Document:

exv10w1

 

Exhibit 10.1

Annual Bonus Compensation Earned in 2005 and Long-Term Incentive Compensation Earned in 2003-05.

Annual Bonus Compensation Earned in 2005 and Long-Term Incentive Compensation Earned in 2003-05.
The Executive Compensation Committee approved the following awards pursuant to the terms of the
2004 Rohm and Haas Company Annual Incentive Plan and the 2004 Long-Term Performance Share Plan and
special awards for Dr. Brondeau and Mr. Croisetiere of $83,762 each.

	 	 	 	 	 	 	 	 	 
	Executive Officer	 	Annual Awards	 	2003-05 Long-Term Award
	Rajiv L. Gupta, Chairman, CEO and
President
	 	$	1,437,150	 	 	$	904,295	 
	Alan E. Barton, Vice President, Coatings
	 	 	335,049	 	 	 	221,346	 
	Pierre R. Brondeau, Vice President,
Electronic Materials
	 	 	418,811	 	 	 	221,346	 
	Jacques M. Croisetiere, Vice President,
CFO
	 	 	418,811	 	 	 	196,576	 
	Robert A. Lonergan, Vice President,
General Counsel and Corporate Secretary
	 	 	354,650	 	 	 	238,105exv10w2

 

Exhibit 10.2

Salary and Annual Incentive Compensation to be Earned in 2006 and Long-Term Incentive Compensation
to be Earned in 2006-08

Salary

	 	 	 	 	 
	Name	 	Salary (as of April 1, 2006)
	Raj L. Gupta
	 	$	1,005,000	 
	Alan E. Barton
	 	$	430,000	 
	Pierre R. Brondeau
	 	$	430,000	 
	Jacques M. Croisetiere
	 	$	430,000	 
	Robert A. Lonergan
	 	$	380,600	 

Annual Incentive Compensation to Be Earned in 2006. For 2006, the Executive Compensation
Committee established a Return on Net Assets (RONA) goal as the performance criterion to be used in
determining corporate awards under the Annual Incentive Plan. A graduated award schedule based on
RONA performance will pay executive officers from 0 to 150% of base salary depending on RONA
performance and job level.

Long-Term Incentive Compensation to Be Earned during 2006-08. For the 2006-08 performance cycle,
the Executive Compensation Committee established performance standards for the executive officers
under the Long-Term Performance Share Plan. Actual awards will be determined using three year
average Return on Net Assets (RONA) and three year relative Total Shareholder Return (TSR) as the
performance criteria. The payouts in number of shares shown in the Target column assume that Rohm
and Haas’s performance matches both the RONA target and the TSR of a peer group of comparison
companies. The payouts shown in the Threshold column indicate the lowest possible payout (other
than zero), representing 12.5% of the target number of shares. The payouts shown in the Maximum
column reflect the highest potential payouts of 162.5% of the target number of shares. Future
payouts in the chart below are estimated using the average closing fair market share price for the
month of January 2006. Actual dollar value of payouts (which will be paid half in stock and half
in cash) will depend upon the average closing fair market share price for the month of December
2008.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Estimated Future
	 	 	 	 	 	 	Performance or	 	Payouts Under
	 	 	Number of	 	Other Period	 	Performance Share Plan
	 	 	Shares, Units	 	Until Maturation	 	Threshold	 	Target	 	Maximum
	Name	 	or Other Rights	 	or Payout	 	(# of shares)	 	(# of shares)	 	(# of shares)
	R. L. Gupta
	 	$	1,920,250	 	 	 	12/31/2008	 	 	 	4,883	 	 	 	39,063	 	 	 	63,477	 
	A. E. Barton
	 	 	445,000	 	 	 	12/31/2008	 	 	 	1,132	 	 	 	9,052	 	 	 	14,710	 
	P. R. Brondeau
	 	 	445,000	 	 	 	12/31/2008	 	 	 	1,132	 	 	 	9,052	 	 	 	14,710	 
	J. M. Croisetiere
	 	 	445,000	 	 	 	12/31/2008	 	 	 	1,132	 	 	 	9,052	 	 	 	14,710	 
	R. A. Lonergan
	 	 	390,000	 	 	 	12/31/2008	 	 	 	992	 	 	 	7,934	 	 	 	12,893Form of Executive
Change-in-Control
Severance Agreement for
[Executive]  

	 	
[Subsidiary] 

	 	
______________, 20__ 

Contents 

	
	

	Article 1. Definitions	1 
	
Article 2. Severance Benefits	5 
	
Article 3. Restrictive Covenants	7 
	
Article 4. Treatment of Excise Taxes	9 
	
Article 5. Contractual Rights and Legal Remedies	9 
	
Article 6. Term of Agreement	10 
	
Article 7. Successors	10 
	
Article 8. Miscellaneous	11 

[Subsidiary]  
Executive Change-in-Control Severance Agreement  

        THIS
EXECUTIVE CHANGE-IN-CONTROL SEVERANCE AGREEMENT is made, entered into, and is effective
this ___ day of _________, 20__ (hereinafter referred to as the “Effective Date”),
by and between [Subsidiary] (the “Company”), a Wisconsin
corporation, and [Executive] (the “Executive”). 

        WHEREAS,
the Company recognizes that circumstances may arise in which a Change in Control involving
the Company or its parent, First Business Financial Services, Inc., occurs, through
acquisition or otherwise, thereby causing uncertainty of employment without regard to the
Executive’s competence or past contributions. Such uncertainty may result in the loss
of the valuable services of the Executive to the detriment of the Company and its
shareholders; and 

        WHEREAS,
both the Company and the Executive are desirous that any proposal for a Change in Control
will be considered by the Executive objectively and with reference only to the business
interests of the Company and its shareholders; and 

        WHEREAS,
the Executive will be in a better position to consider the Company’s best interests
if the Executive is afforded reasonable security, as provided in this Agreement, against
altered conditions of employment which could result from any such Change in Control. 

        NOW,
THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements of
the parties set forth in this Agreement, and of other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows: 

Article 1. Definitions 

        Wherever
used in this Agreement, the following terms shall have the meanings set forth below and,
when the meaning is intended, the initial letter of the word is capitalized: 

	 	(a) 	“Agreement” means
this Executive Change-in-Control Severance                     Agreement. 

	 	(b) 	“Base
Salary” means, at any time, the then regular annual rate                     of
pay which the Executive is receiving as annual salary, excluding amounts: (i)
                    received under short-term or long-term incentive or other bonus
plans,                     regardless of whether or not the amounts are deferred, or (ii)
designated by the                     Company as payment toward reimbursement of
expenses. 

	 	(c) 	“Beneficial
Owner” or “Beneficial Ownership”                    shall have
the meaning ascribed to such term in Rule 13d-3 of the General
                    Rules and Regulations under the Exchange Act. 

	 	(d) 	“Board” or
“Board of Directors” means the                     Board of Directors of
the Company. 

1 

	 	(e)	“Cause” shall
mean the occurrence of any one or more of the           following: 

	 	(i) 	The
Executive’s willful failure to substantially perform his duties with
               the Company (other than any such failure resulting from the Executive’s
               Disability), after the Company delivers a written demand for substantial
               performance to the Executive (which specifically identifies the manner in
which                the Committee believes that the Executive has not substantially
performed his                duties) and the Executive fails to remedy the situation
within fifteen (15)                business days of such written notice from the Company;  

	 	(ii) 	Gross
negligence in the performance of the Executive’s duties to the
               Company, which results in material financial harm to the Company;  

	 	(iii) 	The
Executive’s conviction of, or plea of guilty or nolo contendere,
               to any felony or any other crime, the circumstances of which relate to the
               Executive’s duties to the Company;  

	 	(iv) 	The
Executive’s willful engagement in conduct that is demonstrably and
               materially injurious to the Company, monetarily or otherwise;  

	 	(v)	Willful
violation of any provision of the Company’s Code of Business           Conduct & Ethics;
or  

	 	(vi)	Willful
violation of any of the covenants contained in Article 3, as applicable.  

	 	(f) 	“Change
in Control” shall occur if any of the following events
                    occur; provided that, for purposes of this definition, “Company” shall
                    include First Business Financial Services, Inc., a Wisconsin
corporation: 

	 	(i) 	The
acquisition by any individual, entity, or group of Beneficial Ownership of
               more than fifty percent (50%) of the combined voting power of the Company’s
               then outstanding securities with respect to the election of directors of
the                Company;  

	 	(ii) 	The
consummation of a reorganization, merger, or consolidation of the Company or
               sale or other disposition of all or substantially all of the assets of the
               Company (a “Corporate Transaction”); excluding, however, a
Corporate                Transaction pursuant to which all or substantially all of the
individuals or                entities who are the Beneficial Owners of the Company
immediately prior to                the Corporate Transaction will beneficially own,
directly or indirectly, more                than fifty percent (50%) of the outstanding
shares of common stock of the                resulting entity and of the combined voting
power of the outstanding securities                entitled to vote for the election of
directors of such entity; or  

	 	(iii) 	During
any period of not more than twelve (12) consecutive months, individuals
               who at the beginning of such period constitute the Board of Directors of
the                Company, and any new director whose election by the Board of Directors
of the                Company or nomination for election by the Company’s
stockholders was                approved by a vote of at least a majority (rounded up to
the nearest whole                number) of the directors then still in office who either
were directors at the                beginning of the period or whose election or
nomination for election was                previously so approved, cease for any reason
to constitute at least a majority                thereof.  

2 

	 	(g)	“Code” means
the U.S. Internal Revenue Code of 1986, as amended           from time to time. 

	 	(h) 	“Committee” means
the Compensation Committee of the Board of                     Directors of the Company,
or if no Compensation Committee exists, then the full                     Board of
Directors of the Company, or a committee of Board members, as appointed
                    by the full Board to administer this Agreement. 

	 	(i) 	“Company” means
[Subsidiary], a Wisconsin                     corporation, and any
successor thereto as provided in Article 7 herein,                     except as
otherwise expressly provided herein. For purposes of the                     Executive’s
separation from service (as defined in Code Section 409A and                     any
regulations thereunder) with the Company, “Company” includes First
                    Business Financial Services, Inc., a Wisconsin corporation, and any
other entity                     related to the Company (within the meaning of Code
Section 414(b), (c) or (m)). 

	 	(j) 	“Disability” or
“Disabled” means that the                     Executive 

	 	(i) 	isunable
to engage in any substantial gainful activity by reason of any                medically
determinable physical or mental impairment which can be expected to                result
in death or can be expected to last for a continuous period of not less
               than twelve (12) months, or  

	 	(ii) 	is,
by reason of any medically determinable physical or mental impairment which
               can be expected to result in death or can be expected to last for a
continuous                period of not less than twelve (12) months, receiving income
replacement                benefits for a period of not less than three (3) months under
an accident and                health plan covering employees of the Company.  

	 	(k) 	“Effective
Date of Termination” means the date on which a                     Qualifying
Termination occurs, as provided in Section 2.2 herein, which triggers
                    the payment of Severance Benefits hereunder. 

	 	(l) 	“Exchange
Act” means the Securities Exchange Act of 1934, as                     amended
from time to time, or any successor act thereto. 

	 	(m) 	“Good
Reason” means, without the Executive’s express                     written
consent, the occurrence after a Change in Control of the Company of any
                    one or more of the following: 

	 	(i) 	A
material reduction of the Executive’s authorities, duties, or
               responsibilities as an executive and/or officer of the Company from those
in                effect as of ninety (90) calendar days prior to the Change in Control,
other                than an insubstantial and inadvertent reduction that is remedied by
the Company                promptly after receipt of notice thereof given by the
Executive; provided,                however, that any reduction in the foregoing
resulting merely from the                acquisition of the Company and its existence as
a subsidiary or division of                another entity shall not be sufficient to
constitute Good Reason;  

3 

	 	(ii) 	The
Company’s requiring the Executive to be based at a location in excess
               of one hundred (100) miles from the location of the Executive’s
               principal job location or office immediately prior to the Change in
Control;                except for required travel on the Company’s business to an
extent                substantially consistent with the Executive’s then present
business travel                obligations;  

	 	(iii) 	A
reduction by the Company of the Executive’s Base Salary in effect on the
               Effective Date hereof, or as the same shall be increased from time to
time;  

	 	(iv) 	The
failure of the Company to continue in effect, or the failure to continue the
               Executive’s participation on substantially the same basis in, any of
the                Company’s short- and long-term incentive compensation plans, or
employee                benefit or retirement plans, policies, practices, or other
compensation                arrangements in which the Executive participates prior to the
Change in Control                of the Company, unless such failure to continue the
plan, policy, practice, or                arrangement pertains to all plan participants
generally;  

	 	(v) 	The
failure of the Company to obtain a satisfactory agreement from any successor
               to the Company to assume and agree to perform the Company’s
obligations                under this Agreement, as contemplated in Article 7
herein; and  

	 	(vi) 	A
material breach of this Agreement by the Company which is not remedied by the
               Company within ten (10) business days of receipt of written notice of such
               breach delivered by the Executive to the Company.  

	 	
Unless
the Executive becomes Disabled, the Executive’s right to terminate employment for
Good Reason shall not be affected by the Executive’s incapacity due to physical or
mental illness. The Executive’s continued employment shall not constitute consent
to, or a waiver of rights with respect to, any circumstance constituting Good Reason
herein.  

	 	(n) 	“Notice
of Termination” shall mean a written notice which shall
                    indicate the specific termination provision in this Agreement relied
upon, and                     shall set forth in reasonable detail the facts and
circumstances claimed to                     provide a basis for the Executive’s
separation from service with the                     Company under the provision so
indicated. 

	 	(o) 	“Person” shall
have the meaning ascribed to such term in                     Section 3(a)(9) of the
Exchange Act and used in Sections 13(d) and 14(d)                     thereof, including
a “group” as defined in Section 13(d). 

	 	(p) 	“Qualifying
Termination” means any of the events described in                     Section
2.2 herein, the occurrence of which triggers the payment of Severance
                    Benefits hereunder. 

4 

	 	(q) 	“Severance
Benefits” mean the severance benefits as provided in                     Section
2.3(a) through 2.3(e) herein. 

Article 2. Severance
Benefits 

        2.1
Right to Severance Benefits. The Executive shall be entitled to receive from the
Company Severance Benefits as described in Section 2.3 herein, if during the term of this
Agreement there has been a Change in Control and if, within twelve (12) calendar months
immediately thereafter, the Executive incurs a separation from service with the Company
for any reason specified in Section 2.2 herein as being a Qualifying Termination. The
Severance Benefits described in Section 2.3(a), 2.3(b), and 2.3(d) herein shall be paid in
cash to the Executive in a single lump sum as soon as practicable following the Qualifying
Termination (but in no event later than the sooner of December 31 of the calendar year in
which the Qualifying Termination or thirty (30) calendar days immediately after such date. 

        2.2
Qualifying Termination. The occurrence of any one or more of the following events
(a “Qualifying Termination”) within twelve (12) calendar months immediately
following a Change in Control shall trigger the payment of Severance Benefits to the
Executive, as such benefits are described under Section 2.3 herein: 

	 	(a) 	The
Executive’s separation from service with the Company due to the
                    Company’s involuntary termination of the Executive’s
employment                     without Cause; or 

	 	(b) 	The
Executive’s separation from service with the Company due to his
                    voluntary termination of employment for Good Reason. 

        A
Qualifying Termination shall also include the Executive’s separation from service
with the Company due to an involuntary termination by the Company within six (6) months
prior to a Change in Control if such termination occurs at the request of any party
involved in the Change-in-Control transaction; in such event, the date of Qualifying
Termination shall be deemed to be the date of the Change in Control. 

        A
Qualifying Termination shall not include the Executive’s separation from service with
the Company due to a termination of the Executive’s employment within twelve (12)
calendar months after a Change in Control by reason of death, Disability, the
Executive’s voluntary termination without Good Reason, or the Company’s
involuntary termination of the Executive’s employment for Cause. 

        2.3
Description of Severance Benefits. In the event that the Executive becomes entitled
to receive Severance Benefits, as provided in Sections 2.1 and 2.2 herein, the Company
shall pay to the Executive and provide the Executive with the following: 

	 	(a) 	A
lump-sum cash amount equal to the Executive’s unpaid Base Salary, accrued
                    vacation pay, unreimbursed business expenses, and all other items
earned by and                     owed to the Executive through and including the date of
the Qualifying                     Termination. Such payment shall constitute full
satisfaction for these amounts                     owed to the Executive. 

5 

	 	(b) 	Any
amount payable to the Executive under any annual bonus plan then in effect
                    in respect of the most recently completed fiscal year, to the extent
not                     theretofore paid, which amount shall be paid in four (4) equal
semiannual                     installments at the times and in the manner set forth in
subsection (c) below.                     Such payment shall constitute full satisfaction
for this amount owed to the                     Executive. 

	 	(c) 	A
cash amount equal to two (2) multiplied by the Executive’s annual rate of
                    Base Salary in effect upon the date of the Qualifying Termination or,
if                     greater, by the Executive’s annual rate of Base Salary in
effect                     immediately prior to the occurrence of the Change in Control.
Such cash amount                     shall be paid out in four (4) equal semiannual
installments, with the initial                     payment to occur no sooner than six
(6) months plus one (1) day following the                     Executive’s Effective
Date of Termination. The three (3) remaining                     installments shall then
be paid out, one each at the end of successive six (6)                     month
intervals following the initial payment until all installments have been
                    paid in full. 

	 	(d) 	A
lump-sum cash amount equal to the greater of: (i) the Executive’s
                    then-current target bonus opportunity established under any annual
bonus plan                     for the plan year in which the Qualifying Termination
occurs; or (ii) the                     Executive’s target bonus opportunity, if
any, in effect prior to the                     occurrence of the Change in Control. Such
payment shall be adjusted on a pro                     rata basis based on the number of
days the Executive was actually employed                     during such plan year and
shall be paid in four (4) equal semiannual                     installments at the times
and in the manner set forth in subsection (c) above.                     Such payment
shall constitute full satisfaction for this amount owed to the
                    Executive. 

	 	(e) 	If
as of the Effective Date of Termination the Company continues to maintain a
                    group health insurance plan that would allow for the participation of
the                     Executive without violating the terms of the group health
insurance plan (or any                     other related insurance policies) or violating
any of the Code’s                     nondiscrimination requirements applicable to
the health insurance coverage, then                     the Company shall provide, at the
exact same cost to the Executive, and at the                     same coverage level as
in effect as of the Effective Date of Termination                     (subject to changes
in coverage levels applicable to all employees generally), a
                    continuation of the Executive’s (and the Executive’s
eligible                     dependents’) health insurance coverage for eighteen
(18) months from the                     Effective Date of Termination. The applicable
COBRA health insurance benefit                     continuation period shall begin
coincident with the beginning of this eighteen                     (18) month benefit
continuation period. 

	 	
Notwithstanding
the health benefits provided above, if the Executive becomes covered under the health
insurance coverage of a subsequent employer which does not contain any exclusion or
limitation with respect to any preexisting condition of the Executive or the Executive’s
eligible dependents, this health insurance benefit coverage by the Company shall be
discontinued prior to the end of the eighteen (18) month continuation period. For
purposes of enforcing this offset provision, the Executive shall have a duty to inform
the Company as to the terms and conditions of any subsequent employment and the
corresponding benefits earned from such employment. The Executive shall provide, or shall
cause to be provided, to the Company in writing correct, complete, and timely information
concerning the same.  

6 

        2.4
Termination Due to Death. Following a Change in Control, if the Executive’s
incurs a separation of service with the Company by reason of his death, the Company shall
pay the Executive’s estate all amounts described in Section 2.3(a) and (b) herein
through the Effective Date of Termination. All other benefits due the Executive shall be
determined in accordance with the Company’s retirement, survivor’s benefits,
insurance, and other applicable programs then in effect. 

        2.5
Notice of Termination. Any separation of service of the Executive from the Company
due to a termination of the Executive’s employment by the Company for Cause or by the
Executive for Good Reason shall be communicated by Notice of Termination to the other
party. 

Article 3. Restrictive
Covenants 

        During
the term of this Agreement, the following shall apply: 

        3.1
Noncompetition. 

	 	(a) 	Scope.
During the term of his employment with the Company and for a                     period
of twenty-four (24) months thereafter (the “Noncompetition                     Period”),
except as authorized by Board of Directors of the Company, the
                    Executive shall not, directly or indirectly, render services to,
assist,                     participate in the affairs of, or otherwise be connected
with, any person or                     business enterprise, except the Company (which
person or enterprise is engaged                     in, or is planning to engage in, any
business that is in any respect competitive                     with the business of the
Company, in any capacity that 

	 	(i) 	would
utilize the Executive’s services with respect to such business which
               sells products and services similar to those of the Company within any
state or                possession of the United States, wherein the Company sold or
actively attempted                to sell its products or services within a twelve (12)
month period immediately                prior to the termination of the Executive’s
employment with the Company,                irrespective of where the Executive renders
his services,  

	 	(ii) 	would
utilize the Executive’s services in selling any products or services
               similar to those of the Company to any person or entity to which the
Company                sold or actively attempted to sell its products or services during
the twelve                (12) month period immediately prior to the termination of the
Executive’s                employment with the Company, irrespective of where the
Executive renders his                services, or  

	 	(iii) 	would
reasonably be expected to utilize any Confidential Information acquired by
               the Executive during the term of his employment by the Company preceding,
on and                following the date hereof.  

	 	(b) 	Reform.
If a court of competent jurisdiction should declare any or all of
                    this Agreement unenforceable because of any unreasonable restriction
of duration                     and/or geographical area in Section 3.1(a), then such
court shall have the                     express authority to reform Section 3.1(a) to
provide for reasonable                     restrictions and/or to grant the Company such
other relief, at law or in equity,                     as are reasonably necessary to
protect the interests of the Company. 

7 

        3.2
Confidentiality. 

	 	(a) 	Scope.
During the term of his employment with the Company and for a                     period
of twenty-four (24) months thereafter, the Executive shall not take or
                    use, or otherwise disclose to anyone, any Confidential Information,
except (i)                     as necessary to perform his duties and responsibilities to
the Company, (ii) as                     permitted by the Board of Directors of the
Company, or (iii) as required by any                     court or governmental agency;
provided, however, that this covenant prohibits                     only the use and
disclosure of Confidential Information and shall not be                     construed as
limiting the Executive’s right to undertake any other                     employment
or business activity. The Executive shall be prohibited from
                    competing with the Company only as provided in Section 3.1. 

	 	(b) 	Definition.
“Confidential Information” shall mean any and all                     business
information of the Company that has been developed or obtained at its
                    expense, has significant economic value to the Company and is not
available to                     its competitors, the public or all of its employees,
including, without                     limitation, any information marked, stamped or
referenced as                     “confidential” by the Company and any
information concerning its                     business plans and strategies and the
like, even if such information is not                     specifically marked, stamped or
referenced as “confidential” by the                     Company, except such
information as the Executive can prove beyond a                     preponderance of the
evidence was in the public domain, being publicly and                     openly known,
prior to the date of commencement of the Executive’s                     employment
by the Company or, subsequent to such date, became part of the public
                    domain, being publicly and openly known, through lawful and proper
means. 

	 	(c) 	Compliance
With Applicable Laws. This Agreement shall not reduce any
                    obligation of the Executive to comply with any applicable laws
relating to trade                     secrets, confidential information or unfair
competition. 

        3.3
Nonsolicitation. During the term of this Agreement and for a period of twenty-four
(24) months after the Effective Date of Termination, the Executive shall not employ or
retain or solicit for employment or arrange to have any other person, firm, or other
entity employ or retain or solicit for employment or otherwise participate in the
employment or retention of any person who is an employee or consultant of the Company. 

        3.4
Cooperation. The Executive shall cooperate with the Company and its attorneys in
connection with any and all lawsuits, claims, investigations, or similar proceedings that
have been or could be asserted at any time arising out of or related in any way to the
Executive’s employment by the Company or any entity related to the Company (within
the meaning of Code Section 414(b), (c) or (m)). 

        3.5
Nondisparagement. At all times, the Executive shall not disparage the Company or
otherwise make comments harmful to the Company’s reputation. 

Article 4. Treatment of
Excise Taxes 

8 

        Notwithstanding
anything to the contrary contained in this Agreement, if, after taking into account all
amounts or benefits otherwise to be paid or payable, any amount or benefit to be paid or
provided under this Agreement would be an “Excess Parachute Payment” within the
meaning of Section 280G of the Code or any successor provision thereto but for the
application of this sentence, then the payments and benefits to be so paid or provided
under this Agreement will be reduced to the minimum extent necessary (but in no event to
less than zero) so that no portion of any such payment or benefit, as so reduced,
constitutes an Excess Parachute Payment; provided, however, that the foregoing reduction
will be made only if and to the extent that such reduction would result in an increase in
the aggregate payments and benefits to be provided, determined on an after-tax basis
(taking into account the excise tax imposed pursuant to Section 4999 of the Code, or any
successor provision thereto, any tax imposed by any comparable provision of state law and
any applicable federal, state, and local income taxes). The determination of whether any
reduction in such payments or benefits to be provided under this Agreement is required
pursuant to the preceding sentence will be made, at the expense of the Company, if
requested by the Executive or the Company, by the Company’s independent accountants. 

        The
fact that the Executive’s right to payments or benefits may be reduced by reason of
the limitations contained in this Article 4 will not of itself limit or otherwise affect
any other rights of the Executive other than pursuant to this Agreement. In the event that
any payment or benefit intended to be provided under this Agreement or otherwise is
required to be reduced pursuant to this Article 4, the Executive will be entitled to
designate the payments and/or benefits to be so reduced in order to give effect to this
Article 4. The Company will provide the Executive all information reasonably requested by
the Executive to permit the Executive to make such designation. In the event that the
Executive fails to make such designation within ten (10) business days of the Effective
Date of Termination, the Company may effect such reduction in any manner it deems
appropriate. 

Article 5. Contractual
Rights and Legal Remedies 

        5.1
Payment Obligations Absolute. The Company’s obligation to make the payments
and the arrangements provided for herein shall be absolute and unconditional, and shall
not be affected by any circumstances, including, without limitation, any offset,
counterclaim, recoupment, defense, or other right which the Company may have against the
Executive or anyone else. All amounts payable by the Company hereunder shall be paid
without notice or demand. 

        The
Executive shall not be obligated to seek other employment in mitigation of the amounts
payable or arrangements made under any provision of this Agreement, and the obtaining of
any such other employment shall in no event effect any reduction of the Company’s
obligations to make the payments and arrangements required to be made under this
Agreement. 

        5.2
Contractual Rights to Benefits. This Agreement establishes and vests in the
Executive a contractual right to the benefits to which he is entitled hereunder. However,
nothing herein contained shall require or be deemed to require the Company to segregate,
earmark, or otherwise set aside any funds or other assets, in trust or otherwise, to
provide for any payments to be made or required hereunder. 

        5.3
Arbitration. The Company and the Executive shall have the right and option to elect
(in lieu of litigation) to have any dispute or controversy arising under or in connection
with this Agreement settled by arbitration, conducted before a panel of three (3)
arbitrators (one selected by the Executive, one selected by the Company, and one selected
by the two previously selected arbitrators) sitting in a location selected by the
Executive within fifty (50) miles from the location of his job with the Company, in
accordance with the rules of the American Arbitration Association then in effect. The
Company’s or the Executive’s election to arbitrate, as herein provided, and the
decision of the arbitrators in that proceeding, shall be binding on the Company and the
Executive. Judgment may be entered on the award of the arbitrator in any court having
jurisdiction. 

9 

Article 6. Term of
Agreement 

        6.1
Term. This Agreement will commence on the Effective Date and shall continue in
effect for two (2) full calendar years (through ____________, 20__) (the “Initial
Term”). 

        The
Initial Term shall be extended automatically for one (1) additional year at the end of the
Initial Term, and then again after each successive one (1) year period thereafter (each
such one (1) year period following the Initial Term a “Successive Period”).
However, the Company may terminate this Agreement entirely at the end of the Initial Term,
or at the end of any Successive Period thereafter, by giving the Executive written notice
of intent not to renew, delivered at least six (6) months prior to the end of such
Initial Term or Successive Period. If such notice is properly delivered by the Company,
this Agreement, along with all corresponding rights, duties, and covenants shall
automatically expire at the end of the Initial Term or Successive Period then in progress. 

        6.2
Change-in-Control Renewal. In the event that a Change in Control occurs during the
Initial Term or any Successive Period, upon the effective date of such Change in Control,
the term of this Agreement shall automatically and irrevocably be renewed for a period of
twelve (12) full calendar months from the effective date of such Change in Control. This
Agreement shall thereafter automatically terminate following the twelve (12) month Change
in Control renewal period. Further, this Agreement shall be assigned to, and shall be
assumed by the purchaser in such Change in Control, as further provided in Article 7
herein. 

Article 7. Successors 

        7.1
Successors to the Company. The Company shall use reasonable efforts to require any
successor (whether direct or indirect, by purchase, merger, reorganization, consolidation,
acquisition of property or stock, liquidation, or otherwise) of all or a significant
portion of the assets or stock of the Company by agreement, in form and substance
satisfactory to the Executive, to expressly assume and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform if no
such succession had taken place. Regardless of whether such agreement is executed, this
Agreement shall be binding upon any successor if in accordance with the operation of law
and, if so, such successor shall be deemed the “Company” for purposes of this
Agreement. 

        7.2
Assignment by the Executive. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees, and legatees. If the Executive
dies while any amount would still be payable to him hereunder had he continued to live,
all such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to the Executive’s devisee, legatee, or other designee,
or if there is no such designee, to the Executive’s estate. 

Article 8. Miscellaneous 

10 

        8.1
Employment Status. This Agreement is not, and nothing herein shall be deemed to
create, an employment contract between the Executive and the Company or any entity related
to the Company (within the meaning of Code Section 414(b), (c) or (m)). The Executive
acknowledges that the rights of the Company remain wholly intact to change or reduce at
any time and from time to time his compensation, title, responsibilities, location, and
all other aspects of the employment relationship, or to discharge him prior to a Change in
Control (subject to such discharge possibly being considered a Qualifying Termination
pursuant to Section 2.2). 

        8.2
Entire Agreement. This Agreement contains the entire understanding of the Company
and the Executive with respect to the subject matter hereof. In addition, the payments
provided for under this Agreement in the event of the Executive’s separation from
service with the Company for any reason shall be in lieu of any severance benefits payable
under any severance plan, program, or policy of the Company to which the Executive might
otherwise be entitled. 

        8.3
Notices. All notices, requests, demands, and other communications hereunder shall
be sufficient if in writing and shall be deemed to have been duly given if delivered by
hand or if sent by registered or certified mail to the Executive at the last address he
has filed in writing with the Company or, in the case of the Company, at its principal
offices. 

        8.4
Conflicting Agreements. This Agreement completely supersedes any and all prior
change-in-control agreements or understandings, oral or written, entered into by and
between the Company and the Executive, with respect to the subject matter hereof, and all
amendments thereto, in their entirety. Further, the Executive hereby represents and
warrants to the Company that his entering into this Agreement, and the obligations and
duties undertaken by him hereunder, will not conflict with, constitute a breach of, or
otherwise violate the terms of, any other employment or other agreement to which he is a
party, except to the extent any such conflict, breach, or violation under any such
agreement has been disclosed to the Board in writing in advance of the signing of this
Agreement. 

        8.5
Includable Compensation. Severance Benefits provided hereunder shall not be
considered “includable compensation” for purposes of determining the
Executive’s benefits under any other plan or program of the Company unless otherwise
provided by such other plan or program. 

        8.6
Tax Withholding. The Company shall withhold from any amounts payable under this
Agreement all federal, state, city, or other taxes as legally required to be withheld. 

        8.7
Severability. In the event any provision of this Agreement shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining parts
of the Agreement, and the Agreement shall be construed and enforced as if the illegal or
invalid provision had not been included. Further, the captions of this Agreement are not
part of the provisions hereof and shall have no force and effect. 

        Notwithstanding
any other provisions of this Agreement to the contrary, the Company shall have no
obligation to make any payment to the Executive hereunder to the extent, but only to the
extent, that such payment is prohibited by the terms of any final order of a federal or
state court or regulatory agency of competent jurisdiction; provided, however, that such
an order shall not affect, impair, or invalidate any provision of this Agreement not
expressly subject to such order. 

11 

        8.8
Modification. No provision of this Agreement may be modified, waived, or discharged
unless such modification, waiver, or discharge is agreed to in writing and signed by the
Executive and on behalf of the Company, as applicable, or by the respective parties’
legal representatives or successors. 

        8.9
Gender and Number. Except where otherwise indicated by the context, any masculine
term used herein shall include the feminine; the plural shall include the singular and the
singular shall include the plural. 

        8.10
Applicable Law. To the extent not preempted by the laws of the United States, the
laws of Wisconsin shall be the controlling law in all matters relating to this Agreement
without giving effect to principles of conflicts of laws. 

12 

        IN
WITNESS WHEREOF, the Company has executed this Agreement on this ___ day of
__________, 20__. 

Executive: 

_________________________________ 

[SUBSIDIARY] 

	By:  	_________________________________

13

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