Document:

PROQUEST COMPANY

SEPARATION BENEFITS PLAN

(Conformed Copy Including All Amendments Effective Through January 1, 2004)

 

TABLE OF CONTENTS

                                                                          Page

 

 

 

	
            SECTION 1
 	
            Introduction
 	
            1
 
	
             
 	
            1.1
 	
            Purpose
 	
            1
 
	
             
 	
            1.2
 	
            Effective Date, Plan Year
 	
            1
 
	
             
 	
            1.3
 	
            Administration
 	
            1
 
	
            SECTION 2
 	
            Definitions
 	
            1
 
	
             
 	
            2.1
 	
            Administrator
 	
            1
 
	
             
 	
            2.2
 	
            Annual Pay
 	
            2
 
	
             
 	
            2.3
 	
            Company
 	
            2
 
	
             
 	
            2.4
 	
            Employee
 	
            2
 
	
             
 	
            2.5
 	
            Years of Service
 	
            2
 
	
             
 	
            2.6
 	
            Nonexempt and Exempt Participants
 	
            3
 
	
             
 	
            2.7
 	
            Participant
 	
            3
 
	
             
 	
            2.8
 	
            Plan
 	
            3
 
	
             
 	
            2.9
 	
            Subsidiary
 	
            3
 
	
             
 	
            2.10
 	
            Weekly Pay
 	
            3
 
	
            SECTION 3
 	
            Participation
 	
            3
 
	
            SECTION 4
 	
            Separation Benefits
 	
            4
 
	
             
 	
            4.1
 	
            Eligibility for Separation Benefits
 	
            4
 
	
             
 	
            4.2
 	
            Separation Pay Benefits
 	
            4
 
	
             
 	
            4.3
 	
            Method of Payment of Separation Pay Benefits
 	
            4
 
	
             
 	
            4.4
 	
            Continued Benefit Plan Coverage
 	
            4
 
	
             
 	
            4.5
 	
            Accrued Vacation Benefits
 	
            5
 
	
             
 	
            4.6
 	
            Death Benefits
 	
            5
 
	
             
 	
            4.7
 	
            Cause
 	
            5
 
	
             
 	
            4.8
 	
            Involuntary Termination Due to Job Relocation
 	
            6
 
	
             
 	
            4.9
 	
            Profit Sharing Retirement Plan Contributions
 	
            6
 
	
             
 	
            4.10
 	
            Reemployment
 	
            6
 
	
             
 	
            4.11
 	
            Acquisition Activity
 	
            6
 
	
            SECTION 5
 	
            Bonus Plan Benefits
 	
            6
 
	
            SECTION 6
 	
            Claims for Benefits
 	
            7
 
	
            SECTION 7
 	
            Miscellaneous
 	
            7
 
	
             
 	
            7.1
 	
            Withholding of Taxes
 	
            7
 
	
             
 	
            7.2
 	
            Amendment or Termination
 	
            7
 
	
             
 	
            7.3
 	
            No Right to Company Assets
 	
            7
 
	
             
 	
            7.4
 	
            Selling or Closing of a Unit
 	
            8
 
	
             
 	
            7.5
 	
            Information to be Furnished by Participant
 	
            8
 
	
             
 	
            7.6
 	
            Employment Rights
 	
            8
 
	
             
 	
            7.7
 	
            Evidence
 	
            8
 
	
             
 	
            7.8
 	
            Uniform Rules
 	
            8
 
	
             
 	
            7.9
 	
            Gender and Number
 	
            9
 
					

 

 

	
             
 	
            -i-
 	
             
 

 

 

TABLE OF CONTENTS

(continued)

                                                                          Page

 

 

	
             
 	
            7.10
 	
            Action by Company or any Subsidiary
 	
            9
 
	
             
 	
            7.11
 	
            Controlling Laws
 	
            9
 
	
             
 	
            7.12
 	
            Interests Not Transferable
 	
            9
 
	
             
 	
            7.13
 	
            Mistake of Fact
 	
            9
 
	
             
 	
            7.14
 	
            Severability
 	
            9
 
	
             
 	
            7.15
 	
            Vesting
 	
            9
 
	
             
 	
            7.16
 	
            Headings and Counterparts
 	
            9
 
	
            EXHIBIT A
 	
            1
 

 

	
             
 	
            -ii-
 	
             
 

 

 

 

 

PROQUEST COMPANY

SEPARATION BENEFITS PLAN

SECTION 1

 

Introduction

	
            1.1
 	
            Purpose
 

ProQuest Company (the “Company”), formerly known as Bell & Howell Company, and certain of its Subsidiaries maintain ProQuest Company Separation Benefits Plan (the “Plan”).  The Plan was established effective May 1, 1991 to provide separation and other benefits to eligible U.S. employees, and the Plan was amended from time to time.

	
            1.2
 	
            Effective Date, Plan Year
 

The “Effective Date” of the Plan is January 1, 2004.  The Plan applies to Employees who are Participants in the Plan on and after January 1, 2004.  Separation benefits provided by any participant who terminated employment before January 1, 2004 shall be governed by the terms of the Plan as in effect on the date of termination.  The “Plan Year” is the 12-month period beginning on January 1 and ending on the next following December 31.

	
            1.3
 	
            Administration
 

The Company shall be the “Administrator” of the Plan and the “named fiduciary” within the meaning of such terms as defined in the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  The Administrator, from time to time, may adopt such rules as may be necessary or desirable for the proper and efficient run of the Plan and as are consistent with the terms of the Plan.  The Administrator may also appoint such individuals to act as the Administrator’s representatives as the Administrator considers necessary or desirable for the effective administration of the Plan.  Any notice or document required to be given or filed with the Administrator will be properly given or filed if delivered or mailed, by registered mail, postage prepaid, to the Human Resources Officers of the Company or the Human Resources officers of the Subsidiary with which the
Participant is employed.  The Administrator shall have the discretionary authority to construe the terms of the Plan and to conclusively determine claims for Plan benefits.  The decisions of the Administrator shall be final and conclusive with respect to all questions concerning the administration of the Plan.

 

 

 

 

SECTION 2

 

Definitions

	
            2.1
 	
            Administrator
 

The term “Administrator” means the Company.

	
            2.2
 	
            Annual Pay
 

The term “Annual Pay” shall mean the sum of the following:

	
             
 	
            2.2.1
 	
            the Participant’s annual base salary rate, and
 

2.2.2    sales commissions, if applicable, such amount to be the average of the Participant’s commissions over the three (3) prior full calendar years (or fiscal years, if applicable); in the event there is no three (3) full years prior history, the sales commissions for purposes of computing Annual Pay shall be the average of the prior two (2) full calendar years or the amount in the prior year if a two (2) full year average is not available.

A Participant’s Annual Pay shall be the aggregate amount determined under subsections 2.2.1 and 2.2.2.  immediately prior to the date the Participant’s employment terminates.

	
            2.3
 	
            Company
 

The term “Company” means ProQuest Company.

	
            2.4
 	
            Employee
 

The term “Employee” means a regular, active, full time, U.S. employee of the Company or the Subsidiary by which he is employed, but excluding the following:

2.4.1    any employee who is a member of a unit represented by a collective bargaining representative with respect to terms and conditions of employment, provided that the collective bargaining agreement does not require extension of the Plan to members of such unit, and

2.4.2    any employee who is a temporary employee including, but not limited to, an employee hired to work on a project basis.

A “full time” employee means an employee with a regularly scheduled workweek of at least 40 hours.  An employee whose regularly scheduled workweek is less than 40 hours is considered part time and is not covered by the Plan.

An employee on leave of absence at the time of termination of employment is not deemed to be an active employee and therefore is not eligible to participate in the Plan.

 

 

	
             
 	
            - 2 -
 

 

 

 

The Company reserves the right to designate as Employees for purposes of the Plan individuals employed by the Company or by a Subsidiary who do not satisfy the definition of Employee set forth above.

	
            2.5
 	
            Years of Service
 

The term “Years of Service” shall mean the number of continuous and uninterrupted full years that the Participant was employed by the Company and/or any Subsidiary ending on the date the Participant’s employment is terminated.

	
            2.6
 	
            Nonexempt and Exempt Participants
 

The term “Nonexempt Participant” means a Participant who is determined by the Company or the Subsidiary by which he is employed to be nonexempt for purposes of the Fair Labor Standards Act.  The term “Exempt Participant” means all other Participants.

	
            2.7
 	
            Participant
 

The term “Participant” means any Employee who becomes covered under the Plan in accordance with the provisions of Section 3.  No Participant in this Plan will receive Separation Benefits under Section 4 if he is entitled to benefits from the Company pursuant to a key employee termination agreement or officer compensation continuation agreement.  However, such a Participant will be entitled to vacation pay benefits under Section 4.5, health and other employee plan benefits under Section 4.4 and bonus benefits under Section 5, to the extent not provided under the key employee termination agreement or officer compensation continuation agreement.

	
            2.8
 	
            Plan
 

The term “Plan” means ProQuest Company Separation Benefits Plan, as amended from time to time.

	
            2.9
 	
            Subsidiary
 

The term “Subsidiary” means a U.S. subsidiary of the company eighty percent (80%) or more of the stock of which is owned, directly or indirectly, by the company.

	
            2.10
 	
            Weekly Pay
 

The term “Weekly Pay” shall mean an amount equal to Annual Pay divided by fifty-two (52).

 

 

	
             
 	
            - 3 -
 

 

 

 

SECTION 3

 

Participation

As of the Effective Date, there shall be no waiting period to be a Participant under the Plan.  Therefore, all Employees who are Participants on January 1, 2004 shall continue to be Participants under the Plan, and all other Employees shall become Participants on the later to occur of (i) January 1, 2004 and (ii) the date on which the Employee is employed by the Company or a Subsidiary.

SECTION 4

 

Separation Benefits

	
            4.1
 	
            Eligibility for Separation Benefits
 

Except as provided below, in the event of an involuntary termination of employment by the Company or by a Subsidiary for any reason other than Cause (as defined in Section 4.7), or upon an involuntary termination due to job relocation (as described in Section 4.8), each Employee who becomes a Participant in accordance with Section 3 and is an Employee as of the date of termination of employment shall be eligible for Separation Pay Benefits in accordance with this Section.  Notwithstanding the foregoing, Employees in the following categories will not be eligible for Separation Pay Benefits under the Plan:

4.1.1    Employees who voluntarily terminate their employment with the Company by resignation or otherwise (including retirement) prior to being terminated by the Company and employees who die while employed.

4.1.2    Employees who are terminated as a result of acts beyond the Company’s control, such as fire, flood, explosion, bombing, tornado, epidemic health crisis, earthquake or any act of God, nature, war or terrorism.

4.1.3    Employees who are eligible under another separation plan relative to acquisition activity as described in Section 4.11.

	
            4.2
 	
            Separation Pay Benefits
 

The Separation Pay Benefits payable to each eligible Participant shall be two (2) weeks base pay, payable within thirty (30) days from receipt of a written termination notice.  Notwithstanding any provisions contained in the Plan to the contrary, in the event a Participant executes the General Release appended to the Plan, as it may be modified from time to time by the Company, the Participant shall be entitled to the Separation Pay Benefits as set forth in Exhibit A in lieu of the Separation Pay Benefits set forth in this Section 4.2.

 

 

	
             
 	
            - 4 -
 

 

 

 

	
            4.3
 	
            Method of Payment of Separation Pay Benefits
 

A Participant’s Separation Pay Benefits shall be paid in the form of a series of salary continuation payments at the Participant’s regular payroll period for the duration of the Participant’s benefit period as determined in accordance with Section 4.2 and Exhibit A.

	
            4.4
 	
            Continued Benefit Plan Coverage
 

After a Participant’s termination of employment entitling him to Separation Benefits as described in Section 4.1, if the Participant executes a General Release as described in Section 4.2, the Company or the Subsidiary by which he was employed shall maintain in full force and effect for the benefit of the Participant and his family the medical, dental and vision coverages in which the Participant and his family participated immediately prior to his termination of employment; provided however, the Participant must pay the employee contribution at the then current rate.  Such coverage shall continue for a period of weeks equal to the number of weeks for which Separation Pay Benefits are provided under Paragraph 1 of Exhibit A of the Plan.  However, if continued participation of the Participant and his family is not permitted under the terms and provisions of any such plan, or would result
in unfavorable tax treatment to the Company, in lieu of continued coverage thereunder the Company or the Subsidiary with which he was employed shall arrange at the employee’s expense to provide the Participant and his family with the same type of coverage (single/family) and coverage option under the Company’s medical, dental and vision plans.  Notwithstanding any provisions herein to the contrary, a Participant’s family shall not be entitled to benefit plan coverage if they did not participate in such plan prior to the Participant’s termination of employment.  Coverage for a Participant and his family shall only continue until the earlier of (A) the end of the applicable period as described in Exhibit A, (B) the date on which the Participant becomes eligible for medical, dental or vision coverage with another employer, (C) the date the Participant fails to pay the required premiums for coverage, (D) the date the Participant attains age 65 or becomes eligible for
Medicare, (E) the date a dependent of the Participant ceases to be a dependent as defined in the medical, dental or vision plan, or (F) the Participant accepts employment in a job position which offers medical benefits.  If a Participant is to have continued benefit plan coverage under this Section 4.4, he must enroll for coverage within 3 1 days after his employment with the Company terminates.

	
            4.5
 	
            Accrued Vacation Benefits
 

Upon a termination of employment, as provided in Section 4.1, a Participant will receive a lump sum payment equal to the Participant’s accrued but unused vacation pay.

	
            4.6
 	
            Death Benefits
 

If a Participant becomes entitled to Separation Benefits under this Section 4 but his death occurs prior to full payment of the Separation Pay Benefits provided in 

 

	
             
 	
            - 5 -
 

 

 

this Section, any amount remaining to be paid shall be paid to the Participant’s surviving spouse or, if none, to the Participant’s estate.  Amounts payable to the Participant’s surviving spouse or estate shall be paid at the same time as payments would have been made to the Participant under Section 4.3.

	
            4.7
 	
            Cause
 

The Company or the Subsidiary with which the Participant was employed will not make any payments under the Plan to the Participant if he is terminated for Cause, “Cause” being (i) engaging in willful, reckless or grossly negligent misconduct which its materially injurious to the Company or the Subsidiary by which he was employed, (ii) the continued failure of the Participant to perform his duties with the Company or the Subsidiary by which he was employed.  (iii) termination as a result of the Company’s corrective action process, or (iv) termination for any of the activities set forth in the Company’s policies as leading to immediate termination.

	
            4.8
 	
            Involuntary Termination Due to Job Relocation
 

A Participant’s termination of employment will be considered as involuntary if it is solely on account of a Participant’s election not to relocate, subsequent to a requirement by the Company or the Subsidiary by which he is employed that the Participant relocate to any facility more than fifty (50) miles from the location at which the Participant performed his duties.

	
            4.9
 	
            Profit Sharing Retirement Plan Contributions
 

For the Plan year in which employment terminates, a Participant entitled to Separation Pay Benefits will also be entitled to an employer matching contribution, to the extent so provided under subsection 4.3 of the ProQuest Profit Sharing Retirement Plan, according to the formula used to determine employer contributions under the Plan.

	
            4.10
 	
            Reemployment
 

If a Participant receiving Separation Pay Benefits is subsequently reemployed by the Company or a Subsidiary, any remaining Severance Pay Benefits scheduled to be paid shall be cancelled, and except as provided below no additional benefits shall be payable on account of the Participant’s termination of employment.  Upon reemployment, a Participant who was receiving Severance Pay Benefits shall be treated as a new Employee for all purposes of the Plan, including for purposes of the Schedules in Exhibit A of the Plan.  However, if a reemployed Participant again is involuntarily terminated and at his subsequent termination the Participant is again eligible for benefits under Section 4.1, the Participant’s Separation Pay Benefits shall be the greater of (i) any remaining payments which were unpaid following the Participant’s first termination of employment, or (ii) the
Participant’s Separation Pay Benefits as determined under Section 4.2 and Exhibit A, based on his number of Years of Service since reemployment.

 

 

	
             
 	
            - 6 -
 

 

 

 

	
            4.11
 	
            Acquisition Activity
 

In the event of an acquisition, the Company reserves the right to follow the Plan, or the severance plan of the acquired Subsidiary or Company, pursuant to the terms of the sales agreement for the acquisition.  In no event, shall an Employee be eligible for benefits under more than anyone separation plan.

SECTION 5

 

Bonus Plan Benefits

A Participant who is also covered by a Company-sponsored bonus plan, as amended, modified, restated and superseded from time to time, shall be eligible, upon termination of employment, for benefits determined in accordance with the terms of the bonus plan(s).

SECTION 6

 

Claims for Benefits

It is not necessary that a Participant apply for benefits under the Plan.  However, if a Participant wishes to file a claim for benefits, such claim must be in writing and filed with the Administrator or any designated delegate.  If a claim is denied, the Administrator, within ten (10) days after it receives the claim, will furnish the claimant with written notice of its decision, setting forth the specific reasons for the denial, references to the Plan provisions on which the denial is based, additional information necessary to perfect the claim, if any, and a description of the procedure for review of the denial.  A claimant, or his authorized representative, may request a review of the denial of a claim for benefits by filing a written application with the Administrator within sixty (60) days after he receives notice of the denial.  Such claimant or his authorized representative is
entitled to review pertinent plan documents and submit written issues and comments to the Administrator.  The Administrator, within ten (10) days after he receives a request for review, will furnish the claimant or his authorized representative, with written notice of its decision, setting forth the specific reasons for the decision and references to the pertinent Plan provisions on which the decision is based.

SECTION 7

 

Miscellaneous

	
            7.1
 	
            Withholding of Taxes
 

The Company or the Subsidiary by which he is employed will withhold from any amount payable under the Plan all federal, state.  city and local taxes as shall be legally required.

 

 

	
             
 	
            - 7 -
 

 

 

 

	
            7.2
 	
            Amendment or Termination
 

The Plan may be amended in writing from time to time or the Plan may be terminated in writing at any time by the Company.  However, no amendment or termination shall be effective until a date that is no earlier than thirty (30) days from the date of the amendment or termination of the Plan.  All affected Participants will be promptly notified of any amendment or termination of the Plan.

	
            7.3
 	
            No Right to Company Assets
 

Neither a Participant nor any other person shall acquire by reason of the Plan any right in or title to any assets, funds or property of the Company or any Subsidiary.  Any benefits which become payable hereunder (i) are unfunded obligations of the Company and each Subsidiary and (i) shall be paid from the general assets of the Company or the Subsidiary by which the Participant is employed, except to the extent such benefits are paid from a so-called “rabbi trust” established by the Company or a Subsidiary, the assets of which are subject to the claims of the Company’s or any Subsidiary’s creditors in specified circumstances.

	
            7.4
 	
            Selling or Closing of a Unit
 

Where a subsidiary or a plant, facility or any portion of the Company or a Subsidiary is sold, the provisions of the Plan shall not apply to affected Participants.  In each such case, a separation arrangement, if any, may be developed within the limits of the Plan covering individual sale situations.  Such arrangements must be approved by the Administrator.  In the event of the sale of a Subsidiary, the Subsidiary will have no further rights to participate as a party to this Plan but will be subject to any liabilities and obligations incurred prior to the date of sale.  In the event the Company enters into a business relationship with a third party to perform services which results in duties substantially performed by associates being transferred to the third party and associate is offered employment by the third party not requiring relocation (as defined under Section 4.8) and involving
equivalent pay defined as +/- 10% of current base and bonus, separation benefits will not be payable.  When a plant, facility, unit or any portion of the Company or a Subsidiary is closed or discontinued, the provisions of the Plan apply to affected Participants

	
            7.5
 	
            Information to be Furnished by Participant
 

Participants and other persons entitled to benefits under the Plan must furnish to the Administrator or any designated delegate such documents, evidence, data or other information as the Administrator considers necessary or desirable for the purpose of administering the Plan.  The provisions of the Plan for each Participant and each other person who is entitled to benefits under the Plan are on the condition that he furnish full, true and complete data, evidence or other information, and that he will promptly sign any document reasonably related to the administration of the Plan requested by the Administrator or any designated delegate.

 

 

	
             
 	
            - 8 -
 

 

 

 

	
            7.6
 	
            Employment Rights
 

The Plan does not constitute a contract of employment and participation in the Plan will not give a participant the right to be rehired or retained in the employ of the company or any subsidiary, nor will participation in the Plan give any participant any right or claim to any benefit under the Plan, unless specifically provided under the terms of the Plan.

	
            7.7
 	
            Evidence
 

Evidence required of anyone under the Plan may be by certificate, affidavit, document or other information which the person relying thereon considers pertinent and reliable, and signed, made or presented by the proper party or parties.

	
            7.8
 	
            Uniform Rules
 

In managing the Plan, the Administrator will apply uniform rules to all Participants similarly situated.

	
            7.9
 	
            Gender and Number
 

Where the context admits, words in the masculine gender shall include the feminine and neuter genders, the plural shall include the singular and the singular shall include the plural.

	
            7.10
 	
            Action by Company or any Subsidiary
 

Any action required or permitted by the Company or any Subsidiary under the Plan shall be by action of the Administrator or any designated delegate.

	
            7.11
 	
            Controlling Laws
 

Except to the extent superseded by ERISA, the laws of Michigan shall be controlling in all matters relating to the Plan.

	
            7.12
 	
            Interests Not Transferable
 

The interests of persons entitled to Separation Benefits under the Plan are not subject to their debts or other obligations and, except as may be required by the tax withholding provisions of the Internal Revenue Code or any state’s income tax act, may not be voluntarily or involuntarily sold, transferred, alienated, assigned or encumbered.

	
            7.13
 	
            Mistake of Fact
 

Any mistake of fact or misstatement of fact shall be corrected when it becomes known and proper adjustment made by reason thereof

 

 

	
             
 	
            - 9 -
 

 

 

 

	
            7.14
 	
            Severability
 

In the event any provision of the Plan shall be held to be illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if such illegal or invalid provisions had never been contained in the Plan.

	
            7.15
 	
            Vesting
 

Employees and Participants shall have no vested rights in the benefits provided under the Plan.

	
            7.16
 	
            Headings and Counterparts
 

The headings of the Plan are inserted for convenience only and are not to be considered in construction of the provisions hereof The Plan may be executed simultaneously in multiple counterparts each of the same force and effect.

 

	
             
 	
            - 10 -
 

 

 

 

EXHIBIT A

TO

PROQUEST

SEPARATION BENEFITS PLAN

Upon the execution by an eligible Participant of a General Release in a form provided by the Company:

	
            1.
 	
            Separation Pay Benefits payable to each such eligible Participant shall be determined as set forth below:
 

	
            Category of Employee
 	
            Benefit Period
 
	
            Nonexempt Participant (hourly and clerical)
 	
            Weekly Pay for two (2) weeks, plus one (1) additional week for each Year of Service, up to an aggregate maximum of Weekly Pay for sixteen (16) weeks.
 
	
            Exempt Participant, other than a Participant described in the next category below
 	
            Weekly Pay for four (4) weeks, plus one (1) additional week for each Year of Service, up to an aggregate maximum of Weekly Pay for  twenty-six (26) weeks.
 
	
            Exempt Participant in any of the following categories:

•     Band I or II Executive Pay Band

•     Exempt Grade 14 and above
 	
            Weekly Pay for twelve (12) weeks, plus one and one-half (1-1⁄2) additional weeks for each Year of Service, up to an aggregate maximum of Weekly Pay for  forty-two (42) weeks.
 

For purposes of the above schedule, in addition to a Participant’s Full Years of Service, a partial Year of Service shall also be counted, and a Participant will receive credit for less than a full Year of Service based on completed calendar months divided by twelve.

	
            1.
 	
            All payments under Paragraph 1 of this Exhibit A shall be made in accordance with Section 4.3 of the Plan.
 

 

 

	
             
 	
            - 1 -Exhibit 10.1
                             EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT is made as of December 12, 2005, between MID-
WISCONSIN FINANCIAL SERVICES, INC., its successors and assigns (the "Company")
and JAMES WARSAW (the "Executive").

                                   RECITALS

      The Company and the Executive acknowledge the following:

      A.    The Executive has valuable expertise and experience in the
Company's business which will enable him to provide valuable business and
management services to the Company.

      B.    The Company desires to employ the Executive and the Executive
desires to accept such employment on the terms and conditions set forth in this
Agreement.

      C.    The Executive's employment is expressly conditioned upon entering
into this Agreement and the Company will not employ the Executive absent his
execution of this Agreement.

                                  AGREEMENTS

      In consideration of the mutual covenants and agreements set forth in this
Agreement, the parties agree as follows:

      1.    Employment.  The Company employs the Executive and the Executive
accepts employment with the Company on the terms and conditions set forth in
this Agreement.

      2.    Term.  The term of the Executive's employment shall commence on the
date of this Agreement and continue until December 12, 2008, unless sooner
terminated in accordance with the terms hereof (the "Employment Period").

      3.    Duties.  The Executive shall serve as President and Chief Executive
Officer of the Company and will, under the direction of the Board of Directors
of the Company, faithfully and to the best of his ability perform the duties
assigned to him from time to time by the Board of Directors.  The Executive
agrees to devote his entire business time, effort, skill and attention to the
discharge of such duties while employed by the Company.  During the Employment
Period, Executive shall be appointed to the Board of Directors of the Mid-
Wisconsin Bank (the "Bank") and shall also be nominated for election to the
Board of Directors of the Company at the Company's annual meeting of
shareholders.  Executive shall not receive a separate fee for sitting on the
Board of Directors of the Company or the Bank.  Executive may also be appointed
to assume the duties of President of the Bank.

      4.    Compensation.  The Executive shall receive a base salary of
$230,000 per year ("Base Salary") for all duties performed on behalf of the
Company, the Bank and their affiliates, which will be payable in regular
installments in accordance with the Company's regular payroll practices and
which will be subject to ordinary tax withholding and all required deductions.
Except as otherwise provided, the Company's obligation to pay Base Salary shall
terminate upon termination of this Agreement.
<PAGE>
      5.    Benefits.

            (a)   Insurance.  The Executive shall be eligible to participate in
any group health, life, dental, or other group insurance plan offered by the
Company to its executive employees, subject to the terms, provisions and
limitations of such plans or programs, during the Employment Period.  The
Executive shall pay any required employee contribution for such plans.

            (b)   Reimbursement for Reasonable Business Expenses.  The Company
shall reimburse the Executive for reasonable expenses incurred by him in
connection with the performance of his duties pursuant to this Agreement, which
are consistent with the Company's policies in effect from time to time,
including, but not limited to, travel expenses, expenses in connection with
seminars, professional conventions or similar professional functions and other
reasonable business expenses.  The Executive agrees to provide the Company with
receipts and/or documentation sufficient to permit the Company to take its full
business expense deduction.

            (c)   Automobile.  The Company agrees to reimburse the Executive
for an amount to be agreed upon by the Executive and the Company for the lease
of a vehicle by the Executive.  In the alternative, the Company and the
Executive may agree that the Company will purchase a mutually agreeable vehicle
for the exclusive use of the Executive.  Additionally, the Company will pay for
the gas used for business purposes.  All maintenance and insurance expense for
the automobile is the responsibility of the Company.  The vehicle will be used
in accordance with all Company policies and procedures.

            (d)   Relocation.  The Company will pay reasonable and necessary
relocation expenses which will include visits to the Wausau area to look at new
real estate, transportation costs for Executive and his family, costs of moving
household furniture and furnishings, and the reasonable costs for interim
housing for up to six months while Executive looks for permanent housing in the
Wausau area.  The Executive will obtain quotes from two moving companies
acceptable to him and the Company, and will engage the company which provides
the lower cost proposal.

            (e)   Vacation.  The Executive shall be entitled to four weeks of
paid vacation annually, which must be used during the applicable year and not
rolled over to subsequent years.  The Executive and the Company shall mutually
determine the time and intervals of such vacation.

            (f)   Stock Purchase.  Executive shall be entitled to purchase from
the Company up to 20,000 shares of the Company common stock at a purchase price
equal to the fair market value of shares on the date of purchase, based on the
purchase price currently offered by the Company for the repurchase of its
shares which equals $36.00 per share.  Executive shall be entitled to exercise
this purchase right until February 15, 2006.  Any shares which remain
unpurchased after this date shall no longer be eligible for purchase.
Executive acknowledges and
                                       2
agrees that such shares will be unregistered and will not be eligible for
transfer, except as provided by applicable securities laws.

            (g)   Options.  The Company will grant to the Executive options to
purchase 7,500 shares of common stock (the "Options") of the Company pursuant
to the Mid-Wisconsin Financial Services, Inc. 1999 Stock Option Plan.  The
Options shall vest at a rate equal to 20% of the outstanding Options annually,
<PAGE>
beginning on the first anniversary of the date of this Agreement.  The Options
shall have an exercise price of $36.00 per share.

            (h)   Bonuses.  The Executive will participate in a cash bonus plan
which will provide for a target bonus equal to 30% of his Base Salary and a
maximum bonus equal to 50% of his Base Salary.  The criteria for receiving the
bonus will be agreed to annually by the Executive and the Board of Directors of
the Company.  The criteria shall be based 80% on Company and Bank-wide criteria
and 20% shall be based on achieving individual goals set by the Board of
Directors and the Executive.

            (i)   Other Benefits.  Executive shall also be eligible to receive
fringe benefits and to participate in any other retirement or welfare benefit
plan or program generally offered by the Company to its executive employees,
subject to the terms, provisions and limitations of such plans or programs
during the Employment Period.

      6.    Termination of Employment.

            (a)   Termination of the Employment.  The employment of the
Executive shall be terminated before the originally anticipated end of the
Employment Period (i) upon the Executive's death or Disability; (ii) upon the
delivery to the Company of the Executive's written notice of resignation or
(iii) upon the delivery to the Executive of the Company's written notice of
termination with or without Cause or specified reason.

            (b)   Definitions.

                  (i)   For purposes of this Agreement, "Disability" shall mean
[a] a physical or mental condition which qualifies as a total and permanent
disability under the terms of any plan or policy maintained by the Company and
for which the Executive is eligible to receive benefits under such plan or
disability policy, or [b] if the Executive does not participate in a disability
plan, or is not covered by a disability policy, of the Company, "Disability"
means the permanent and total inability of a participant by reason of mental or
physical infirmity, or both, to perform the work customarily assigned to him or
her, if a medical doctor selected or approved by the Board of Directors, and
knowledgeable in the field of such infirmity, advises the Company either that
it is not possible to determine when such Disability will terminate or that it
appears probable that such Disability will continue for a period of at least
one year.

                  (ii)  For purposes of this Agreement, "Cause" shall mean any
one or more of the following on the part of the Executive:  [a] the commission
of an act which results in a payment of a claim filed by the Company or the
Bank under a blanket banker fidelity bond policy as from time to time and at
any time maintained; [b] an intentional and willful failure to substantially
perform his duties; [c] willful misconduct in the course of the Executive's
employment which is demonstrably and materially injurious to the Company or the
Bank;
                                       3
[d] breach of a fiduciary duty involving personal profit or acts or
omissions of personal dishonesty, including, but not limited to, commission of
any crime of theft, embezzlement, misapplication of funds, unauthorized
issuance of obligations, or false entries; [e] any intentional, reckless, or
negligent act or omission to act which results in the violation by the
Executive of any policy established by the Company or the Bank which is
<PAGE>
designed to insure compliance with applicable banking, securities, employment
discrimination laws, except any act done by the Executive in good faith, as
determined in the reasonable discretion of the Board of Directors, or which
results in a violation of such policies or law which is, in the reasonable sole
discretion of such Board of Directors, immaterial; [f] material breach of the
terms of this Agreement by the Executive, which remains uncured after 15 days'
notice from the Company; or [g] failure of the Company to meet the objectives
set forth on Exhibit A for any one-year period.

                  (iii) For purposes of this Agreement, "Change of Control"
shall mean:

                        [a]   the acquisition by any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 30% or more of either [i] the then outstanding shares of
common stock of the Company (the "Outstanding Common Stock") or [ii] the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the "Outstanding
Voting Securities"); provided, however, that the following acquisitions shall
not constitute a Change of Control:  [i] any acquisition directly from the
Company, [ii] any acquisition by the Company, [iii] any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company or [iv] any acquisition by any
corporation pursuant to a transaction which complies with clauses [i], [ii] and
[iii] of subsection [c] of this definition; or

                        [b]   individuals who, as of the date hereof,
constitute the Board of Directors of the Company (the "Incumbent Board") cease
for any reason to constitute at least a majority of the Board of Directors of
the Company; provided, however, that any individual becoming a director
subsequent to the date hereof whose election, or nomination for election by the
Company's stockholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board of Directors of
the Company; or

                        [c]   approval by the stockholders of the Company of a
reorganization, merger or consolidation (a "Business Combination"), in each
case, unless, following such Business Combination, [i] all or substantially all
of the individuals and entities who were the beneficial owners, respectively,
of the Outstanding Common Stock and Outstanding Voting Securities immediately
prior to such Business Combination beneficially own, directly or indirectly,
more than 60% of, respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the
corporation resulting from such Business Combination (including, without
limitation, a corporation which as a result
                                       4
of such transaction owns the Company through one or more Subsidiaries) in
substantially the same proportions as their ownership, immediately prior to
such Business Combination of the Outstanding Common Stock and Outstanding
<PAGE>
Voting Securities, as the case may be; [ii] no Person (excluding any employee
benefit plan (or related trust) of the Company or such corporation resulting
from such Business Combination) beneficially owns, directly or indirectly, 30%
or more of, respectively, the then outstanding shares of common stock of the
corporation resulting from such Business Combination or the combined voting
power of the then outstanding voting securities of such corporation except to
the extent that such ownership existed prior to the Business Combination; and
[iii] at least a majority of the members of the board of directors of the
corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of
the action of the Board of Directors of the Company, providing for such
Business Combination; or

                        [d]   approval by the stockholders of the Company of
(i) a complete liquidation or dissolution of the Company or (ii) the sale or
other disposition of all or substantially all of the assets of the Company,
other than to a corporation, with respect to which following such sale or other
disposition, [i] more than 60% of, respectively, the then outstanding shares of
common stock of such corporation and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly,
by all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Common Stock and
Outstanding Voting Securities immediately prior to such sale or other
disposition in substantially the same proportion as their ownership,
immediately prior to such sale or other disposition, of the Outstanding Common
Stock and Outstanding Voting Securities, as the case may be; [ii] less than 30%
of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by any Person
(excluding any employee benefit plan (or related trust) of the Company or such
corporation), except to the extent that such Person owned 30% or more of the
Outstanding Common Stock or Outstanding Voting Securities prior to the sale or
disposition; and [iii] at least a majority of the members of the board of
directors of such corporation were members of the Incumbent Board at the time
of the execution of the initial agreement, or of the action of the Board of
Directors of the Company, providing for such sale or other disposition of
assets of the Company or were elected, appointed or nominated by the Board of
Directors of the Company.

            (c)   Termination by the Company for Cause, Death or Disability, or
Resignation by the Executive.  In the event of termination of the Executive's
employment by the Company for Cause, death or Disability, or the resignation by
the Executive, payments of the Executive's Base Salary shall be prorated to the
date of termination.  The Company shall have no further obligation to the
Executive, except to the extent such obligations may be imposed by applicable
law or under the terms of a Company plan or program in which Executive is a
participant.

            (d)   Termination Without Cause.  If the Executive's employment is
terminated by the Company for any reason other than for Cause, Disability or
death, or if this Agreement is terminated by the Company for what the Company
believes is Cause and it is ultimately
                                       5
determined by a court of competent jurisdiction that the Executive was
terminated without Cause, the Executive shall receive as severance for such
<PAGE>
termination an amount equal to one year's then Base Salary; provided, however,
that if such termination occurs within one year after the occurrence of, or in
contemplation of, a Change in Control, then Executive shall be entitled to
receive $650,000 (without gross up for taxes or any other amounts).  Such
payments shall be made in accordance with normal payroll practices of the
Company from the date of termination to the first anniversary of the date of
termination; provided, however, that if such payment is equal to $650,000 as
provided in the prior sentence, such amount shall be paid from the termination
date to the third anniversary of the termination date.  During the 18-month
period following a termination under this paragraph 6(d), the Company shall
also reimburse the Executive for amounts paid, if any, to continue medical,
dental and health coverage pursuant to the provisions of the Consolidated
Omnibus Budget Reconciliation Act.  The Company shall have no further
obligation to the Executive except to the extent such obligations may be
imposed by applicable law or under the terms of a Company plan or program in
which Executive is a participant.

      7.    Non-competition/Non-solicitation/Confidential Information.
Executive acknowledges that the development of personal contacts and
relationships is an essential element of the Company's and the Bank's business,
that the Company and the Bank have invested considerable time and money in
development of such contacts and relationships, that the Company and the Bank
could suffer irreparable harm if he were to leave the Company's employment and
solicit the business of customers of the Company or the Bank and that it is
reasonable to protect the Company and the Bank against competitive activities
by Executive.  Executive covenants and agrees, in recognition of the foregoing
and in consideration of the mutual promises contained herein, that in the event
of a termination of his employment with the Company, Executive shall not accept
employment with any Significant Competitor of the Company for a period of
eighteen (18) months following such termination.  For purposes of this
Agreement, the term "Significant Competitor" means any financial institution
including, but not limited to, any trust company, bank, savings and loan
association, credit union, or mortgage company which, at the time of
termination of Executive's employment with the Company or during the period of
this covenant not to compete, has a home, branch or other office within a
25-mile radius of any office operated or maintained by the Company or the Bank
(the "Territory").

            Executive agrees that during the term of his employment with the
Company, and for a term of eighteen (18) months thereafter, he will not,
directly or indirectly, within the Territory, on behalf of himself or on behalf
of any other individual or entity, as an agent or otherwise contact, influence
or encourage any of the customers of the Company or the Bank, of which
Executive has knowledge or based on his capacity of employment for the Company
or the Bank should reasonably have had knowledge, for the purpose of soliciting
business or inducing such customer to acquire any product or service that is
provided by the Company or the Bank from any entity other than the Company or
the Bank.

            Executive agrees that during the term of his employment with the
Company, and for a period of eighteen (18) months thereafter, he will not,
directly or indirectly, encourage, induce, or entice any employee of the
Company or the Bank to leave the employment of the Company or the Bank.
                                       6
            Executive agrees that the non-competition and non solicitation
provisions set forth herein are necessary for the protection of the Company and
its affiliates and are reasonably limited as to (a) the scope of activities
<PAGE>
affected, (b) their duration and geographic scope, and (c) their effect on
Executive and the public.  In the event Executive violates the non-competition
and non-solicitation provisions set forth herein, the Company shall be
entitled, in addition to its other legal remedies, to enjoin the employment of
Executive with any Significant Competitor for the period set forth herein.  If
Executive violates this covenant and the Company brings legal action for
injunctive or other relief, the Company shall not, as a result of the time
involved in obtaining such relief, be deprived of the benefit of the full
period of the restrictive covenant.  Accordingly, the covenant shall be deemed
to have the duration specified herein, computed from the date relief is
granted, but reduced by any period between commencement of the period and the
date of the first violation.

            Executive acknowledges that as a result of his employment with the
Company or its affiliates, Executive has access to confidential information
concerning the Company's business, customers and services.  Executive agrees
that during the Employment Period and for a period of 18 months subsequent
thereto, he will not, directly or indirectly, whether in original, duplicated,
computerized or other form, use, disclose or divulge to any person, agency,
firm, corporation or other entity in the Territory any confidential or
proprietary information, including, without limitation, customer lists,
reports, files, manuals, training materials, records or information of any
kind, or any other secret or confidential information pertaining to the
products, services, customers or prospective customers, sales, technology and
business affairs or methods of the Company or any of its affiliates
(collectively "Confidential Information") which Executive acquires or has
access to during the Employment Period.  Notwithstanding the foregoing,
Confidential Information shall not include (i) information which becomes
generally available to the public through no fault of the Executive or
(ii) information that no longer provides benefit to the Company or its
affiliates.  Executive agrees that he will not at any time either during or
subsequent to his employment with the Company remove Confidential Information,
in any form whatsoever, from the premises or data base of the Company or its
affiliates, except as required in the ordinary course of business as is
necessary to perform Executive's duties or as required by applicable law.  In
the event of Executive's termination from employment from the Company for any
reason, Executive shall immediately return all Confidential Information of the
Company, including any original, computerized or duplicated records to the
Company.

            Executive agrees that if he violates the covenants under this
section, the Company shall be entitled to an accounting and repayments of all
profits, compensation, commissions and other remuneration or benefits which the
Executive has realized or may realize as the result of or in connection with
any such violation.  Executive further agrees that money damages may be
difficult to ascertain in case of a breach of this covenant, and Executive
therefore agrees that the Company or its affiliates shall be entitled to
injunctive relief in addition to any other remedy to which the Company or its
affiliates may be entitled.

      8.    Common Law of Torts and Trade Secrets.  The parties agree that
nothing in this Agreement shall be construed to limit or negate the statutory
or common law of torts or trade secrets where it provides the Company with
broader protection than that provided herein.
                                       7
      9.    Specific Performance.  The Executive acknowledges and agrees that
<PAGE>
irreparable injury to the Company may result in the event the Executive engages
in any act in violation of the provisions of section 7 and that the remedy at
law for the breach of any such covenant will be inadequate, the Executive
agrees that the Company shall be entitled, in addition to such other remedies
and damages as may be available to it by law or under this Agreement, to
injunctive relief to enforce the provisions of section 7 without the necessity
of providing a bond.

      10.   Waiver.  The failure of either party to insist, in any one or more
instances, upon performance of the terms or conditions of this Agreement shall
not be construed as a waiver or a relinquishment of any right granted hereunder
or of the future performance of any such term, covenant or condition.

      11.   Notices.  Any notice to be given hereunder shall be deemed
sufficient if addressed in writing and delivered by registered or certified
mail or delivered personally, in the case of the Company, to its principal
business office and, in the case of the Executive, to his address appearing on
the records of the Company, or to such other address as he may designate in
writing to the Company.

      12.   Severability.  In the event that any provision shall be held to be
invalid or unenforceable for any reason whatsoever, it is agreed such
invalidity or unenforceability shall not affect any other provision of this
Agreement and the remaining covenants, restrictions and provisions hereof shall
remain in full force and effect and any court of competent jurisdiction may so
modify the objectionable provision as to make it valid, reasonable and
enforceable.

      13.   Complete Agreement.  Except as otherwise expressly set forth
herein, this document and other agreements of even dates herewith, embody the
complete agreement and understanding among the parties hereto with respect to
the subject matter hereof and supersedes and preempts any prior understandings,
agreements or representations by or among the parties, written or oral, which
may have related to the subject matter hereof in any way.

      14.   Amendment.  This Agreement may only be amended by an agreement in
writing signed by all of the parties hereto.

      15.   Governing Law.  This Agreement shall be governed by and construed
in accordance with the laws of the State of Wisconsin, without reference to
principles of conflicts of laws.

      16.   Benefit.  This Agreement shall be binding upon and inure to the
benefit of and shall be enforceable by and against the Company, its successors
and assigns and the Executive, his heirs, beneficiaries and legal
representatives.

   [Remainder of page intentionally left blank. Signature page to follow.]
                                       8
<PAGE>
      IN WITNESS WHEREOF, the parties have executed or caused this Employment
Agreement to be executed as of the date first above written.

                                     MID-WISCONSIN FINANCIAL SERVICES, INC.

                                     By: KIM A. GOWEY
                                         Kim A. Gowey, D.D.S.
                                     Its:Chairman of the Board

                                     EXECUTIVE:

                                            JAMES WARSAW
                                     Name:  James Warsaw

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