Document:

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                                                                   Exhibit 10.14

                           RESTRICTED STOCK AGREEMENT

                THIS AGREEMENT is made between ____________ (the "Employee") and
Pan Pacific Retail Properties, Inc. (the "Company") as of _____________, 200_.

                                    RECITALS

                (1) Pursuant to the Company's 2000 Stock Incentive Plan, the
Company has granted to Employee an award of ________ shares of common stock of
the Company (the "Shares") effective as of __________ (the "Effective Date").

                (2) As a condition to Employee's grant of the Shares, Employee
must execute this Restricted Stock Agreement (this "Agreement"), which sets
forth the rights and obligations of the parties with respect to the Shares.

        1. Forfeiture; Vesting.

                (a) If Employee's employment or consulting relationship with the
        Company is terminated for any reason other than (i) by the Company
        without "cause" (as defined in the Employment Agreement between Employee
        and the Company, dated as of ____________ (the "Employment Agreement")),
        or (ii) by Employee for "good reason" (as defined in the Employment
        Agreement), including, but not limited to, for cause, death, or
        disability, all unvested Shares as of the date of such termination shall
        immediately be forfeited and shall be transferred to the Company;
        provided that as to Shares that would have vested at the subsequent
        Vesting Date (as hereinafter defined), such Shares shall vest on a
        prorated basis based on the number of days elapsed from the prior
        Vesting Date through the date of termination and rounding down to the
        nearest Share, provided that the Company has met the requisite
        Performance Goal (as hereinafter defined).

                (b) Subject to Subsections 1(c), (d) and (e), the Shares issued
        hereunder shall become vested over five (5) years in twenty percent
        installments on each anniversary of the Effective Date (each such
        anniversary, a "Vesting Date" and each twelve-month period between the
        Effective Date and the first Vesting Date, or the twelve-month period
        between Vesting Dates, a "Vesting Period"), conditioned upon (i)
        Employee's continued employment as of each such Vesting Date and (ii)
        the Company achieving its Performance Goal (as hereinafter defined).

                (c) Notwithstanding Subsection 1(b), upon the attainment of the
        Performance Goal for a particular Vesting Date, twenty percent of the
        Shares (assuming Employee's continued employment as of such Vesting
        Date) shall become vested.

                (d) Any unvested Shares subject to vesting on a prior Vesting
        Date shall become vested on a subsequent Vesting Date if the Company has
        met the Performance Goal, measured on a cumulative average basis, for
        each of the prior Vesting Dates.

                        For example, if on the first and second Vesting Dates,
the Performance Goal for each of these Vesting Dates is not met, the Shares
subject to vesting on each of these

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Vesting Dates (20% of the Shares per Vesting Date) will remain unvested. If, on
the third Vesting Date, the Performance Goal for this Vesting Date is met, the
Shares subject to vesting on this Vesting Date (20% of the Shares) will vest. In
addition, if on the third Vesting Date (i) the Company's cumulative average
increase in Funds From Operations ("FFO") growth per share for the three prior
Vesting Periods is in the top 1/3 of the cumulative average increase in FFO
growth per share for the three prior Vesting Periods of the companies listed on
Schedule A, or (ii) the Company's cumulative average Total Return (as
hereinafter defined) for the three prior Vesting Periods is in the top 1/3 of
the cumulative average Total Return for the three prior Vesting Periods of the
companies listed on Schedule A, the unvested Shares subject to Vesting on the
first and second Vesting Dates will become vested.

                "Performance Goal" shall mean the achievement by the Company for
a Vesting Period of (a) placement in the top 1/3 of the companies listed on
Schedule A hereto with respect to the percentage increase in FFO growth per
share over the Vesting Period, or (b) placement in the top 1/3 of the companies
listed on Schedule A hereto with respect to Total Return for the Vesting Period.

                "Total Return" for a specified period shall mean (a) the amount
of appreciation of Company common stock and dividends paid on Company common
stock during such period divided by (b) the closing price on the day prior to
the beginning of the current Vesting Period.

        Notwithstanding Subsections 1(b) and (c), in the event any portion of
the Shares remain unvested on the fifth anniversary of the Effective Date, such
unvested Shares will become vested on the fifth anniversary of the Effective
Date (assuming Employee's continued employment as of such date).

                (e) Notwithstanding Subsections 1(b), (c) and (d), in the case
        of a "Change in Control" (as hereinafter defined), if Employee's
        employment or consulting relationship with the Company is terminated
        within one year following a Change in Control for any reason other than
        by the Company for "cause" (as defined in the Employment Agreement), the
        Shares shall become fully vested and shall cease to be subject to
        forfeiture under Subsection 1(a) after such event. For purposes of this
        Agreement, "Change in Control" shall mean the occurrence of any of the
        following events:

                        (i) the individuals constituting the Board as of the
                date of the initial public offering of common stock of the
                Company (the "Incumbent Board") cease for any reason to
                constitute at least a majority of the Board; provided, however,
                that if the election, or nomination for election by the
                Company's stockholders, of any new director was approved by a
                vote of at least a majority of the Incumbent Board, such new
                director shall be considered a member of the Incumbent Board;

                        (ii) an acquisition of any voting securities of the
                Company (the "Voting Securities") by any "person" (as the term
                "person" is used for purposes of Section 13(d) or Section 14(d)
                of the Securities Exchange Act of 1934, as amended (the "1934
                Act")), other than Revenue Properties (U.S.) Inc., a Delaware
                corporation and its subsidiaries (other than the Company and the
                Company's

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                subsidiaries) ("RPUS"), immediately after which such person has
                "beneficial ownership" (within the meaning of Rule 13d-3
                promulgated under the 1934 Act) of 20% or more of the combined
                voting power of the Company's then outstanding Voting
                Securities;

                        (iii) RPUS' ownership of Voting Securities exceeding 26%
                of the outstanding Voting Securities, determined on a
                fully-diluted basis; or

                        (iv) approval by the stockholders of the Company of:

                                (A) a merger, consolidation, share exchange or
                        reorganization of the Company, unless the stock holders
                        of the Company, immediately before such merger,
                        consolidation, share exchange or reorganization, own,
                        directly or indirectly immediately following such
                        merger, consolidation, share exchange or reorganization,
                        at least 80% of the combined voting power of the
                        outstanding voting securities of the corporation that is
                        the successor in such merger, consolidation, share
                        exchange or reorganization (the "Surviving Company") in
                        substantially the same proportion as their ownership of
                        the Voting Securities immediately before such merger,
                        consolidation, share exchange or reorganization;
                        provided, however, that a merger, consolidation, share
                        exchange or reorganization of the Company shall not
                        constitute a "Change in Control" if such merger,
                        consolidation, share exchange or reorganization of the
                        Company is approved by the Board and is recommended by
                        the Chief Executive Officer of the Company to the Board
                        for its approval; or

                                (B) a complete liquidation or dissolution of the
                        Company; or

                        (v) an agreement for the sale or other disposition of
                all or substantially all of the assets of the Company.

        2. Transferability of the Shares; Escrow.

                (a) With the exception of Shares which have been forfeited and
        required to be transferred to the Company pursuant to this Agreement, no
        unvested Shares nor any interest or right therein or part thereof shall
        be liable for the debts, contracts or engagements of Employee or his
        successors in interest or shall be subject to disposition by transfer,
        alienation, anticipation, pledge, encumbrance, assignment or any other
        means whether such disposition be voluntary or involuntary or by
        operation of law by judgment, levy, attachment, garnishment or any other
        legal or equitable proceedings (including bankruptcy), and any attempted
        disposition thereof shall be null and void and of no effect. Employee
        hereby authorizes and directs the secretary of the Company, or such
        other person designated by the Company, to transfer the unvested Shares
        that have been forfeited to the Company pursuant to this Agreement.

                (b) To insure the availability for delivery of Employee's
        unvested Shares upon forfeiture to the Company, Employee hereby appoints
        the secretary of the Company, or any other person designated by the
        Company as escrow agent, as his

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        attorney-in-fact to assign and transfer unto the Company, such unvested
        Shares, if any, forfeited to the Company pursuant to Section 1 and
        shall, upon execution of this Agreement, deliver and deposit with the
        secretary of the Company, or such other person designated by the
        Company, the Share certificates representing the unvested Shares,
        together with the stock assignment duly endorsed in blank, attached
        hereto as Exhibit 1. The unvested Shares and stock assignment shall be
        held by the secretary in escrow, pursuant to the Joint Escrow
        Instructions of the Company and Employee attached as Exhibit 2 hereto,
        until such unvested Shares are vested, or until such time as this
        Agreement no longer is in effect. As a further condition to the
        Company's obligations under this Agreement, the spouse of the Employee,
        if any, shall execute and deliver to the Company the Consent of Spouse
        attached hereto as Exhibit 3. Upon vesting of the unvested Shares, the
        escrow agent shall promptly deliver to the Employee the certificate or
        certificates representing such Shares in the escrow agent's possession
        belonging to the Employee, and the escrow agent shall be discharged of
        all further obligations hereunder; provided, however, that the escrow
        agent shall nevertheless retain such certificate or certificates as
        escrow agent if so required pursuant to other restrictions imposed
        pursuant to this Agreement.

                (c) The Company, or its designee, shall not be liable for any
        act it may do or omit to do with respect to holding the Shares in escrow
        and while acting in good faith and in the exercise of its judgment.

                (d) Transfer or sale of the Shares is subject to restrictions on
        transfer imposed by any applicable state and federal securities laws.
        Any transferee shall hold such Shares subject to all the provisions
        hereof and shall acknowledge the same by signing a copy of this
        Agreement.

        3. Termination. This Agreement shall terminate upon the later of (i) an
event of forfeiture, as described in Subsection 1(a) herein, or (ii) the fifth
anniversary of the Effective Date.

        4. Ownership, Voting Rights, Duties. This Agreement shall not affect in
any way the ownership, voting rights or other rights or duties of Employee,
except as specifically provided herein. Employee shall have the rights and
privileges of a stockholder of the Company in respect of the Shares (including
any dividends paid on shares of Company common stock), until termination of this
Agreement. The grant to Employee of the Shares shall be subject to the
restrictions on ownership and transfer set forth in the Company's Amended and
Restated Articles of Incorporation.

        5. Legends. The Share certificate evidencing the Shares issued hereunder
shall be endorsed with the following legend (in addition to any legend required
under applicable federal and state securities laws and the Company's charter):

               THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
               CERTAIN RESTRICTIONS UPON TRANSFER AND FORFEITURE AS SET FORTH
               IN AN AGREEMENT BETWEEN THE COMPANY AND THE HOLDER OF THE

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               SHARES, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE
               COMPANY.

        6. Adjustment for Stock Split. All references to the number of Shares in
this Agreement shall be appropriately adjusted to reflect any stock split, stock
dividend or other change in the Shares which may be made by the Company after
the date of this Agreement.

        7. Notices. Notices required hereunder shall be given in person or by
registered mail to the address of Employee shown on the records of the Company,
and to the Company at its principal executive office.

        8. Survival of Terms. This Agreement shall apply to and bind Employee
and the Company and their respective permitted assignees and transferees, heirs,
legatees, executors, administrators and legal successors.

        9. No Section 83(b) Elections. Because such election could have an
impact on the Company's ability to continue as a real estate investment trust
under the Internal Revenue Code of 1986, as amended (the "Code"), Employee
agrees that Employee will not file an election under Section 83(b) of the Code
with respect to the Shares. If Employee does file a Section 83(b) election then
such election shall cause the immediate forfeiture of all of the Shares, without
proration (notwithstanding anything in Section 1 to the contrary).

        10. Representations. Employee has reviewed with his own tax advisors the
federal, state, local and foreign tax consequences of the grant to him of the
Shares and the transactions contemplated by this Agreement. Employee is relying
solely on such advisors and not on any statements or representations of the
Company or any of its agents. Employee understands that he (and not the Company)
shall be responsible for his own tax liability that may arise as a result of the
grant of the Shares or the transactions contemplated by this Agreement.

        11. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with California law.

        12. Resolution of Disputes. It is understood and agreed between the
Employee and the Company that, any and all claims, grievances, demands,
controversies, causes of actions or disputes of any nature whatsoever (including
but not limited to interpretation of this Agreement or any provision contained
herein) (hereinafter "Disputes"), arising out of, in connection with, or in
relation to the arbitrability of any Disputes under this Agreement shall be
resolved in accordance with a two-step dispute resolution process administered
by the San Diego, California office of Judicial Administration & Mediation
Services, Inc. ("JAMS") involving, first, mediation before a retired judge from
the JAMS panel, followed, if necessary by final and binding arbitration before
the same, or if requested by either the Employee or the Company, another JAMS
panelist. Such dispute resolution process shall be confidential and shall be
conducted in accordance with California Evidence Code Section 1119. In the event
the Dispute is resolved through mediation, the parties shall bear their
respective costs incurred in connection with the mediation procedures, except
that the parties shall equally share the fees and expenses of the mediator and
the costs of the facility for the hearing. In the event the Dispute is resolved
through arbitration, the costs incurred in connection with the arbitration
procedures, including

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the costs incurred by the prevailing party (including reasonable attorneys'
fees) will be borne by the non-prevailing party. The arbitrator will determine
which party is the non-prevailing party for purposes of this Section 12.

                Employee represents that he has read this Agreement and is
familiar with its terms and provisions.

                IN WITNESS WHEREOF, this Agreement is deemed made as of the date
first set forth above.

                                            "COMPANY"

                                            PAN PACIFIC RETAIL PROPERTIES, INC.

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------

                                            "EMPLOYEE"

                                            ------------------------------------
                                            Address:

                                            ------------------------------------

                                            ------------------------------------

                                            ------------------------------------

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                                   SCHEDULE A

1.        Prime Retail, Inc.
2.        Kimco Realty Corporation
3.        Developers Diversified Realty
4.        Pan Pacific Retail Properties, Inc.
5.        Regency Realty Corporation
6.        Equity One, Inc.
7.        Weingarten Realty Investors
8.        Chelsea GCA Realty, Inc.
9.        Acadis Realty Trust
10.       Mid-Atlantic Realty Trust
11.       Ramco-Gershenson Properties Trust
12.       JDN Realty Corporation
13.       Saul Centers, Inc.
14.       Realty Income Corporation
15.       Kramont Realty Trust
16.       Federal Realty Investment Trust
17.       New Plan Excel Realty Trust
18.       Agree Realty Corporation
19.       Tanger Factory Outlet Centers, Inc.
20.       IRT Property Company
21.       Urstadt Biddle Properties, Inc.
22.       Center Trust, Inc.
23.       United Investors Realty Trust
24.       Aegis Realty Incorporated
25.       Burnham Pacific Properties, Inc.Exhibit (10)(j)

                              SNAP-ON INCORPORATED
                           DEFERRED COMPENSATION PLAN
                       (as amended through March 12, 2002)

                     Section 1. Establishment and Purposes

1.1  Establishment. Snap-on Incorporated established effective as of April 1,
     1986, a deferred compensation plan for executives as described herein,
     known as the "SNAP-ON INCORPORATED DEFERRED COMPENSATION PLAN" (hereinafter
     called the "Plan"). Snap-on Incorporated hereby amends the Plan effective
     March 12, 2002.

1.2  Purposes. The purposes of this Plan are to (i) enable the Corporation to
     attract and retain persons of outstanding competence, (ii) provide a means
     whereby certain amounts payable by the Corporation to selected executives
     may be deferred to some future period and to provide such executives with a
     means to have deferred amounts treated as if invested in the Corporation's
     stock, thereby aligning their interests more closely with the interests of
     shareholders and (iii) effective July 1, 2001, provide a matching credit by
     the Corporation to certain elected officers of the Corporation and to
     provide such elected officers with alternatives as to the manner in which
     annual adjustments are made to their credited matching accounts. The Plan
     is intended to constitute an unfunded plan primarily for the purpose of
     providing deferred compensation for a select group of management or highly
     compensated employees.

                             Section 2. Definitions

2.1  Definitions. Whenever used herein, the following terms shall have the
     meanings set forth below:

     (a)  "Board" means the Board of Directors of the Corporation.

     (b) "Cause" means that prior to a Participant's termination of employment,
he shall have (i) engaged in any act of fraud, embezzlement or theft in
connection with his duties as an executive or in the course of employment with
the Corporation or its subsidiaries; (ii) wrongfully disclosed any secret
process or confidential information of the Corporation or its subsidiaries; or
(iii) engaged in any Competitive Activity; and in any such case the act shall
have been determined to have been materially harmful to the Corporation. A
Participant's employment may not be terminated for Cause prior to the receipt by
the Participant of a copy of a resolution duly adopted by the affirmative vote
of not less than three-quarters (3/4) of the entire membership of the Board at a
meeting of the Board called and held for the purpose of considering such
termination (after reasonable notice to the Participant and an opportunity for
the Participant, together with the Participant's counsel, to be heard before the
Board) finding that the Participant was guilty of conduct set forth in the
definition of Cause, and specifying the particulars

<PAGE>

thereof in detail. In the event of a dispute regarding whether the Participant's
employment has been terminated for Cause, no claim by the Corporation that Cause
exists shall be given effect unless the Corporation establishes by clear and
convincing evidence that Cause exists.

     (c) "Committee" means the Organization and Executive Compensation Committee
of the Board or, as to compensation matters in respect of which it has
authority, any other committee of the Board or director or officer of the
Corporation that has authority of the Organization and Executive Compensation
Committee of the Board relating to compensation matters.

     (d) "Common Stock" means the common stock, par value $1.00 per share, of
the Corporation.

     (e) "Compensation" means the gross Salary and Incentive Compensation
payable to a Participant during a Year and Other Compensation payable to a
Participant.

          (i) Salary. "Salary" means all regular, basic compensation, before
     reduction for amounts deferred pursuant to this Plan or any other plan of
     the Corporation, payable in cash to a Participant for services during the
     Year, exclusive of any bonuses or incentive compensation, special fees or
     awards, allowances, or amounts designated by the Corporation as payments
     toward or reimbursement of expenses.

          (ii) Incentive Compensation. "Incentive Compensation" means the annual
     Incentive Compensation Plan payable in cash by the Corporation to a
     Participant in a Year.

          (iii) Other Compensation. "Other Compensation" means other
     compensation payable in cash and/or Common Stock or other property by the
     Corporation to a Participant in a Year, including without limitation
     compensation payable under the Amended and Restated Snap-on Incorporated
     1986 Incentive Stock Program, as amended (the "Stock Program"), if the
     award of such compensation provides that the Participant may defer the
     compensation.

     (f) "Competitive Activity" shall mean the Participant's participation
without the written consent of the Board in the management of any business
enterprise which manufactures or sells any product or service competitive with
any product or service of the Corporation or its subsidiaries. Competitive
Activity shall not include the ownership of less than five (5) percent of the
securities in any enterprise and exercise of any ownership rights related
thereto.

     (g) "Corporation" means Snap-on Incorporated, a Delaware corporation.

     (h) "Fair Market Value" means the closing price of the Common Stock on the
New York Stock Exchange on any particular date; provided, however, that for
purposes of Section 17, Fair Market Value shall mean the closing price of the
Common Stock on

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the New York Stock Exchange on the date of the Change of Control (as defined
therein) or, if higher, the highest price per share of Common Stock paid in the
transaction giving rise to the Change of Control.

     (i) "Growth Increment" means the amount of interest earned on a
Participant's deferred amounts.

     (j) "Participant" means an individual selected by the Committee for
participation in the Plan.

     (k) "Snap-on 401(k) Plan" means the Snap-on Incorporated 401(k) Personal
Savings Plan, as amended from time to time.

     (l) "Year" means a calendar year.

2.2  Gender and Number. Except when otherwise indicated by the context, any
     masculine terminology used herein also shall include the feminine gender,
     and the definition of any term herein in the singular also shall include
     the plural.

                    Section 3. Eligibility and Participation

3.1  Eligibility. The following persons shall be eligible to participate in the
     Plan:
     (a)  the elected officers and appointed officers of the Corporation;
     (b)  the elected officers and appointed officers of Snap-on Tools Company
          LLC;
     (c)  the elected officers and appointed officers of any other direct or
          indirect subsidiary of the Corporation designated by the Committee
          from time to time; and
     (d)  any other employee of the Corporation or any direct or indirect
          subsidiary of the Corporation designated by the Committee from time to
          time.

3.2  Ceasing Eligibility. In the event a Participant no longer meets the
     requirements for participation in this Plan, he shall become an inactive
     Participant. An inactive Participant shall retain all rights described
     under this Plan, except the right to make any further deferrals and the
     right to receive any further matching credits, until the time that he again
     meets the eligibility requirements of Section 3.1 (and, if applicable,
     Section 5.1).

                          Section 4. Election to Defer

4.1  Deferral Election. (a) Subject to the following provisions, prior to the
     beginning of the Year, a Participant irrevocably may elect, by written
     notice to the Corporation, to defer all or a percentage of annual Salary,
     Incentive Compensation, or both Salary and Incentive Compensation. The
     amount to be deferred each Year must equal or exceed Five Thousand and
     No/100 Dollars ($5,000.00).

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          (i) With respect to Salary deferrals, the deferral percentage elected
     shall be applied to the Participant's Salary for each pay period of the
     Year to which the deferral election applies and must be made before
     November 30 of the year immediately preceding the Year for which such
     deferral election applies.

          (ii) With respect to Incentive Compensation deferrals, the deferral
     percentage elected shall apply only to the Participant's Incentive
     Compensation payable with respect to service to be performed in the Year
     and must be made before December 31 of such Year.

     (b) An individual who becomes a Participant at or after the beginning of
the Year may irrevocably elect, by written notice to the Corporation, to defer
all or a percentage of (i) the annual Salary earned by such Participant for such
Year after such election, if such election is made within thirty (30) days after
becoming a Participant, and (ii) the pro rata share of the Participant's
Incentive Compensation, if any, payable with respect to service performed during
such Year, if such election is made before December 31 of such Year.

     (c) If so provided in an award of Other Compensation, and subject to such
restrictions and conditions as may be set forth in the award or imposed by the
Corporation, a Participant irrevocably may elect, by written notice to the
Corporation, to defer all or a percentage of such Other Compensation.

4.2  Deferral Period. (a) The Participant irrevocably shall select the deferral
     period for each separate deferral. The deferral period shall be for a
     specified number of Years or until a specified date. The deferral period
     shall not be less than five (5) Years.

     (b) However, notwithstanding the deferral period specified, payments of
deferred amounts shall begin following the earliest to occur of:

          (i) Death,

          (ii) Total and permanent disability,

          (iii) Subject to subsection (c), retirement, or

          (iv) Subject to subsection (d), termination of employment.

     (c) A Participant may elect to have the deferral period for some or all
amounts deferred continue beyond termination of employment due to retirement by
so indicating when the Participant selects, or modifies pursuant to Section 4.4,
the Participant's deferral period for a deferral. At such time the Participant
may elect one or more successive post retirement deferral periods of up to five
(5) Years each.

     (d) Effective January 1, 2001, a Participant may elect to have the deferral
period for some or all amounts deferred continue beyond termination of
employment with the

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Corporation, but only if such employment was terminated at the initiative of the
Corporation for reasons other than for Cause. A Participant may exercise this
one-time election by so indicating when the Participant selects, or modifies
pursuant to Section 4.4, the Participant's deferral period for a deferral. At
such time, the Participant may elect one or more post-termination deferral
periods of up to five (5) Years each.

4.3  Manner of Payment Election. At the same time as an election is made
     pursuant to Section 4.1, or is modified pursuant to Section 4.4, the
     Participant also may elect to have a deferred amount paid either in a lump
     sum or in up to twenty (20) substantially equal annual installments;
     provided, however, at such time a Participant that elects to receive
     payments in substantially equal annual installments may also specify a date
     within the installment period to receive all then remaining deferred
     amounts in a lump sum.

4.4  Modification. A Participant may change the manner in which a deferred
     amount will be paid and/or the date such payments are to commence by
     written election made prior to the Year in which such payments are to
     commence.

                          Section 5. Matching Credits

5.1  Effective Date and Eligibility. Effective July 1, 2001, the Corporation
     shall credit matching credits under this Plan only to Participants
     described in this Section at such time and in such amounts as provided in
     Section 5.2. Notwithstanding anything to the contrary in the Plan, only
     elected officers of the Corporation who are also actively participating
     under the cash balance formula in the Snap-on Incorporated Supplemental
     Retirement Plan for Officers, as amended from time to time, and are making
     deferrals for the Year shall be eligible for a matching credit by the
     Corporation for a Year for their benefit under this Plan.

5.2  Time and Amount of Matching Contributions. The Corporation shall credit
     matching credits under this Plan during each calendar quarter for the
     benefit of each eligible Participant. The amount of the matching credit for
     each calendar quarter for the benefit of an eligible Participant will be an
     amount equal to the excess of:

     (a) the lesser of (i) the product of the Participant's total deferrals to
this Plan, excluding deferrals of Other Compensation under the Amended and
Restated Snap-on Incorporated 1986 Incentive Stock Program or the Snap-on
Incorporated 2001 Incentive Stock and Awards Plan, for the calendar quarter
multiplied by fifty percent (50%), or (ii) three percent (3%) of the
Participant's Compensation (other than Other Compensation under the Amended and
Restated Snap-on Incorporated 1986 Incentive Stock Program or the Snap-on
Incorporated 2001 Incentive Stock and Awards Plan) for such calendar quarter,
over

     (b) the actual matching contribution made by the Corporation for the
benefit of such Participant for such calendar quarter under the Snap-on 401(k)
Plan.

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5.3  Deferral Period.

     (a) The deferral period selected for a Year's deferrals by a Participant
under Section 4.2 shall also apply to the matching credits credited under
Section 5 with respect to those deferrals.

     (b) However, notwithstanding the deferral period specified, payments of
matching credits shall begin following the earliest to occur of:

          (i) Death,

          (ii) Total and permanent disability,

          (iii) Subject to Section 4.2(c), retirement, or

          (iv) Subject to section 4.2(d), termination of employment.

5.4  Manner of Payment Election. A Participant's elected manner of payment for
     deferred payments under Section 4.3 shall also apply to the matching
     credits credited under Section 5 with respect to those deferrals.

5.5  Modification. A Participant's change in the manner in which the deferred
     amounts will be paid and/or the date such payments are to commence under
     Section 4.4 will apply to the associated matching credits.

         Section 6. Deferred Compensation and Matching Credits Accounts

6.1  Participant Accounts.

     (a) Deferred Compensation Accounts. The Corporation shall establish and
maintain individual bookkeeping accounts in respect of deferrals made by a
Participant consisting of a "Cash Account" and a "Share Account." A Participant
shall have separate Cash Accounts and Share Accounts for deferred amounts with
different deferral periods under Section 4.2 and/or manners of payment under
Section 4.3. A Participant's Cash Account shall be credited with the dollar
amount of any amount deferred as of the date the amount deferred otherwise would
have become due and payable unless prior to such date the Participant notifies
the Corporation in writing that all or any portion of the dollar amount deferred
shall be converted into deferred shares of Common Stock to be credited to the
Participant's Share Account. In such event (i) there shall be credited to the
Participant's Share Account as of such date a number of units ("Share Units")
equal to the dollar amount of any amount deferred or if less the dollar amount
specified in such notice divided by the Fair Market Value on the last trading
business day immediately preceding the date the amount deferred otherwise would
have become due and payable and (ii) the Participant's Cash Account shall be
credited as of such date with the balance of the dollar amount deferred, if any.

                                       6
<PAGE>

     (b) Matching Credits Accounts. The Corporation shall establish and maintain
an individual bookkeeping account in respect of matching credits by the
Corporation for the benefit of an eligible Participant to be known as a
"Matching Account". A Participant's Matching Account shall be credited with a
number of units ("Share Units") equal to the dollar amount of matching credits
under Section 5 for the Participant's benefit divided by the Fair Market Value
on the last trading business day immediately preceding the date the Corporation
credits the matching credits.

6.2  Growth Increments on Cash Accounts. The Corporation will provide the
     opportunity for Growth Increments to be earned on the balance of a
     Participant's Cash Accounts. The Committee will have the authority to
     select, from time to time, the appropriate interest rate to apply to such
     amounts. Each Cash Account shall be credited on the first day of each month
     with a Growth Increment computed on the daily balance in the Cash Account
     during the immediately preceding month. The Growth Increment shall be the
     sum of the daily interest earned, compounded monthly by the interest rate
     selected by the Committee.

6.3  Share Accounts.

     (a) Subject to applicable corporate policies, from time to time a
Participant may convert all or a portion of any Cash Account balance of the
Participant into deferred shares of Common Stock credited to the Participant's
corresponding Share Account by written notice to the Corporation. In such event,
and effective as of the date the Corporation receives such a notice, (i) there
shall be credited to the Participant's Share Account a number of Share Units
equal to the number of Share Units specified in the notice or, if such notice
specifies a dollar amount, a number of Share Units equal to such dollar amount
divided by the Fair Market Value on the last trading business day immediately
preceding the date the Corporation receives such notice and (ii) the
Participant's Cash Account shall be debited in an amount equal to the number of
Share Units credited to the Share Account multiplied by the Fair Market Value on
the same trading business day.

     (b) Subject to the authority of the Committee, the Corporation's Chief
Executive Officer may approve the terms of any agreements between the
Corporation and any Participant relating to the deferral of Other Compensation
where, but for the Participant's deferral, the Participant would have received
shares of Common Stock if such officer determines that such terms are
appropriate to carry out the purposes of this Plan and the award of Other
Compensation. Without limitation, the Corporation may enter into an agreement
with a Participant relating to such a deferral under which (i)(A) there shall be
credited to the Participant's Share Account a number of Share Units equal to the
number of shares of Common Stock the receipt of which the Participant has
deferred which credit shall be made as of the date the Other Compensation
deferred otherwise would have become due and payable or (B) Share Units shall be
credited to the Participant's Share Account only at a future date, such as the
date that one or more conditions to vesting have been satisfied; (ii) a credit
of Share Units may be made subject to such restrictions as are imposed under the
terms of the award of Other Compensation (or restrictions substantially
equivalent to those to which shares of Common Stock would have been

                                       7
<PAGE>

subject but for the deferral), including without limitation forfeiture under
certain circumstances and restrictions on the Participant's rights to convert
such Share Units pursuant to this Section 6.5; and (iii) if the terms of the
award of Other Compensation require a Participant to deliver cash and/or shares
of Common Stock to the Corporation to exercise or otherwise receive the benefit
of such Other Compensation, then in lieu of delivering such cash and/or Common
Stock, there may be a debit to the Participant's Cash Account in an amount equal
to the amount of cash that the Participant otherwise would have delivered and/or
a debit to the Participant's Share Account in an amount equal to the number of
shares of Common Stock that the Participant otherwise would have delivered, in
each case to the extent of any credit balance in such account.

6.4  Cash Dividends. Whenever cash dividends are paid by the Corporation on
     outstanding Common Stock, as of the payment date for the dividend, at the
     election of a Participant (i) there shall be credited to a Participant's
     Cash Account, as appropriate, an amount equal to the amount per share of
     the cash dividend on the Common Stock multiplied by the number of Share
     Units credited to the Participant's Share Account, if any, as of the close
     of business on the record date for the dividend or (ii) there shall be
     credited between a Participant's Share Account and Matching Account (if
     any, and then only to the extent then maintained in Share Units), as
     appropriate, additional Share Units equal to the cash amount described in
     clause (i) divided by the Fair Market Value of the Common Stock on the last
     trading business day immediately preceding the date of payment of the
     dividend. Absent an express election by a Participant, clause (i) shall
     apply. A Participant shall be entitled to elect treatment under clause (i)
     as to some Share Units reflected in the Participant's Share Account and
     treatment under clause (ii) as to other Share Units reflected in the
     Participant's Share Account. Clause (ii) shall apply to Share Units
     reflected in the Participant's Matching Account.

6.5  Conversion of Share Account. Subject to applicable corporate policies, from
     time to time a Participant with a credit balance in a Share Account may
     convert all or a portion of such balance into an amount to be credited to
     the Participant's corresponding Cash Account by giving written notice to
     the Corporation. In such event, and effective as of the date the
     Corporation receives such a notice, (i) there shall be credited to the
     Participant's Cash Account an amount equal to the number of Share Units
     specified in the notice multiplied by the Fair Market Value on the last
     trading business day immediately preceding the date the Corporation
     receives such notice and (ii) the Participant's Share Account shall be
     debited by the number of Share Units specified in the notice.

6.6  Earnings Adjustments to Matching Accounts.

     (a) Except as provided in Section 6.6(b), a Participant's Matching Account
will be adjusted (in the manner provided in Section 6.6(c)) at the end of each
Year in an amount which is equal to the net increase (or net decrease as
appropriate) in Fair Market Value for the same Year.

                                       8
<PAGE>

     (b) Diversification Election. Notwithstanding anything in Section 6.6(a) to
the contrary, a Participant may elect, subject to the limits in this Section
6.6(b), that annual earnings adjustments to his Matching Account be determined
with reference to a measure other than Fair Market Value. For purposes of this
Section 6.6(b), a change to the measure used to determine adjustments to a
Matching Account of a Participant shall be made at the election of the
Participant, but only at the same times, under the same conditions and subject
to the same limitations as are allowed or imposed under the Snap-on 401(k) Plan
for diversifying the Corporation's matching contribution under such plan out of
shares of Common Stock to other permissible investments available under the
Snap-on 401(k) Plan. The election provided in this Section 6.6(b) shall be made
in writing as directed by the Committee. Earnings adjustments to Matching
Accounts after the effective date of an election under this Section 6.6(b) shall
be calculated for the Participant's Matching Account with reference to the
Participant's duly elected alternative earnings measure. Once an election is
made under this Section 6.6(b), the Participant's Matching Account balance shall
be converted out of Share Units (using Fair Market Value on the last trading
business day immediately preceding the date the election is effective) and shall
not be maintained in Share Units again.

     (c) An eligible Participant's Matching Account shall be credited, or
debited, as appropriate, at the end of each Year with (i) a number of Share
Units equal to the dollar amount of adjustments determined under Section 6.6(a)
divided by the Fair Market Value on the last trading business day immediately
preceding the date the Corporation credits such adjustments to the Participant's
Matching Account, or (ii) an earnings adjustment calculated as provided in
Section 6.6(b) if a qualified election has been made under Section 6.6(b).

6.7  Charges Against Accounts. There shall be charged against a Participant's
     Cash Account any cash payments (excluding payments for fractional shares)
     made to the Participant or to his beneficiary in accordance with Section 7.
     There shall be charged against a Participant's Share Account any
     distributions made to the Participant or to his beneficiary in respect of
     the Participant's Share Account in accordance with Section 7. There shall
     be charged against a Participant's Matching Account any distributions made
     to the Participant or to his beneficiary in respect of the Participant's
     Matching Account in accordance with Section 7.

              Section 7. Payment of Deferred and Matching Amounts

7.1  Payment of Deferred and Matching Amounts.

     (a) Payment of a Participant's Cash Account balance, including accumulated
Growth Increments attributable thereto and dividend credits under Section 6.4,
shall be paid in cash commencing within thirty (30) calendar days after the
commencement date referred to in Section 4.2. The payments shall be made in the
manner selected by the Participant under Section 4.3 or, in the absence thereof,
in a lump sum. The amount of each payment shall be equal to a Participant's then
distributable Cash Account balance multiplied by a fraction, the numerator of
which is one and the denominator of which is the number of installment payments
remaining.

                                       9
<PAGE>

     (b) Payment of a Participant's Share Account balance shall be paid
commencing within thirty (30) calendar days after the commencement date referred
to in Section 4.2. Payments in respect of a Share Account balance shall be made
by converting Share Units into Common Stock on a one-for-one basis, with payment
of fractional shares to be made in cash based upon the Fair Market Value on the
last trading business day immediately preceding the date of payment; provided,
however, that at the election of a Participant, made by written notice to the
Corporation delivered not less than five business days before a payment due
date, payments in respect of a Share Account may be made solely in cash in an
amount equal to the number of Share Units then payable multiplied by the Fair
Market Value on the last trading business day immediately preceding the date of
payment. The payments shall be made in the manner selected by the Participant
under Section 4.3 or, in the absence thereof, in a lump sum. The number of Share
Units payable at the time of a payment shall be equal to a Participant's then
distributable Share Account balance multiplied by a fraction, the numerator of
which is one and the denominator of which is the number of installment payments
remaining.

     (c) Payment of a Participant's Matching Account balance shall be paid
commencing within thirty (30) calendar days after the commencement date referred
to in Section 5.3. Payments in respect of a Matching Account balance maintained
in Share Units at the time shall be made by converting Share Units into Common
Stock on a one-for-one basis, with payment of fractional shares to be made in
cash based upon the Fair Market Value on the last trading business day
immediately preceding the date of payment; provided, however, that at the
election of a Participant, made by written notice to the Corporation delivered
not less than five (5) business days before a payment due date, payments in
respect of a Matching Account maintained in Share Units at the time may be made
solely in cash in an amount equal to the number of Share Units then payable
multiplied by the Fair Market Value on the last trading business day immediately
preceding the date of payment. Payments of a Participant's Matching Account
balance that is no longer maintained in Share Units shall be in cash in an
amount equal to the Matching Account balance plus accumulated adjustments under
Sections 6.6(b) and 6.6(c) and dividend credits under Section 6.4. The payments
shall be made in the manner selected by the Participant under Section 5.4 or, in
the absence thereof, in a lump sum. The number of Share Units payable at the
time of a payment shall be equal to a Participant's then distributable Matching
Account balance maintained in Share Units multiplied by a fraction, the
numerator of which is one and the denominator of which is the number of
installment payments remaining.

7.2  Acceleration of Payments. If a Participant dies prior to the payment of all
     or a portion of his Cash Account, Share Account and/or Matching Account
     balances, the balance of any amounts payable shall be paid in a lump sum to
     the beneficiaries designated under Section 8. If a Participant's Cash
     Account balance is less than Five Thousand and No/100 Dollars ($5,000.00)
     at the time for the payment specified, such amount shall be paid to the
     Participant in a lump sum. If either a Participant's Share Account or
     Matching Account balance is less than three hundred (300) Share Units at
     the time for the payment specified, such amount shall be paid to the
     Participant in a lump sum.

                                       10
<PAGE>

7.3  Financial Emergency. The Committee, in its sole discretion, may alter the
     timing or manner of payment of deferred amounts and/or matching amounts in
     the event that the Participant establishes, to the satisfaction of the
     Committee, severe financial hardship. In such event, the Committee may:

     (a) provide that all, or a portion of, the amount previously deferred by
the Participant immediately shall be paid in a lump sum payment,

     (b) provide that all, or a portion of, the installments payable over a
period of time immediately shall be paid in a lump sum, or

     (c) provide for such other installment payment schedules as it deems
appropriate under the circumstances, as long as the amount distributed shall not
be in excess of that amount which is necessary for the Participant to meet the
financial hardship.

Severe financial hardship will be deemed to have occurred in the event of the
Participant's impending bankruptcy, a dependent's long and serious illness, or
other events of similar magnitude. The Committee's decision in passing on the
severe financial hardship of the Participant and the manner in which, if at all,
the payment of deferred amounts or matching credits shall be altered or modified
shall be final, conclusive, and not subject to appeal.

                       Section 8. Beneficiary Designation

8.1  Designation of Beneficiary. A Participant shall designate a beneficiary or
     beneficiaries who, upon the Participant's death, are to receive the amounts
     that otherwise would have been paid to the Participant. All designations
     shall be in writing to the Corporation in such form as it requires or
     accepts and signed by the Participant. The designation shall be effective
     only if and when delivered to the Corporation during the lifetime of the
     Participant. The Participant also may change his beneficiary or
     beneficiaries by a signed, written instrument delivered to the Corporation.
     However, if a married Participant maintains his primary residence in a
     state that has community property laws, the Participant's spouse shall join
     in any designation of a beneficiary or beneficiaries other than the spouse.
     The payment of amounts shall be in accordance with the last unrevoked
     written designation of beneficiary that has been signed and delivered to
     the Corporation.

8.2  Death of Beneficiary. In the event that all of the beneficiaries named in
     Section 8.1 predecease the Participant, the amounts that otherwise would
     have been paid to the Participant shall be paid to the Participant's
     estate, and in such event, the term "beneficiary" shall include his estate.

8.3  Ineffective Designation. In the event the Participant does not designate a
     beneficiary, or if for any reason such designation is ineffective, in whole
     or in part, the amounts that otherwise would have been paid to the
     Participant shall be paid to the Participant's estate, and in such event,
     the term "beneficiary" shall include his estate.

                                       11
<PAGE>

                       Section 9. Rights of Participants

9.1  Contractual Obligation. It is intended that the Corporation is under a
     contractual obligation to make payments from a Participant's account when
     due. Payment of account balances payable in cash shall be made out of the
     general funds of the Corporation as determined by the Board.

9.2  Unsecured Interest. No Participant or beneficiary shall have any interest
     whatsoever in any specific asset of the Corporation. To the extent that any
     person acquires a right to receive payments under this Plan, such receipt
     shall be no greater than the right of any unsecured general creditor of the
     Corporation.

9.3  Employment. Nothing in the Plan shall interfere with or limit in any way
     the rights of the Corporation to terminate any Participant's employment at
     any time, nor confer upon any Participant any right to continue in the
     employ of the Corporation.

9.4  Participation. No employee shall have a right to be selected as a
     Participant or, having been so selected, to be selected again as a
     Participant.

                         Section 10. Nontransferability

10.1 Nontransferability. In no event shall the Corporation make any payment
     under this Plan to any assignee or creditor of a Participant or a
     beneficiary. Prior to the time of a payment hereunder, a Participant or a
     beneficiary shall have no rights by way of anticipation or otherwise to
     assign or otherwise dispose of any interest under this Plan nor shall such
     rights be assigned or transferred by operation of law.

                           Section 11. Administration

11.1 Administration. This Plan shall be administered by the Committee. The
     Committee may from time to time establish rules for the administration of
     this Plan that are not inconsistent with the provisions of this Plan.

11.2 Finality of Determination. The Committee has sole discretion in
     interpreting the provisions of the Plan. The determination of the Committee
     as to any disputed questions arising under this Plan, including questions
     of construction and interpretation, shall be final, binding, and conclusive
     upon all persons.

11.3 Expenses. The cost of payments from this Plan and the expenses of
     administering the Plan shall be borne by the Corporation.

11.4 Action by the Corporation. Any action required or permitted to be taken
     under this Plan by the Corporation shall be by resolution of the Board, by
     the duly

                                       12
<PAGE>

authorized Committee of the Board, or by a person or persons authorized by
resolution of the Board or the Committee.

                     Section 12. Amendment and Termination

12.1 Amendment and Termination. The Corporation expects the Plan to be permanent
     but, since future conditions affecting the Corporation cannot be
     anticipated or foreseen, the Corporation necessarily must and does hereby
     reserve the right to amend, modify, or terminate the Plan at any time by
     action of the Board. Notwithstanding the foregoing, upon the occurrence of
     a Potential Change of Control (as hereinafter defined) and for a period of
     six (6) months thereafter, the Plan may not be terminated or amended in a
     manner adverse to Participants. For purposes of this Section, a "Potential
     Change of Control" shall be deemed to have occurred if an event set forth
     in any one of the following shall have occurred:

          (i) The Corporation enters into an agreement, the consummation of
     which would result in the occurrence of a Change of Control;

          (ii) The Corporation or any other Person publicly announces an
     intention to take or consider taking actions that, if consummated, would
     constitute a Change of Control;

          (iii) Any Person becomes the Beneficial Owner, directly or indirectly,
     of securities of the Corporation representing fifteen percent (15%) or more
     of either the then outstanding shares of Common Stock or the combined
     voting power of the Corporation's then outstanding voting securities; or

          (iv) The Board adopts a resolution to the effect that, for purposes of
     this Plan, a Potential Change of Control has occurred.

Each of "Change of Control," "Person" and "Beneficial Owner" shall have the
meaning set forth in Section 17.1.

                           Section 13. Applicable Law

13.1 Applicable Law. This Plan shall be governed and construed in accordance
     with the laws of the State of Wisconsin.

                        Section 14. Withholding of Taxes

14.1 Tax Withholding. The Corporation shall have the right to deduct from all
     contributions made to, or payments made from, the Plan any federal, state,
     or local taxes required by law to be withheld with respect to such
     contributions or payments. The Corporation may defer making payments in the
     form of Common Stock under the Plan until satisfactory arrangements have
     been made for the payment of any federal, state or local taxes required to
     be withheld with respect to such payment or delivery. Each Participant
     shall be entitled to irrevocably elect, prior to the date shares of Common
     Stock would otherwise be delivered

                                       13
<PAGE>

     hereunder, to have the Corporation withhold shares of Common Stock having
     an aggregate value equal to the amount required to be withheld. The value
     of fractional shares remaining after payment of the withholding taxes shall
     be paid to the Participant in cash. Shares so withheld shall be valued at
     Fair Market Value on the last trading business day immediately preceding
     the date such shares would have otherwise been transferred hereunder.

                               Section 15. Notice

15.1 Notice. Any notice required or permitted to be given under the Plan shall
     be sufficient if in writing and hand-delivered, or sent by a registered or
     certified mail, and if given to the Corporation, delivered to the principal
     office of the Corporation. Such notice shall be deemed given as of the date
     of delivery or, if delivery is made by mail, as of the date shown on the
     postmark or the receipt for registration or certification.

                        Section 16. Common Stock Matters

16.1 Stock Reserved for the Plan. The Corporation shall make available as and
     when required a sufficient number of shares of Common Stock to meet the
     needs of the Plan. Shares of Common Stock issued hereunder shall be
     previously issued shares reacquired and held by the Corporation.

16.2 General Restrictions.

     (a) Investment Representations. The Corporation may require any
Participant, as a condition of receiving Common Stock under this Plan, to give
written assurances in substance and form satisfactory to the Corporation and its
counsel to the effect that such person is acquiring the Common Stock for his own
account for investment and not with any present intention of selling or
otherwise distributing the same, and to such other effects as the Corporation
deems necessary or appropriate in order to comply with federal and applicable
state securities laws.

     (b) Compliance with Securities Laws. Delivery of Common Stock under the
Plan shall be subject to the requirement that, if at any time counsel to the
Corporation shall determine that the listing, registration or qualification of
the shares of Common Stock upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental or regulatory body,
is necessary as a condition of, or in connection with, the issuance of shares
thereunder, such shares may not be delivered in whole or in part unless such
listing, registration, qualification, consent or approval shall have been
effected or obtained on conditions acceptable to the Committee. Nothing herein
shall be deemed to require the Corporation to apply for or to obtain such
listing, registration or qualification.

16.3 Effect of Certain Changes in Capitalization. In the event of any Change in
     Capitalization, a proportionate substitution or adjustment may be made in
     (a) the aggregate number and/or kind of shares or other property reserved
     for issuance under the Plan, (b) the number and kind of shares or other
     property to be delivered

                                       14
<PAGE>

     under the Plan and (c) the number and kind of shares or other property held
     in each Participant's Share Account and Matching Account (if any), in each
     case as may be determined by the Committee in its sole discretion. Such
     other proportionate substitutions or adjustments may be made as shall be
     determined by the Committee in its sole discretion. "Change in
     Capitalization" means any increase, reduction, change or exchange of shares
     of Common Stock for a different number or kind of shares or other
     securities or property by reason of a reclassification, recapitalization,
     merger, consolidation, reorganization, issuance of warrants or rights,
     stock dividend, stock split or reverse stock split, combination or exchange
     of shares, repurchase of shares, change in corporate structure or
     otherwise; or any other corporate action, such as declaration of a special
     dividend, that affects the capitalization of the Corporation.

                         Section 17. Change of Control

17.1 Change of Control. For purposes of this Plan, a "Change of Control" shall
     be deemed to have occurred on the first to occur of any one of the events
     set forth in the following paragraphs:

     (a) any Person is or becomes the Beneficial Owner, directly or indirectly,
of securities of the Corporation (not including in the securities Beneficially
Owned by such Person any securities acquired directly from the Corporation or
its Affiliates) representing 25% or more of either the then outstanding shares
of Common Stock or the combined voting power of the Corporation's then
outstanding voting securities, excluding any Person who becomes such a
Beneficial Owner in connection with a transaction described in clause (i) of
paragraph (c) below; or

     (b) the following individuals cease for any reason to constitute a majority
of the number of directors then serving: individuals who, on January 25, 2002,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of directors of the Corporation as such terms are used in Rule 14a-11
of Regulation 14A under the Exchange Act) whose appointment or election by the
Board or nomination for election by the Corporation's stockholders was approved
or recommended by a vote of at least two-thirds (2/3) of the directors then
still in office who either were directors on January 25, 2002 or whose
appointment, election or nomination for election was previously so approved or
recommended; or

     (c) there is consummated a merger or consolidation of the Corporation or
any direct or indirect subsidiary of the Corporation with any other corporation,
other than (i) a merger or consolidation which would result in the voting
securities of the Corporation outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or any parent
thereof) at least 60% of the combined voting power of the voting securities of
the Corporation or such surviving entity or any parent thereof outstanding
immediately after such merger or consolidation, or (ii) a merger or
consolidation effected to implement a recapitalization of the Corporation (or
similar

                                       15
<PAGE>

transaction) in which no Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Corporation (not including in the securities
Beneficially Owned by such Person any securities acquired directly from the
Corporation or its Affiliates) representing 25% or more of either the then
outstanding shares of Common Stock or the combined voting power of the
Corporation's then outstanding voting securities; or

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

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

For purposes of the definitions of Change of Control and Potential Change of
Control, "Affiliate" shall have the meaning set forth in Rule 12b-2 promulgated
under Section 12 of the Exchange Act; "Beneficial Owner" shall have the meaning
set forth in Rule 13d-3 under the Exchange Act; "Exchange Act" shall mean the
Securities Exchange Act of 1934, as amended; and "Person" shall have the meaning
given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections
13(d) and 14(d) thereof, except that such term shall not include (i) the
Corporation or any of its subsidiaries, (ii) a trustee or other fiduciary
holding securities under an employee benefit plan of the Corporation or any of
its Affiliates, (iii) an underwriter temporarily holding securities pursuant to
an offering of such securities, (iv) a corporation owned, directly or
indirectly, by the shareholders of the Corporation in substantially the same
proportions as their ownership of stock of the Corporation or (v) any
individual, entity or group which is permitted to, and actually does, report its
Beneficial Ownership on Schedule 13G (or any successor schedule); provided that
if any such individual, entity or group subsequently becomes required to or does
report its Beneficial Ownership on Schedule 13D (or any successor schedule),
such individual, entity or group shall be deemed to be a Person for purposes
hereof on the first date on which such individual, entity or group becomes
required to or does so report Beneficial Ownership of all of the voting
securities of the Corporation Beneficially Owned by it on such date.

17.2 Payments. Upon the occurrence of a Change of Control, and notwithstanding
     Section 7,

                                       16
<PAGE>

     (a) payment of a Participant's Cash Account balance and Matching Account
balance (if any, and then only to the extent not then maintained in Share Units)
shall be made immediately in cash in a lump sum;

     (b) all Share Units credited to a Participant's Share Account and Matching
Account (if any) shall be converted into an amount equal to the number of Share
Units multiplied by the Fair Market Value, which amount shall be (i) paid as
soon as possible to such Participant and (ii) denominated in (A) such form of
consideration as the Participant would have received had the Participant been
the owner of record of such shares of Common Stock at the time of such Change of
Control, in the case of a "Change of Control With Consideration" or (B) cash, in
the case of a "Change of Control Without Consideration". For purposes of this
Section 17.2(b), (I) "Change of Control With Consideration" shall mean a Change
of Control in which shares of Common Stock are exchanged or surrendered for
shares, cash or other property and (II) "Change of Control Without
Consideration" shall mean a Change of Control pursuant to which shares of Common
Stock are not exchanged or surrendered for shares, cash or other property.

                            Section 18. Rating Event

18.1 Rating Event. The term "Rating Event" means the date on which the
     Corporation's debt rating drops below an Investment Grade Rating.
     "Investment Grade Rating" means a rating at or above Baa3 by Moody's
     Investors Services, Inc. (or its successors) or a rating at or above BBB by
     Standard & Poor's Corporation (or its successors). Only one such rating at
     the required level is necessary for the Corporation to have an Investment
     Grade Rating for purposes of this Section. If either or both of these
     ratings cease to be available then an equivalent rating from a nationally
     prominent rating agency shall be substituted by the Corporation.

18.2 Payment. Upon the occurrence of a Rating Event, and notwithstanding Section
     7:

     (a) a Participant's Cash Account balance and Matching Account balance (if
any, and then only to the extent not then maintained in Share Units) shall be
paid immediately in cash in a lump sum; and

     (b) payments in respect of a Share Account balance shall be made
immediately by converting Share Units into Common Stock on a one-for-one basis,
with payment of fractional shares to be made in cash based upon the Fair Market
Value on the last trading business day immediately preceding the date of
payment; provided, however, that at the election of a Participant, made by
written notice to the Corporation prior to delivery of such Common Stock,
payments in respect of a Share Account may be made solely in cash in an amount
equal to the number of Share Units then payable multiplied by the Fair Market
Value on the last trading business day immediately preceding the date of
payment; and

     (c) payments in respect of a Matching Account balance (if any, and then
only to the extent then maintained in Share Units) shall be made immediately by
converting

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Share Units into Common Stock on a one-for-one basis, with payment of fractional
shares to be made in cash based upon the Fair Market Value on the last trading
business day immediately preceding the date of payment; provided, however, that
at the election of the Participant, made by written notice to the Corporation
prior to delivery of such Common Stock, payments in respect of a Matching
Account may be made solely in cash in an amount equal to the number of Share
Units then payable multiplied by the Fair Market Value on the last trading
business day immediately preceding the date of payment.

     (d) In addition to payment of the Participant's Cash Account balance as
described above, the Corporation shall pay the Participant an amount equal to
the interest that would have been earned on the Accelerated Tax Amount from the
date of the Rating Event to the date payment of the deferred amounts was then
scheduled to commence, calculated at the interest rate determined under Section
6.2, compounded monthly, which interest amount shall then be discounted to the
date of payment at a discount rate equal to the rate determined under Section
6.2. The "Accelerated Tax Amount" means the Participant's Cash Account balance
multiplied by the Assumed Tax Rate. The "Assumed Tax Rate" means a percentage
which reflects the highest stated federal and state income tax rates imposed on
residents of Wisconsin after giving effect to the deductibility of state income
taxes.

18.3 Revocation of Election. Upon the occurrence of a Rating Event all deferral
     elections made prior thereto are revoked.

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