DPL INC
EX-10.1
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>a05-15800_1ex10d1.htm
<DESCRIPTION>EX-10.1
<TEXT>
<html>

<head>





</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.1</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AMENDED AND RESTATED
EMPLOYMENT AGREEMENT</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT is made as of August 31, 2005 among
DPL INC., an Ohio corporation (&#147;DPL&#148; or &#147;Company&#148;), The Dayton Power and Light
Company, an Ohio corporation (&#147;DP&amp;L&#148;; and, collectively with DPL, the &#147;Companies&#148;)
and Robert D. Biggs (&#147;Executive&#148;) under the following circumstances:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DPL
is a holding company headquartered in Dayton, Ohio, having as its principal
subsidiary DP&amp;L; and</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;line-height:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Executive
is currently the Executive Chairman of DPL and DP&amp;L pursuant to an
employment agreement among Executive and the Companies dated as of July 21,
2004; and</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;line-height:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Companies and Executive believe that it is in the best interests of the
Companies for Executive to continue to render services to the Companies as
their Executive Chairman; and</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;line-height:normal;margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Subject
to the terms and considerations hereinafter set forth, the Companies wish to
continue to employ Executive in the positions set forth herein and Executive
wishes to continue such employment pursuant to the terms of this Amended and
Restated Employment Agreement.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, the parties agree as follows:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 1.</font></u>&#160; <u>Employment and Duties.</u></b>&#160; The Companies hereby employ Executive and
Executive hereby accepts such employment, as an executive of the Companies,
subject to the terms and conditions set forth in this Agreement.&#160; Executive shall serve as Executive Chairman
of the Boards of Directors of DPL and DP&amp;L and shall properly perform such
duties as may reasonably be assigned to him from time to time by each such
Board of Directors.&#160; If requested by the
Companies&#146; Boards of Directors, Executive shall serve on any committee of the
Companies&#146; Boards of Directors without additional compensation.&#160; During the Term of this Agreement, Executive
shall devote such time as Executive and Companies&#146; Boards of Directors deem
necessary for the performance of Executive&#146;s duties hereunder.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 2.</font></u>&#160; <u>Term.</u></b>&#160; The term of this Agreement (the &#147;Term&#148;) shall
commence on January 1, 2005 (the &#147;Effective Date&#148;) and shall continue until
June 30, 2006; provided that the Term shall be extended for successive periods
of six months in accordance with Section 10 hereof.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 3.</font></u>&#160; <u>Compensation.</u></b>&#160; As compensation for his services hereunder,
Executive shall receive the following:</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">Base Salary</font></u></b>.&#160; During the Term, the Companies shall pay to
Executive an annual base salary of Five Hundred Thousand Dollars ($500,000) for
his services hereunder.&#160; Executive&#146;s base
salary, as in effect at any time, is hereinafter referred to as the &#147;Base
Salary.&#148;&#160; Executive&#146;s Base Salary shall
be paid in substantially equal installments on a basis consistent with the
Companies&#146; payroll practices.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">Participation in MICP</font></u></b>.&#160; For each calendar year during the Term
(commencing with calendar year 2005), Executive shall be eligible to receive an
annual bonus under the Companies&#146; Management Incentive Compensation Plan (&#147;MICP&#148;)
in an amount determined by the Board of Directors of DPL in its discretion, but
in no event less than $500,000.&#160; The parties
acknowledge that the special bonus of $500,000 paid to Executive in the first
half of 2005 in connection with the successful sale of the financial asset
portfolio (the &#147;Special Bonus&#148;) is in addition to and not in lieu of any
bonuses payable under this Section 3(b).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">Stock Options</font></u></b>.&#160; Upon execution of this Agreement by
Executive, DPL shall grant to Executive an option to purchase 350,000 common
shares of DPL (the &#147;Option&#148;) under the DPL Inc. Stock Option Plan (the &#147;Option
Plan&#148;).&#160; The per share exercise of the
Option will be the Fair Market Value (as defined in the Option Plan) of such
shares on the date of grant.&#160; Subject to
Executive&#146;s continued employment with the Company, the Option will become
vested and exercisable as to 100% of the shares subject thereto on June 30,
2006 and shall remain exercisable until the third anniversary of the date of
grant on which date the Option shall terminate.&#160;
The Option shall become fully vested and exercisable upon the consummation
of a Change of Control (as defined below) occurring prior to June 30, 2006.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">Benefits</font></u></b>.&#160; During the Term, Executive shall be entitled
to receive such fringe benefits as are generally made available to senior
executives of the Companies in accordance with the plans, practices, programs
and policies of the Companies in effect from time to time; provided, however,
that the Executive shall not be entitled to participate in the Company&#146;s long
term incentive plan and shall not be provided with medical coverage, disability
or qualified retirement plan benefits or reimbursement for club
memberships.&#160; In addition, during the
Term, the Companies shall provide Executive with a term life insurance policy
with a death benefit of $1,000,000.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 4.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Dayton Residence and
Automobile.</font></u></b>&#160; During the
Term, the Companies shall provide, at their expense, such place of residence
and automobile for Executive&#146;s use while in Dayton, Ohio as Executive and the
Companies may reasonably agree.&#160; In
addition, the Companies shall pay Executive a tax gross up in respect of such
residence and automobile.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 5.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Expenses; Corporate
Aircraft.</font></u></b>&#160; The Companies
shall reimburse Executive for all reasonable out-of-pocket expenses properly
incurred by him in connection with the performance of his duties hereunder in accordance
with the policies established from time to time by the Companies.&#160; In addition, the Companies shall provide
Executive with the use of corporate aircraft in connection with Executive&#146;s
travel between Dayton, Ohio and Executive&#146;s home in Florida or to other
residences of family members within approximately the same radius from Dayton,
Ohio as Executive&#146;s home in Florida, and the Companies shall pay the Executive
a tax gross up in respect of such use.&#160;
The Companies&#146; corporate aircraft will be available for Executive&#146;s
personal use.&#160; Notwithstanding the
foregoing, should the Internal Revenue Service or the U.S. Congress change,
amend or modify the rules of taxation on the personal use of corporate
aircrafts such that the income allocated to Executive materially increases,
then Executive shall be permitted to enter into discussions with the Companies
regarding whether a tax gross up would be appropriate.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 6.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Withholding.</font></u></b>&#160; The Companies may withhold from any amounts
payable to Executive hereunder such federal, state or local taxes or other
amounts as the Companies shall be required to withhold pursuant to applicable
law.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 7.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Termination.</font></u></b>&#160; (a)&#160;
This Agreement and Executive&#146;s employment with the Companies may be
terminated at any time, with or without Cause (as hereinafter defined), by
either the Companies or Executive upon ninety [90] days&#146; prior written notice;
provided this Agreement and Executive&#146;s employment with the Companies may be
terminated by the Companies for Cause without prior notice.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; In addition, this Agreement and Executive&#146;s
employment with the Companies shall automatically terminate upon Executive&#146;s
death or Disability (as hereinafter defined).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; Upon the termination of this Agreement for
any reason, this Agreement shall forthwith be of no further force and effect
(except that the provisions of Sections 8 through 14 and 24 shall continue in
full force and effect) and there shall be no further liability on the part of
either party, other than based upon (i) its obligations under this Agreement
arising prior to such termination or (ii) the obligations of such party
contained in Sections 8 through 14 and 24.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 8.</font></u></b><font size="2" style="font-size:10.0pt;">&#160; <b><u><font style="font-weight:bold;">Severance Benefits Generally.</font></u></b>&#160; Notwithstanding any other provisions of this
agreement to the contrary, upon termination of employment for any reason at any
time, the Companies shall pay or provide the following amounts and benefits
(the &#147;Section 8 Amounts&#148;) to Executive in compensation for services previously
rendered:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;
</font><font size="2" style="font-size:10.0pt;">the amount of
Executive&#146;s unpaid Base Salary earned through the Date of Termination at the
rate in effect at the Date of Termination;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;
</font><font size="2" style="font-size:10.0pt;">the amounts of
any MICP awards with </font><font size="2" style="font-size:10.0pt;">respect</font><font size="2" style="font-size:10.0pt;"> to any completed period or periods which, pursuant to
the MICP, have been earned by Executive and vested, but which have not yet been
paid to him; and</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(c)&#160; </font>all other accrued benefits of any kind
to which Executive is, or would otherwise have been, entitled through the Date
of Termination including any vested stock options under the Option Plan.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 9.</font></u></b><b><font style="font-weight:bold;">&#160; <u>Severance Benefits Prior to a Change of
Control.</u></font></b>&#160; In the event of a termination of Executive&#146;s
employment prior to a Change of Control, the following provisions shall apply:</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; <u>Termination for Cause; Death or Disability</u>.&#160; If (i) the Companies terminate Executive&#146;s
employment for Cause; or (ii) Executive&#146;s employment is terminated due to his
death or Disability, Executive shall receive the Section 8 Amounts.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; <u>Termination Without Cause</u>.&#160; If the Companies terminate Executive&#146;s
employment without Cause, Executive shall receive:</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160; the Section 8
Amounts;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160; a lump sum
amount equal to the sum of 1 years&#146; Base Salary payable within 15 days
following the Date of Termination;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(iii)&#160; the amount of
any MICP awards earned with respect to any completed period, but unvested as of
the Date of Termination; provided that </font>in the event the Date of
Termination precedes the completion of a period in which, pursuant to the MICP,
Executive could have earned compensation thereunder, or in the event the Date of
Termination precedes the determination of compensation that he has earned for a
completed period under the MICP, then, with respect to each such period,
Executive shall be entitled to an amount equal to the average of the sum of (i)
the Special Bonus and (ii) award payments made to him under the MICP for the
three years preceding the Date of Termination (or for the number of years he
has participated in such plan, if less than three), including any portion of
any such payments that he elected to defer to his Standard Deferral Account in
the DP&amp;L Key Employees Deferred Compensation Plan</font>;</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(iv) </font>the Companies shall, at their expense, maintain
in full force and effect for Executive&#146;s continued benefit all life insurance
and accident plans in which he was entitled to participate immediately prior to
the Date of Termination, provided that his continued participation is possible
under the terms of such plans and programs.&#160;
In the event that the terms of any such plan do not permit Executive&#146;s
continued participation or that any such plan is discontinued or the benefits
thereunder materially reduced, the Companies shall arrange to provide, at their
expense, benefits to Executive that are substantially similar to those he was
entitled to receive under such plan immediately prior to the Date of
Termination.&#160; The obligation of Companies
under this subsection (iv) shall terminate on the</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">earlier of: (1) the first
anniversary date of the earlier Date of Termination or (2) the date an
essentially equivalent and no less favorable benefit is made available to
Executive at no cost by a subsequent employer.&#160;
At the end of the applicable period of coverage set forth above,
Executive shall have the option to have assigned to him, at no cost and with no
apportionment of prepaid premiums, any assignable insurance owned by the
Company and relating specifically to Executive; and</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v) all unvested stock
options awarded to Executive under the Option Plan shall become fully vested.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; <u>Termination by Executive</u>.&#160; If Executive terminates his employment for
any reason at any time, Executive shall receive the Section 8 Amounts.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160; <u>Full Satisfaction</u>.&#160; The foregoing payments under this Section 9
shall be the entire obligation of the Companies to Executive in the event of a
termination of Executive&#146;s employment not related to a Change of Control, and
Executive will execute a full and unconditional release of any claims which he
may have against the Companies as a condition to receiving such payment, except
for termination pursuant to Section 9(a).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 10.</font></u></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#160; <u>Severance Benefits
Related to a Change of Control.</u></font></b><font size="2" style="font-size:10.0pt;">&#160; If, on June
30, 2006, the Company is in discussions with a potential acquirer relating to a
transaction that could result in a Change of Control, Executive may elect to
extend the Term for successive periods of six months until such time as the
Change of Control is consummated.&#160; </font><font size="2" style="font-size:10.0pt;">In
the event of the occurrence of Change of Control, the following provisions
shall apply:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160; <u>Upon a Change of Control</u>.&#160; Executive&#146;s employment hereunder shall
automatically terminate upon a Change of Control and Executive shall receive
the following:</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160; the Section 8
Amounts;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(ii) </font>an amount equal to 200% of the sum of (1)
Executive&#146;s Base Salary (which Base Salary is computed before deduction for any
deferred compensation or other employee deferrals) at the highest of (A) the
rate in effect as of Date of Termination, or (B) the rate in effect at the time
of the Change of Control, plus (2) the average of the sum of (i) the Special
Bonus and (ii) the award payments made to him under the MICP for the three
years preceding the Date of Termination (or for the number of years he has
participated in such plan, if less than three), including any portion of any
such payments that Executive elected to defer to his Standard Deferral Account
in the DP&amp;L Key Employees Deferred Compensation Plan;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(iii)&#160; the amount of
any MICP awards earned with respect to any completed period, but unvested as of
the Date of Termination; provided that </font>in the event the Date of Termination
precedes the completion of a</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">period in which, pursuant
to the MICP, Executive could have earned compensation thereunder, or in the
event the Date of Termination precedes the determination of compensation that
he has earned for a completed period under the MICP, then, with respect to each
such period, Executive shall be entitled to an amount equal to the average of
the sum of (i) the Special Bonus and (ii) award payments made to him under the
MICP for the three years preceding the Date of Termination (or for the number
of years he has participated in such plan, if less than three), including any
portion of any such payments that he elected to defer to his Standard Deferral
Account in the DP&amp;L&#146;s Key Employees Deferred Compensation Plan</font>;</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160; all unvested stock options awarded to
Executive under the Option Plan shall become fully vested.</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160; the Companies shall, at their expense,
maintain in full force and effect for Executive&#146;s continued benefit all life
insurance and accident plans in which he was entitled to participate
immediately prior to the Date of Termination, or, if more favorable to
Executive, on the date of a prior Change of Control, provided that his
continued participation is possible under the terms of such plans and programs.&#160; In the event that the terms of any such plan
do not permit Executive&#146;s continued participation or that any such plan is
discontinued or the benefits thereunder materially reduced, the Companies shall
arrange to provide, at their expense, benefits to Executive that are
substantially similar to those he was entitled to receive under such plan
immediately prior to the Date of Termination.&#160;
The obligation of the Companies under this subsection (v) shall
terminate on the earlier of: (1) the third anniversary date of the earlier Date
of Termination or (2) the date an essentially equivalent and no less favorable
benefit is made available to Executive at no cost by a subsequent
employer.&#160; At the end of the applicable
period of coverage set forth above, Executive shall have the option to have
assigned to him, at no cost and with no apportionment of prepaid premiums, any
assignable insurance owned by the Companies and relating specifically to
Executive; and</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi) </font><font size="2" style="font-size:10.0pt;">any gross up amount payable under Section 11 hereof.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Companies shall make the foregoing cash payments to
Executive as severance in a lump sum in cash not later than the Date of
Termination (or in the case of any payments due under clause (v), if, and to
the extent the amount of such payments are not known or calculable as of such
due date, as soon as the amount is known and calculable).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; <u>Additional Payment</u>.&#160; In consideration of Executive agreeing to the
covenants in Section 14 hereof, if Executive receives payments under Section
10(a)(ii), Executive shall be</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">paid an additional amount
equal to one-half (1/2) the amount determined under Section 10(a)(ii) payable
on the date on which the payment under Section 10(a)(ii) is made.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160; <u>Anticipatory Termination</u>. If Executive&#146;s
employment is terminated by the Companies without Cause (other than due to
Executive&#146;s death, Disability, or expiration of the Term), and the Company is
then in, or within six (6) months thereof the Company commences, discussions
with a potential acquirer relating to a transaction that could result in a
Change of Control and such Change in Control occurs, then the Companies shall
pay and provide Executive the amounts and benefits provided for in Section
10(a) above as if the date of the Change of Control were the Date of
Termination.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d) </font><u><font size="2" style="font-size:10.0pt;">Nature of Payments; No Mitigation</font></u><font size="2" style="font-size:10.0pt;">.&#160;
The payments and benefits provided upon termination of employment under
this Section 10 shall not be treated as damages, but rather shall be treated as
severance compensation to which Executive is entitled under the terms and
conditions provided herein.&#160; Executive
shall not be required to mitigate the amount of any benefit provided under this
agreement by seeking other employment or otherwise.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
11.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Gross-Up Payment.</font></u></b>&#160; In the event that any payment pursuant to
this agreement or any other agreement will be subject to the tax (the &#147;Excise
Tax&#148;) imposed by Section 4999 of the Internal Revenue Code of 1986 (&#147;Code&#148;) or
any successor or similar provision, the Companies shall pay Executive an
additional amount (the &#147;Gross-Up Payment&#148;) such that the net amount retained by
Executive after deduction of any Excise Tax on such payments (excluding
payments pursuant to this paragraph 9), and after deduction for any federal,
state and local income tax and Excise Tax upon the payment provided for by this
paragraph, shall be equal to the amount of such payments (excluding payments
pursuant to this paragraph 9) before payment of any Excise Tax (hereinafter the
&#147;Excise Tax Compensation Net Payment&#148;). For purposes of determining whether any
of such payments will be subject to the Excise Tax and the amount of such
Excise Tax, any payments or benefits received or to be received by Executive in
connection with a Change of Control or Executive&#146;s termination of employment
shall be treated as &#147;parachute payments&#148; within the meaning of Section 280G of
the Code, and all &#147;excess parachute payments&#148; within the meaning of Section
280G of the Code shall be treated as subject to the Excise Tax, unless in the
opinion of tax counsel selected by the Company&#146;s independent auditors and
acceptable to Executive such payments or benefits do not constitute parachute
payments or excess parachute payments. For purposes of determining the amount
of the Gross-Up Payment, Executive shall be deemed to pay all federal income
taxes at the highest marginal rate of federal income taxation in the calendar
year in which the Gross-Up Payment is to be made and state and local income
taxes at the highest marginal rates of taxation in the state and locality in
which Executive is taxed on the payments giving rise to the Gross-Up Payment,
net of the maximum reduction in federal income taxes which could be obtained
from deduction of such state and local taxes. In the event that the Excise Tax
is subsequently determined to be less than the amount taken into account
hereunder, Executive shall repay to the Companies, at the time that the amount
of such reduction in Excise Tax is finally determined, an amount necessary so
that the total payments hereunder equal the Excise Tax Compensation Net
Payment, plus interest on the amount of such repayment at a rate equivalent to
the rate described in Section 280G (d) (4) of the Code. In the event that the
Excise Tax is</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">determined to exceed the
amount taken into account hereunder, the Companies shall make an additional
Gross-Up Payment in respect of such excess (plus any interest payable with
respect to such excess) at the time that the amount of such excess is finally
determined.&#160; The Gross-Up Payment shall be
paid not later than the date on which the payments giving rise to the Gross-Up
Payment are made, or, if and to the extent such payment is not known or
calculable as of such date, as soon as the amount is known and calculable.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 12</font></u></b>.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">Indemnification</font></u></b>.&#160; The Companies shall indemnify Executive
against any and all losses, liabilities, damages, expenses (including attorneys&#146;
fees) judgments, fines and amounts paid in settlement incurred by Executive in
connection with any claim, action, suit or proceeding (whether civil, criminal,
administrative or investigative), including any action by or in the right of
either of the Companies, by reason of any act or omission to act in connection
with the performance of his duties hereunder to the full extent that the
Companies are permitted to indemnify a director, officer, employee or agent
against the foregoing under Ohio law, including, without limitation, Section
1701.13(E) of the Ohio Revised Code.&#160; The
Companies shall at all times cause Executive to be included, in his capacities
hereunder, under all liability insurance coverage (or similar insurance
coverage) maintained by any of the Companies from time to time.&#160; Upon Executive&#146;s written request and
substantiation, the Companies shall make prompt payment of the legal fees and
expenses incurred in connection with an indemnifiable claim involving Executive
(but not more frequently than once per calendar quarter); provided that if it
is finally determined by a court that Executive is not entitled to
indemnification under Ohio law with respect to a claim for which his legal fees
and expenses were paid pursuant to this Section 12, then any legal fees and
expenses paid by the Companies shall be immediately repaid to the Companies by
Executive.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 13</font></u></b>.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">Legal Expenses</font></u></b>.&#160; The Companies shall pay Executive in full for
all legal fees and expenses reasonably incurred by him in connection with this
Agreement (including, without limitation, any such fees and expenses incurred
in contesting or disputing any termination of this or related Agreement or in
seeking to obtain or enforce any right or benefit provided herein, regardless
of the outcome), unless, in the case of a legal action brought by Executive or
in his name, a court finally determines that such action was not brought in
good faith.&#160; The Companies shall pay the
reasonable attorneys fees, costs and expenses incurred by Executive in
connection with the negotiation, execution and delivery of this Agreement.&#160; Upon Executive&#146;s written request and
substantiation, the Companies shall make prompt payment of the legal fees and
expenses provided for under this Section 13 (but not more frequently than once
per calendar quarter); provided that if a legal action brought by Executive, or
in his name, is finally determined by a court to have not been brought in good
faith, any legal fees and expenses paid by the Companies shall be immediately
repaid to the Companies by Executive.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 14.</font></u></b><font size="2" style="font-size:10.0pt;">&#160; <b><u><font style="font-weight:bold;">Non-Competition and Confidentiality.</font></u></b>&#160; (a)&#160; </font><font size="2" style="font-size:10.0pt;">In
consideration </font><font size="2" style="font-size:10.0pt;">of the
Companies&#146; entering into this Agreement and as an inducement for them to do so,</font><font size="2" style="font-size:10.0pt;">
and in consideration of the Companies&#146; agreement to pay Executive the amount
set forth under Section 10(b) hereof, in the event and only in the event that
he receives the payment under Section 10(b)</font><font size="2" style="font-size:10.0pt;"> hereof, Executive agrees as follows: for a period of
two years after termination of his employment for any reason, he will not,
without the Companies&#146; prior written consent, directly or indirectly, (i)
participate or be interested in any business (aa) which is engaged in Ohio,</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indiana, Kentucky,
Michigan and/or Pennsylvania in providing (as a public utility or otherwise)
electric power or services on a retail and/or wholesale basis or in providing
energy marketing, aggregation and/or procurement services, or (bb) which is
engaged in any other business being conducted or proposed to be conducted by
the Companies; (ii) solicit for employment with himself or any firm or entity
with which he is associated, any employee of the Companies or otherwise
disrupt, impair, damage or interfere with the Companies&#146; relationship with
their employees; (iii) solicit for his own behalf or on behalf of any other
person(s), any customer of the Companies that has purchased products or
services from the Companies at any time in the twelve (12) months preceding his
Date of Termination or that the Companies are actively soliciting or have known
plans to solicit, for the purpose of marketing or distributing any product,
pricing or service competitive with any product, pricing or service then
offered by the companies or which the Companies have known plans to offer; or
(iv) engage or be affiliated with any person(s), in the development or
marketing, including but not limited to the establishment of product or service
prices, of any product or service which will compete with any product or
service the Companies are then developing or marketing in any geographic market
where the Companies are doing or preparing to do business.</font></p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; At all times, Executive (i) will keep all
confidential, nonpublic and/or proprietary information (including, for example,
trade secrets, financial information, customer information and business and
strategic plans) of the Companies (regardless of when he became aware of such
information) in strict confidence and (ii) will not, directly or indirectly,
use or disclose to any person in any manner any of such information, except to
the extent directly related to and required by his performance of the duties
assigned to him by the Companies.&#160;
Executive will take all appropriate steps to safeguard such information
and to protect it against unauthorized disclosure, misuse, loss or theft.&#160; Upon termination of his employment, he will
promptly return to the Companies, without retaining any copies, all written or
computer readable material containing any of such information, as well as all
other property and records of the Companies, in his possession or control.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 15.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Certain Definitions.</font></u></b>&#160; For purposes of this Agreement, the following
terms have the following meanings:</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#147;<u>Cause</u>&#148;</font></b>
shall mean (a) commission of a felony, (b) embezzlement; (c) the illegal use of
drugs, or (d) the failure by Executive to substantially perform his duties with
the Companies (other than any such failure resulting from Executive&#146;s physical
or mental illness or other physical or mental incapacity) as determined by the
Companies&#146; Boards of Directors. Notwithstanding the foregoing, Cause shall not
be deemed to exist unless and until there shall have been delivered to
Executive a copy of a resolution duly adopted by written consent of not less
than three-fourths of the number of directors then in office of each Board of
Directors (after reasonable notice to Executive and an opportunity for
Executive, together with Executive&#146;s counsel, to be heard at a meeting of the
Companies' Boards of Directors called and held for that purpose), finding that
in the good faith opinion of the Companies&#146; Boards of Directors Executive is
guilty of conduct set forth above in clauses (a), (b), (c) or (d) of the first
sentence of this definition and specifying the particulars thereof in detail.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#147;<u>Change of Control</u>&#148;</font></b>means the consummation
of any Change of Control of DPL, or its principal subsidiary, DP&amp;L, of a
nature that would be required to be reported in response to Item 6 (e) of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of
1934, as amended (the &#145;Exchange Act&#146;) as determined by the Board of Directors
of DPL in its sole discretion; provided that, without limitation, such a Change
of Control shall be deemed to have occurred if (i) any &#145;person&#146; (as such term
is defined in Sections 13 (d) and 14 (d) (2) of the Exchange Act; hereafter, a &#145;Person&#146;)
other than DPL or DP&amp;L or an entity then directly or indirectly
controlling, controlled by or under common control with DPL or DP&amp;L is on
the date hereof or becomes the beneficial owner, directly or indirectly, of
securities of DPL or DP&amp;L representing (A) 25% or more of the combined
voting power of the then outstanding securities of DPL or DP&amp;L if the
acquisition of such beneficial ownership or such tender offer is not approved
by the Board of Directors of DPL prior to the acquisition or the commencement
of such tender offer or (B) 50% or more of such combined voting power in all
other cases; (ii) DPL or DP&amp;L consummates a merger or consolidation, or
consummates a &#145;combination&#146; or &#145;majority share acquisition&#146; in which it is the &#145;acquiring
corporation&#146; (as such terms are defined in Ohio Rev. Code &#167; 1701.01 as in
effect on December 31, 1990) and in which shareholders of DPL or DP&amp;L, as
the case may be, immediately prior to entering into such agreement, will
beneficially own, immediately after the effective time of the merger,
consolidation, combination or majority share acquisition, securities of DPL or
DP&amp;L or any surviving or new corporation, as the case may be, having less
than 50% of the &#145;voting power&#146; of DPL or DP&amp;L or any surviving or new
corporation, as the case may be, including &#145;voting power&#146; exercisable on a
contingent or deferred basis as well as immediately exercisable &#145;voting power&#146;,
excluding any merger of DPL into DP&amp;L or of DP&amp;L into DPL; (iii) DPL or
DP&amp;L consummates a sale, lease, exchange or other transfer or disposition
of all or substantially all of its assets to any Person other than to a wholly
owned subsidiary or, in the case of DP&amp;L, to DPL or a wholly owned
subsidiary(ies) of DPL; but not including (A) a mortgage or pledge of assets
granted in connection with a financing or (B) a spin-off or sale of assets if
DPL continues in existence and its common shares are listed on a national
securities exchange, quoted on the automated quotation system of a national
securities association or traded in the over-the-counter market; or (iv) those
persons serving as directors of DPL or DP&amp;L on the date of this Agreement
(the &#145;Original Directors&#146;) and/or their Successors do not constitute a majority
of the whole Board of Directors of DPL or DP&amp;L, as the case may be (the
term &#145;Successors&#146; shall mean those directors whose election or nomination for
election by shareholders has been approved by the vote of at least two-thirds
of the Original Directors and previously qualified Successors serving as
directors of DPL or DP&amp;L, as the case may be, at the time of such election
or nomination for election).</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#147;<u>Date of Termination</u>&#148;</font></b>
shall mean (a) the date specified in a Notice of Termination or (b) if this
Agreement is terminated due to Executive&#146;s death or expiration of the Term, the
date of such termination.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#147;<u>Disability</u>&#148;</font></b>
shall mean, for the purposes of this agreement, Executive&#146;s inability to perform
the duties required of Executive on a full-time basis for a period of six
consecutive months because of physical or mental illness or other physical or
mental disability or incapacity.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 16.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Parties in Interest.</font></u></b>&#160; This Agreement is for the sole benefit of the
parties and shall not create any rights to any person not a party.&#160; This Agreement is personal and may not be</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">assigned by any party without the prior written consent of the other
party.&#160; Subject to the foregoing, this
Agreement shall be binding upon, inure to the benefit of, and be enforceable
by, the respective successors and assigns of the parties (including the heirs
and estate of Executive), but no assignment shall, of itself, relieve any party
of its obligations hereunder.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 17.</font></u></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#160; <u>Successors.</u>&#160; </font></b><font size="2" style="font-size:10.0pt;">(a)&#160; </font><font size="2" style="font-size:10.0pt;">The Companies shall require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of DPL or DP&amp;L, by
agreement to expressly and unconditionally assume and agree to perform this
agreement in the same manner and to the same extent that the Companies would be
required to perform it if no such succession had taken place.&#160; Failure of the Companies to obtain such
agreement prior to the effectiveness of such succession shall be a breach of
this agreement.&#160; The foregoing provisions
of this Section 17(a) shall not apply to (i) a spin-off or sale of assets, or
(ii) a transaction described in item (ii) of the definition of Change of
Control above involving only DP&amp;L if in each case DPL continues in
existence and its common shares are listed on a national securities exchange,
quoted on the automated quotation system of a national securities association
or traded in the over-the-counter market.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160; This Agreement shall inure to the benefit of
and be enforceable by Executive&#146;s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.&#160; If Executive should die while any amounts
would still be payable to him hereunder if he had continued to live, all such
amounts, unless otherwise provided herein, shall be paid to such beneficiary or
beneficiaries as he shall have designated by written notice delivered to the
Companies prior to his death or, failing written notice, to his estate.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 18.</font></u></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#160;
<u>Notices.</u>&#160; </font></b><font size="2" style="font-size:10.0pt;">All notices required or permitted to be
given under this agreement shall be in writing and shall be mailed (postage
prepaid by either registered or certified mail) or delivered, if to the
Companies, addressed to the Corporate Secretary of the Companies at:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DPL Inc. and The Dayton Power and Light Company</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MacGregor Park</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1065 Woodman Drive</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dayton, Ohio 45432</font></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" style="padding:0in 0in 0in 0in;width:20.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Corporate Secretary</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and if
to Executive, addressed to Executive at the address of his personal residence
on file in the Companies&#146; records.&#160; Any
party may change the address to which notices to such party are to be directed
by giving written notice of such change to the other parties in the manner
specified in this Section 18.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 19.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Entire Agreement.</font></u></b>&#160; This Agreement sets forth the entire
agreement and understandings of the parties in respect to the subject matter
hereof and supersedes all prior agreements, arrangements and understandings
relating to the subject matter hereof.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 20.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Interpretation.</font></u></b>&#160; The section and other headings contained in
this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement.&#160; Words used in this Agreement in the singular
number shall include the plural, and vice versa, unless the context requires
otherwise.&#160; Words of gender used in this
Agreement may be read as masculine, feminine or neuter as the context may
require.&#160; The terms &#147;this Agreement&#148;, &#147;hereto&#148;
&#147;herein&#148;, &#147;hereby&#148;, &#147;hereof&#148; and similar expressions refer to this Agreement in
its entirety and not to any particular provision or portion of this
Agreement.&#160; When a reference is made to
Sections, such reference shall be to a Section of this Agreement, unless
otherwise indicated.&#160; Whenever the words &#147;include&#148;,
&#147;includes&#148; or &#147;including&#148; are used herein, they shall be deemed to be followed
by the words &#147;without limitation&#148;.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 21.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Law Governing.</font></u></b>&#160; This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Ohio
without regard to its conflicts of laws rules.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 22.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Counterparts.</font></u></b>&#160; This Agreement may be executed simultaneously
in two or more counterparts, each of which shall be deemed an original but all
of which taken together shall constitute one and the same instrument.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 23.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Amendment.</font></u></b>&#160; Any amendment to this Agreement or any waiver
of rights or any consent hereunder shall not be operative unless it is in
writing and signed by the party sought to be charged.&#160; The parties agree to make such reasonable
amendments to this Agreement, if any, as are necessary to avoid imposition of
taxes and penalties upon the Executive under section 409A of the Code; provided
that such amendment does not result in a material increase in the liability and
obligations of the Company under this Agreement or otherwise.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 24.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Equitable Relief.</font></u></b>&#160; Executive acknowledges that the Companies may
be irreparably injured by any breach of Section 14.&#160; Accordingly, the Companies shall be entitled
to specific performance and other injunctive relief as remedies for any breach
(or threatened breach) of Section 14, in addition to all other remedies
available at law or in equity.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 25.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Severability.</font></u></b>&#160; If any provision of this Agreement or the
application thereof to any party or circumstance shall be held invalid or
unenforceable to any extent, the remainder of this Agreement and the
application of such provision to another party or circumstance shall not be
affected thereby and such provision shall be enforced to the greatest extent
permitted by applicable law.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 26.</font></u></b>&#160; <b><u><font style="font-weight:bold;">Waiver.</font></u></b>&#160; The failure or delay on the part of any party
to insist upon strict performance of any of the terms or conditions of this
Agreement will not constitute a waiver of any of its rights hereunder.&#160; No right or remedy herein conferred upon or
reserved to any party is intended to be exclusive of any other right or remedy
and all such rights and remedies shall be cumulative.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 27.</font></u>&#160; <u>No Mitigation.</u></b>&#160; Executive shall not be required to mitigate
the amount of any payment provided for pursuant to this Agreement by seeking
other employment and, to the extent that Executive obtains or undertakes other
employment, the payment will not be reduced by the earnings of Executive from
the other employment.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[SIGNATURE PAGE
FOLLOWS]</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first written above.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DPL INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:28.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in 0in 0in 0in;width:25.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">James V. Mahoney</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:28.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in 0in 0in 0in;width:25.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Paul R. Bishop</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director and Chairman
  of the Compensation Committee of the<br>
  Board of Directors of DPL Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THE DAYTON POWER AND
  LIGHT COMPANY</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:28.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in 0in 0in 0in;width:25.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">James V. Mahoney</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:28.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in 0in 0in 0in;width:25.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Paul R. Bishop</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director and Chairman
  of the Compensation Committee of the<br>
  Board of Directors of The Dayton Power and Light Company</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXECUTIVE</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:33.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in 0in 0in 0in;width:12.96%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert D. Biggs</font></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="249" style="border:none;"></td>
  <td width="97" style="border:none;"></td>
  <td width="215" style="border:none;"></td>
  <td width="187" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rnelson\05-15800-1\task567486\15800-1-kc.htm',USER='rnelson',CD='Sep  2 15:16 2005' -->


</body>

</html>
</TEXT>
</DOCUMENT>
