# Cinergy Corp.

# The
Severance Opportunity Plan

# for
Non-Union
Employees
of
Cinergy Corp.

Effective June 1, 1996AS AMENDED
AND RESTATED EFFECTIVE
June 1, 2001

Severance Opportunity Plan
Cinergy Plan #503
3/02/00
73202 v6

# Table of
Contents

`PAGE

Introduction...................................................................1
         Document Type
         Plan Interpretation
         The Future of the Plan

         Career Transition Status Opportunity

         Opening/Closing Date .................................................2

         Eligibility...........................................................2

         Participation.........................................................2

         Career Transition Status Time.........................................3

         Severance Benefit.....................................................3

         Taxation of Severance Benefits........................................3

         Other Benefits......................................................3-5
                  Educational Reimbursement
                  Outplacement Services
                  Medical/Dental Coverage
                  Life Insurance for CG&E Employees
                  Life Insurance for PSI Employees

Payment of the Severance Benefit...............................................5
         Limitation on Amount of Benefits

Loss of Benefits.............................................................5-7
         Filing A Claim
         Claims Appeal Procedure
         ERISA Rights

Plan Facts ....................................................................8`

Severance Opportunity Plan
Cinergy Plan #503
73202 v6

# The
Severance Opportunity Plan

|Introduction                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|This  document is a summary of the  severance  plan  provisions  - a "summary  plan
description"  of  the  Cinergy  Corp.  Severance  Opportunity  Plan  (the  "plan").
Summaries  are designed to give you the  information  you need about your  benefits
under the plan.  This booklet also serves as the plan itself.  Throughout the plan,
those  eligible  are  called  "you".  "We"  refers to the Human  Resource  Services
personnel  of  Cinergy.  We have  tried to make it as  readable  as  possible.  The
statements  made in this  plan  must be read in light  of the  entire  document.  A
single statement, read out of context, may be misleading.
|The plan administrator has discretionary  authority to interpret any ambiguities in
the plan,  and will also make  decisions  on any points  that are not clear or have
been  inadvertently   omitted.   The  plan  administrator  must  be  consistent  in
interpreting  the plan.  To be fair to all eligible  employees,  the  administrator
will treat individuals who are in the same circumstances in the same manner.                                                                                                                                                                                                                                         
|Cinergy  intends to offer  various  severance  programs  under the umbrella of this
plan  indefinitely.  However,  Cinergy reserves the right to amend or terminate the
plan at any time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|You are not guaranteed employment rights or employment status by this plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

# Career Transition Status Opportunity

|Opening/Closing Date
|--------------------
|                    
|                    

|Career Transition Status Time                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|For those employed as of June 1, 2001:
Severance   benefits  under  this  program  for  eligible  exempt,   non-union  and
non-exempt  non-union  employees are based on your full years of service calculated
at two (2) weeks of severance  pay for each full year of service.  Your weekly base
severance  salary is based on your base salary and does not include any allowances,
premiums,  bonuses,  overtime  or  other  types  of  compensation.  If  you  are  a
part-time  employee,  your weekly  base  salary is based on the  average  number of
hours you worked  during  the 12 months  before  your  termination  date.  Years of
service  begin on your hire date or adjusted  hire date,  whichever is earlier.  If
you have  previously  received  severance  or  retirement  benefits  under any plan
previously  or  currently  offered  by  Cinergy,  your  severance  benefit  will be
calculated from the date of your rehire.
|You will be entitled  to a minimum of 8 weeks of pay as a severance  benefit if you
elect to participate while you are in career transition status.Note:     Any  employee  holding  the  title of  "General  Manager"  or that
                 title's  equivalent,  will                receive a severance benefit equal to 78
                 weeks of weekly base  salary if s/he                 terminates employment,  and
                 meets the eligibility requirements of the plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Your  severance  benefit is subject to federal  and state  income tax and FICA tax.
Depending  on where you live,  they may also be subject  to  municipal  taxes.  Tax
withholding  by your employer is required.  Severance  benefits paid from this plan
are not  eligible  for  rollover  into  individual  retirement  accounts  or  other
qualified retirement plans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|For information  purposes,  the other benefits  available to employees  terminating
under  this  plan  are  described  in this  document  for your  convenience.  These
benefits are available to any non-union employee in career transition status.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

|Educational Reimbursement
|-------------------------
|                         
|                         

|Life Insurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Generally,  you will be paid your severance  benefit in a lump sum approximately 30
days  after the  rescission  period  set forth in the  waiver  expires,  or as soon
thereafter as administratively feasible.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|The total value of an  employee's  severance  benefits  cannot exceed two times the
employee's  "annual  compensation".  "Annual  compensation"  means W-2 income  plus
before-tax  deferrals  under the  applicable  Internal  Revenue Code Section 401(k)
plan and flexible  benefits plan of your employer plus the value of fringe benefits
for the year  prior to the  termination  date.  If your  benefits  under  this plan
exceed this number, the severance benefit will be reduced.                                                                                                                                                                                                
|If you elect to  participate  in the plan,  and have  submitted your signed waiver,
but die before  receiving your severance  benefit,  it will be paid to your estate.
Other   benefits   payable  under  The   Severance   Opportunity   Plan,   such  as
medical/dental/life  premium  subsidies,  cease  as of your  death.  If you die and
have not  submitted  your signed  resignation  and  waiver,  your  eligibility  for
participation  in this plan ends and you lose any benefit you might  otherwise have
been  entitled to under the terms of this plan.  If you submit a signed  waiver and
revoke it within the rescission period, you will lose any benefit under this plan.

|Filing a Claim
|--------------
|              
|              

|ERISA Rights (Continued)                                                                                                                                                                                                                                                                                                                                                 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|If you believe you have been discriminated  against for asserting your ERISA rights
under the plan, you may seek assistance  from the U.S.  Department of Labor, or you
may file suit  directly  in  federal  district  court.  The court  will  decide who
should  pay court  costs and legal  fees.  If you lose,  the court may order you to
pay these costs and fees.
|The courts are  particularly  likely to order you to pay costs and fees if it finds
that  your  claim is  frivolous.  If you are  successful,  the  court may order the
defendant you have sued to pay these costs and fees.                                                                                                                                             
|If you have  questions  about this plan,  you  should  contact  Karen Feld at (513)
287-2729.  If you have questions about your rights under ERISA,  you should contact
the Pension Benefit Guaranty  Corporation's  Technical Assistance Division,  1200 K
Street, N. W., Suite 930, Washington, D.C. 20005-4026, or call (202) 326-4000.                               

|Plan Facts                        
|----------------------------------
|                                  
|Plan Sponsor                      
|                                  
|Employer Identification Number    
|                                  
|Plan Number                       
|                                  
|Type of Plan                      
|                                  
|Plan Year                         
|                                  
|Plan Funding                      
|                                  
|Plan Administrator                
|                                  
|Agent for Service of Legal Process