Document:

Exhibit
10.1

Non-Employee
Director Compensation Schedule

Annual Retainer

Each non-employee director will receive $54,000 as an
annual cash retainer on or about May 1 of each year for service on the Board of
Directors of DPL Inc. and The Dayton Power and Light Company.

Meeting Fees

For each Board of Directors and committee meeting
attended in person, a non-employee director will receive $1,500.  A non-employee director will receive $750 for
Board of Directors and committee meetings attended by telephone.  

Committee Chair

The chair of each committee of the Board of Directors
of the Company, currently including the Audit Committee, Nominating and
Corporate Governance Committee, and Compensation Committee, will receive an
annual cash retainer of $10,000.

Equity Compensation

Each non-employee director will receive under the DPL
Inc. 2006 Equity and Performance Incentive Plan an equity grant consisting of
an amount of restricted stock units having an approximate value of $54,000 (the
“Units”).  The Units will be granted on
the date of each DPL Inc. Annual Meeting of Shareholders and will vest 100% on
the day before the next DPL Inc. Annual Meeting of Shareholders immediately
following the date of the grant.  Each
non-employee director will have the opportunity to defer the Units.  The Units will be subject to the terms and
conditions set forth in an evidence of award between DPL Inc. and the
non-employee director.

Fee Structure

Each non-employee director will receive only one (i)
annual cash retainer, (ii) annual committee chair fee, and (iii) annual equity
grant for service on both Boards of Directors of DPL Inc. and The Dayton Power
and Light Company.  Each non-employee
director will receive only one meeting fee for concurrent meetings of the Board
of Directors and a committee of DPL Inc. or The Dayton Power and Light Company.Exhibit
10.2

DPL INC.

2006 DEFERRED COMPENSATION PLAN FOR EXECUTIVES

EFFECTIVE
SEPTEMBER 19, 2006

DPL
Inc. hereby adopts the DPL Inc. 2006 Deferred Compensation Plan For Executives
on the terms and conditions hereinafter set forth, effective as of September
19, 2006.

ARTICLE I.  PURPOSE

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 than in an
acquisition directly from the Company or DP&L that is approved by a
majority of the Original Directors or their Successors

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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 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

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

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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.

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.

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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 or
Beneficiary resulting from (a) an illness or accident of the Participant or
Beneficiary or his or her spouse or dependent (as defined in Section 152(a) of
the Code), (b) loss of the Participant’s or Beneficiary’s property due to
casualty, or (c) other similar extraordinary circumstances arising as a result
of events beyond the control of the Participant or Beneficiary.

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 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

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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
Section 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:

(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.

 

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(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(a)(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(a)(i)(A)
shall be paid or commence to be paid on the date of the Termination of
Employment.  Payments made in accordance
with the Participant’s election under Section 3.4(a)(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(a)(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(a), 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(a)(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 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

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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)           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 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 and to the extent the “short-term deferral” exception under Section
409A of the Code does not apply, then the payment on account of Termination of
Employment shall commence as soon as practicable

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following six
months 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) 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

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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 and to the extent the
“short-term deferral” exception under Section 409A of the Code does not apply,
then the payment on account of Termination of Employment shall commence as soon
as practicable following six months 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 or Beneficiary, accelerated payment shall be made to the
Participant or Beneficiary of all or a part of his or her Account.  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.

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

 11
 

 

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 the 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
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

 12
 

 

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

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

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

 13
 

 

(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.

(a)           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
 

 

(b)           Without
limiting the generality of the foregoing, the 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 Section 409A of the Code.

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 Prop. Treas. Reg.
§ 1.409A-3(h)(2)(viii), 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.  Any Plan provisions that would cause the Plan
to fail to satisfy Section 409A of the Code shall have no force and effect
unless and until amended to comply with Section 409A of the Code (which
amendment may be retroactive to the extent permitted by 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

 15
 

 

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 Master Trust; provided, however, that any funds
contained therein shall remain liable for the claims of the Company’s general
creditors.  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.

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;
Failure to Satisfy Section 409A.  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.  Any provisions that would cause any amount
deferred or payable under the Plan to be includible in the gross income of any
Participant or Beneficiary under Section 409A(a)(1) of the Code shall have
no force and effect unless and until amended to cause such amount to not be so
includible (which amendment may be retroactive to the extent permitted by
Section 409A of the Code).

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.

 16
 

 

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
proposed, temporary or final regulations, or any other guidance, promulgated
with respect to such Section 409A by the U.S. Department of Treasury or
the Internal Revenue Service.

(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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