Document:

Exhibit 4.10

                          JOHNSON WORLDWIDE ASSOCIATES
                                1326 Willow Road
                           Sturtevant, Wisconsin 53177

                        FIRST AMENDMENT TO NOTE AGREEMENT

                          Dated as of January 10, 2000

                Re: Note Agreement dated as of September 15, 1997
                                       and
                         $25,000,000 7.15% Senior Notes
                              Due October 15, 2007

The Northwestern Mutual Life
  Insurance Company
720 East Wisconsin Avenue
Milwaukee, Wisconsin 53202

Ladies and Gentlemen:

          Reference  is made to the Note  Agreement  dated as of  September  15,
1997, (the "Note  Agreement")  between  Johnson  Worldwide  Associates,  Inc., a
Wisconsin  corporation  (the  "Company"),  and you,  under and pursuant to which
$25,000,000  aggregate  principal  amount of 7.15% Senior Notes, due October 15,
2007,  of the  Company  were  originally  issued.  Terms used but not  otherwise
defined herein shall have the meanings set forth in the Note Agreement.

          The Company hereby requests that you accept each of the amendments set
forth below in the manner herein provided:

                                   ARTICLE 1

                          AMENDMENTS TO NOTE AGREEMENT

          Section 1.1. Section 2.1(b) of the Note Agreement is hereby amended by
restating the second paragraph thereof as follows:

          "In the  event the  Company  shall  prepay  less than all of the Notes
pursuant to Section 2.2 or repurchase any Notes in accordance with Section 5.12,
the principal amount of each required prepayment of the Notes becoming due under
Section  2.1(a) on and after the date of such  prepayment  or purchase  shall be
reduced by crediting such prepayments first, against the amount due at the final
maturity of the Notes being prepaid then,  against the  prepayments  required by
Section 2.1(a) in the inverse order of the due dates of such prepayments."

<PAGE>

          Section  1.2.  Section 2 of the Note  Agreement  is hereby  amended by
adding  two new  sections  2.7 and 2.8  thereto,  reading in their  entirety  as
follows:

          Section 2.7.  Application  of Proceeds of  Designated  Sale;
          Partial  Prepayment of Notes. The Company expects to receive
          net cash  proceeds  of  approximately  $34,500,000  from the
          Designated  Sale.  Upon closing of the Designated  Sale, (i)
          such proceeds in an amount not less than $18,500,000 will be
          applied to the repayment of current debt and proceeds in the
          amount of  $16,000,000  will be applied to the prepayment of
          long-term  debt  (including  the Notes) and (ii) the Company
          will pay $6,200,000 to the holders of the Notes as a partial
          prepayment on the Notes,  together with accrued  interest to
          the date of prepayment, but without any Make-Whole Amount.

          Section  2.8.  Prepayment  of Notes  Upon  Failure  to Close
          Designated  Sale.  In the  event  that  for any  reason  the
          Designated  Sale  does not  occur,  the  Company  will  give
          written  notice of such fact (the  "Company  Notice") in the
          manner  provided in Section 9.6 to the holders of the Notes.
          The Company  Notice  shall be delivered  promptly  after the
          Company  determines  that the Designated Sale will not close
          and in any  event no later  than May 2,  2000.  The  Company
          Notice  shall  (a)  make  reference  to the  fact  that  the
          Designated  Sale has not closed,  (b) make reference to this
          Section  2.8 and the  right of the  holders  of the Notes to
          require  prepayment of the Notes on the terms and conditions
          provided  for in this  Section  2.8, (c) offer in writing to
          prepay  the  outstanding  Notes  held by each  holder of the
          Notes,  together  with  accrued  interest  to  the  date  of
          prepayment  and  an  amount  equal  to the  then  applicable
          Make-Whole   Amount  and  (d)  specify  the  date  for  such
          prepayment (the "Prepayment Date"),  which shall be no later
          than June 30, 2000.  Each holder of outstanding  Notes shall
          have the right,  by written  notice given to the Company not
          later than ten days after receipt of the Company Notice,  to
          demand that the Company prepay, and the Company will prepay,
          all (but not less than  all) of the Notes  then held by such
          holder on the Prepayment  Date. The prepayment  price of any
          Notes payable upon  Prepayment Date shall be an amount equal
          to  100%  of the  principal  amount  of the  Notes  so to be
          prepaid and accrued interest thereon to the Prepayment Date,
          together  with  an  amount  equal  to  the  then  applicable
          Make-Whole  Amount,  determined  as of three  business  days
          prior to the Prepayment Date.

                                  2
<PAGE>

          Section 1.3. Section 5.6(e) of the Note Agreement is hereby amended by
the addition of a new sentence to the definition of "Average Outstanding Balance
of Consolidated Current Debt" which shall read as follows:

          "For  purposes of  calculation  of the  Average  Outstanding
          Balance  of  Consolidated  Current  Debt for the  Compliance
          Period  ending  October 1, 1999,  Consolidated  Current Debt
          shall be reduced by the amount of $18,500,000."

          Section 1.4.  Section 5.8 of the Note  Agreements is hereby amended by
the addition thereto of a new Section 5.8(e) as follows:

                    (e)  Notwithstanding  any other  provision of this
          Section  5.8, (i) the Company or any  Subsidiary  engaged in
          the recreational  fishing business of the Company  ("Fishing
          Subsidiary") may sell,  transfer or otherwise dispose of all
          or part of the stock or assets of the  recreational  fishing
          business of the Company or such Fishing  Subsidiary and (ii)
          any Fishing  Subsidiary  may  consolidate  or merge with any
          other  corporation in connection  with the Designated  Sale.
          The sale of stock or assets permitted by this Section 5.8(e)
          shall not be taken into account for purposes of  calculating
          the  limitations on permitted  sales of assets and stock set
          forth in  Section  5.8(b)(1)  and the  proviso at the end of
          Section 5.8(c).

          Section 1.5. Section 5.9 is hereby amended in its entirety as follows:

                    "Section 5.9.  Consolidated Net Worth. The Company
          will at all times keep and maintain  Consolidated  Net Worth
          at an amount not less than the sum of (a)  $90,000,000  plus
          (b) an aggregate amount equal to 25% of its Consolidated Net
          Income (but,  in each case,  only if a positive  number) for
          each  completed  fiscal year  beginning with the fiscal year
          ending  September  29,  2000;   provided  that  Charges  for
          Identified  Dispositions shall not be taken into account for
          purposes of determining the amount of Consolidated Net Worth
          maintained  by the  Company  for  purposes  of  calculations
          pursuant to this Section 5.9."

          Section  1.6.  Section  8.1 is  hereby  amended  to add the  following
defined term:

                    "Designated  Sale"  shall  mean  the  sale  by the
          Company of all or part of the recreational  fishing business
          of the Company to  Berkley,  Inc.  for net cash  proceeds of
          approximately  $34,500,000  expected to be consummated prior
          to April 30, 2000.

          Section 1.7. Section 8.1 is hereby amended to add the following at the
end of the definition of "Net Income Available for Fixed Charges":

                    ", and plus (v) (to the extent  taken into account
          in  determining  Consolidated  Net  Income  for  any  fiscal
          quarter  ending  on or after  December  31,  1999) an amount
          equal to the charge  taken during

                                       3
<PAGE>

          the fiscal quarter ended December 31, 1999 in respect of the
          book loss of up to $24,000,000  incurred in connection  with
          the  proposed  disposition  of  the  Company's  recreational
          fishing business included in the Designated Sale"

                                   ARTICLE 2

                         WARRANTIES AND REPRESENTATIONS

          The Company represents and warrants that as of the Closing Date:

          Section  2.1.   First   Amendment  to  Note  Agreement  is  Legal  and
Authorized.

          (a)  The  execution  and  delivery  of the  First  Amendment  to  Note
Agreement  by  the  Company  and  compliance  by  the  Company  with  all of the
provisions  of the Note  Agreement,  as amended by the First  Amendment  to Note
Agreement --

                    (i)   is within the corporate powers of the Company; and

                    (ii)  will not  violate  any  provisions  of any  law or any
          order of any court or  governmental  authority  or agency and will not
          conflict with or result in any breach of any of the terms,  conditions
          or  provisions  of, or  constitute  a default  under the  Articles  of
          Incorporation  or By-laws of the  Company  or any  indenture  or other
          agreement or instrument to which the Company is a party or by which it
          may be bound or result in the imposition of any Liens or  encumbrances
          on any property of the Company.

          (b)  The  execution  and  delivery  of the  First  Amendment  to  Note
Agreement has been duly authorized by proper corporate action on the part of the
Company (no action by the  stockholders of the Company being required by law, by
the Articles of Incorporation  or By-laws of the Company or otherwise);  and the
First Amendment to Note Agreement has been executed and delivered by the Company
and the Note  Agreement,  as amended by the First  Amendment to Note  Agreement,
constitutes the legal, valid and binding  obligation,  contract and agreement of
the Company enforceable in accordance with its terms.

          Section 2.2. No Defaults.  Upon  effectiveness of this First Amendment
to Note Agreement no Default or Event of Default will exist or be continuing.

                                   ARTICLE 3

                              CONDITIONS PRECEDENT

          This  First  Amendment  to Note  Agreement  shall be  effective  as of
January 10, 2000 upon satisfaction of the conditions  precedent set forth below.
The closing date for this First Amendment to Note Agreement (the "Closing Date")
shall be subject to the  fulfillment by the Company of the following  conditions
precedent:

                                       4
<PAGE>

          Section 3.1.  Payment of Special  Counsel Fees. The Company shall have
paid the reasonable fees and disbursements of your special counsel for which the
Company  shall have  received an invoice at least one  business day prior to the
Closing Date.

          Section 3.2. Fee to  Noteholder.  The Company shall have paid to you a
fee of  37.5  basis  points  ($93,750)  on the  principal  amount  of the  Notes
outstanding as of January 10, 2000.

          Section  3.3.  Opinion.  Foley & Lardner  shall have  delivered to you
their favorable opinion in a form reasonably satisfactory to you with respect to
the due  authorization,  execution and delivery and enforceability of this First
Amendment to Note Agreement.

          Section 3.4. Other Amendment.  The Fourth Amendment to Note Agreements
dated  as of  October  1,  1995  shall  have  been  executed  and  delivered  in
substantially the same form as this First Amendment to Note Agreement.

                                   ARTICLE 4

                                  MISCELLANEOUS

          Section  4.1.  Ratification  of  Note  Agreement.   Except  as  herein
expressly amended, the Note Agreement is in all respects ratified and confirmed.
If and to the extent that any of the terms or provisions  of the Note  Agreement
is in conflict or inconsistent with any of the terms or provisions of this First
Amendment  to Note  Agreement,  this First  Amendment  to Note  Agreement  shall
govern.

          Section 4.2. Counterparts.  This First Amendment to Note Agreement may
be  simultaneously  executed  in  any  number  of  counterparts,  and  all  such
counterparts  together,  each as an original,  shall  constitute but one and the
same instrument.

          Section  4.3.  Reference to the Note  Agreement.  Any and all notices,
requests, certificates and any other instruments, including the Notes, may refer
to the Note  Agreement or the Note  Agreement  dated as of  September  15, 1997,
without making specific reference to this First Amendment to Note Agreement, but
all such  references  shall be deemed to include  this First  Amendment  to Note
Agreement.

          Section  4.4.  Governing  Law.  The Note  Agreement as amended by this
First  Amendment  to Note  Agreement  and the  Notes  shall be  governed  by and
construed  in  accordance   with  Wisconsin   law,   including  all  matters  of
construction, validity and performance.

          Section  4.5.  Successors  and Assigns.  This First  Amendment to Note
Agreement  shall be binding upon the Company and its  successors and assigns and
shall inure to your benefit and to the benefit of your  successors  and assigns,
including each successive holder or holders of any Notes.

                                       5
<PAGE>

          IN WITNESS  WHEREOF,  the Company has executed this First Amendment to
Note Agreement as of the day and year first above written.

                                             JOHNSON WORLDWIDE ASSOCIATES, INC.

                                             By:  /s/  Carl G. Schmidt
                                                --------------------------------
                                                Name:  Carl G. Schmidt
                                                Title: Senior Vice President and
                                                       Chief Financial Officer,
                                                       Secretary and Treasurer

                                       6
<PAGE>

          This First Amendment to Note Agreement is accepted and agreed to as of
the day and year first above written.

                                         THE NORTHWESTERN MUTUAL LIFE
                                           INSURANCE COMPANY

                                         By:  /s/  Jeffrey J. Lueken
                                            ------------------------------------
                                            Name:  Jeffrey J. Lueken
                                            Title: Its Authorized Representative

                                       7Exhibit 10.16

                              Johnson Outdoors Inc.
                       2000 Long-Term Stock Incentive Plan

Section 1:   Purpose

The purpose of the Johnson  Outdoors Inc. 2000  Long-Term  Stock  Incentive Plan
(the "Plan") is to enhance the ability of Johnson  Outdoors Inc. (the "Company")
and its Affiliates  (as defined below) to attract and retain  employees who will
make substantial contributions to the Company's long-term business growth and to
provide  meaningful  incentives to such employees which are more directly linked
to the  profitability  of the Company's  businesses and increases in shareholder
value. In addition,  the Plan is designed to encourage and provide opportunities
for stock  ownership by such  employees  which will increase  their  proprietary
interest  in the  Company  and,  consequently,  their  identification  with  the
interests of the shareholders of the Company.

Section 2:   Definitions

As used in the Plan, the following terms have the respective  meanings set forth
below:

(a)  Affiliate  means  any  entity  that,   directly  or  through  one  or  more
     intermediaries,  is controlled by, controls or is under common control with
     the  Company or any entity in which the Company  has a  significant  equity
     interest as determined by the Committee.

(b)  Award  means any Stock  Option,  Stock  Appreciation  Right or Stock  Award
     granted under the Plan.

(c)  Board means the Board of Directors of the Company.

(d)  Code means the Internal Revenue Code of 1986, as amended from time to time.

(e)  Committee  means a committee  selected by the Board to administer  the Plan
     which  shall be  composed of not less than two members of the Board who are
     not employees of the Company.

(f)  Common  Stock  means  the  Class A Common  Stock,  $.05 par  value,  of the
     Company.

(g)  Company means Johnson  Outdoors Inc., a corporation  established  under the
     laws of the State of Wisconsin, and its Affiliates.

(h)  Fair Market Value  means,  with  respect to Common  Stock,  the fair market
     value of such property determined by such methods or procedures as shall be
     established from time to time by the Committee; provided, however, that the
     Fair Market Value shall not be less than the par value of the Common Stock;
     and  provided  further,  that so long as the  Common  Stock is  traded on a
     public market, Fair Market Value means the average of the high and low sale
     prices of a share of  Common  Stock in the  over-the-counter  market on the
     specified  date,  as  reported by the Nasdaq  Stock  Market (or if no sales
     occurred

<PAGE>

     on such date, the last preceding date on which sales  occurred);  provided,
     however,  that if the  principal  market  for the  Common  Stock  is then a
     national securities exchange, the Fair Market Value shall be the average of
     the high and low sale  prices of a share of Common  Stock on the  principal
     securities  exchange on which the Common  Stock is traded on the  specified
     date (or if no sales  occurred  on such date,  the last  preceding  date on
     which sales occurred).

(i)  Incentive Stock Option,  or ISO, means an option to purchase Shares granted
     under Section 7(b) of the Plan that is intended to meet the requirements of
     Section 422 of the Code or any successor provision.

(j)  1934 Act means the Securities Exchange Act of 1934, as amended from time to
     time.

(k)  Nonqualified  Stock  Option,  or NQSO,  means an option to purchase  Shares
     granted  under  Section  7(b) of the Plan that is not  intended to meet the
     requirements of Section 422 of the Code or any successor provision.

(l)  Participant  means a person  selected by the  Committee (or its delegate as
     provided under Section 4) to receive an Award under the Plan.

(m)  Reporting Person means an individual who is subject to Section 16 under the
     1934 Act or any successor rule.

(n)  Shares means shares of Common Stock of the Company.

(o)  Stock  Appreciation  Right,  or SAR,  means any right granted under Section
     7(c) of the Plan.

(p)  Stock Award means an award granted under Section 7(d) of the Plan.

(q)  Stock  Option  means an  Incentive  Stock  Option or a  Nonqualified  Stock
     Option.

Section 3:   Effective Date and Term of Plan

The Plan shall be effective as of December 13, 1999,  subject,  however,  to the
approval  of the Plan by the  shareholders  of the  Company  within  twelve (12)
months of such  effective  date.  No  Awards  may be made  under the Plan  after
December 13, 2009,  or earlier  termination  of the Plan by the Board.  However,
unless  otherwise  expressly  provided  in the  Plan or in an  applicable  Award
agreement,  any Award  granted prior to the  termination  date may extend beyond
such  date,  and,  to the  extent set forth in the Plan,  the  authority  of the
Committee to amend, alter,  adjust,  suspend,  discontinue or terminate any such
award,  or to waive any  conditions  or  restrictions  with  respect to any such
Award,  and the  authority of the Board to amend the Plan,  shall extend  beyond
such date.

                                       2
<PAGE>

Section 4:   Administration

The Plan shall be  administered  by the Committee.  If at any time the Committee
shall not be in  existence,  the Board shall  administer  the Plan,  and in such
case, all references to the Committee herein shall include the Board.

Subject to the terms of the Plan and  applicable  law, the Committee  shall have
full power and authority to: (i) designate Participants; (ii) determine the type
or types of Awards  to be  granted  to each  Participant  under the Plan;  (iii)
determine  the  number of  Shares to be  covered  by (or with  respect  to which
payments,  rights or other  matters are to be  calculated  in  connection  with)
Awards granted to  Participants;  (iv) determine the terms and conditions of any
Award granted to a Participant; (v) determine whether, to what extent, and under
what circumstances Awards granted to Participants may be settled or exercised in
cash,  Shares,  other securities,  other Awards, or other property or cancelled,
forfeited or suspended to the extent permitted in Section 9 of the Plan, and the
method  or  methods  by  which  Awards  may be  settled,  exercised,  cancelled,
forfeited  or  suspended;  (vi)  interpret  and  administer  the  Plan  and  any
instrument  or  agreement  relating  to, or Award made  under,  the Plan;  (vii)
establish,  amend,  suspend or waive such rules and regulations and appoint such
agents as it shall deem appropriate for the proper  administration  of the Plan;
and  (viii)  make any other  determination  and take any other  action  that the
Committee deems necessary or desirable for the administration of the Plan.

Unless   otherwise   expressly   provided   in  the  Plan,   all   designations,
determinations, interpretations and other decisions under or with respect to the
Plan or any Award shall be within the sole  discretion of the Committee,  may be
made at any time,  and shall be final,  conclusive and binding upon all persons,
including the Company, any Affiliate, any Participant, any holder or beneficiary
of any  Award,  any  shareholder  and  any  employee  of the  Company  or of any
Affiliate.  To the extent  permitted by applicable law and the provisions of the
Plan,  the Committee  may delegate to one or more employee  members of the Board
the power to make Awards to Participants who are not Reporting  Persons.  To the
extent the Committee  has  delegated  any of its  authority  and  responsibility
hereunder to another person or persons, references to the Committee herein shall
include such other person or persons as appropriate.

Section 5:   Eligibility

Any Company  employee  shall be eligible to receive an Award under the Plan.  In
addition,  consultants  and advisors to the Company shall be eligible to receive
Nonqualified  Stock Options  under Section 7(b) of the Plan,  provided that bona
fide services are rendered by such consultants or advisors and such services are
not in  connection  with the offer or sale of  securities  in a  capital-raising
transaction.

Section 6:   Stock Available for Awards

(a)  Common Shares Available.  Subject to adjustment as provided in Section 6(c)
     below,  the maximum  number of Shares  available  for Awards under the Plan
     shall be 600,000.

                                        3
<PAGE>

(b)  Share Usage Limits. For the period that the Plan is in effect the aggregate
     number  of  Shares  that  shall  be  granted  as  Stock  Awards  and  Stock
     Appreciation  Rights shall not exceed  100,000  Shares.  Additionally,  the
     aggregate  number of Shares that could be awarded to any one Participant of
     the Plan  during any fiscal year of the  Company  shall not exceed  200,000
     Shares. In all cases,  determinations under this Section 6(b) shall be made
     in a manner that is consistent  with the  exemption  for  performance-based
     compensation  provided  by  Section  162(m)  of the Code (or any  successor
     provision thereto) and any regulation promulgated hereunder.

(c)  Adjustments.  In the event of any stock dividend,  stock split, combination
     or  exchange   of  Shares,   merger,   consolidation,   spin-off  or  other
     distribution  (other  than  normal  cash  dividends)  of Company  assets to
     shareholders, or any other change affecting Shares, such that an adjustment
     is  determined  by the  Committee  to be  appropriate  in order to  prevent
     dilution or enlargement of the benefits or potential  benefits  intended to
     be made available  under the Plan or any Award,  then the Committee may, in
     such  manner  as it may  deem  equitable,  adjust  any  or  all of (i)  the
     aggregate number and type of Shares that may be issued under the Plan, that
     may be issued as Stock Awards and Stock Appreciation Rights, or that may be
     issued to one Participant  during any fiscal year; (ii) the number and type
     of Shares covered by each outstanding  Award made under the Plan; and (iii)
     the exercise,  base or purchase price per Share for any  outstanding  Stock
     Option, Stock Appreciation Right and other Awards granted under the Plan.

(d)  Common Stock Usage.  If, after the effective  date of the Plan,  any Shares
     covered by an Award granted under the Plan, or to which any Award  relates,
     are forfeited or if an Award otherwise terminates,  expires or is cancelled
     prior  to the  delivery  of all of the  Shares  or of  other  consideration
     issuable  or  payable  pursuant  to such  Award,  then the number of Shares
     counted against the number of Shares available under the Plan in connection
     with the  grant  of such  Award,  to the  extent  of any  such  forfeiture,
     termination,  expiration  or  cancellation,  shall again be  available  for
     granting  of  additional  Awards  under  the  Plan.   Notwithstanding   the
     foregoing,  in the event of the  cancellation of an Award with respect to a
     Participant to whom Section 162(m) of the Code applies,  the Shares subject
     to such cancelled  Award shall  continue to be counted  against the maximum
     number of Shares which may be granted to the Participant under the Plan.

Section 7:   Awards

(a)  General.  The Committee  shall  determine the type or types of Award(s) (as
     set forth below) to be made to each Participant and shall approve the terms
     and  conditions of all such Awards in  accordance  with Sections 4 and 8 of
     the Plan. Awards may be granted  singularly,  in combination,  or in tandem
     such that the settlement of one Award automatically  reduces or cancels the
     other. Awards may also be made in replacement of, as alternatives to, or as
     form of payment for grants or rights under any other employee  compensation
     plan or  arrangement  of the Company,  including  the plans of any acquired
     entity.

                                       4
<PAGE>

(b)  Stock  Options.  A Stock Option shall confer on a Participant  the right to
     purchase a specified  number of Shares from the Company  with the terms and
     conditions as set forth below and with such additional terms and conditions
     as the Committee shall determine.

     The Committee  shall establish the purchase price per Share under the Stock
     Option at the time each Stock  Option is awarded,  provided  that the price
     shall not be less than 100% of the Fair Market  Value on the date of award.
     Stock Options may be in the form of ISOs or NQSOs. If a Participant owns or
     is  deemed to own (by  reason of the  attribution  rules  applicable  under
     Section  424(d) of the Code) more than 10% of the combined  voting power of
     all classes of stock of the Company or any subsidiary or parent corporation
     and an ISO is awarded to such  Participant,  the option  price shall not be
     less than 110% of the Fair  Market  Value at the time such ISO is  awarded.
     The aggregate  Fair Market Value at time of grant of the Shares  covered by
     ISOs  exercisable by any one optionee in any calendar year shall not exceed
     $100,000  (or such other limit as may be  required  by the Code);  provided
     that to the extent such limit is exceeded, the ISO's shall automatically be
     deemed to be NQSOs.

     The term of each Stock  Option shall be fixed by the  Committee;  provided,
     however,  that in no event  shall  the term of any  Stock  Option  exceed a
     period of ten years from the date of its grant. A Stock Option shall become
     exercisable  in such  manner and within  such period or periods and in such
     installments  or otherwise as shall be determined by the Committee.  Except
     as provided below, payment of the exercise price of a Stock Option shall be
     made at the time of exercise  in cash or such other forms as the  Committee
     may approve, including by tendering, by either actual delivery of shares or
     by  attestation,  shares  valued at their Fair Market  Value on the date of
     exercise,  or in a  combination  of forms.  The  Committee  may also permit
     Participants  to have the option price delivered to the Company by a broker
     pursuant  to  an  arrangement   whereby  the  Company,   upon   irrevocable
     instructions  from a  Participant,  delivers  the  exercised  Shares to the
     broker.

(c)  Stock  Appreciation   Rights  (SARs).  An  SAR  grant  shall  confer  on  a
     Participant the right to receive,  upon exercise,  an amount  determined by
     multiplying:  (i) the positive difference,  if any, between the Fair Market
     Value  of a Share  on the date of  exercise  and the base  price of the SAR
     contained  in the terms and  conditions  of the Award by (ii) the number of
     Shares with respect to which the SAR is exercised.  Subject to the terms of
     the Plan, the grant price, term, methods of exercise, methods of settlement
     (including  whether  the  Participant  will  be  paid in  cash,  Shares  or
     combination  thereof),  and any other terms and conditions of any SAR shall
     be determined by the Committee. Shares issued in settlement of the exercise
     of SARs  shall be  valued  at their  Fair  Market  Value on the date of the
     exercise.  The Committee  shall  establish the base price of the SAR at the
     time the SARs are awarded,  provided  that the base price shall not be less
     than 100% of the Fair Market  Value on the date of award or the exercise or
     payment  price of the  related  Award if the SAR is granted in  combination
     with or in tandem  with  another

                                       5
<PAGE>

     Award.  The Committee may impose such  conditions  or  restrictions  on the
     exercise of any SAR as it may deem appropriate.

(d)  Stock  Awards.  A Stock Award shall  confer on a  Participant  the right to
     receive a  specified  number of Shares or a cash  equivalent  payment  or a
     combination  thereof,  subject  to the terms and  conditions  of the Award,
     which  may  include   forfeitability   contingencies   based  on  continued
     employment with the Company or on meeting specified performance criteria or
     both. The Committee shall determine the restriction or performance  period,
     the  performance  goals or targets to be  achieved  during any  performance
     period,  the  proportion  of payments,  if any, to be made for  performance
     between the minimum and full performance levels, the restrictions,  if any,
     applicable to any Shares  awarded or received  upon payment of  performance
     shares or units,  and any other terms,  conditions and rights relating to a
     grant of Stock Awards.  A Stock Award may be in the form of Shares or Share
     units.  The  Committee  may also grant Stock Awards that are not subject to
     any  restrictions.  The Committee may provide that, during a performance or
     restriction period, a Participant shall be paid cash amounts,  with respect
     to each Stock Award held by such  Participant,  in the same manner,  at the
     same time and in the same amount paid, as a cash  dividend on a Share.  Any
     other provision of the Plan to the contrary notwithstanding,  the Committee
     may at any time adjust  performance  goals (up or down) and minimum or full
     performance levels (and any intermediate  levels and proportion of payments
     related  thereto),  adjust  the  manner  in  which  performance  goals  are
     measured,  or shorten any  performance  period or waive in whole or in part
     any or all  remaining  restrictions  with  respect  to  Shares  subject  to
     restrictions,  if the Committee  determines that conditions,  including but
     not limited to, changes in the economy,  changes in competitive conditions,
     changes in laws or governmental regulations,  changes in generally accepted
     accounting  principles,  changes  in  the  Company's  accounting  policies,
     acquisitions  or  dispositions  by the  Company or its  Affiliates,  or the
     occurrence  of  other  unusual,  unforeseen  or  extraordinary  events,  so
     warrant.

     Notwithstanding the foregoing, the Committee may designate whether any such
     Award is intended to qualify as "performance-based compensation" within the
     meaning of Code  Section  162(m)  ("Performance-Based  Compensation").  Any
     Award designated as Performance-Based  Compensation shall be conditioned on
     the  achievement  of one or  more of the  following  performance  goals  or
     targets, as selected by the Committee: revenues, earnings per share, return
     on shareholder equity, return on average total capital employed,  return on
     net assets  employed before interest and taxes and/or economic value added.
     For Awards intended to be Performance-Based Compensation, the grant of such
     Award and the  establishment of the performance  goal(s) or target(s) shall
     be made  during the period  required  under Code  Section  162(m),  and the
     Committee  shall not have discretion to increase the amount of compensation
     payable that would  otherwise be due upon the  Participant's  attainment of
     the performance goal(s) or target(s).

                                       6
<PAGE>

Section 8:   General Provisions Applicable to Awards

(a)  No Consideration for Awards. Awards shall be granted to Participants for no
     cash consideration unless otherwise determined by the Committee.

(b)  Transferability  and  Exercisability.  No Award  subject to the Plan and no
     right  under any such Award  shall be  assignable,  alienable,  saleable or
     otherwise transferable by the Participant other than by will or the laws of
     descent and distribution;  provided,  however,  that if so permitted by the
     Committee,  a Participant may (i) designate a beneficiary or  beneficiaries
     to exercise the Participant's  rights and receive any  distributions  under
     the Plan upon the Participant's death and (ii) transfer an Award.

(c)  General Restrictions.  Each Award shall be subject to the requirement that,
     if at any time the Committee shall determine, in its sole discretion,  that
     the listing, registration or qualification of any Award under the Plan upon
     any  securities  exchange or under any state or federal law, or the consent
     or approval of any government regulatory body, is necessary or desirable as
     a condition  of, or in connection  with,  the granting of such Award or the
     grant or settlement thereof,  such Award may not be exercised or settled in
     whole or in part unless such listing, registration,  qualification, consent
     or  approval  have been  effected or obtained  free of any  conditions  not
     acceptable to the Committee.

(d)  Grant Terms and  Conditions.  The Committee  shall determine the provisions
     and duration of grants made under the Plan, including the option prices for
     all Stock Options, the base prices for all SARs, the consideration, if any,
     to be required from Participants for Stock Awards, and the conditions under
     which a  Participant  will retain rights under the Plan in the event of the
     Participant's  termination  of  employment  while  holding any  outstanding
     Awards.

(e)  Tax Withholding.  The Company shall have the right, upon issuance of Shares
     or payment  of cash in respect of an Award,  to reduce the number of Shares
     or amount of cash, as the case may be, otherwise issuable or payable by the
     amount necessary to satisfy any federal,  state or local  withholding taxes
     or to take such other  actions  as may be  necessary  to  satisfy  any such
     withholding  obligations.  The  Committee  may  require  or  permit  Shares
     including  previously  acquired  Shares and Shares that are part of, or are
     received  upon  exercise of the Award,  to be used to satisfy  required tax
     withholding  and such Shares  shall be valued at their Fair Market Value on
     the date the tax withholding is effective.

(f)  Documentation  of Grants.  Awards made under the Plan shall be evidenced by
     written  agreements in such form (consistent with the terms of the Plan) or
     such other appropriate documentation as shall be approved by the Committee.
     The  Committee  need  not  require  the  execution  of  any  instrument  or
     acknowledgement  of  notice  of an Award  under  the  Plan,  in which  case
     acceptance  of such Award by the  respective  Participant  will  constitute
     agreement to the terms of the Award.

                                       7
<PAGE>

(g)  Settlement.  Subject  to the  terms of the Plan  and any  applicable  Award
     agreement,  the Committee  shall  determine  whether  Awards are settled in
     whole or in part in  cash,  Shares,  or other  Awards.  The  Committee  may
     require or permit a  Participant  to defer all or any  portion of a payment
     under the Plan,  including  the  crediting of interest on deferred  amounts
     denominated in cash.

(h)  Change in Control.  In order to preserve a  Participant's  rights  under an
     Award  in the  event of a Change  in  Control  (as  defined  below)  of the
     Company,  the Committee in its discretion may, at the time an Award is made
     or at any time thereafter,  take one or more of the following actions:  (i)
     provide for the acceleration of any time period relating to the exercise or
     realization  of the Award,  (ii) provide for the purchase of the Award upon
     the  Participant's  request  for an amount of cash or other  property  that
     could have been received upon the exercise or  realization of the Award had
     the Award been currently exercisable or payable,  (iii) adjust the terms of
     the Award in a manner  determined by the Committee to reflect the Change in
     Control,  (iv) cause the Award to be  assumed,  or new  rights  substituted
     therefore,  by  another  entity,  or (v) make such other  provision  as the
     Committee may consider  equitable and in the best interests of the Company.
     For  purposes  of this Plan,  a Change in  Control  shall be deemed to have
     occurred if the Johnson Family (as defined below) shall at any time fail to
     own stock of the Company  having,  in the  aggregate,  votes  sufficient to
     elect at least a fifty-one  percent (51%)  majority of the directors of the
     Company.  Johnson  Family shall mean at any time,  collectively,  Samuel C.
     Johnson,  his wife and their  children and  grandchildren,  the executor or
     administrators  of the  estate or other  legal  representative  of any such
     person,  all trusts for the benefit of the  foregoing or their heirs or any
     one or more of them, and all  partnerships,  corporations or other entities
     directly or  indirectly  controlled  by the foregoing or any one or more of
     them.

Section 9:   Miscellaneous

(a)  Plan  Amendment.  The Board  may  amend,  alter,  suspend,  discontinue  or
     terminate the Plan as it deems  necessary or  appropriate to better achieve
     the purposes of the Plan; provided, however, that no amendment, alteration,
     suspension,  discontinuation or termination of the Plan shall in any manner
     (except  as  otherwise  provided  in the Plan)  adversely  affect any Award
     granted  and then  outstanding  under the Plan  without  the consent of the
     respective Participant.

     The  Committee  may,  in whole or in part,  waive any  conditions  or other
     restrictions with respect to, and may amend, alter, suspend, discontinue or
     terminate any Award granted under the Plan to a Participant,  prospectively
     or  retroactively,  but  no  such  action  shall  impair  the  rights  of a
     Participant  without  his or her  consent,  except  as  otherwise  provided
     herein.

(b)  No Right to  Employment.  No  person  shall  have any  claim or right to be
     granted  an Award,  and the grant of an Award  shall  not be  construed  as
     giving  a  Participant  the  right to  continued  employment.  The  Company
     expressly reserves the right at any time

                                       8
<PAGE>

     to dismiss a  Participant  free from any liability or claim under the Plan,
     except as expressly provided by an applicable Award.

(c)  No Rights as  Shareholder.  Only upon  issuance of Shares to a  Participant
     (and only in  respect  to such  Shares)  shall the  Participant  obtain the
     rights of a shareholder,  subject,  however,  to any limitations imposed by
     the terms of the applicable Award.

(d)  No Fractional  Shares.  No fractional  shares or other  securities shall be
     issued  under the Plan,  however,  the  Committee  may  provide  for a cash
     payment as settlement in lieu of any fractional shares.

(e)  Other  Company  Benefit  and  Compensation  Programs.  Except as  expressly
     determined by the Committee, settlements of Awards received by Participants
     under  this Plan  shall not be deemed as part of a  Participant's  regular,
     recurring  compensation  for purposes of  calculating  payments or benefits
     from any Company benefit or severance  program (or severance pay law of any
     country).   The  above   notwithstanding,   the  Company  may  adopt  other
     compensation  programs,  plans or arrangements  as it deems  appropriate or
     necessary.

(f)  Unfunded Plan. Unless otherwise determined by the Committee, the Plan shall
     be unfunded  and shall not create (or be  construed to create) a trust or a
     separate  fund(s).  The Plan shall not create  any  fiduciary  relationship
     between the Company and any Participant or other person.  To the extent any
     person holds any rights by virtue of an Award granted under the Plan,  such
     right shall be no greater than the right of an unsecured  general  creditor
     of the Company.

(g)  Successors and  Assignees.  The Plan shall be binding on all successors and
     assignees of a Participant,  including,  without limitation,  the estate of
     such Participant and the executor, administrator or trustee of such estate,
     or  any  receiver  or  trustee  in  bankruptcy  or  representative  of  the
     Participant's creditors.

(h)  Governing  Law. The validity,  construction  and effect of the Plan and any
     actions  taken  under or  relating  to the  Plan  shall  be  determined  in
     accordance  with the laws of the State of Wisconsin and applicable  federal
     law.

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