary  date of the first  installment,  or as soon as  practical
          thereafter,  until the entire  amount  credited  to the  Participant's
          Accounts has been paid. The dollar amount  involved in any installment
          payment shall be determined by multiplying  the amount credited to the
          Participant's  Interest Account  immediately prior to the distribution
          by a fraction,  the numerator of which is one and the  denominator  of
          which  is  the  number  of   installments   (including   the   current
          installment)  remaining to be paid.  The number of Shares  involved in
          any installment  payment shall be determined by multiplying the number
          of Units credited to the Participant's  Stock Unit Account immediately
          prior to the distribution by a fraction, the numerator of which is one
          and the denominator of which is the number of installments  (including
          the current  installment)  remaining to be paid, and rounded up to the
          next whole Unit. Notwithstanding any of the foregoing, a Participant's
          distribution  from his Interest  Account  shall be made solely in cash
          and distribution  from the  Participant's  Stock Unit Account shall be
          made solely in Shares (except that any  fractional  Unit shall be paid
          in cash). Neither the Participant nor the Administrator shall have any
          authority to alter such cash or Shares mode of distribution.

6.2       DISTRIBUTION  ELECTION.  At  the  time a  Participant  first  makes  a
          deferral  election pursuant to Section 4.1, the Participant shall also
          file with the  Corporate  Secretary of the Company a written  election
          regarding the time and form of the Participant's distribution.  Unless
          the total value of the Participant's Accounts is less than $25,000 and
          payment is made in a single sum under  Section 6.3, the  Participant's
          payment election shall address:

          (i)       whether  distribution of such  Participant's  Accounts shall
                    commence as soon as practicable following the first business
                    day of the  calendar  year  quarter  following  the date the
                    Participant ceases to be a Director or on the first business
                    day of any calendar  year  following  the  calendar  year in
                    which the Participant ceases to be a Director; and

          (ii)      whether such  distribution  shall be in one lump sum payment
                    or in such number of annual installments (not to exceed ten)
                    as the Participant may designate.

6.3       PAYMENT OF SMALL  AMOUNTS.  Notwithstanding  the provisions of Section
          6.1 and Section 6.2 above,  if the combined  value of a  Participant's
          Interest Account and Stock Unit Account is less than $25,000 as of the
          date the Participant's service as a Director terminates,  the entirety
          of the  Participant's  Accounts shall be paid to the  Participant  (in
          cash from the  Participant's  Interest  Account and in Shares from the
          Stock Unit Account) in a lump sum  distribution as soon as practicable
          after the first business day of the calendar year quarter  immediately
          following the date on which the Participant ceases to be a Director.

6.4       ADMINISTRATOR DISCRETION.  Notwithstanding any other provision in this
          Section VI to the contrary,  the Administrator  reserves the right, in
          its sole discretion,  to override or modify any Participant's election
          as to the timing and/or form of payment of such Participant's  Account
          under  this  Plan at any time and for any  reason,  even as to  future
          installments  payable  under a  previously-elected  method of payment;
          provided,  however,  that the  Administrator  may not modify  payments
          accelerated  after a Change in Control under Section 6.6, and provided
          further  that in no event  may the  Administrator  modify  the mode of
          distribution  (i.e., cash or Shares),  and in all events, cash will be
          distributed to reflect amounts credited to the Participant's  Interest
          Account and Shares will be distributed  from the  Participant's  Stock
          Unit Account.

6.5       LIMITATIONS   ON  PAYMENT.   Unless   determined   otherwise   by  the
          Administrator  under  Section  6.4,  under  no  circumstances  will  a
          Participant  be  eligible  to  receive  payment  of the  Participant's
          interest  in the  Participant's  Accounts  prior to the  Participant's
          termination  of  service  as  a  Director.   Further,   payment  of  a
          Participant's  Accounts shall commence no later than the calendar year
          following the later of (i) the Participant's termination of service as
          a director or (ii) the Participant's attainment or age 70.

6.6       CHANGE IN CONTROL. In the event of a Change in Control, any terminated
          Participant  (including any Participant  terminated in connection with
          the Change in Control) shall automatically receive distribution of the
          entirety  of his  Accounts  (in cash from the  Participant's  Interest
          Account  and in Shares  from the  Stock  Unit  Account)  in a lump sum
          distribution  as soon as  practicable  after  such  Change in  Control
          occurs,  unless such Participant  waives such  accelerated  payment by
          written notice to the Corporate Secretary of the Corporation  received
          prior to the  occurrence  of the Change in  Control.  If a  terminated
          Participant waives  acceleration under this Section 6.6, payment shall
          be  made in  accordance  with  the  Participant's  prior  distribution
          election and shall be again subject to the Administrator's  discretion
          under Section 6.4.

6.7       PAYMENT IN SHARES. To the extent that shareholder approval of the Plan
          would  otherwise be required under  applicable New York Stock Exchange
          shareholder  approval policies,  all Shares payable in accordance with
          this  Section  VI shall  be in the form of  Shares  which  are  either
          treasury Shares or Shares purchased in the open market.

SECTION VII - UNFUNDED STATUS

     Each  Participant's  Accounts shall be utilized  solely as a device for the
measurement  and  determination  of the  amounts to be paid to such  Participant
under the Plan.  Participant  Accounts shall be bookkeeping accounts only and no
Participant or Beneficiary shall have any proprietary  rights in any assets held
by the  Company,  whether or not held for the purpose of funding  the  Company's
obligation  under  this  Plan.  This Plan  constitutes  the mere  promise of the
Company  to  make  benefit  payments  in the  future.  To the  extent  that  any
Participant  or  Beneficiary  acquires a right to receive any  payment  from the
Company  pursuant to this Plan, such right shall be no greater than the right of
an unsecured general creditor of the Company.

     Nothing  contained in this Plan and no action  taken  pursuant to this Plan
shall  create or be  construed  to  create a trust of any kind or any  fiduciary
relationship between the Company and any Participant or Beneficiary or any other
person.  Any reserves that may be established by the Company in connection  with
this Plan shall  continue to be treated as the assets of the Company for federal
income tax purposes and remain subject to the claims of the Company's creditors.
The Company has not  segregated  or earmarked any Shares or any of the Company's
assets for the benefit of a Participant or his/her Beneficiary and the Plan does
not, and shall not be construed to, require the Company to do so.

SECTION VIII - AMENDMENT AND TERMINATIONS

8.1       AMENDMENT OR TERMINATION.  The Board of Directors or the Committee may
          amend or terminate this Plan at any time; provided,  however,  that no
          such  amendment  or  termination  shall  deprive  any  Participant  or
          Beneficiary of any amounts  deferred under this Plan prior to the date
          of such amendment or termination.

8.2       EFFECT OF TERMINATION. If this Plan is terminated, amounts credited to
          Participant  Accounts  hereunder as of the date of  termination  shall
          continue to be held and paid in accordance  with the terms of the Plan
          (subject to the  Administrator's  discretion  as  described in Section
          VI). However, no additional Compensation deferrals shall be made after
          the Plan's termination.

SECTION IX - GENERAL PROVISIONS

9.1       NO RIGHT TO SERVE AS A  DIRECTOR.  This  Plan  shall  not  impose  any
          obligations  on the Company to retain any  Participant  as a Director,
          nor shall it impose any  obligation on the part of any  Participant to
          remain as a Director of the Company.

9.2       SECURITIES  AND  RELATED  MATTERS.  If at any time  the  Administrator
          determines in its  discretion  that action is necessary to comply with
          any requirement of the Exchange Act, any national  securities exchange
          or any  state or  federal  law,  or the  consent  or  approval  of any
          governmental  regulatory body is necessary or desirable as a condition
          of or in  connection  with the delivery of Shares under this Plan,  no
          payment will be made and no Shares will be delivered  unless and until
          such action, consent or approval shall have been effected or obtained,
          or otherwise  provided for, free of any  conditions  not acceptable to
          the  Administrator.  The transactions  under this Plan are intended to
          comply with Rule 16b-3 under Section 16(b) of the Exchange Act and the
          Administrator  shall take any actions it deems  necessary or desirable
          to ensure such compliance.

9.3       SEVERABILITY  OF  PROVISIONS.  If any  provision of this Plan shall be
          held  invalid  or  unenforceable,  this Plan  shall be  construed  and
          enforced as if such provision had not been included; provided however,
          that such  invalidity or  unenforceability  shall not affect any other
          provisions hereof.

9.4       INCAPACITY.  If any  Participant or Beneficiary  entitled to receive a
          distribution  under  the Plan is a minor or  incompetent  person or is
          unable  to  attend to his or her own  financial  affairs,  in the good
          faith judgment of the Administrator, then payment may be authorized by
          the Administrator to be made to the person or persons responsible for,
          caring for, or supporting  such  Participant  or  Beneficiary,  in the
          discretion  of  the  Administrator.   Any  such  payment  shall  fully
          discharge any  liability or obligation of the Board of Directors,  the
          Company and all other parties with respect thereto.

9.5       ASSIGNMENT  BY  PARTICIPANT  PROHIBITED.  No right or  interest of any
          Participant or Beneficiary in the Plan shall,  prior to actual payment
          or distribution to such Participant or Beneficiary,  be subject in any
          manner  to  anticipation,   alienation,  sale,  transfer,  assignment,
          pledge,  encumbrance,  attachment,  or garnishment by creditors of the
          Participant or of the Beneficiary.

9.6       ASSIGNMENT BY COMPANY.  The Company shall have the right to assign all
          of its  rights,  title and  obligations  in and under this Plan upon a
          merger or  consolidation  or upon the  purchase of  substantially  its
          entire  business or assets,  provided such assignee  agrees to perform
          after  the  effective  date  of  such  assignment  all of  the  terms,
          conditions  and provisions  imposed by this Plan upon the Company.  In
          the event of such an assignment,  all of the rights and obligations of
          the Company under this Plan shall thereupon cease and terminate.

9.7       CONSTRUCTION OF THE PLAN. The validity, construction,  interpretation,
          administration  and effect of the Plan, and the rights relating to the
          Plan,  shall be determined  solely in accordance  with the laws of the
          State of Wisconsin.

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