Document:

Exhibit 10(p)

 

DPL INC.

SUPPLEMENTAL EXECUTIVE DEFINED CONTRIBUTION
RETIREMENT PLAN

(AS AMENDED AND RESTATED THROUGH DECEMBER 31,
2007)

 

DPL Inc. adopted the DPL Inc. Supplemental Executive Defined
Contribution Retirement Plan on the terms and conditions described hereunder,
originally effective as of January 1, 2006.  The Plan is hereby amended and restated as of
December 31, 2007.

 

ARTICLE I - PREFACE

 

Section 1.1  Effective
Date.  The original effective date of
the Plan is January 1, 2006.  The
Plan is amended and restated, effective December 31, 2007.

 

Section 1.2  Purpose
of the Plan.  The purpose of this
Plan is to provide additional retirement benefits beyond the dollar limitation
on Compensation imposed under Section 401(a)(17) of the Internal Revenue
Code of 1986, as amended (the “Code”).

 

Section 1.3.  Section 409A
of the Code.  It is intended that the
Plan (including all amendments thereto) comply with the provisions of Section 409A
of the Code, so as to prevent the inclusion in gross income of any retirement
benefit accrued hereunder in a taxable year that is prior to the taxable year
or years in which such amount would otherwise be actually distributed or made
available to the Participants.  It is
intended that the Plan shall be administered in a manner that will comply with Section 409A
of the Code, including regulations or any other formal guidance issued by the
Secretary of the Treasury and the Internal Revenue Service with respect thereto
(collectively, the “409A Guidance”).

 

Section 1.4.  Interpretation.  For purposes of interpreting the provisions
of this Plan, the singular shall include the plural unless otherwise clearly
required by the context.

 

ARTICLE II - DEFINITIONS

 

Section 2.1.  “Account”
means the notional account maintained by the Company in accordance with Section 4.1.

 

Section 2.2.  “Beneficiary”
means the person or persons designated by the Participant as his or her
Beneficiary under this Plan, in accordance with the provisions of Article VII
hereof.

 

Section 2.3.  “Board”
means the Board of Directors of the Company.

 

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Section 2.4.  “Change
of Control” means the consummation of any Change of Control of the Company,
or its principal subsidiary, The Dayton Power and Light Company (“DP&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 “Exchange Act”) as determined by the Board in its sole
discretion; provided that, without limitation, such a Change of Control shall
be deemed to have occurred if:

 

(a)     any
“Person” (as such term is defined in 
Sections 13(d) or 14(d)(2) of the Exchange Act;
hereafter, a “Person”) is on the date hereof or becomes the beneficial owner,
directly or indirectly, of securities of the Company or DP&L representing (I) 25%
or more of the combined voting power of the then outstanding Voting Stock of
the Company or DP&L if the acquisition of such beneficial ownership is not
approved by the Board prior to the acquisition or (II) 50% or more of such
combined voting power in all other cases;

 

(i)     for
purposes of this Section 2.4, the following acquisitions shall not
constitute a Change of Control: (A) any acquisition of Voting Stock of the
Company or DP&L directly from the Company or DP&L that is approved by a
majority of those persons serving as directors of the Company or DP&L on
the date of this Plan (the “Original Directors”) or their Successors (as
defined below), (B) any acquisition of Voting Stock of the Company or
DP&L by the Company or any Subsidiary, and (C) any acquisition of
Voting Stock of the Company or DP&L by the trustee or other fiduciary
holding securities under any employee benefit plan (or related trust) sponsored
or maintained by DPL or any Subsidiary (the term “Successors” 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 the Company or
DP&L, as the case may be, at the time of such election or nomination for
election);

 

(ii)     if
any Person is or becomes the beneficial owner of 25% or more of combined voting
power of the then-outstanding Voting Stock of the Company or DP&L as a
result of a transaction described in clause (A) of Section 2.4(a)(i) above
and such Person thereafter becomes the beneficial owner of any additional
shares of Voting Stock of the Company or DP&L representing 1% or more of
the then-outstanding Voting Stock of the Company or DP&L, other than in an
acquisition directly from the Company or DP&L that is approved by a
majority of the Original Directors or their Successors or other than as a
result of a stock dividend, stock split or similar transaction effected by the
Company or DP&L in which all holders of Voting Stock of the Company or
DP&L are treated equally, such subsequent acquisition shall be treated as a
Change in Control;

 

(iii)     a
Change in Control will not be deemed to have occurred if a Person is or becomes
the beneficial owner of 25% or more of the Voting Stock of the Company or
DP&L as a result of a reduction in the number of shares of Voting Stock of
the Company or DP&L outstanding pursuant to a transaction or 

 

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series of transactions that is
approved by a majority of the Original Directors or their Successors unless and
until such Person thereafter becomes the beneficial owner of any additional
shares of Voting Stock of the Company or DP&L representing 1% or more of
the then-outstanding Voting Stock of the Company or DP&L, other than as a
result of a stock dividend, stock split or similar transaction effected by the
Company or DP&L in which all holders of Voting Stock are treated equally;
and

 

(iv)     if
at least a majority of the Original Directors or their Successors determine in
good faith that a Person has acquired beneficial ownership of 25% or more of
the Voting Stock of the Company or DP&L inadvertently, and such Person
divests as promptly as practicable but no later than the date, if any, set by
the Original Directors or their Successors a sufficient number of shares so
that such Person beneficially owns less than 25% of the Voting Stock of the
Company or DP&L, then no Change of Control shall have occurred as a result
of such Person’s acquisition; or

 

(b)     the
Company or DP&L consummates a merger or consolidation, or consummates a “combination”
or “majority share acquisition” in which it is the “acquiring corporation” (as
such terms are defined in Ohio Rev. Code § 1701.01 as in effect on December 31,
1990) and in which shareholders of the Company or DP&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 the Company or DP&L or any surviving or
new corporation, as the case may be, having less than 50% of the “voting power”
of DPL or DP&L or any surviving or new corporation, as the case may be,
including “voting power” exercisable on a contingent or deferred basis as well
as immediately exercisable “voting power”, excluding any merger of DP&L
into the Company or of the Company into DP&L;

 

(c)     the
Company or DP&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&L, to the Company or a
wholly owned subsidiary(ies) of the Company; but not including (I) a
mortgage or pledge of assets granted in connection with a financing or (II) a
spin-off or sale of assets if the Company 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

 

(d)     the
Original Directors and/or their Successors do not constitute a majority of the
whole Board or the Board of Directors of DP&L, as the case may be; or

 

(e)     approval
by the shareholders of the Company or DP&L of a complete liquidation or
dissolution of the Company or DP&L, as the case may be.

 

Section 2.5.     “Company”
means DPL Inc., an Ohio corporation, and any entity that succeeds DPL Inc. by
merger, reorganization or otherwise.

 

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Section 2.6.  “Compensation”
means, for a Plan Year, a Participant’s annual base salary as of the end of
such Plan Year and the benefit earned by such Participant under the Company’s
Executive Incentive Compensation Program for such Plan Year.

 

Section 2.7.  “Compensation
Committee” means the Compensation Committee of the Board.

 

Section 2.8.  “Contributions”
means the contributions credited pursuant to Section 3.1 of the Plan.

 

Section 2.9.  “Controlled
Group” means the Company and any and all other corporations, trades and/or businesses, the
employees of which, together with employees of the Company, are treated under Section 414
of the Code as if they were employed by a single employer.  Each corporation or unincorporated trade or
business that is or was a member of the Controlled Group shall be referred to
herein as a “Controlled Group Member”, but only during such period as it is or
was such a member.

 

Section 2.10.  “Disability”
means a Participant’s inability to perform the duties required 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.

 

Section 2.11.  “Employee”
means a full-time salaried employee of an Employer.

 

Section 2.12.  “Employer”
means the Company and any other Controlled Group Member.

 

Section 2.13.  “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

Section 2.14.  “Hypothetical
Investment Fund” means any investment fund designated by the Company
pursuant to Section 8.1.

 

Section 2.15.  “Participant”
means an Employee that the Compensation Committee has designated to participate
under this Plan and who has executed a Participation Agreement.

 

Section 2.16.  “Participation
Agreement” means an agreement between the Company and each Employee that
must be executed as a condition of the Participant’s eligibility for this Plan.

 

Section 2.17.  “Plan”
means the DPL Inc. Supplemental Executive 
Defined Contribution Retirement Plan, as herein set forth and as the
same may from time to time be amended or restated.

 

Section 2.18.  “Plan
Administrator” means the Compensation Committee.

 

Section 2.19.  “Plan
Year” means the calendar year.

 

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Section 2.20.  “Qualified
Plan” means The Dayton Power and Light Company Employee Savings Plan.

 

Section 2.21.  “Retirement”
means the Participant’s termination of employment with the Company upon
reaching age 55 and providing 10 years of service, as such phrase is defined in
The Retirement Income Plan of The Dayton Power and Light Company.

 

Section 2.22.  “Separates
from Service” or “Separation from Service” has the meaning ascribed
to such phrase in the 409A Guidance.

 

Section 2.23.  “Unforseeable
Emergency” means an event which results in a severe financial hardship to
the Participant resulting from (a) an illness or accident of the
Participant, the Participant’s spouse or a dependent of the Participant, (b) loss
of the Participant’s property due to casualty or (c) other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant.

 

Section 2.24.  “Valuation
Date” means each December 31, plus such additional date(s), if any,
selected by the Plan Administrator.  In
the event of a Change of Control, the term “Valuation Date” shall also mean the
last day of the calendar month immediately preceding the date of the Change of
Control.

 

Section 2.25.  “Vesting
Years” has the meaning ascribed to such phrase in the Retirement Income
Plan of The Dayton Power and Light Company.

 

Section 2.26.  “Voting
Stock” means securities entitled to vote generally in the election of
directors.

 

Section 2.27.  “409A
Guidance” has the meaning set forth in Section 1.3.

 

ARTICLE III - CONTRIBUTIONS

 

Section 3.1.  Contributions.  For each Plan Year, the Company shall credit
to the Account established for each Participant an amount (the “Contribution”)
equal to 15% of the amount, if any, by which the Participant’s Compensation for
such Plan Year exceeds the limit on Compensation imposed by Section 401(a)(17)
of the Code (the “Code Limit”) for that Plan Year.  The Company shall credit the Contribution to
each Participant’s Account as soon as practicable after the Participant’s
Compensation for the Plan Year is determined.

 

ARTICLE IV - ACCOUNTS

 

Section 4.1.  Participants’
Accounts.  The Company shall
establish and maintain on its books an Account for each Participant which shall
contain the following entries:

 

(a)           Credits
for the Contributions described in Section 3.1.

 

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(b)           Credits or charges representing the income, expenses,
gains or losses allocable to the Participant’s Account which would be
applicable if such Account had been invested on a tax deferred basis in the
Hypothetical Investment Fund(s) selected by the Participant or the
Participant’s Beneficiary as provided in Section 8.1.  The entries provided by this Subsection shall
continue to be made until the Participant’s entire Account has been distributed
to the Participant or the Participant’s Beneficiary pursuant to Article VI.

 

(c)           Debits for any distributions made from the Account and any
amounts forfeited under Section 5.2.

 

Section 4.2.  Effect
on other Benefits.  Benefits payable
to or with respect to a Participant under any other Employer sponsored
(qualified or nonqualified) plan, if any, are in addition to those provided
under this Plan.

 

ARTICLE V - VESTING

 

Section 5.1.  Vesting.  A Participant shall become 100% vested in all
amounts credited to the Participant’s Account hereunder upon completion of five
Vesting Years.  In addition, a
Participant shall become 100% vested in all amounts credited to the Participant’s
Account hereunder upon the Participant’s death or Disability or upon a Change
of Control.

 

Section 5.2.  Forfeitures.  If a Participant Separates from Service
(other than by reason of death or Disability) prior to becoming 100% vested in
the Participant’s Account, the Participant’s Account shall be forfeited as of
the date of the Participant’s Separation from Service.

 

ARTICLE VI - DISTRIBUTION OF BENEFITS TO
PARTICIPANTS

 

Section 6.1.  Time
and Manner of Payment.

 

(a)           Upon
the Separation from Service (other than by reason of death) of a Participant
who is 100% vested in his or her Account, the Participant’s Account shall be
paid or commence to be paid to him or her on the first day of the seventh month
following such Participant’s Separation from Service with the Company.  Notwithstanding the foregoing sentence,
subject to Subsection (c), upon a Change of Control or upon a Participant’s
Disability, the Participant’s Account shall be paid no later than 90 days
following such Change of Control or Disability, as the case may be; provided,
however, that the Participant shall not have a right to designate the
taxable year of the payment   Upon the
death of a Participant, the Participant’s Account shall be paid at the time
provided in Section 7.3.

 

(b)           The
Participant’s Account shall be paid in the following manner:

 

(i)            If the Participant’s Separation from
Service is on account of Retirement:

 

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(1)           The Participant’s Account shall be paid
in the form of five annual cash installments (A) with the first
installment being payable at the time prescribed in Subsection (a) of this
Section and each other installment being payable on the anniversary date
of the date of payment of the first installment and (B) with the amount of
each installment equal to the value of the Participant’s Account on the
Valuation Date immediately preceding the date for payment of the installment
multiplied by a fraction the numerator of which is one and the denominator of
which is the total number of remaining installments; and

 

(2)           Notwithstanding the foregoing, if the
balance in the Participant’s Account is $100,000 or less, the Participant’s
entire Account shall be paid in the form of a lump sum cash payment at the time
prescribed in Subsection (a).

 

(ii)           If
the Participant’s Separation from Service is other than on account of
Retirement, death or Disability, the Participant’s account shall be paid in the
form of a lump sum cash payment at the time prescribed in Subsection (a).

 

(iii)          If
the Participant’s Separation from Service is on account of death, the
Participant’s Account shall be paid as provided in Section 7.3.

 

(iv)          Subject
to Subsection (c), upon the Participant’s Disability or upon a Change of
Control, the Participant’s account shall be paid in the form of a lump sum cash
payment at the time prescribed in Subsection (a).

 

(c)           To
the extent (i) a Participant would be entitled to payment upon the
occurrence of a Change of Control pursuant to Subsection (a) and such
Change of Control does not constitute a “change in the ownership or effective
control” or a “change in the ownership of a substantial portion of the assets”
of the Company within the meaning of Section 409A(a)(2)(A)(v) of the
Code, or (ii) a Participant would be entitled to payment upon the
Participant’s Disability pursuant to Subsection (a) and such Participant
is not considered to be “disabled” within the meaning of Section 409A(a)(2)(C) of
the Code, then, notwithstanding that the Participant shall be deemed to be
vested in his or her Account pursuant to Section 5.1 upon the occurrence
of the Change of Control or the occurrence of the Disability, as the case may
be, payment will be made, to the extent necessary to comply with the provisions
of Section 409A of the Code, to the Participant on the earlier of (1) the
first day of the seventh month following the Participant’s Separation from
Service with the Company or (2) the Participant’s death.

 

Section 6.2.  Liability
for Payment/Expenses.  The Employer
by which the Participant was last employed prior to the Participant’s
Separation from Service or death shall pay the Participant’s vested Account to
the Participant or the Participant’s Beneficiary, but such Employer’s liability
shall be limited to its proportionate share of the Account, as hereinafter
provided.  If the Account payable to or
on behalf of a Participant is based on the Participant’s employment with more
than one Employer, the liability for 

 

7

 

the payment of such Account shall be shared by all such Employers (by
reimbursement to the Employer making such payment) as may be agreed to among
them in good faith and as will permit the deduction (for purposes of federal
income tax) by each such Employer of its portion of the payments made and to be
made hereunder.  Expenses of
administering the Plan shall be paid by the Employers, as directed by the
Company.

 

Section 6.3.  Prohibition
on Acceleration of Distributions. 
Notwithstanding any provision of the Plan to the contrary, the time for
payment or the schedule of any payment with respect to a Participant’s Account
as provided under the Plan shall not be accelerated (within the meaning of the Section 409A
Guidance) except as follows:

 

(a)           To
the extent necessary to comply with terms of a domestic relations order (as
defined in section 414(p)(1)(B) of the Code), the Plan may permit such
acceleration of the time or schedule of a payment of all or a portion of a
Participant’s Account to an individual other than the Participant;

 

(b)           To
the extent necessary to comply with a certificate of divestiture (as defined in
section 1043(b)(2) of the Code), the Plan may permit the acceleration of
the time or schedule of a payment of a Participant’s Account;

 

(c)           The
Plan may permit acceleration of the time for payment or schedule of a payment
with respect to a Participant’s Account in order (i) to pay the Federal
Insurance Contributions Act (“FICA”) tax imposed under sections 3101 and
3121(v)(2) of the Code on compensation deferred under the plan (the “FICA
Amount”), (ii) pay the income tax at source on wages imposed under section
3401 of the Code on the FICA Amount, and (iii) pay the additional income
tax at source on wages attributable to the pyramiding of section 3401 wages and
taxes, provided that the total payment permissible under this acceleration
provision shall not exceed the aggregate of the FICA Amount and the income tax
withholding related to such FICA Amount;

 

(d)           The
Company at any time, upon written request of the Participant, may cause to be
paid to such Participant, an amount equal to all or any part of the Participant’s
Account if the Company determines, based on such reasonable evidence that it
shall require, that such a payment is necessary for the purpose of alleviating
the consequences of an Unforseeable Emergency. 
Payments of amounts because of an Unforseeable Emergency may not exceed
the amount necessary to satisfy the Unforseeable Emergency plus amounts necessary
to pay taxes reasonably anticipated as a result of the distribution after
taking into account the extent to which the hardship is or may be relieved
through reimbursement or compensation by insurance or otherwise by liquidation
of the Participant’s assets (to the extent the liquidation of such assets would
not itself cause severe financial hardship); and

 

(e)           The
Plan may permit acceleration of the time for payment or schedule of a payment
with respect to a Participant’s Account in such other circumstances as
prescribed in the 409A Guidance and in accordance with such 409A Guidance.

 

8

 

ARTICLE VII - BENEFICIARIES

 

Section 7.1.  Beneficiary
Designations.  A designation of a
Beneficiary hereunder may be made only by an instrument (in form acceptable to
the Plan Administrator) signed by the Participant and filed with the Plan
Administrator prior to the Participant’s death. 
The Beneficiary hereunder need not be the same as under other retirement
plans in which Participant participates. 
In the absence of a Beneficiary designation and at any other time when
there is no existing Beneficiary designated hereunder, the Beneficiary of a
Participant shall be the Participant’s beneficiary under the Qualified
Plan.  A person designated by a
Participant as the Participant’s Beneficiary who or which ceases to exist shall
not be entitled to any part of any payment thereafter to be made to the
Participant’s Beneficiary unless the Participant’s designation specifically
provided to the contrary.  If two or more
persons designated as a Participant’s Beneficiary are in existence, the amount
of any payment to the Beneficiary under this Plan shall be divided equally
among such persons unless the Participant’s designation specifically provides
for a different allocation.

 

Section 7.2.  Change
in Beneficiary.

 

(a)           Anything
herein or in the Qualified Plan to the contrary notwithstanding, a Participant
may, at any time and from time to time, change a Beneficiary designation
hereunder without the consent of any existing Beneficiary or any other person.

 

(b)           Any
change in Beneficiary shall be made by giving written notice thereof to the
Plan Administrator and any change shall be effective only if received prior to
the death of the Participant.

 

Section 7.3.  Distributions
to Beneficiaries.  Upon the death of
a Participant who had commenced to receive payment of his or her Account prior
to his or her death in the form of installments (as provided in Section 6.1(b)),
any unpaid installments shall be paid to the Participant’s Beneficiary at the
same time that they would have been paid to the Participant had the Participant
not died (as provided in Section 6.1(b)).  Upon the death of any other
Participant, the entire Account of the Participant shall be paid to the
Participant’s Beneficiary in a lump sum cash payment as soon as practicable
following the Participant’s death, but in no event later than 60 days after the
Company receives notice of the Participant’s death.  Notwithstanding the foregoing, distributions
to Beneficiaries of amounts that are allocated to Participants’ Accounts shall
be made in a manner that satisfies the requirements of Code Section 409A.

 

ARTICLE VIII - INVESTMENT OF ACCOUNTS

 

Section 8.1.  Hypothetical
Investment Fund(s).  The Company
shall designate as a Hypothetical Investment Fund or Funds under this Plan one
or more of the investment funds provided under the Qualified Plan or offered by
the trustee thereunder.  Any such
designation shall be in a writing which may be amended or supplemented from
time to time by the Company pursuant to rules adopted by the Company.  Each Participant (or 

 

9

 

the Participant’s Beneficiary) shall elect a Hypothetical Investment
Fund (or, if permitted by rules adopted by the Company, one or more
Hypothetical Investment Funds) for the purposes of Section 4.1.  Such an election may be made in accordance
with rules and procedures established by the Company.  A Participant or Beneficiary may change the
Participant’s (or Beneficiary’s, as the case may be) Hypothetical Investment
Fund election to another election at times specified in rules adopted by
the Company and, from and after the effective date of such change, the
Participant’s (or Beneficiary’s, as the case may be) new Hypothetical
Investment Fund election shall be applicable. 
In the absence of a hypothetical investment election by a Participant or
the Participant’s Beneficiary, the Company shall select the Hypothetical
Investment Fund(s) which shall be applicable to such person’s Account.

 

ARTICLE IX - MISCELLANEOUS

 

Section 9.1.  Liability
of Employers.  Nothing in this Plan
shall constitute the creation of a trust or other fiduciary relationship
between an Employer and any Participant, Beneficiary or any other person.

 

Section 9.2.  Limitation
on Rights of Participants and Beneficiaries - No Lien.  This Plan is designed to be an unfunded,
nonqualified plan.  Nothing contained
herein shall be deemed to create a trust or lien in favor of any Participant or
Beneficiary on any assets of an Employer. 
The Employers shall have no obligation to purchase any assets that do
not remain subject to the claims of the creditors of the Employers for use in
connection with the Plan.  No Participant
or Beneficiary or any other person shall have any preferred claim on, or any
beneficial ownership interest in, any assets of an Employer prior to the time
that such assets are paid to the Participant or Beneficiary as provided
herein.  Each Participant and Beneficiary
shall have the status of a general unsecured creditor of the Employers.  The amount standing to the credit of any
Participant’s Account is purely notional and affects only the calculation of
benefits payable to or in respect of him or her.  It does not give the Participant any right or
entitlement (whether legal, equitable or otherwise) to any particular assets
held for the purposes of the Plan or otherwise.

 

Section 9.3.  No
Guarantee of Employment.  Nothing in
this Plan shall be construed as guaranteeing future employment to Participants.  A Participant continues to be an employee of
the Employers solely at the will of the Employers subject to discharge at any
time, with or without cause.

 

Section 9.4.  Payment
to Guardian.  If a benefit payable
hereunder is payable to a minor, to a person declared incompetent or to a
person incapable of handling the disposition of the Participant’s property, the
Plan Administrator may direct payment of such benefit to the guardian, legal
representative or person having the care and custody of such minor, incompetent
or person.  The Plan Administrator may
require such proof of incompetency, minority, incapacity or guardianship as it
may deem appropriate prior to distribution of the benefit.  Such distribution shall completely discharge
the Employers from all liability with respect to such benefit.

 

10

 

Section 9.5.  Assignment.

 

(a)           Subject
to Subsection (b), no right or interest under this Plan of any Participant or
Beneficiary shall be assignable or transferable in any manner or be subject to
alienation, anticipation, sale, pledge, encumbrance or other legal process or
in any manner be liable for or subject to the debts or liabilities of the
Participant or Beneficiary.

 

(b)           Notwithstanding
the foregoing, to the extent provided in Section 6.3, the Plan
Administrator shall honor a judgment, order or decree from a state domestic
relations court which requires the payment of all or a part of a Participant’s
vested Account under this Plan to an “alternate payee” as defined in Section 414(p) of
the Code.

 

Section 9.6.  Severability.  If any provision of this Plan or the
application thereof to any circumstance(s) or person(s) is held to be
invalid by a court of competent jurisdiction, the remainder of the Plan and the
application of such provision to other circumstances or persons shall not be
affected thereby.

 

Section 9.7.  Governing
Law.  Except as otherwise provided in
Section 1.3 and except when preempted by federal law, this Plan shall be
regulated, construed and administered under the laws of the State of Ohio.

 

ARTICLE X - ADMINISTRATION OF PLAN

 

Section 10.1.  Administration.

 

(a)           The
Plan shall be administered by the Plan Administrator.  The Plan Administrator shall have discretion
to interpret where necessary all provisions of the Plan (including, without
limitation, by supplying omissions from, correcting deficiencies in, or
resolving inconsistencies or ambiguities in, the language of the Plan), to make
factual findings with respect to any issue arising under the Plan, to determine
the rights and status under the Plan of Participants or other persons, to
resolve questions (including factual questions) or disputes arising under the
Plan and to make any determinations with respect to the benefits payable under the
Plan and the persons entitled thereto as may be necessary for the purposes of
the Plan.  Without limiting the
generality of the foregoing, the Plan Administrator is hereby granted the
authority (i) to determine whether a particular employee is a Participant,
and (ii) to determine if a person is entitled to benefits hereunder and,
if so, the amount and duration of such benefits.  The Plan Administrator’s determination of the
rights of any person hereunder shall be final and binding on all persons,
subject only to the provisions of Section 10.3, 10.4 and 10.5 hereof.

 

(b)           The
Plan Administrator may delegate any of its administrative duties, including,
without limitation, duties with respect to the processing, review,
investigation, approval and payment of benefits, to a named administrator or
administrators.

 

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Section 10.2.  Regulations.  The Plan Administrator shall promulgate any rules and
regulations it deems necessary in order to carry out the purposes of the Plan
or to interpret the provisions of the Plan; provided, however, that no rule,
regulation or interpretation shall be contrary to the provisions of the Plan or
the 409A Guidance.  The rules,
regulations and interpretations made by the Plan Administrator shall, subject
only to the provisions of Section 10.3, 10.4 and 10.5 hereof, be final and
binding on all persons.

 

Section 10.3.  Claims
Procedures.

 

(a)           The
Plan Administrator shall determine the rights of any person to any benefit
hereunder.  Any person who believes that
he or she has not received the benefit to which he or she is entitled under the
Plan must file a claim in writing with the Plan Administrator specifying the
basis for his or her claim and the facts upon which he or she relies in making
such a claim.

 

(b)           The
Plan Administrator will notify the claimant of its decision regarding his or
her claim within a reasonable period of time, but not later than 90 days
following the date on which the claim is filed, unless special circumstances
require a longer period for adjudication and the claimant is notified in
writing of the reasons for an extension of time prior to the end of the initial
90-day period and the date by which the Plan Administrator expects to make the
final decision.  In no event will the
Plan Administrator be given an extension for processing the claim beyond 180
days after the date on which the claim is first filed with the Plan
Administrator.

 

If such a claim is denied, the Plan Administrator’s notice will be in
writing, will be written in a manner calculated to be understood by the
claimant and will contain the following information:

 

(i)            The
specific reason(s) for the denial;

 

(ii)           A
specific reference to the pertinent Plan provision(s) on which the denial
is based;

 

(iii)          A
description of additional information or material necessary for the claimant to
perfect his or her claim, if any, and an explanation of why such information or
material is necessary; and

 

(iv)          An
explanation of the Plan’s claim review procedure and the applicable time limits
under such procedure and a statement as to the claimant’s right to bring a
civil action under ERISA after all of the Plan’s review procedures have been
satisfied.

 

If additional information is needed, the claimant shall be provided at
least 45 days within which to provide the information and any otherwise
applicable time period for making a determination shall be suspended during the
period the information is being obtained.

 

12

 

Within 60 days after receipt of a denial of a claim, the claimant must
file with the Plan Administrator, a written request for review of such
claim.  If a request for review is not
filed within such 60-day period, the claimant shall be deemed to have
acquiesced in the original decision of the Plan Administrator on his or her
claim.  If a request for review is filed,
the Plan Administrator shall conduct a full and fair review of the claim.  The claimant will be provided, upon request
and free of charge, reasonable access to and copies of all documents and
information relevant to the claim for benefits. 
The claimant may submit issues and comments in writing, and the review
must take into account all information submitted by the claimant regardless of
whether it was reviewed as part of the initial determination.  The decision by the Plan Administrator with
respect to the review must be given within 60 days after receipt of the request
for review, unless circumstances warrant an extension of time not to exceed an
additional 60 days.  If this occurs,
written notice of the extension will be furnished to the claimant before the
end of the initial 60-day period, indicating the special circumstances
requiring the extension and the date by which the Plan Administrator expects to
make the final decision.  The decision
shall be written in a manner calculated to be understood by the claimant, and
it shall include

 

                (A)          The
specific reason(s) for the denial;

 

                (B)           A reference to the
specific Plan provision(s) on which the denial is based;

 

                (C)           A statement that the
claimant is entitled to receive, upon request and free of charge, reasonable
access to and copies of all information relevant to the claimant’s claim for
benefits; and

 

                (D)          A statement describing
any voluntary appeal procedures offered by the Plan and a statement of the
claimant’s right to bring a civil action under ERISA.

 

(c)           The
Plan Administrator’s decision on review shall be, to the extent permitted by
applicable law, final and binding on all interested persons.

 

Section 10.4.  Arbitration.

 

(a)           After a Participant has
exhausted all administrative remedies as provided in Section 10.3, any
disputes arising hereunder may, at the election of the Participant, be
submitted for non-binding arbitration to an arbitrator appointed under the
auspices of the American Arbitration Association (“AAA”) office in Cincinnati,
Ohio, or if closer, the AAA office that is located in a U.S. city nearest to
the general corporate offices of the Company for resolution under the AAA
Employment Dispute Arbitration Rules. 
Such arbitration shall be held in such place as the parties and the
arbitrator shall mutually agree.  The
arbitrator shall apply applicable Federal and state law, including ERISA.  The provisions of ERISA, including, but not
limited to, preemption, review of claims, and standards of review, shall be
applied by the arbitrator to the same extent as if the matter were proceeding
in federal court.  The state law applied
shall be the law of 

 

13

 

the state in
which the general corporate offices of the Company are located (Ohio as of the
date hereof).  The entire cost of the
proceedings, except for the Participant’s attorney’s fees and costs, shall be
borne by the Company.

 

(b)           If, following
exhaustion of all administrative remedies as provided in Section 10.3 and
Subsection (a) above, the Participant pursues litigation with respect to a
dispute arising hereunder and prevails in such litigation, the Company shall
reimburse the Participant for attorneys’ and related fees and expenses incurred
by the Participant prior to December 31 of the year following the year in
which the Participant’s Separation from Service occurred with respect to such
litigation in an aggregate amount not to exceed the amount of the Participant’s
most recent base salary.  Such
reimbursements must be paid no later than December 31 of the second year
following the year in which the Participant’s Separation from Service occurred.

 

Section 10.5.  Revocability
of Plan Administrator/Employer Action. 
Any action taken by the Plan Administrator or an Employer with respect
to the rights or benefits under the Plan of any person shall be revocable by
the Plan Administrator or the Employer as to payments not yet made to such
person, and acceptance of any benefits under the Plan constitutes acceptance of
and agreement to the Plan Administrator’s or the Employer’s making any
appropriate adjustments in future payments to such person to recover from such
person any excess payment or make up any underpayment previously made to him or
her.

 

Section 10.6.  Amendment.

 

(a)           The Compensation Committee may at any time (without the
consent of the Employees) amend any or all of the provisions of this Plan,
except that no such amendment may adversely affect the amount of any
Participant’s accrued benefit as of the date of such amendment, without the
prior written consent of the affected Participant.  A proper amendment of this Plan automatically
shall effect a corresponding amendment to all Participants’ rights hereunder.

 

(b)           Without limiting the generality of the foregoing, the
Compensation Committee shall have the authority to adopt an amendment to the
Plan that conforms the terms of the Plan to the requirements of Section 409A
of the Code at such time as the Company determines is necessary to comply with
the 409A Guidance.

 

Section 10.7.  Termination.

 

(a)           The Compensation Committee, in its sole discretion, may
terminate this Plan at any time and for any reason whatsoever, except that,
subject to Subsection (b) hereof, no such termination may adversely affect
the amount of any Participant’s accrued benefit as of the date of such
termination, without the prior written consent of the affected
Participant.  Notwithstanding the
preceding sentence, the Compensation Committee, in its sole discretion, may
terminate this Plan to the extent and in circumstances described in Treas. Reg.
§ 1.409A-3(j)(4)(ix), or any successor provision.  A proper termination of this Plan
automatically shall effect a termination of all 

 

14

 

Participants’ rights and benefits hereunder without further
action.  Written notice of any
termination shall be given to the Participants as soon as practicable after a
proper termination.

 

(b)           Any Employer (other than the Company) that adopts the Plan
may elect to withdraw from the Plan and such withdrawal shall constitute a
termination of the Plan as to such Employer; provided, however, that such
terminating Employer shall continue to be an Employer for purposes hereof as to
Participants or Beneficiaries to whom it owes obligations hereunder.  Such withdrawal and termination shall be
expressed in an instrument executed by the terminating Employer and filed with
the Company, and shall become effective as of the date designated in such
instrument or, if no such date is specified, on the date of its execution.

 

15Exhibit 10(q)

 

DPL INC.

2006 DEFERRED COMPENSATION PLAN FOR
EXECUTIVES

(AS AMENDED AND RESTATED THROUGH DECEMBER 31,
2007)

 

ARTICLE
I.  INTRODUCTION

 

DPL Inc. adopted the DPL Inc. 2006 Deferred Compensation Plan For
Executives on the terms and conditions hereinafter set forth, effective as of September 19,
2006.  This amended and restated version
of the Plan is effective December 31, 2007.

 

The purpose of this Plan is to provide a
select group of management or highly compensated employees of the Company with
the opportunity to defer the receipt of base salary and incentive compensation
payments which may be earned by such executives under any plan or program which
the Committee (as defined below) may designate from time to time, in accordance
with the provisions of the Plan.

 

ARTICLE
II.  DEFINITIONS

 

For the purposes hereof, the following words
and phrases shall have the meanings set forth below, unless their context
clearly requires a different meaning:

 

Section 2.1  “Account”
means the bookkeeping account maintained by the Company on behalf of each
Participant pursuant to Section 3.3 that is comprised of the Base Salary
Subaccount and the Incentive Compensation Subaccount to which deferred Base
Salary and Incentive Compensation, respectively, are credited.

 

Section 2.2  “Base
Salary” means the annual fixed or base compensation payable to a
Participant.

 

Section 2.3  “Base
Salary Payment Election” means the Election Agreement (or portion thereof)
completed by a Participant and filed with the Company that indicates the time
of commencement of payment and form of payment of the Participant’s Base Salary
that is or will be deferred pursuant to a Deferral Election under the Plan.

 

Section 2.4  “Base
Salary Subaccount” means the bookkeeping  account
maintained by the Company on behalf of each Participant pursuant to Section 3.3
that is credited with Base Salary that is deferred by a Participant.

 

Section 2.5  “Beneficiary”
or “Beneficiaries” means the person or persons, including one or more
trusts, designated by a Participant in accordance with the Plan to receive
payment of the remaining balance of the Participant’s Account in the event of
the death of the Participant prior to receipt of the entire amount credited to
the Participant’s Account.

 

 

Section 2.6  “Board”
means the Board of Directors of the Company.

 

Section 2.7  “Calendar
Year” means each calendar year commencing on or after January 1, 2006.

 

Section 2.8  “Change
of Control” means the consummation of any Change of Control of the Company,
or its principal subsidiary, The Dayton Power and Light Company (“DP&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 “Exchange Act”), as determined by the Board in its sole
discretion; provided that, without limitation, such a Change of Control shall
be deemed to have occurred if:

 

(a)              any “Person” (as
such term is defined in  Sections 13(d) or 14(d)(2) of
the Exchange Act; hereafter, a “Person”) is on the date hereof or becomes the
beneficial owner, directly or indirectly, of securities of the Company or
DP&L representing (i) 25% or more of the combined voting power of the
then outstanding Voting Stock of the Company or DP&L if the acquisition of
such beneficial ownership is not approved by the Board prior to the acquisition
or (ii) 50% or more of such combined voting power in all other cases;

 

(i)            for purposes of this Section 2.8,
the following acquisitions shall not constitute a Change of Control: (A) any
acquisition of Voting Stock of the Company or DP&L directly from the
Company or DP&L that is approved by a majority of those persons serving as
directors of the Company or DP&L on the date of this Plan (the “Original
Directors”) or their Successors (as defined below), (B) any acquisition of
Voting Stock of the Company or DP&L by the Company or any Subsidiary, and (C) any
acquisition of Voting Stock of the Company or DP&L by the trustee or other
fiduciary holding securities under any employee benefit plan (or related trust)
sponsored or maintained by DPL or any Subsidiary (the term “Successors” 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 the Company or
DP&L, as the case may be, at the time of such election or nomination for
election);

 

(ii)           if any Person is or becomes the
beneficial owner of 25% or more of combined voting power of the
then-outstanding Voting Stock of the Company or DP&L as a result of a
transaction described in clause (A) of Section 2.8(a)(i) above
and such Person thereafter becomes the beneficial owner of any additional
shares of Voting Stock of the Company or DP&L representing 1% or more of
the then-outstanding Voting Stock of the Company or DP&L, other 

 

2

 

than in an
acquisition directly from the Company or DP&L that is approved by a
majority of the Original Directors or their Successors or other than as a
result of a stock dividend, stock split or similar transaction effected by the
Company or DP&L in which all holders of Voting Stock of the Company or
DP&L are treated equally, such subsequent acquisition shall be treated as a
Change of Control;

 

(iii)          a Change of Control will not be deemed
to have occurred if a Person is or becomes the beneficial owner of 25% or more
of the Voting Stock of the Company or DP&L as a result of a reduction in
the number of shares of Voting Stock of the Company or DP&L outstanding
pursuant to a transaction or series of transactions that is approved by a
majority of the Original Directors or their Successors unless and until such
Person thereafter becomes the beneficial owner of any additional shares of
Voting Stock of the Company or DP&L representing 1% or more of the
then-outstanding Voting Stock of the Company or DP&L, other than as a
result of a stock dividend, stock split or similar transaction effected by the
Company or DP&L in which all holders of Voting Stock are treated equally;
and

 

(iv)          if at least a majority of the Original
Directors or their Successors determine in good faith that a Person has
acquired beneficial ownership of 25% or more of the Voting Stock of the Company
or DP&L inadvertently, and such Person divests as promptly as practicable
but no later than the date, if any, set by the Original Directors or their
Successors a sufficient number of shares so that such Person beneficially owns
less than 25% of the Voting Stock of the Company or DP&L, then no Change of
Control shall have occurred as a result of such Person’s acquisition; or

 

(b)           the
Company or DP&L consummates a merger or consolidation, or consummates a “combination”
or “majority share acquisition” in which it is the “acquiring corporation” (as
such terms are defined in Ohio Rev. Code § 1701.01 as in effect on December 31,
1990) and in which shareholders of the Company or DP&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 the Company or DP&L or any
surviving or new corporation, as the case may be, having less than 50% of the “voting
power” of DPL or DP&L or any surviving or new corporation, as the case may
be, including “voting power” exercisable on a contingent or deferred basis as
well as immediately exercisable “voting power”, excluding any merger of
DP&L into the Company or of the Company into DP&L;

 

(c)           the
Company or DP&L consummates a sale, lease, exchange or other transfer or
disposition of all or substantially all of its assets to any 

 

3

 

Person other than
to a wholly owned subsidiary or, in the case of DP&L, to the Company or a
wholly owned subsidiary(ies) of the Company; but not including (i) a
mortgage or pledge of assets granted in connection with a financing or (ii) a
spin-off or sale of assets if the Company 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

 

(d)      the Original Directors and/or their
Successors do not constitute a majority of the whole Board or the Board of
Directors of DP&L, as the case may be; or

 

(e)       approval by the shareholders of the
Company or DP&L of a complete liquidation or dissolution of the Company or
DP&L, as the case may be.

 

Section 2.9  “Code”
means the Internal Revenue Code of 1986, as amended.

 

Section 2.10  “Committee”
means the Compensation Committee of the Board or such other Committee as may be
authorized by the Board to administer the Plan.

 

Section 2.11  “Common
Stock” means the common stock, par value $0.01 per shares, of the Company.

 

Section 2.12  “Company”
means DPL Inc., an Ohio corporation, and any entity that succeeds DPL Inc. by
merger, reorganization or otherwise.

 

Section 2.13  “Deferral
Election” means the Election Agreement (or portion thereof) completed by a
Participant and filed with the Company that indicates the amount of his or her
Base Salary and/or Incentive Compensation that is or will be deferred under the
Plan for a Deferral Period.

 

Section 2.14  “Deferral
Period” means the calendar year that commences after each Election Filing
Date.

 

Section 2.15  “Disability”
means a Participant’s inability to perform the duties required 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.

 

Section 2.16  “Election
Agreement” means an agreement in the form that the Company may designate
from time to time that is consistent with the terms of the Plan.

 

Section 2.17  “Election
Filing Date” means December 31 of the Calendar Year immediately prior
to the first day of the Calendar Year for which Base Salary and/or Incentive
Compensation would otherwise be earned.

 

Section 2.18  “Eligible
Executive” means the Company’s Chief Executive Officer and each other
officer of the Company that the Committee determines should be an 

 

4

 

Eligible Executive hereunder.  Unless otherwise determined by the Committee,
an Eligible Executive shall continue as such until Termination of Employment.

 

Section 2.19  “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

Section 2.20  “Hypothetical
Investment Fund or Funds” means any investment fund designated by the
Company pursuant to Section 3.3.

 

Section 2.21  “Incentive
Compensation” means cash incentive compensation payable pursuant to the
Company’s Executive Incentive Compensation Plan, effective January 1,
2006.

 

Section 2.22  “Incentive
Compensation Payment Election” means the Election Agreement (or portion
thereof) completed by a Participant and filed with the Company that indicates
the time of commencement of payment and form of payment of the Participant’s
Incentive Compensation that is or will be deferred pursuant to a Deferral
Election under the Plan.

 

Section 2.23  “Incentive
Compensation Subaccount” means the bookkeeping  account maintained by the Company on behalf of each
Participant pursuant to Section 3.3 that is credited with Incentive
Compensation that is deferred by a Participant.

 

Section 2.24  “Incentive
Filing Date” means the date six months prior to the end of the performance
period with respect to which the Incentive Compensation is earned.

 

Section 2.25  “Key
Employee” means a key employee as defined in Section 409A of the Code
and Section 416(i) of the Code (without regard to paragraph (5) thereof)
of the Company (or a controlled group member).

 

Section 2.26  “Participant”
means any Eligible Executive who has at any time made a Deferral Election in
accordance with Section 3.2 and who, in conjunction with his or her
Beneficiary, has not received a complete distribution of the amount credited to
his or her Account.

 

Section 2.27  “Payment
Election” means the Base Salary Payment Election and the Incentive Compensation
Payment Election.

 

Section 2.28  “Plan”
means this deferred compensation plan, which shall be known as the DPL Inc. 2006
Deferred Compensation Plan For Executives. 
The Plan is unfunded and is maintained by the Company primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees of the Company.

 

Section 2.29  “Plan
Administrator” means the Committee.

 

5

 

Section 2.30  “Subsidiary”
means a corporation, partnership, joint venture. unincorporated association or
other entity in which the Company has a direct or indirect ownership or other
equity interest.

 

Section 2.31  “Termination
of Employment” means a separation from service as defined under Section 409A
of the Code.

 

Section 2.32  “Unforeseeable
Emergency” means an event that results in a severe financial hardship to a
Participant resulting from (a) an illness or accident of the Participant
or his or her spouse, dependent (as defined in Section 152(a) of the
Code), or Beneficiary, (b) loss of the Participant’s property due to
casualty, or (c) other similar extraordinary circumstances arising as a
result of events beyond the control of the Participant.

 

Section 2.33  “Voting
Stock” means securities entitled to vote generally in the election of
directors.

 

ARTICLE
III.  ELECTION TO DEFER

 

Section 3.1  Eligibility.  An Eligible Executive may make an annual
Deferral Election with respect to receipt of all or a specified part of his or
her Base Salary and/or Incentive Compensation for any Calendar Year in
accordance with Section 3.2.  An
Eligible Executive who makes a Deferral Election must also make a Payment
Election with respect to the amount deferred in accordance with Section 3.4.  An Eligible Executive’s entitlement to defer
shall cease with respect to the Deferral Period following the Deferral Period
in which he or she ceases to be an Eligible Executive.

 

Section 3.2  Deferral
Elections.  All Deferral Elections,
once effective, shall be irrevocable, shall be made on an Election Agreement
filed with the Company, and shall comply with the following requirements:

 

(a)          The
Deferral Election on the Election Agreement shall specify:

 

(i)                 the
percentage or the dollar amount of a Participant’s Base Salary and/or Incentive
Compensation, and

 

(ii)                in
accordance with Section 3.3(b), the investment election with respect to
the deemed investment of the Base Salary and/or Incentive Compensation.

 

(b)          The
Deferral Election shall be made by, and shall be effective as of, the
applicable Election Filing Date; provided, however, that to the
extent permitted by Section 409A of the Code, the Company may permit
Participants to make a Deferral Election with respect to Incentive Compensation
that constitutes “performance-based compensation” (within the meaning of Section 409A(a)(4)(B)(iii) of
the Code) at a time later than the Election Filing Date but no later than the
Incentive Filing Date, and in such event, the Deferral Election shall be
effective as of such Incentive Filing Date. 
Notwithstanding the foregoing, an 

 

6

 

employee who first
becomes an Eligible Executive during the course of a Calendar Year, rather than
as of the applicable Election Filing Date, shall make such Deferral Election
with respect to Base Salary and/or Incentive Compensation within thirty days
following the date the employee first becomes an Eligible Executive, and such
Deferral Election shall be effective on the date made and, unless the proviso in
the first sentence of this Section 3.2(b) applies, shall be effective
with regard to Base Salary and/or Incentive Compensation earned during such
Calendar Year following the filing of the Election Agreement with the Company
as determined pursuant to the pro-ration method permitted under Section 409A
of the Code.

 

Section 3.3  Accounts.

 

(a)         Base Salary and Incentive
Compensation that a Participant elects to defer shall be credited to the
Account on the date the Base Salary or Incentive Compensation would otherwise
have been paid to the Participant. 
Credits or charges representing income, expenses, gains or losses
allocable to the Account which would be applicable if such Account had been
invested on a tax deferred basis in the Hypothetical Investment Fund(s) selected
by the Participant or the Participant’s Beneficiary as provided in Section 3.3(b) shall
also be credited to the Account.  The
Company shall also enter on the books of each Participant’s Account debits for
any distributions made from the Account.

 

(b)         The Company
shall designate a Hypothetical Investment Fund or Funds under this Plan, which
may, but need not, include one or more of the investment funds provided under
The Dayton Power and Light Company Employee Savings Plan or offered by the trustee
thereunder (which shall not include Common Stock).  Any such designation shall be in a writing
which may be amended or supplemented from time to time by the Company pursuant
to rules adopted by the Company. 
Each Participant shall elect a Hypothetical Investment Fund (or, if
permitted by rules adopted by the Company, one or more Hypothetical
Investment Funds) in which the amount of Base Salary and/or Incentive Bonus that
a Participant defers under this Plan shall be deemed invested.  Such an election may be made in accordance
with rules and procedures established by the Company.  Any Participant may change his investment
election either prospectively or with respect to amounts previously credited to
his Account in accordance with procedures specified by the Company.  In the absence of an investment election by a
Participant, the company shall select the Hypothetical Investment Fund(s) which
shall be applicable to such Participant’s Account.

 

Section 3.4  Initial
Payment Elections.  Subject to Sections
3.4(d), 3.5, 3.6, 3.7, and 3.8 of this Plan, all Payment Elections shall be irrevocable,
shall be made on an Election Agreement filed with the Company and shall comply
with the following requirements:

 

7

 

(a)      Each
Participant shall make a Base Salary Payment Election with respect to Base
Salary deferred pursuant to the Deferral Election and a separate Incentive
Compensation Payment Election with respect to Incentive Compensation deferred
pursuant to the Deferral Election.

 

(b)      Each Base
Salary Payment Election and each Incentive Compensation Payment Election shall
contain the Participant’s elections regarding the time of the commencement of
payment of amounts in his or her Base Salary Subaccount and Incentive Compensation
Subaccount, to the extent the Participant does not already have an election
regarding the time of the commencement of payment applicable to his or her Base
Salary Subaccount or Incentive Compensation Subaccount.  In addition, if the Participant has elected,
pursuant to Section 3.4(b)(i)(B), to commence payment in a specified year,
the Payment Election(s) for the Deferral Period immediately prior to such
specified year shall contain the Participant’s election regarding the time of
the commencement of payment of amounts in his or her Base Salary Subaccount and
Incentive Compensation Subaccount for that and all future Deferral Periods.

 

(i)            A
Participant may elect to commence payment (A) upon the date on which he or
she incurs a Termination of Employment for any reason, including, without
limitation, by reason of death, retirement, or Disability, or (B) in a
specified year that begins at least two years after the date on which the
Deferral Election becomes effective.

 

(ii)           Payments
made in accordance with the Participant’s elections under Section 3.4(b)(i)(A) shall
be paid or commence to be paid within 90 days following the date of the
Termination of Employment; provided, however, that the
Participant does not have the right to designate the taxable year of such
payments.  Payments made in accordance
with the Participant’s election under Section 3.4(b)(i)(B) with
respect to Base Salary shall be paid or commence to be paid on January 31 of
the specified year and payments made in accordance with the Participant’s
election under Section 3.4(b)(i)(B) with respect to Incentive
Compensation shall be paid or commence to be paid on January 31 of the
specified year.

 

(iii)          Notwithstanding the
foregoing provisions of this Section 3.4(b), in the event that a Participant
elects to commence payments in a specified year, and prior to the date such
payment is due to be paid or commence to be paid (as described Section 3.4(b)(ii))
he or she incurs a Termination of Employment, payment of the Participant’s
Account shall commence, in the form or forms elected pursuant to Section 3.4(c) and/or
(d), on the date of such Termination of Employment.

 

(c)           The Base Salary Payment
Election and the Incentive Compensation Payment Election shall also contain the
Participant’s elections regarding the form of payment of amounts in his or her Base
Salary Subaccount 

 

8

 

and Incentive
Compensation Subaccount, to the extent the Participant does not already have an
election regarding the form of payment applicable to his or her Base Salary
Subaccount and Incentive Compensation Subaccount.  In addition, if the Participant has elected,
pursuant to Section 3.4(b)(i)(B), to commence payment in a specified year,
the Payment Election(s) for the Deferral Period immediately prior to such
specified year shall contain the Participant’s election regarding form of
payment of amounts in his or her Base Salary Subaccount and Incentive
Compensation Subaccount for that and all future Deferral Periods.

 

(i)                    The
Participant may elect to receive amounts in his or her Base Salary Subaccount and
Incentive Compensation Subaccount in one of the following forms:  (A) a single, lump sum payment or (B) a
number of annual installments over a period of up to twenty years.

 

(ii)                   In
the event that a Participant’s Base Salary Subaccount  or Incentive Compensation Subaccount is payable in annual
installments, the amount of each installment shall be equal to the value, as of
December 31 of the calendar year immediately prior to the date of the
respective installment payment, of the Participant’s Base Salary Subaccount or
Incentive Compensation Subaccount, as the case may be, divided by the number of
installment payments then remaining in the installment period;

 

(A)          The portion of the Base
Salary Subaccount or Incentive Compensation Subaccount subject to such
installment payments that remains unpaid from time to time shall continue to be
credited with gains, losses, interest and other earnings.

 

(B)           The final installment
payment shall include an adjustment for gains, losses, interest and other
earnings during the period between the beginning of the calendar year in which
the final installment payment is made and the date of such final payment.

 

(d)      Except as
provided in the last sentence of Section 3.2(b), the Payment Election(s) shall
be made by, and shall be effective as of, the applicable Election Filing Date
or Incentive Filing Date, as the case may be. 
Except as provided in the following sentence, a Participant may not have
more than one Base Salary Payment Election and one Incentive Compensation
Payment Election in effect at any one time. 
If the Participant has elected, pursuant to Section 3.4(b)(i)(B),
to commence payment in a specified year, the Payment Election(s) for the
Deferral Period immediately prior to such specified year shall contain the
Participant’s election regarding form of payment of amounts in his or her Base
Salary Subaccount and/or Incentive Compensation Subaccount for that and all
future Deferral Periods.

 

(e)      If the Payment
Election(s) are not made by the applicable Election Filing Date or
Incentive Filing Date, as the case may be, or are insufficient to be 

 

9

 

deemed effective
as of such date, then a Participant’s Deferral Election shall be null and void.

 

(f)            Notwithstanding
the foregoing provisions of this Section 3.4, if the Participant is a Key
Employee, then the payment on account of Termination of Employment shall
commence on the first day of the seventh month after such Termination of
Employment (or, if earlier, the date of death).

 

(g)           The
payment of a single, lump-sum amount, or the payment of a number of annual
installments as designated by the Participant in the Election Agreement, to a
Participant (or his or her Beneficiary) pursuant to this Section 3.4 shall
discharge all obligations of the Company to such Participant (or his or her
Beneficiary) under the Plan.

 

Section 3.5  Subsequent
Payment Elections.  A Participant may
make a subsequent Payment Election(s) to change the time of the
commencement of payment(s) of his or her Base Salary Subaccount and
Incentive Compensation Subaccount, the form of payment of his or her Base
Salary Subaccount and Incentive Compensation Subaccount, or both, with respect
to an amount previously deferred under a Deferral Election if all of the
following requirements are met:

 

(a)          Such
subsequent Payment Election(s) may not take effect until at least twelve
months after the date on which the subsequent Payment Election is made;

 

(b)          In
the case of a subsequent Payment Election(s) related to a payment not
described in Section 3.6 or Section 3.8, the first payment under such
subsequent Payment Election(s) shall in all cases be deferred for a period
of not less than five years from the date such payment would otherwise have
been made (or, in the case of installment payments, which are treated as a
single payment for purposes of this Section 3.5, five years from the date
the first installment payment was scheduled to be paid); and

 

(c)          Any
subsequent Payment Election(s) related to a distribution that is to be
made at a specified time or pursuant to a fixed schedule pursuant to Section 3.4
must be made not less than twelve months prior to the date the payment was
scheduled to be made under the prior Payment Election(s) (or, in the case
of installment payments, which are treated as a single payment for purposes of
this Section 3.5, twelve months prior to the date the first installment
payment was scheduled to be paid).

 

Section 3.6  Death
of a Participant.  In the event of
the death of a Participant, the remaining amount of the Participant’s Account
shall be paid to the Beneficiary or Beneficiaries designated in a writing on a
form that the Company may designate from time to time (the “Beneficiary
Designation”), in accordance with the Participant’s Payment Election(s), or in
accordance with a special payment election filed by the Participant with the
Company at the same time as the Participant’s Payment Election(s) 

 

10

 

under Section 3.4 or Section 3.5 is filed
with the Company that is to be operative and override any other payment
election under the Participant’s Payment Election(s) in the event of the
death of the Participant.  Any special
payment election filed by a Participant subsequent to the filing of his or her
initial Payment Election(s) under Section 3.4 must meet such
additional requirements as the Company determines are appropriate to avoid the
inclusion of the amounts subject to such special payment election in the gross
income of a Participant or Beneficiary under Section 409A(a)(1) of
the Code, including, without limitation, the requirements under Section 3.5.  A Participant’s Beneficiary Designation may
be changed at any time prior to his or her death by the execution and delivery
of a new Beneficiary Designation.  The
Beneficiary Designation on file with the Company that bears the latest date at
the time of the Participant’s death shall govern.  In the absence of a Beneficiary Designation
or the failure of any Beneficiary to survive the Participant, the amount of the
Participant’s Account shall be paid to the Participant’s estate in  a lump sum.  In the event of the death of the Beneficiary
or Beneficiaries after the death of a Participant, the amount of the
Participant’s Account shall be paid to the estate of the last surviving
Beneficiary in a lump sum.

 

Section 3.7  Small
Payments.  Notwithstanding the
foregoing, if at the time of a Participant’s Termination of Employment the Participant’s
Account  balance is less than $100,000,
such Account shall be automatically paid to such Participant in a single,
lump-sum payment on the date of such Termination of Employment; provided,
however, that if the Participant is a Key Employee, then the payment on
account of Termination of Employment shall be paid on the first day of the
seventh month after such Termination of Employment (or, if earlier, the date of
death).

 

Section 3.8  Unforeseeable
Emergency.  Notwithstanding the
foregoing, in the event of an Unforeseeable Emergency and at the request of a
Participant, accelerated payment shall be made to the Participant of all or a
part of his or her Account, together with the earnings thereon.  Payments of amounts as a result of an
Unforeseeable Emergency may not exceed the amount necessary to satisfy such
Unforeseeable Emergency plus amounts necessary to pay taxes reasonably
anticipated as a result of the distribution(s), after taking into account the
extent to which the hardship is or may be relieved through reimbursement or
compensation by insurance or otherwise by liquidation of the Participant’s
assets (to the extent the liquidation of such assets would not itself cause
severe financial hardship).

 

Section 3.9  Termination
of Participation.  Notwithstanding
any other provision of the Plan, a Participant’s active participation in the
Plan shall terminate upon a determination by the Committee that the Participant
is not a member of a select group of management or highly compensated employees
of his or her employer, within the meaning of ERISA; provided, however, such a
determination will not cause deferrals to cease any sooner than the end of the
Deferral Period during which such a termination is made.

 

11

 

ARTICLE
IV.  ADMINISTRATION

 

Section 4.1  Administration.

 

(a)      The Plan shall
be administered by the Plan Administrator. 
The Plan Administrator shall have discretion to interpret where
necessary all provisions of the Plan (including, without limitation, by
supplying omissions from, correcting deficiencies in, or resolving
inconsistencies or ambiguities in, the language of the Plan), to make factual
findings with respect to any issue arising under the Plan, to determine the
rights and status under the Plan of Participants or other persons, to resolve
questions (including factual questions) or disputes arising under the Plan and
to make any determinations with respect to the benefits payable under the Plan
and the persons entitled thereto as may be necessary for the purposes of the
Plan.  Without limiting the generality of
the foregoing, the Plan Administrator is hereby granted the authority (i) to
determine whether a particular employee is a Participant, and (ii) to
determine if a person is entitled to benefits hereunder and, if so, the amount
and duration of such benefits.  The Plan
Administrator’s determination of the rights of any person hereunder shall be
final and binding on all persons, subject only to the provisions of Sections
4.3, 4.4 and 4.5 hereof.

 

(b)      The Plan
Administrator may delegate any of its administrative duties, including, without
limitation, duties with respect to the processing, review, investigation,
approval and payment of benefits, to a named administrator(s) or an
employee of the Company.

 

(c)      It is
intended that, to the extent applicable, all Participant elections hereunder
will comply with Section 409A of the Code. 
The Plan Administrator is authorized to adopt rules or regulations
deemed necessary or appropriate in connection therewith to anticipate and/or
comply with the requirements thereof (including any transition rules thereunder).

 

Section 4.2  Regulations.  The Plan Administrator shall promulgate any rules and
regulations it deems necessary in order to carry out the purposes of the Plan
or to interpret the provisions of the Plan; provided, however,
that no rule, regulation or interpretation shall be contrary to the provisions
of the Plan or Section 409A of the Code. 
The rules, regulations and interpretations made by the Plan
Administrator shall, subject only to the provisions of Sections 4.3, 4.4 and
4.5 hereof, be final and binding on all persons.

 

Section 4.3  Claims
Procedures.

 

(a)      The Plan
Administrator shall determine the rights of any person to any benefit hereunder.  Any person who believes that he or she has
not received the benefit to which he or she is entitled under the Plan must
file a claim in writing with the Plan Administrator specifying the basis for
his or her claim and the facts upon which he or she relies in making such a
claim.

 

(b)      The Plan
Administrator will notify the claimant of its decision regarding his or her
claim within a reasonable period of time, but not later than 90 days following
the date on which the claim is filed, unless special circumstances 

 

12

 

require a longer
period for adjudication and the claimant is notified in writing of the reasons
for an extension of time prior to the end of the initial 90-day period and the
date by which the Plan Administrator expects to make the final decision.  In no event will the Plan Administrator be
given an extension for processing the claim beyond 180 days after the date on
which the claim is first filed with the Plan Administrator.

 

If such a claim is denied, the Plan
Administrator’s notice will be in writing, will be written in a manner
calculated to be understood by the claimant and will contain the following
information:

 

(i)               The specific reason(s) for
the denial;

 

(ii)              A specific reference to the pertinent
Plan provision(s) on which the denial is based;

 

(iii)             A description of additional
information or material necessary for the claimant to perfect his or her claim,
if any, and an explanation of why such information or material is necessary;
and

 

(iv)             An explanation of the Plan’s claim
review procedure and the applicable time limits under such procedure and a
statement as to the claimant’s right to bring a civil action under ERISA after
all of the Plan’s review procedures have been satisfied.

 

If additional information is needed, the
claimant shall be provided at least 45 days within which to provide the
information and any otherwise applicable time period for making a determination
shall be suspended during the period the information is being obtained.

 

Within 60 days after receipt of a denial of a
claim, the claimant must file with the Plan Administrator, a written request
for review of such claim.  If a request
for review is not filed within such 60-day period, the claimant shall be deemed
to have acquiesced in the original decision of the Plan Administrator on his or
her claim.  If a request for review is
filed, the Plan Administrator shall conduct a full and fair review of the
claim.  The claimant will be provided,
upon request and free of charge, reasonable access to and copies of all
documents and information relevant to the claim for benefits.  The claimant may submit issues and comments
in writing, and the review must take into account all information submitted by
the claimant regardless of whether it was reviewed as part of the initial
determination.  The decision by the Plan
Administrator with respect to the review must be given within 60 days after
receipt of the request for review, unless circumstances warrant an extension of
time not to exceed an additional 60 days. 
If this occurs, written notice of the extension will be furnished to the
claimant before the end of the initial 60-day period, indicating the special
circumstances requiring the extension and the date by which the Plan Administrator
expects to make the final decision.  The
decision shall be written in a manner calculated to be understood by the
claimant, and it shall include

 

13

 

                (A)          The specific reason(s) for
the denial;

 

                (B)           A reference to the
specific Plan provision(s) on which the denial is based;

 

                (C)           A statement that the
claimant is entitled to receive, upon request and free of charge, reasonable
access to and copies of all information relevant to the claimant’s claim for benefits;
and

 

                (D)          A statement
describing any voluntary appeal procedures offered by the Plan and a statement
of the claimant’s right to bring a civil action under ERISA.

 

(c)            The Plan
Administrator’s decision on review shall be, to the extent permitted by applicable
law, final and binding on all interested persons.

 

Section 4.4  Arbitration.  After a Participant has exhausted all
administrative remedies as provided in Section 4.3, any disputes arising
hereunder may, at the election of the Participant, be submitted for non-binding
arbitration to an arbitrator appointed under the auspices of the American
Arbitration Association (“AAA”) office in Cincinnati, Ohio, or if closer, the
AAA office that is located in a U.S. city nearest to the general corporate
offices of the Company for resolution under the AAA Employment Dispute
Arbitration Rules.  Such arbitration
shall be held in such place as the parties and the arbitrator shall mutually
agree.  The arbitrator shall apply
applicable Federal and state law, including ERISA.  The provisions of ERISA, including, but not
limited to, preemption, review of claims, and standards of review, shall be
applied by the arbitrator to the same extent as if the matter were proceeding
in federal court.  The state law applied
shall be the law of the state in which the general corporate offices of the
Company are located (Ohio as of the date hereof).  The entire cost of the proceedings, except
for the Participant’s attorney’s fees and costs, shall be borne by the Company.

 

Section 4.5  Revocability
of Plan Administrator/Employer Action. 
Any action taken by the Plan Administrator or the employer with respect
to the rights or benefits under the Plan of any person shall be revocable by
the Plan Administrator or the employer as to payments not yet made to such
person, and acceptance of any benefits under the Plan constitutes acceptance of
and agreement to the Plan Administrator’s or the employer’s making any
appropriate adjustments in future payments to such person to recover from such
person any excess payment or make up any underpayment previously made to him or
her.

 

ARTICLE
V.  AMENDMENT AND TERMINATION

 

Section 5.1  Amendment.  The Committee may at any time (without the
consent of the Participants) amend any or all of the provisions of this Plan,
except that no such amendment may adversely affect the amount of any
Participant’s accrued benefit as of the date of such amendment, without the
prior written consent of the affected Participant.  A proper amendment of this Plan automatically
shall effect a corresponding amendment to all Participants’ rights hereunder.

 

14

 

Section 5.2  Termination.  The Committee, in its sole discretion, may
terminate this Plan at any time and for any reason whatsoever, except that,
subject to Subsection (b) hereof, no such termination may adversely affect
the amount of any Participant’s accrued benefit as of the date of such
termination, without the prior written consent of the affected
Participant.  Notwithstanding the
preceding sentence, the Compensation Committee, in its sole discretion, may
terminate this Plan to the extent and in circumstances described in Treas. Reg.
§ 1.409A-3(j)(4)(ix), or any successor provision.  A proper termination of this Plan automatically
shall effect a termination of all Participants’ rights and benefits hereunder
without further action, to the extent that such Participants have received
payment of their balances under the Plan. 
Written notice of any termination shall be given to the Participants as
soon as practicable after a proper termination.

 

ARTICLE
VI.  MISCELLANEOUS

 

Section 6.1  Section 409A
of the Code.  It is intended that the
Plan (including all amendments thereto) comply with the provisions of Section 409A
of the Code, so as to prevent the inclusion in gross income of any retirement
benefit accrued hereunder in a taxable year that is prior to the taxable year
or years in which such amount would otherwise be actually distributed or made
available to the Participants.  It is
intended that the Plan shall be administered in a manner that will comply with Section 409A
of the Code.

 

Section 6.2  Non-Alienation
of Deferred Compensation.  No right
or interest under the Plan of any Participant or Beneficiary shall be (a) assignable
or transferable in any manner, (b) subject to alienation, anticipation,
sale, pledge, encumbrance, attachment, garnishment or other legal process or (c) in
any manner liable for or subject to the debts or liabilities of the Participant
or Beneficiary.  Notwithstanding the
foregoing, to the extent permitted by Section 409A of the Code, the
Committee shall honor a judgment, order or decree from a state domestic
relations court which requires the payment of part or all of a Participant’s or
Beneficiary’s interest under this Plan to an “alternate payee” as defined in Section 414(p) of
the Code.

 

Section 6.3  Interest
of Participant.  The obligation of
the Company under the Plan to make payment of amounts reflected in an Account
merely constitutes the unsecured promise of the Company to make payments from
its general assets and no Participant or Beneficiary shall have any interest
in, or a lien or prior claim upon, any property of the Company or a property
interest in his or her Account.  Further,
no Participant or Beneficiary shall have any claim whatsoever against any
Subsidiary for amounts reflected in an Account. 
Nothing in the Plan shall be construed as guaranteeing future employment
to Eligible Executives.  It is the
intention of the Company that the Plan be unfunded for tax purposes and for
purposes of Title I of ERISA.  The
Company may, but need not, establish a trust to fund its obligations under the
Plan.  In such event, the Company may establish
a trust or use an already existing trust, either the Company’s Amended and
Restated Master Trust, dated January 1, 2001, or the Company’s Second
Amended and Restated Master Trust, dated January 1, 2001 (such new trust
or an existing trust, each, a “Master Trust”), and may fund such 

 

15

 

Master Trust; provided, however, that
any funds contained therein shall remain liable for the claims of the Company’s
general creditors and provided, further, that no amount shall be transferred to
a Master Trust if, pursuant to Section 409A(b)(3)(A) of the Code,
such amount would, for purposes of Section 83 of the Code, be treated as
property transferred in connection with the performance of services.  Notwithstanding the above, upon the earlier
to occur of (a) a Change of Control or (b) a declaration by the Board
that a Change of Control is imminent, the Company shall promptly to the extent
it has not previously done so transfer to the trustee of such Master Trust, to
be added to the principal thereof, an amount equal to (A) the aggregate
amount credited to the Accounts of all of the Participants and Beneficiaries
under the Plan, less (B) the surplus, if any, in the Master Trust at such
time that is not dedicated to the payment of benefits under any other benefit
plan sponsored by the Company; provided, however, that no amount
shall be transferred pursuant to a Master Trust if, pursuant to Section 409A(b)(3)(A) of
the Code, such amount would, for purposes of Section 83 of the Code, be
treated as property transferred in connection with the performance of services.

 

Section 6.4  Claims
of Other Persons.  The provisions of
the Plan shall in no event be construed as giving any other person, firm or
corporation any legal or equitable right as against the Company or any
Subsidiary or the officers, employees or directors of the Company or any
Subsidiary, except any such rights as are specifically provided for in the Plan
or are hereafter created in accordance with the terms and provisions of the
Plan.

 

Section 6.5  Severability.  The invalidity and unenforceability of any
particular provision of the Plan shall not affect any other provision hereof,
and the Plan shall be construed in all respects as if such invalid or
unenforceable provision were omitted.

 

Section 6.6  Expenses.  The Company shall pay all expenses incurred
in the administration and operation of the Plan.

 

Section 6.7  Governing
Law.  Except when preempted by
federal law, this Plan shall be regulated, construed and administered under the
laws of the State of Ohio.

 

Section 6.8  Relationship
to Other Plans.  The Plan is intended
to serve the purposes of and to be consistent with any incentive compensation
plan approved by the Committee for purposes of the Plan.

 

Section 6.9  Headings;
Interpretation.

 

(a)       Headings in this Plan are
inserted for convenience of reference only and are not to be considered in the
construction of the provisions hereof.

 

(b)        Any
reference in this Plan to Section 409A of the Code will also include any regulations
or any other formal guidance, promulgated with respect to such Section 409A
by the U.S. Department of Treasury or the Internal Revenue Service.

 

16

 

(c)      For
purposes of the Plan, the phrase “permitted by Section 409A of the Code,”
or words or phrases of similar import, shall mean that the event or
circumstance that may occur or exist only if permitted by Section 409A of
the Code would not cause an amount deferred or payable under the Plan to be
includible in the gross income of a Participant or Beneficiary under Section 409A(a)(1) of
the Code.

 

17

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