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                            STOCK PURCHASE AGREEMENT

     This Stock Purchase Agreement (the "AGREEMENT") is made and entered into
this 26th day of July, 2001, among the parties set forth in EXHIBIT "A" hereto
(collectively, the "SELLERS" and individually a "SELLER"), Questar Market
Resources, Inc. (the "PURCHASER") and Shenandoah Energy Inc. (the "COMPANY").

                                    RECITALS

     A.   WHEREAS, Sellers are, or will be at the Closing, the owners of 100% of
the equity securities, stock options, warrants and any other stock rights
presently outstanding, or issued immediately prior to the Closing, including
Common Stock, Series "A" Preferred Stock ("SERIES A") and Series "B" Preferred
Stock ("SERIES B") (collectively, the "SHARES") of the Company in the amounts
set forth in EXHIBIT "B"; and

     B.   WHEREAS, Purchaser desires to purchase all (100%) of Sellers' Shares
and Sellers desire to sell such Shares for the Aggregate Purchase Price
(defined below) in accordance with the terms and conditions of this Agreement.

     NOW, THEREFORE, in consideration of the foregoing recitals, the agreements
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

     1.   AGREEMENT OF SALE AND PURCHASE OF SHARES. Subject to the terms and
conditions contained in this Agreement, Sellers shall sell to Purchaser and
Purchaser shall purchase from Sellers all of the Shares as further described on
EXHIBIT "B".

     2.   TIME AND PLACE OF CLOSING; PURCHASE PRICE.

          a.    CLOSING. The closing of this transaction shall be held at 9:00
     a.m. on July 31, 2001 in the offices of the Company at 475 Seventeenth
     Street, Suite 1000, Denver, Colorado 80202, or on such other date, time or
     place to be mutually agreed upon by the parties (hereinafter, the
     "CLOSING" or "CLOSING DATE").

          b.    PURCHASE PRICE. The "AGGREGATE PURCHASE PRICE" for the Shares
     shall be $324,000,000.00 less the Employee Bonus Amount to be allocated
     among the Sellers as set forth on EXHIBIT "B".

     3.   DEPOSIT ON THE EXECUTION DATE. Purchaser will pay into an escrow
account (the "ESCROW Account") pursuant to an Escrow Agreement in the form of
EXHIBIT "C" (the "ESCROW AGREEMENT") at U.S. Bank (the "ESCROW AGENT") a
deposit of $10,000,000.00 in immediately available funds upon its execution of
this Agreement (the "DEPOSIT"). At the Closing, the Deposit with accrued
interest will be applied against the Aggregate Purchase Price. If the Closing
does not occur prior to August 10, 2001, the Deposit with accrued interest will
be refunded to Purchaser unless Closing fails to occur due to Purchaser's
breach of any of its obligations, covenants, representations or warranties
hereunder (and such breach was not cured within 10 days of written notice to
Purchaser of such breach), in which case the Deposit with accrued interest, in
lieu of any other damages, shall be allocated among the Sellers in accordance
with each Seller's Deposit Sharing Ratio after the payment to the Company of
all expenses incurred by the Company in connection herewith.

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     4.   SELLER'S REPRESENTATIONS AND WARRANTIES. Each Seller hereby severally
and not jointly represents and warrants to Purchaser, with respect to
itself/himself/herself, as follows:

          a.    ORGANIZATION AND STANDING. To the extent Seller is a
     corporation, partnership, limited liability company or other business
     entity formed under the laws of any state, such business entity is duly
     organized, validly existing and in good standing under the laws of the
     state of organization and in such other jurisdictions necessary for the
     consummation of this Agreement.

          b.    POWER. Seller has all requisite power and authority to carry on
     its business as presently conducted and to enter into this Agreement.
     The execution and delivery of this Agreement does not, and the
     fulfillment of and compliance with the terms and conditions hereof will
     not, as of Closing, violate, or be in conflict with, any material
     provision of its governing documents, when applicable, or any material
     provision of any agreement or instrument to which it is a party or by
     which it is bound, or to any judgment, decree, order, statute, rule or
     regulation applicable to it.

          c.    AUTHORIZATION AND ENFORCEABILITY. The execution, delivery and
     performance of this Agreement and the transactions contemplated hereby have
     been duly and validly authorized by all requisite actions of the Seller.
     This Agreement constitutes the legal, valid and binding obligation of the
     Seller, and is enforceable in accordance with its terms, subject, however,
     to the effects of bankruptcy, insolvency, reorganization, moratorium and
     other laws for the protection of creditors, as well as to general
     principles of equity, regardless whether such enforceability is considered
     in a proceeding in equity or at law.

          d.    TITLE TO SHARES. Seller owns, or at Closing will own, the Shares
     shown next to its/his/her name on EXHIBIT "B" and, at Closing, will convey
     to Purchaser good and marketable title to its/his/her Shares free and clear
     of any and all liens, claims, encumbrances, other pledges or security
     interests and all other defects of title or other matters whatsoever.

          e.    LIABILITY FOR BROKERS' FEES. Seller has not incurred any
     liability, contingent or otherwise, for brokers' or finders' fees
     relating to the transaction contemplated by this Agreement for which
     Purchaser shall have any responsibility.

     5.   SELLER'S REPRESENTATIONS AND WARRANTIES CONCERNING THE COMPANY. Each
Seller represents and warrants to the Purchaser, severally and not jointly,
that, to the extent of such Seller's actual knowledge without inquiry, the
statements contained in this SECTION 5 are true as of the date of this
Agreement. With respect to Shell Capital Inc., The Prudential Insurance Company
of America, Chevron U.S.A. Inc. and Green Bay Packaging, Inc. the term "to the
extent of such Seller's actual knowledge" shall mean the actual knowledge
without inquiry of the representative(s) of such Seller sitting as a director of
the Company or as an observer to the board of directors of the Company on June
1, 2001. The Company also makes the same representations to the best of its
knowledge.

          a.    ORGANIZATION, QUALIFICATION, AND CORPORATE POWER. Each of the
     Company and its Subsidiaries (i) is duly incorporated or formed and validly
     existing, under the laws of its state of incorporation or formation; and
     (ii) is duly authorized to conduct business and is in good standing under
     the laws of each jurisdiction where such qualification is required.

          b.    CAPITALIZATION. Except as set forth on EXHIBIT "B", which shall
     include reference to the stock options and warrants described in SECTION
     8(c)(i), there are no other authorized securities of the Company, including
     any stock options, warrants, purchase rights, subscription rights,
     conversion rights, exchange rights, or other contracts or commitments that
     could require

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     the Company to issue, sell,or otherwise cause to become outstanding any of
     its capital stock.There are no outstanding or authorized stock
     appreciation, phantom stock, profit participation, or similar rights with
     respect to the Company.

          c.    AFFILIATES. The Company does not have any subsidiaries or own
     any capital stock in any other corporation except as set forth on
     SCHEDULE 5(c).

          d.    FINANCIAL STATEMENTS. Attached hereto as SCHEDULE 5(d) are the
     following financial statements (collectively the "FINANCIAL STATEMENTS"):
     (i) audited consolidated balance sheets of the Company as of December 31,
     1999 and 2000, and the related consolidated statements of operations,
     shareholders' equity, and cash flows of the Company for the year ended
     December 31, 2000; and (ii) an unaudited consolidated balance sheet of the
     Company as of May 31, 2001, and related consolidated statements of
     operations and cash flows for the five months then ended (the "MOST RECENT
     PERIOD END"). The Financial Statements at and for the five-month period
     ended May 31, 2001, are herein referred to as the "MOST RECENT FINANCIAL
     STATEMENTS." The Financial Statements (including the notes thereto) have
     been prepared in accordance with GAAP applied on a consistent basis
     throughout the periods covered thereby and present fairly, in all material
     respects, the consolidated financial position of the Company as of such
     dates and the results of operations for such periods, and are consistent
     with the books and records of the operations for such periods, and are
     consistent with the books and records of the Company; provided, however,
     that the Most Recent Financial Statements are subject to normal year-end
     adjustments and lack footnotes and other presentation items.

          e.    EVENTS SUBSEQUENT TO MOST RECENT PERIOD END. Since May 31, 2001,
     there have not been any changes in the assets, condition or affairs,
     financial or otherwise, of the Company and the Subsidiaries, taken as a
     whole, which have had or will have, in the aggregate, a Material Adverse
     Effect.

          f.    LEGAL COMPLIANCE. The Company and each of the Subsidiaries (i)
     is in substantial compliance with all applicable laws (including rules,
     regulations, codes, plans, injunctions, judgments, orders, decrees,
     rulings, and charges thereunder) and (ii) has or has timely applied for
     all permits, licenses, certificates of authority, orders and approvals
     of, and has made all filings and applications with federal, state, and
     local regulatory bodies required to carry on its current operations in
     the ordinary course of business, except where the failure to so comply
     or to obtain or apply for such permits, licenses, certificates of
     authority, orders or approvals or to make such filings or applications
     would not have a Material Adverse Effect.

          g.    TAX MATTERS. The Company and each of the Subsidiaries has
     properly filed all tax returns that it was required to file, if any, and
     has paid all taxes shown thereon as owing.

          h.    MATERIAL AGREEMENTS. SCHEDULE 5(h) lists all contracts to which
     the Company or any Subsidiary is a party, the performance of which will
     involve consideration in excess of $1,000,000.00 per year (the "MATERIAL
     AGREEMENTS"). The Company has made available to the Purchaser a complete
     copy of each Material Agreement. With respect to each Material
     Agreement, the Company is not in breach or default of the terms and
     conditions of such agreement, except where such breaches or defaults
     would not have a Material Adverse Effect.

          i.    LITIGATION. SCHEDULE 5(i) sets forth each instance in which the
     Company or any Subsidiary (i) is subject to any outstanding injunction,
     judgment, order, decree, ruling, or charge, or (ii) is a party to any
     action, suit, proceeding, hearing, or investigation of, in, or before any
     court

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     or quasi-judicial or administrative agency of any jurisdiction, or (iii)
     has been threatened to be sued or made a party to any such proceeding.

          j.    ENVIRONMENTAL MATTERS. The Company and the Subsidiaries have
     obtained or have made application for all Environmental Approvals required
     to carry on their current operations in the ordinary course of business and
     all such Environmental Approvals are valid and in full force and effect;
     and the Company and the Subsidiaries are in substantial compliance with all
     such Environmental Laws, except where such defects or failures to obtain or
     apply for Environmental Approvals or be in substantial compliance with
     Environmental Laws would not, individually or in the aggregate, have a
     Material Adverse Effect. There is no order or directive that relates to
     environmental matters and that requires any work, repairs, construction or
     capital expenditures with respect to the Company's or any Subsidiary's
     assets. There is no demand or notice issued to the Company or any
     Subsidiary with respect to the breach of any Environmental Laws pertaining
     to the Company's assets that would reasonably cause a Material Adverse
     Effect.

          k.    TRANSACTIONS WITH SELLERS. SCHEDULE 5(k) lists all contracts and
     agreements between the Company or any Subsidiary, on one hand, and any
     Seller or its affiliates on the other.

          l.    TITLE TO PETROLEUM AND NATURAL GAS RIGHTS. The Company directly
     or indirectly through one of its Subsidiaries owns the NRI and WI set
     forth in SCHEDULE 5(l), free and clear of all liens, charges,
     encumbrances, conversion rights and adverse claims, except for Permitted
     Encumbrances and the Company has not done or failed to do any act or
     thing whereby any of the underlying leases may become subject to
     termination, surrender, forfeiture, cancellation, or alienation, except
     with respect to any such defects in ownership, action or failure to act
     that would not, individually or in the aggregate, result in a Material
     Adverse Effect.

          m.    HEDGING TRANSACTIONS, GAS IMBALANCES AND PREPAID GAS
     OBLIGATIONS. SCHEDULE 5(m) sets forth all hedge transactions to which
     the Company is a party and gas imbalances pertaining to the Company's
     operations and assets. Except where identified as a negative imbalance
     on SCHEDULE 5(m), the Company is not obligated to deliver oil, gas or
     natural gas liquids without receiving full payment therefor. The Company
     is not obligated by virtue of a prepayment arrangement, under any
     contract or arrangement for the provision of services, to provide
     services at some future time without then or thereafter receiving full
     payment therefor.

          n.    OFFICE LEASE. SCHEDULE 5(n) contains an accurate description
     of all office leases by which the Company is bound.

          o.    INSURANCE. SCHEDULE 5(o) describes all contracts of insurance
     maintained by the Company, which are in full force and effect and all
     premiums due and owing in connection with such policies have been paid. The
     Company has given notice or has otherwise presented every material claim
     known to the Company to be covered by insurance under its insurance
     policies or contracts in a timely fashion.

          p.    LABOR MATTERS AND EMPLOYEE BENEFIT PLANS. Except as shown on
     SCHEDULE 5(p) hereto, the Company is not a party to any agreement or
     commitment for any obligation to make contributions under any pension plan,
     retirement income plan, profit sharing plan or other plan or arrangement
     providing for employee benefits compensation or severance obligations,
     retention obligations, royalty plan, net profits plan, or any plan, program
     or other arrangement providing for medical services or coverage, dental
     care, life insurance or disability insurance to employees. Specifically,
     the Company has complied in all material respects with the Employee
     Retirement Income Security Act.

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          q.    CONDITION OF WELLS. All major facilities and all producing, shut
     in or suspended oil and/or gas wells and all water and other disposal and
     injection wells operated by the Company or operated by operators acting on
     the Company's behalf, have been drilled and, if completed, have been
     completed, operated and produced in accordance with good and generally
     accepted oil and gas field practices and in substantial compliance with all
     applicable laws, rules and regulations in force at the time of such
     activity, except where the failure to so drill, complete, operate or
     produce would not, individually or in the aggregate, result in a Material
     Adverse Effect.

          r.    NO NOTICES OF DEFAULT OR CLAIM FOR INDEMNIFICATION. No notice of
     default by the Company or claim for indemnification against the Company or
     any of the Subsidiaries has been made in writing or threatened in writing
     by any person that would reasonably cause a Material Adverse Effect.

          s.    PAYMENT OF ROYALTIES AND TAXES. Except as set forth in SCHEDULE
     5(s), all royalties and all ad valorem, property, production, severance and
     similar taxes and assessments based on, or measured by, the Company's or
     any Subsidiary's ownership of the production of petroleum substances from
     the Company's or any Subsidiary's assets or the receipt of proceeds
     therefrom that are payable by the Company or any Subsidiary and which have
     accrued or will accrue prior to the Closing Date, to the extent required to
     be paid prior to the Closing, have been or will be properly and fully paid
     and discharged in the manner and at the time prescribed by all applicable
     agreements and governmental regulations or, to the extent not required to
     be paid prior to the Closing, have been accrued in the normal course of
     business, subject to routine and ordinary adjustments and corrections.

          t. CREDIT FACILITY. Since May 31, 2001 the Company has not made any
     borrowings under its Credit Facility except for borrowings (i) in the
     ordinary course of business or (ii) for items covered in the Company's 2001
     budget.

     5A.  NO CLAIM OF INDEMNIFICATION UNDER MASTER AGREEMENT. Chevron U.S.A.
Inc. represents and warrants to Purchaser that as of the date hereof neither
it nor its affiliates (collectively, "CHEVRON") have asserted, and the Company
has not received, any notice of default or inquiry or claim for
indemnification arising out of or relating to the Company's indemnification
obligation under the Master Agreement for Sale and Contribution of Assets
dated as of August 10, 1999 by and among Chevron U.S.A. Inc., The Chandler
Company and Shenandoah Energy Inc. (the "MASTER AGREEMENT") nor is Chevron
presently aware of any facts or circumstances that would reasonably cause it
to make any such notice or inquiry or claim.

     6.   PURCHASER'S REPRESENTATIONS. Purchaser represents and warrants to
Sellers and Company as of the date hereof and at Closing as follows:

          a.    ORGANIZATION AND STANDING. Purchaser is a corporation, formed
     under the laws of the state of Utah, such business entity is duly
     organized, validly existing and in good standing under the laws of such
     state and in such other jurisdictions necessary for the consummation of
     this Agreement.

          b.    POWER. Purchaser has all requisite power and authority to
     carry on its business as presently conducted and to enter into this
     Agreement. The execution and delivery of this Agreement does not, and the
     fulfillment of and compliance with the terms and conditions hereof will
     not, as of Closing, violate, or be in conflict with, any material provision
     of its governing

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     documents, when applicable, or any material provision of any agreement or
     instrument to which it is a party or by which it is bound, or to any
     judgment, decree, order, statute, rule or regulation applicable to it.

          c.    AUTHORIZATION AND ENFORCEABILITY. The execution, delivery and
     performance of this Agreement and the transactions contemplated hereby have
     been duly and validly authorized by all requisite action of the Purchaser
     and Questar Corporation. This Agreement constitutes the legal, valid and
     binding obligation of the Purchaser, and is enforceable in accordance with
     its terms, subject, however, to the effects of bankruptcy, insolvency,
     reorganization, moratorium and other laws for the protection of creditors,
     as well as to general principles of equity, regardless whether such
     enforceability is considered in a proceeding in equity or at law.

          d.    ACQUISITION NOT FOR DISTRIBUTION PURPOSES. Purchaser is
     acquiring the Shares for investment purposes and not with a view to
     distribution.

          e.    RESTRICTION ON TRANSFERS. Purchaser acknowledges that the
     Shares are not registered under the Securities Act of 1933, as amended.
     Purchaser will not sell, transfer or otherwise dispose of the Shares in
     violation of the Securities Act of 1933, as amended, the Securities
     Exchange Act of 1934, as amended, or the rules promulgated thereunder,
     including Rule 144 under the Securities Act of 1933, as amended.

          f.    LIABILITY FOR BROKERS' FEES. Purchaser has not incurred any
     liability, contingent or otherwise, for brokers' or finders' fees relating
     to the transaction contemplated by this Agreement for which any Seller
     shall have any responsibility.

          g.    HART-SCOTT-RODINO. Purchaser has made a good faith determination
     that the fair market value of the assets of the Company that would not be
     exempt from the requirements of the Hart-Scott-Rodino Act pursuant to 16
     C.F.R.Section.802.3 if acquired directly does not exceed $50 million.

     7.   COVENANTS.

          a.    INDEPENDENT EVALUATION. Purchaser is experienced and
     knowledgeable in the oil and gas business. Purchaser is aware of risks
     associated with the oil and gas business and, specifically, the Company's
     business, operations and assets and has formed its own judgment as to the
     value of the Shares. Purchaser is relying upon its own judgment and
     decision in entering into and consummating the transaction. Between the
     execution date and the Closing Date, Sellers shall use commercially
     reasonable efforts to assist Purchaser in being afforded the opportunity to
     examine the files, records, information and data regarding the business of
     the Company and its Affiliates (the "RECORDS"), in addition to information
     that is available in the public domain. Purchaser acknowledges and agrees
     that neither the Company nor its Affiliates, directors, officers or
     employees of any of them nor Sellers have made any representations or
     warranties, express or implied, written or oral, as to the accuracy of the
     Records. Except for the representations and warranties of Sellers contained
     in this Agreement, Sellers have not made any representation or warranty to
     Purchaser including any estimate with respect to the value of the assets of
     the Company or reserves or any projections as to events that could or could
     not occur. In entering into this Agreement, Purchaser acknowledges and
     affirms that it has relied and will rely solely on the terms,
     representations and warranties of this Agreement and upon its independent
     analysis, evaluation and investigation of, and judgment with respect to,
     the business, economic, legal, tax or other consequences of this
     transaction including its own estimate and appraisal of the extent and
     value of the petroleum, natural gas and other reserves attributable to the
     assets of the

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     Company. Purchaser's representatives will be given full access and the
     opportunity to conduct a Phase I Environmental Inspection and equipment
     inventory and to visit with personnel and physically examine the assets and
     operations of the Company. Except as expressly provided in this Agreement,
     no Seller shall have any liability to Purchaser or its affiliates, agents,
     representatives or employees resulting from any use, authorized or
     unauthorized, of the Records or other information relating to the Company.

          b.    LIABILITY OF SELLERS SEVERAL AND NOT JOINT. Any liability of a
     Seller arising hereunder shall be several to each Seller and not joint, and
     no Seller shall be liable for the breach of any representation, warranty or
     covenant hereunder by another Seller. The liability of each Seller
     hereunder shall be limited in amount to the amount shown under the column
     labeled "Distribution Amount" on EXHIBIT "B" for each such Seller. To the
     extent a Seller incurs any liability hereunder together with all other
     Sellers, the liability of such Seller shall not exceed the liability of all
     Sellers hereunder multiplied by such Seller's Sharing Ratio.

          c.    EXERCISE OF OPTIONS AND WARRANTS. Each Option Holder or Warrant
     Holder that is a party hereto agrees to exercise all of its Options and/or
     warrants immediately prior to Closing and the amount owed to the Company as
     a result of such exercise (which is set forth in the column labeled
     "Exercise Amount" on EXHIBIT "B") shall be offset against such Option
     Holder's or Warrant Holder's share of the Aggregate Purchase Price (which
     is set forth in the column labeled "Purchase Price" on EXHIBIT "B"), so
     that each Option Holder or Warrant Holder shall receive at Closing such
     Option Holder's or Warrant Holder's share of the Distribution Amount (which
     is set forth on EXHIBIT "B"), less any required tax withholdings with
     respect to the Option Holders.

          d.    PURCHASER'S OBLIGATION TO CLOSE. Purchaser shall not have the
     obligation to close unless 100% of the Shares (including Shares issued upon
     the exercise of Options and warrants) are tendered at Closing.

          e.    TREATMENT OF OPTION POOL. The Sellers and the Company agree to
     amend the Option Plan to provide for cash bonus payments to participants in
     the Option Pool in an amount equal to the Employee Bonus Amount in lieu of
     options that have been previously allocated to the Option Pool. The Company
     shall determine the allocation of the Employee Bonus Amount to the
     individual participants and shall provide such allocation to the Escrow
     Agent at least two (2) business days prior to Closing.

          f.    401(k) PLAN. The Company will terminate its 401(k) plan
     immediately prior to Closing. Purchaser agrees that all employees of the
     Company shall be eligible to participate and vest immediately in
     Purchaser's parent's 401(k) plan (the "401(k) PLAN"), as of the Closing
     Date, without any waiting period. Purchaser shall permit each employee of
     the Company who was a participant in the Company's 401(k) plan to elect to
     rollover or transfer his account balance under the Company's 401(k) plan to
     the 401(k) Plan (excluding, however, any outstanding loans).

          g.    UPDATE OF EXHIBIT "B" PRIOR TO CLOSING. The Company shall
     provide Purchaser an updated EXHIBIT "B" two (2) business days prior to
     Closing to reflect any changes resulting from the adjustment of the Option
     Price (if the Closing occurs on a date other than July 31, 2001). Each
     Seller authorizes the Company to: (i) adjust EXHIBIT "B" as provided in
     this SECTION 7(g); and (ii) enter into and to perform its obligations under
     the Escrow Agreement.

     8.   OPERATION OF BUSINESS. From the date hereof until the Closing Date,
the Company will not, without the written consent of Purchaser (which consent
shall not be unreasonably withheld), except

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as expressly contemplated by this Agreement, engage in any practice, take any
action, or enter into any transaction outside the ordinary course of business.
Without limiting the generality of the foregoing, from the date hereof until the
Closing Date, the Company will not, without the written consent of Purchaser
(which consent shall not be unreasonably withheld), except as expressly
contemplated by this Agreement, do any of the following:

          a.    amend or otherwise change its charter or bylaws or equivalent
     organizational documents;

          b.    make or commit to make any capital expenditure or group of
     related capital expenditures in excess of $250,000.00 individually or
     $1,000,000.00 in the aggregate that is not provided for in the Company's
     2001 budget previously provided to the Purchaser;

          c.    issue, sell, pledge, dispose of, grant, encumber or authorize
     the issuance, sale, pledge, disposition, grant or encumbrance of (i) any
     shares of capital stock of any class of the Company, or any options,
     warrants, convertible securities or other rights of any kind to acquire any
     shares of such capital stock, or any other ownership interest (including,
     without limitation, any phantom interest), of the Company, except for (A)
     up to 346,761 Options that have been or will be granted to employees of the
     Company prior to Closing pursuant to the Option Plan, as amended by SECTION
     7(e), or (b) shares to be issued by the Company upon the exercise of the
     stock options described in (A) above or the 193,548 warrants currently
     outstanding, or (ii) any assets and properties material to the Company,
     except for (A) sales of oil, gas, or natural gas liquids in the ordinary
     course of business, or (B) pledges of assets and properties required by any
     financing documents to which the Company is a party on the date hereof;

          d.    acquire (including, without limitation, by merger,
     consolidation or acquisition of stock or assets) any corporation,
     partnership or other business organization or any division thereof or any
     material amount of assets, except for acquisitions of assets in the
     ordinary course of business;

          e.    incur any indebtedness for borrowed money or issue any debt
     securities or assume, guarantee or endorse, or otherwise as an
     accommodation become responsible for, the obligations of any person, or
     make any loans or advances, except borrowing in the ordinary course of
     business pursuant to any existing credit agreements;

          f.    increase the compensation payable or to become payable to, or
     grant any severance or termination pay to, its officers, employees,
     directors or consultants, except pursuant to existing contractual
     arrangements, or existing compensation plans, or enter into any employment,
     consulting or severance agreement with, any director, officer or other
     employee or consultant of the Company, or establish, adopt, enter into or
     amend any collective bargaining, bonus, profit sharing, compensation, stock
     option (except the amendment to the Option Plan described in SECTION 7(e)),
     restricted stock, pension, retirement, deferred compensation, employment,
     termination, severance or other plan, agreement, trust, fund, policy or
     arrangement for the benefit of any director, officer, employee or
     consultant except, in each case, for actions resulting from the normal
     application of the Company's policies, consistent with past practice;

          g.    declare, set aside or pay any dividend or make any other
     pro-rata distribution to shareholders; or

          h.    amend in any material respect any Material Agreement or
     terminate any Material Agreement prior to the expiration of the term
     thereof.

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     9.   OBLIGATIONS OF THE PARTIES AT CLOSING.

          a.    SELLERS' ACTIONS AT CLOSING. At Closing, each Seller shall
     execute, acknowledge and deliver to Purchaser the following:

                (i)    TRANSFER OF SHARES. The original stock certificates
     representing such Seller's Shares, duly endorsed (or accompanied by duly
     executed stock powers);

                (ii)   CERTIFICATE. A certificate certifying that the
     representations and warranties provided hereunder by such Seller are
     accurate and true in all material respects as of the Closing as to such
     Seller; and

                (iii)  OTHER NECESSARY INSTRUMENTS. All other instruments as may
     be reasonably required to consummate the agreements of the parties
     hereunder.

          b.    PURCHASER'S ACTIONS AT CLOSING. At Closing, upon the tendering
     of 100% of the Shares,Purchaser shall:

               (i)    PAYMENT AT CLOSING. Deliver the remaining portion of the
          Aggregate Purchase Price (as adjusted pursuant to SECTION 3 above),
          less the Option Exercise Amount and the Warrant Exercise Amount, into
          the Escrow Account together with distribution instructions executed by
          the Company in accordance with EXHIBIT "B";

               (ii)   PAYMENT OF EMPLOYEE BONUS AMOUNT. Deliver the Employee
          Bonus Amount into the Escrow Account together with the distribution
          instructions executed by the Company; and

               (iii)  CERTIFICATE. Deliver a certificate certifying that the
          representations and warranties provided hereunder by the Purchaser are
          accurate and true in all material respects as of the Closing.

     10.  SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The representations,
warranties and covenants contained herein shall expire at Closing except that
(i) those contained in SECTIONS 4, 6, 7 AND 12 shall survive Closing and (ii)
those contained in SECTIONS 5 AND 5A shall survive for a period of six months
after Closing. No claim or cause of action shall be maintained based upon any
such representation, warranty or covenant after its expiration.

     11.  TERMINATION OF AGREEMENT. This Agreement may be terminated as provided
below:

          a.    by mutual written consent of the Purchaser and the Majority of
     Sellers at any time prior to the Closing;

          b.    the Purchaser may terminate this Agreement by giving written
     notice to Sellers and the Company at any time prior to the Closing (i) in
     the event any Seller or the Company has breached any representation,
     warranty, or covenant contained in this Agreement in any material respect,
     the Purchaser has notified the Sellers and the Company of the breach, the
     breach has continued without cure for a period of 10 days after the notice
     of breach and the breach has resulted or is likely to result in a Material
     Adverse Effect, or (ii) if the Closing shall not have occurred on or before
     August 10, 2001, by reason of the failure of any condition precedent
     hereunder (unless the failure results primarily from Purchaser itself
     breaching any representation,

                                       9
<Page>

     warranty, or covenant contained in this Agreement); or (iii) in the event
     100% of the Shares (including Shares that will be issued upon the exercise
     of the Options or warrants) are not tendered prior to August 10, 2001; or

          c.    the Majority of Sellers may terminate this Agreement by giving
     written notice to Purchaser at any time prior to the Closing (i) in the
     event the Purchaser has breached any representation, warranty, or covenant
     contained in this Agreement in any material respect, the Sellers have
     notified the Purchaser of the breach, and the breach has continued without
     cure for a period of 10 days after the notice of breach, or (ii) if the
     Closing shall not have occurred on or before August 10, 2001, by reason of
     the failure of any condition precedent hereunder (unless the failure
     results primarily from at least a Majority of Sellers or the Company
     breaching any representation, warranty, or covenant contained in this
     Agreement).

     If any Party terminates this Agreement pursuant to this Section, all
rights and obligations of the Parties hereunder shall terminate without any
liability of any Party to any other Party (except, in the case of termination
resulting from a breach by any Party, for any liability of the Party in such
breach). If this Agreement is terminated for any cause other than Purchaser's
breach hereof, Sellers shall refund the Deposit to Purchaser as provided in the
Escrow Agreement, with any interest actually accrued thereon.

     12.  GENERAL PROVISIONS.

          a.    ENTIRE AGREEMENT. This Agreement together with the Exhibits
     contains the entire understanding of the Parties with regard to the subject
     matter hereof and no warranties, representations, promises or agreements
     have been made between the Parties other than as expressly herein set
     forth. This Agreement supersedes any previous agreement or understanding
     between the Parties and cannot be modified or amended except in a writing
     executed by the Purchaser and the Majority of Sellers.

          b.    BINDING EFFECT. Upon execution, this Agreement shall be binding
     and fully enforceable and shall inure to the benefit of the Parties hereto,
     their successors, assigns, personal representatives and heirs.

          c.    NOTICES. All notices as may be required by this Agreement shall
     be deemed given if delivered personally or sent by facsimile during normal
     business hours of the recipient, the next business day if sent by overnight
     courier, or upon receipt if sent by U.S. Mail to the respective parties at
     the addresses set forth below:

          To Sellers:     See EXHIBIT "A"

          To Purchaser:   Questar Market Resources, Inc.
                                    180 East 100 South
                                    Salt Lake City, Utah  84111
                                    ATTN: G. L. Nordloh

          To Company:     Shenandoah Energy Inc.
                                    475 17th Street, Suite 1000
                                    Denver, Colorado  80202
                                    ATTN:  Mitchell L. Solich

          d.    SEVERABILITY. In the event that any of the provisions, or
     portions thereof, of this Agreement are held to be unenforceable or invalid
     by any court of competent jurisdiction, the

                                       10
<Page>

     validity and enforceability of the remaining provisions, or portions
     thereof, shall not be affected thereby and effect shall be given to the
     intent manifested by the provisions, or portions thereof, held to be
     enforceable and valid.

          e.    GOVERNING LAW. This Agreement shall be governed by and construed
     under the laws of the State of Utah without regard to its choice of law
     provisions.

          f.    COUNTERPARTS. This Agreement may be executed in any number of
     counterparts and each such counterpart shall be considered an original and
     an enforceable agreement.

          g.    NOTICE OF DEVELOPMENTS. Each Party will give prompt written
     notice to the others of any material breach of any of its representations
     and warranties contained herein.

          h.    EXCLUSIVITY. Prior to the Closing or the termination of this
     Agreement, Sellers will not (and the Sellers will not cause or permit the
     Company to) solicit, initiate, or encourage the submission of any proposal
     or offer from any Person relating to the acquisition of all or
     substantially all of the capital stock or assets of the Company (including
     any acquisition structured as a merger, consolidation, or share exchange).

          i.    POST-CLOSING COVENANTS. After Closing, if any further action is
     necessary to carry out the purposes of this Agreement, each of the Parties
     will take such further action as any other Party reasonably may request,
     all at the sole cost and expense of the requesting Party. If any Party is
     contesting or defending against any action, suit, proceeding, hearing,
     investigation, charge, complaint, claim, or demand in connection with any
     transaction on or prior to the Closing Date involving the Company, each of
     the other Parties shall cooperate with it and its counsel in the defense or
     contest, all at the sole cost and expense of the contesting or defending
     Party.

          j.    PRESS RELEASES AND PUBLIC ANNOUNCEMENTS. No Party shall issue
     any press release or make any public announcement relating to the subject
     matter of this Agreement prior to the Closing without the prior written
     approval of the Purchaser and the Company; provided, however, that any
     Party may make any public disclosure it believes in good faith is required
     by applicable law, or any listing or trading agreement concerning its
     publicly-traded securities (in which case the disclosing Party will use its
     reasonable best efforts to advise the other Parties prior to making the
     disclosure).

          k.    NO THIRD PARTY BENEFICIARIES. Except as provided in SECTION
     7(e),this Agreement shall not confer any rights or remedies upon any Person
     other than the Parties and their respective successors and permitted
     assigns.

          l.    EXPENSES. Notwithstanding anything contained herein, all fees,
     costs, and expenses for investment advisors, attorneys, and accountants
     retained by the Company to facilitate the transactions contemplated by this
     Agreement shall be paid by the Company. All fees, costs, and expenses
     incurred by the Purchaser in connection with the transactions contemplated
     by this Agreement shall be paid by the Purchaser.

          m.    LIMITATION OF DAMAGES. There shall be no liability under this
     Agreement for consequential, special, punitive or exemplary damages.

                                       11
<Page>

     13.  DEFINITIONS.

          a.    "Affiliates" means the Persons listed on SCHEDULE 5(c).

          b.    "Aggregate Purchase Price." This term shall have the meaning
     set forth in SECTION 2.

          c.    "Closing." This term shall have the meaning set forth in
     SECTION 2.

          d.    Closing Date." This term shall have the meaning set forth in
     SECTION 2.

          e.    "Common Stock Purchase Warrant Agreements" means, collectively,
     (i) the Common Stock Purchase Warrant Agreement dated December 30, 1999
     between the Company and The Prudential Insurance Company of America and
     (ii) the Common Stock Purchase Warrant Agreement dated December 30, 1999
     between the Company and Shell Capital Inc.

          f.    "Company." This term shall have the meaning set forth in
     Paragraph A.

          g.    "Credit Facility" means that certain Senior Secured Revolving
     Credit Agreement dated November 27, 2000, by and among First Union National
     Bank, U.S. Bank National Association, BNP Paribas, the Senior Lenders
     Signatory thereto and the Company.

          h.    "Deposit." This term shall have the meaning set forth in
     SECTION 3.

          i.    "Deposit Sharing Ratio" shall be as set forth in EXHIBIT "B".

          j.    "Employee Bonus Amount" shall equal the number of shares
     (56,450) that would otherwise have been issued to the Option Pool pursuant
     to the Option Plan, but for the amendment of the Option Plan as described
     in SECTION 7(e), multiplied by the difference between the Stock Value and
     the Option Price on the Closing Date. The Employee Bonus Amount shown on
     EXHIBIT "B" shall be updated by the Company and provided to Purchaser two
     (2) business days prior to Closing.

          k.    "Environmental Approvals" means all applicable permits, licenses
     and approvals required by governmental authorities pursuant to the
     Environmental Laws with respect to the use of a property or operation of a
     business.

          l.    "Environmental Laws" means any valid and applicable federal,
     state or local law, statute, or ordinance, in effect as of the date hereof,
     and any judicial or administrative interpretation thereof, including any
     judicial or administrative order, consent decree or judgment, relating to
     emissions, discharges, releases or threatened releases of hazardous
     materials. Environmental Laws include, but are not limited to: the
     Occupational Safety and Health Act; the Comprehensive Environmental
     Response, Compensation, and Liability Act of 1980; the Resource
     Conservation and Recovery Act; the Toxic Substances Control Act; the Clean
     Water Act; the Clean Air Act; the Federal Water Pollution Control Act; the
     Oil Pollution Control Act; the Endangered Species Act; and the Safe
     Drinking Water Act, as such acts may have been amended or supplemented from
     time to time, the

                                       12
<Page>

     state and local counterparts or equivalents of all such acts, and all
     rules, regulations and orders adopted under any such statutes.

          m.    "Escrow Account". This term shall have the meaning given to it
     in SECTION 3.

          n.    "Escrow Agent". This term shall have the meaning given to it in
     SECTION 3

          o.    "Escrow Agreement". This term shall have the meaning given to it
     in SECTION 3.

          p.    "GAAP" means United States generally accepted accounting
     principles in effect from time to time.

          q.    "Majority of Sellers" means Sellers representing sixty-six and
     two-thirds percent of the total number of Shares of Common Stock (including
     Common Stock to be issued upon the exercise of all warrants and Options),
     Series A Preferred Stock, and Series B Preferred Stock.

          r.    "Material Adverse Effect" means any material adverse effect on
     the business, operations, assets, or financial condition of the Company and
     its Affiliates, taken as a whole, except for any such effects resulting
     from changes affecting the United States economy, financial and capital
     markets or the oil and gas industry in general, or changes in the prices
     generally paid for oil, natural gas or equivalents.

          s.    "Material Agreements." This term shall have the meaning set
     forth in SECTION 5(h).

          t.    "NRI" means a fractional or percentage interest in and to all
     hydrocarbons produced from or allocated to a well or unit after deduction
     of all lessors royalties, overriding royalties, and other burdens and
     payments out of production that burden such fractional or percentage
     interest in such well or unit.

          u.    "Option" or "Options" shall have the same meaning as set forth
     in the Option Plan.

          v.    "Option Exercise Amount" shall be determined by multiplying the
     number of Options and former options allocated to the Option Pool (403,211)
     by the Option Price on the Closing Date. The Option Exercise Price and the
     Option Exercise Amount shown on EXHIBIT "B" shall be updated by the Company
     and provided to Purchaser two (2) business days prior to the Closing.

          w.    "Option Holder" shall have the same meaning as set forth in the
     Option Plan.

          x.    "Option Plan" shall mean the Company's 2000 Stock Option Plan,
     as amended.

          y.    "Option Pool" shall have the same meaning as set forth in the
     Option Plan.

          z.    "Option Price" shall have the same meaning as set forth in the
     Option Plan. If Closing occurs on July 31, 2001, the Option Price shall
     equal $67.8648 per share; the Option Price shall be redetermined in
     accordance with the Option Plan if Closing occurs at a later date.

                                       13
<Page>

          aa.   "Party" and "Parties" shall mean Questar Market Resources, Inc.,
                the Company and each Seller as reflected on EXHIBIT "A".

          bb.   "Permitted Encumbrances" means the following:

                (i)   liens for taxes not yet due or, if due, being challenged
          in good faith by appropriate proceedings;

                (ii)  materialmen's, mechanics', and other similar liens or
          charges arising in the ordinary course of business for obligations
          that are not delinquent and that will be paid or discharged in the
          ordinary course of business or, if delinquent, that are being
          contested in good faith in the ordinary course of business;

                (iii) easements, rights-of-way, servitudes, permits, surface
          leases, and other rights in respect of surface operations that do not
          materially interfere with the Company's operations of the portion of
          the Company property burdened thereby;

                (iv)  liens arising under operating agreements, unitization, and
          pooling agreements, orders and statutes and production sales
          contracts securing amounts not yet due or, if due, being contested in
          good faith in the ordinary course of business;

                (v)   royalties, overriding royalties, net profits interests,
          production payments, reversionary interests, and similar interests
          that do not decrease the Company's NRI below the NRI shown in
          SCHEDULE 5(l), or increase the Company's WI above the WI shown in
          SCHEDULE 5(l), without at least a proportionate increase in the
          Company's NRI;

                (vi)  conventional rights of reassignment requiring notice to
          the holders of the rights prior to surrendering or releasing a
          leasehold interest;

                (vii) calls on production exercisable only at prices
          substantially equivalent to then-current fair market value;

                (viii)all rights to consent by, required notices to, filings
          with, or other actions by any local, county, state, federal or tribal
          governmental bodies, authorities or agencies in connection with the
          transactions contemplated by this Agreement, if the same are
          customarily sought subsequent to such transactions;

                (ix)  the terms and conditions of the Material Agreements to the
          extent such terms and conditions do not decrease the Company's NRI
          below the NRI shown on SCHEDULE 5(l), or increase the Company's WI
          above the WI shown in SCHEDULE 5(l) without a corresponding
          proportionate increase in the Company's NRI; and

                (x)   liens and security interests arising under the Company's
          Credit Facility.

          cc.   "Person" means any individual, corporation, partnership, limited
                liability company, joint venture, association, joint-stock
                company, trust, enterprise, unincorporated organization, or
                governmental entity.

          dd.   "Phase I Environmental Inspection" means an assessment of the
                Company's compliance with Environmental Laws consisting of
                examination of the

                                       14
<Page>

                Company's files and public documents, interviews of personnel of
                the Company and of other appropriate persons, visual inspection
                of Company property, and NORM and asbestos surveys.

          ee.   "Shares." This term shall have the meaning set forth in
                Paragraph A.

          ff.   Subsidiaries" means all Affiliates.

          gg.   Sharing Ratio" shall be as set forth in EXHIBIT "B".

          hh.   "Stock Value" shall mean the consideration received for one (1)
                share of Common Stock under this Agreement as shown next to the
                "Price Per Share" column on EXHIBIT "B".

          ii.   "Warrant Exercise Amount" is $1,935.48, which is determined
                pursuant to the Common Stock Purchase Warrant Agreements by
                multiplying the total number of warrants issued thereunder
                (193,548) times the Initial Exercise Price ($0.01 per share) as
                such term is defined under the Stock Purchase Warrant
                Agreements.

          jj.   "Warrant Holder" shall mean a holder of warrants issued pursuant
                to the Common Stock Purchase Warrant Agreements.

          kk.   "WI" means a fraction or percentage of the costs and expenses
                associated with the maintenance, exploration, development,
                operation and abandonment of a well or unit.

PURCHASER:

QUESTAR MARKET RESOURCES, INC.

By:
    ---------------------------------------------------

Name:  G. L. Nordloh

Title:  President & CEO

Date: July 26, 2001

                                       16
<Page>

COMPANY:

SHENANDOAH ENERGY INC.

By:
    ---------------------------------------------------

Name:  Mitchell L. Solich

Title:  President & CEO

Date:  July ___, 2001

                                       17
<Page>

SELLER #1:

ADVANCE ROSS SUB COMPANY

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       18
<Page>

SELLER #2:

COLLIS P. CHANDLER, III, AN INDIVIDUAL

By:
    ---------------------------------------------------

Name:  Collis P. Chandler, III

Date:  July ___, 2001

                                       19
<Page>

SELLER #3:

CHEVRON U.S.A. INC.

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       20
<Page>

SELLER #4:

COLLIS P. CHANDLER, III REVOCABLE TRUST

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       21
<Page>

SELLER #5:

TERRENCE J. COX, AN INDIVIDUAL SHAREHOLDER AND AN OPTION HOLDER

By:
    ---------------------------------------------------

Name:  Terrence J. Cox

Date:  July ___, 2001

                                       22
<Page>

SELLER #6:

GREEN BAY PACKAGING, INC.

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       23
<Page>

SELLER #7:

KENNETH MORRISON TRUST #1

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       24
<Page>

SELLER #8:

KENNETH MORRISON TRUST #2

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       25
<Page>

SELLER #9:

KENNETH S. MORRISON REVOCABLE TRUST

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       26
<Page>

SELLER #10:

M&R FAMILY LIMITED PARTNERSHIP

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

                                       27
<Page>

SELLER #11:

THE MEADOWS FAMILY TRUST

By:
    ---------------------------------------------------

Name:  Jimmie L. Meadows

Title:  Trustee

Date:  July ___, 2001

         and

By:
    ---------------------------------------------------

Name:  Paula J. Meadows

Title:  Trustee

Date:  July ___, 2001

                                       28
<Page>

SELLER #12:

MILTON L. MORRISON TRUST NO. 3 - AARON MORRISON

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       29
<Page>

SELLER #13:

MILTON L. MORRISON TRUST NO. 3 - AMY MORRISON DOBBINS

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       30
<Page>

SELLER #14:

MILTON L. MORRISON TRUST NO. 3 - JEFFREY MORRISON

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       31
<Page>

SELLER #15:

MILTON L. MORRISON TRUST NO. 3 - MEGAN MORRISON MITCHELSON

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       32
<Page>

SELLER #16:

MILTON L. MORRISON TRUST NO. 3 - MINDY MORRISON GUELDNER

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       33
<Page>

SELLER #17:

MILTON L. MORRISON TRUST NO. 3 - MOLLY MORRISON SNYDER

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       34
<Page>

SELLER #18:

MORRISON ENERGY COMPANY, INC.

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       35
<Page>

SELLER #19:

PATRICIA MCDONALD CHANDLER MARITAL TRUST

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       36
<Page>

SELLER #20:

PATRICIA MCDONALD CHANDLER TRUST

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       37
<Page>

SELLER #21:

ROYCE R. BAKER FAMILY TRUST

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       38
<Page>

SELLER #22:

SHELL CAPITAL INC.

AS A SHAREHOLDER AND A WARRANT HOLDER

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       39
<Page>

SELLER #23:

THE SOLICH TRUST DATED SEPTEMBER 8, 1999

By:
    ---------------------------------------------------

Name:  Mitchell L. Solich

Title:  Co-Trustee

Date:  July ___, 2001

MITCHELL L. SOLICH, AN OPTION HOLDER

By:
    ---------------------------------------------------

Name:  Mitchell L. Solich

Date:  July ___, 2001

                                       40
<Page>

SELLER #24:

SHARON R. STREISSGUTH, AN INDIVIDUAL

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       41
<Page>

SELLER #25:

SUSAN M. MORRISON ROBERTS TRUST NO. 1

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       42
<Page>

SELLER #26:

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

AS A SHAREHOLDER AND A WARRANT HOLDER

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------
Title:
       ------------------------------------------------

Date:  July ___, 2001

                                       43
<Page>

SELLER #27:

DWIGHT KEATON BARKER, AN INDIVIDUAL OPTION HOLDER

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------

Date:  July ___, 2001

                                       44
<Page>

SELLER #28:

JOSEPH M. BROOKER, AN INDIVIDUAL OPTION HOLDER

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------

Date:  July ___, 2001

                                       45
<Page>

SELLER #29:

JOHN T. CONLEY, AN INDIVIDUAL OPTION HOLDER

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------

Date:  July ___, 2001

                                       46
<Page>

SELLER #30:

ROGER M. FLAHIVE, AN INDIVIDUAL OPTION HOLDER

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------

Date:  July ___, 2001

                                       47
<Page>

SELLER #31:

JEFF M. LOWE, AN INDIVIDUAL OPTION HOLDER

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------

Date:  July ___, 2001

                                       48
<Page>

SELLER #32:

KERRY S. RAMSEY, AN INDIVIDUAL OPTION HOLDER

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------

Date:  July ___, 2001

                                       49
<Page>

SELLER #33:

CHRISTOPHER R. WAGNER, AN INDIVIDUAL OPTION HOLDER

By:
    ---------------------------------------------------
Name:
      -------------------------------------------------

Date:  July ___, 2001

                                       50<Page>

EXHIBIT 10(a)(1)

                              UTILICORP UNITED INC.
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                (AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2001)

                               HISTORY AND PURPOSE

The purpose of this Plan is to provide specified benefits to a select group of
management and highly compensated employees of UtiliCorp United Inc., a Delaware
corporation, and its subsidiaries, if any, that sponsor this Plan. This Plan
shall be unfunded for tax purposes and for purposes of Title I of ERISA.

The Plan was originally adopted effective as of July 1, 1986, and was thereafter
amended and restated in its entirety effective as of May 1, 1991, and later
effective as of January 1, 1998. The January 1, 1998 restatement was thereafter
amended by two amendments dated August 4, 1998 and November 29, 2000,
respectively. This amended and restated Plan document is effective as of January
1, 2001.

Participants who terminated employment prior to January 1, 2001, will be
governed by the terms of the Plan document in effect at the time of their
termination of employment.

                             ARTICLE I - DEFINITIONS

Except as specifically provided herein, all capitalized terms used in this Plan
shall have the meaning assigned to them under the UtiliCorp United Inc. Restated
Retirement Income Plan, as amended from time to time.

     1.01 "BASIC SERP BENEFIT" shall mean the benefit determined under Section
          4.01 payable to a Participant under the Plan.

     1.02 "BONUS SERP BENEFIT" shall mean the benefit determined under Section
          4.02 payable to a Participant under the Plan.

     1.03 "BOARD" shall mean the board of directors of the Company.

     1.04 "CHANGE IN CONTROL" shall mean the first to occur of any of the
          following events:

          (1)  any Person is or becomes the Beneficial Owner, directly or
          indirectly, of securities of the Company (not including in the
          securities beneficially owned by such Person any securities acquired
          directly from the Company or its affiliates, other than in connection
          with the acquisition by the Company or its affiliates of a business)
          representing 20% or more of either the then outstanding shares of
          common stock of the Company or the combined voting power of the
          Company's then outstanding securities; or

          (2)  the following individuals cease for any reason to constitute at
          least two-thirds (2/3) of the number of directors then serving:
          individuals who, on August 4, 1998, constituted the Board and any new
          director (other than a director whose initial assumption of office is
          in connection with an actual or threatened election contest,

<Page>

          including but not limited to a consent solicitation, relating to the
          election of directors of the Company (as such terms are used in Rule
          14A-11 of Regulation 14A under the Exchange Act)) whose appointment or
          election by the Board or nomination of election by the Company's
          shareholders was approved by a vote of at least two-thirds (2/3) of
          the directors then still in office who either were directors on August
          4, 1998, or whose appointment, election or nomination for election was
          previously approved; or

          (3)  the consummation of a merger or consolidation of the Company with
          any other entity, other than (i) a merger or consolidation which would
          result in (A) the voting securities of the Company outstanding
          immediately prior to such merger or consolidation continuing to
          represent (either by remaining outstanding or by being converted into
          voting securities of the surviving entity or any parent thereof), in
          combination with the ownership of any trustee or other fiduciary
          holding securities under an employee benefit plan of the Company,
          greater than 50% of the combined voting power of the voting securities
          of the Company or such surviving entity or any parent thereof
          outstanding immediately after such merger or consolidation, (B) such
          of Richard C. Green, Jr. and Robert K. Green continuing as members of
          the board of directors of the surviving entity or ultimate parent
          thereof as were members of the Board of the Company immediately prior
          to such transaction, and (C) individuals described in paragraph (2)
          above constitute more than one-half of the members of the board of
          directors of the surviving entity or ultimate parent thereof, or (ii)
          a merger or consolidation effected to implement a recapitalization of
          the Company (or similar transaction) in which no Person is or becomes
          the Beneficial Owner, directly or indirectly, of securities of the
          Company (not including in the securities Beneficially Owned by such
          Person any securities acquired directly from the Company or its
          affiliates, other than in connection with the acquisition by the
          Company or its affiliates of a business) representing 20% or more of
          either the then outstanding shares of common stock of the Company or
          the combined voting power of the Company's then outstanding
          securities; or

          (4)  the stockholders of the Company approve a plan of complete
          liquidation or dissolution of the Company or an agreement for the sale
          or disposition by the Company of all or substantially all of the
          Company's assets, other than a sale or disposition by the Company of
          all or substantially all of the Company's assets to an entity, greater
          than 50% of the combined voting power of the voting securities of
          which is owned by Persons in substantially the same proportions as
          their ownership of the Company immediately prior to such sale.

          Notwithstanding the foregoing, no "Change in Control" shall be deemed
          to have occurred if there is consummated any transaction or series of
          integrated transactions immediately following which the record holders
          of the common stock of the Company immediately prior to such
          transaction or series of transactions continue to have substantially
          the same proportionate ownership in an entity which owns all or
          substantially all of the assets of the Company immediately following
          such transaction or series of transactions.

          For purposes of this Section 1.02, the following definitions shall
          apply:

          (a)  "BENEFICIAL OWNER" shall have the meaning set forth in Rule 13d-3
          under the Exchange Act.

          (b)  "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
          amended.

<Page>

          (c)  "PERSON" shall have the meaning given in Section 3(a)(9) of the
          Exchange Act, as modified and used in Sections 13(d) and 14(d)
          thereof, except that such term shall not include (i) the Company or
          any of its affiliates (as defined in Rule 12b-2 promulgated under the
          Exchange Act), (ii) a trustee or other fiduciary holding securities
          under an employee benefit plan of the Company or any of its
          affiliates, (iii) an underwriter temporarily holding securities
          pursuant to an offering of such securities, or (iv) a corporation
          owned, directly or indirectly, by the shareholders of the Company in
          substantially the same proportions as their ownership of stock of the
          Company.

     1.03 "CLAIMANT" shall have the meaning set forth in Section 8.01.

     1.04 "CODE" shall mean the Internal Revenue Code of 1986, as amended from
          time to time.

     1.05 "COMMITTEE" shall mean the Committee described in Article VII.

     1.06 "COMPANY" shall mean UtiliCorp United Inc., a Delaware corporation.

     1.07 "EMPLOYER" shall mean the Company and any subsidiaries of the Company
          that have been selected by the Board to participate in the Plan.

     1.08 "PARTICIPANT" shall mean any employee employed in pay bands I through
          V who is a participant in the Retirement Income Plan and who is
          selected to participate in the Plan by the Committee.

     1.09 "PLAN" shall mean this restated Supplemental Executive Retirement Plan
          (formerly known as the "UtiliCorp United Inc. Excess Benefit Plan").

     1.10 "PROJECTED CREDITED SERVICE" shall mean, for purposes of computing a
          Participant's Supplemental SERP Benefit, the total projected years of
          Credited Service such Participant would have under the Retirement
          Income Plan if he were to continue employment with the Employer
          through age 62, or if such Participant has already attained age 62,
          his actual years of Credited Service under the Retirement Income Plan.

     1.11 "RETIREMENT INCOME PLAN" shall mean the qualified defined benefit
          pension plan, as amended from time to time, maintained by the Company
          and known as the "UtiliCorp United Inc. Restated Retirement Income
          Plan."

     1.12 "SUPPLEMENTAL SERP BENEFIT" shall mean the benefit determined under
          Section 4.03 payable exclusively to Participants employed in pay bands
          I through IVa.

     1.13 "SUPPLEMENTAL SERP EARNINGS" shall mean, for purposes of computing a
          Participant's Supplemental SERP Benefit, the excess (if any) between
          (1) the Participant's Average Monthly Earnings determined under the
          Retirement Income Plan as if (a) the maximum benefit limit under
          Section 415(b)(1)(A) of the Code and the annual compensation limit
          under Section 401(a)(17) of the Code were not applicable, (b) Monthly
          Earnings included the Participant's annual base compensation deferred
          during a Plan Year under any nonqualified deferred compensation plan
          maintained by the Participant's Employer, and (c) Monthly Earnings
          included the Participant's annual bonus payable under the Employer's
          annual incentive plan or policy; and (2) the monthly average annual
          compensation limit under Section 401(a)(17) of the Code for the year
          during which the Participant terminates employment.

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     1.14 "TOTAL SERP BENEFIT" means, to the extent applicable, the sum of a
          Participant's Basic SERP Benefit, Bonus SERP Benefit and Supplemental
          SERP Benefit.

                            ARTICLE II - ELIGIBILITY

     2.01 SELECTION BY COMMITTEE. Participation in the Plan shall be limited to
          executives employed in pay bands I-V, all of whom are part of a select
          group of management or highly compensated employees. From that group,
          the Committee, in its sole discretion, shall designate the individuals
          eligible to receive a benefit under this Plan.

                              ARTICLE III - VESTING

     3.01 VESTING.

          (a)  BASIC SERP BENEFIT. Each Participant shall be entitled to 100% of
          his Basic SERP Benefit upon the completion of five (5) years of
          service, or upon termination of employment on or after attaining age
          55. If a Participant separates from service prior to completing five
          (5) years of service and prior to attaining age 55, he shall not be
          entitled to any portion of his Basic SERP Benefit.

          (b)  BONUS SERP BENEFIT. Each Participant shall be entitled to 100% of
          his Bonus SERP Benefit if he retires from employment on or after
          attaining age 55 or terminates employment after completing ten (10) or
          more years of service. If a Participant separates from service for any
          reason prior to attaining age 55 and prior to completing ten (10) or
          more years of service, he shall not be entitled to any portion of his
          Bonus SERP Benefit

          (c)  SUPPLEMENTAL SERP BENEFIT. Each Participant employed in pay
          band I through IVa shall be entitled to 100% of his Supplemental SERP
          Benefit if he retires from employment on or after attaining age 55 or
          terminates employment after completing ten (10) or more years of
          service. If a Participant separates from service for any reason prior
          to attaining age 55 and prior to completing ten (10) or more years of
          service, he shall not be entitled to any portion of his Supplemental
          SERP Benefit.

     3.02 CHANGE IN CONTROL. Notwithstanding Section 3.01 or any other 5
          provision in this Plan, a Participant's Total SERP Benefit shall
          become 100% vested (if it is not already vested in accordance Section
          3.01 above) in the event of a Change in Control.

                                 ARTICLE IV - BENEFITS

     4.01 BASIC SERP BENEFIT. Subject to Section 3.01(a) and Section 6.02, a
          Participant's Basic SERP Benefit, as adjusted pursuant to Section
          4.04, shall be equal to (A) minus (B), where:

               (A)= the benefit that would be payable to the Participant under
                    the Retirement Income Plan if (i) the maximum benefit limit
                    under Section 415(b)(1)(A) of the Code and the annual
                    compensation limit under Section 401(a)(17) of the Code were
                    not applicable, and (ii) for Plan Years beginning after
                    December 31, 1997, Monthly Earnings included the
                    Participant's annual

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                    base compensation deferred during a Plan Year under any
                    nonqualified deferred compensation plan maintained by the
                    Participant's Employer; and

               (B)= the benefit actually payable to or on behalf of such
                    Participant under the Retirement Income Plan.

     4.02 BONUS SERP BENEFIT. Subject to Section 3.01(b) and Section 6.02, a
          Participant's Bonus SERP Benefit, as adjusted pursuant to Section
          4.04, shall be equal to (A) minus (B) minus (C), where:

               (A)= the benefit that would be payable to the Participant under
                    the Retirement Income Plan if (i) the maximum benefit limit
                    under Section 415(b)(1)(A) of the Code and the annual
                    compensation limit under Section 401(a)(17) of the Code were
                    not applicable, (ii) for Plan Years beginning after December
                    31, 1997, Monthly Earnings included the Participant's annual
                    base compensation deferred during a Plan Year under any
                    nonqualified deferred compensation plan maintained by the
                    Participant's Employer, and (iii) for Plan Years beginning
                    after December 31, 2000, Monthly Earnings included the
                    Participant's annual bonus (if any) payable under the
                    Employer's annual incentive plan or policy;

               (B)= the benefit actually payable to or on behalf of such
                    Participant under the Retirement Income Plan; and

               (C)= the Participant's Basic SERP Benefit payable under this
                    Plan.

     4.03 SUPPLEMENTAL SERP BENEFIT. Subject to Section 3.01(c) and Section
          6.02, a Participant employed in pay band I-IVa shall have a
          Supplemental SERP Benefit, as adjusted pursuant to Section 4.04, equal
          to the sum of (A) plus (B) plus (C), multiplied by (D), where:

               (A)= Four-tenths percent (.40%) multiplied by the Participant's
                    Supplemental SERP Earnings multiplied by the Participant's
                    Projected Credited Service up to a maximum of ten (10)
                    years;

               (B)= Twenty-five hundredths percent (.25%) multiplied by the
                    Participant's Supplemental SERP Earnings multiplied by the
                    Participant's Projected Credited Service in excess of ten
                    (10) years but not more than twenty (20) years;

               (C)= One-tenth percent (.10%) multiplied by the Participant's
                    Supplemental SERP Earnings multiplied by the Participant's
                    Projected Credited Service in excess of twenty (20) years
                    but not more than thirty (30) years; and

               (D)= The ratio of the Participant's actual years of Credited
                    Service under the Retirement Income Plan to his Projected
                    Credited Service.

     4.04 PAYMENT OF BENEFITS. Subject to Section 4.05, payment of a
          Participant's vested Total SERP Benefit shall be made in the same
          manner and at the same time that benefits under

<Page>

          the Retirement Income Plan are payable, determined in accordance with
          the elections made by the Participant thereunder and in accordance
          with the early retirement, Actuarial Equivalent, Actuarial Value, and
          other applicable adjustments and assumptions set forth in the
          Retirement Income Plan; provided that if a Participant elects to
          receive his benefits in a form of payment under the Retirement Income
          Plan which provides death benefits to a non-spouse beneficiary, the
          Participant's Total SERP Benefit shall be paid in monthly installments
          for the life of the Participant only and shall terminate upon his
          death.

     4.05 COMMITTEE DISCRETION. Upon the request of a Participant or
          beneficiary, the Committee, in its sole discretion and consistent with
          its established procedures and rules, may consider other forms of
          vested benefit payments, or the timing of vested benefit payments, as
          it deems necessary and prudent under the circumstances. The Committee,
          in its discretion, may also establish a mandatory pay-out policy
          pursuant to which a Participant's (or beneficiary's) Total SERP
          Benefit shall be automatically paid in the form of a single lump sum
          if the actuarial value of such benefit is less than the lump sum
          pay-out amount designated by the Committee from time to time in its
          discretion. For purposes of calculating the actuarial lump sum value
          of a Participant's Total SERP Benefit pursuant to the foregoing, the
          Plan shall use an interest rate of eight percent (8%) and the same
          mortality table assumptions used by the Retirement Income Plan to
          calculate Actuarial Value.

     4.06 WITHHOLDING AND PAYROLL TAXES. The Employers, to the extent required
          by applicable law, shall withhold from any and all benefits made under
          this Article IV, all federal, state and local income, employment and
          other taxes required to be withheld by the Employer in connection with
          the benefits hereunder, in amounts to be determined in the sole
          discretion of the Employer.

     4.07 BENEFITS ON DEATH.

          (a)  BASIC SERP BENEFIT. If a spousal death benefit is payable under
               the Retirement Income Plan with respect to a Participant, a
               spousal death benefit shall also be payable under this Plan equal
               to (A) minus (B), where:

               (A)= the benefit that would be payable to the Participant's
                    spouse under the Retirement Income Plan, determined in
                    accordance with the elections made by the Participant or
                    spouse thereunder and in accordance with the applicable
                    assumptions and actuarial adjustments set forth in that
                    plan, if (i) the maximum benefit limit under Section
                    415(b)(1)(A) of the Code and the annual compensation limit
                    under Section 401(a)(17) of the Code were not applicable,
                    and (ii) for Plan Years beginning after December 31, 1997,
                    Monthly Earnings included the Participant's annual base
                    compensation deferred during a Plan Year under any
                    nonqualified deferred compensation plan maintained by the
                    Participant's Employer; and

               (B)= the benefit actually payable to the Participant's spouse
                    under the Retirement Income Plan.

          (b)  BONUS SERP BENEFIT. If a Participant dies after having satisfying
               the vesting requirements set forth in Section 3.01(b), the
               Participant's surviving spouse shall

<Page>

               be entitled to a spousal death benefit equal to 50% of the
               Participant's Bonus SERP Benefit as of the date of his death.

          (c)  SUPPLEMENTAL SERP BENEFIT. If a Participant dies after having
               satisfying the vesting requirements set forth in Section 3.01(c),
               the Participant's surviving spouse shall be entitled to a spousal
               death benefit equal to 50% of the Participant's Bonus SERP
               Benefit as of the date of his death.

          (d)  PAYMENT OF BENEFIT. Subject to Section 4.05, any spousal death
               benefits payable under this Section 4.07 shall be paid in the
               same manner and at the same time that death benefits are paid to
               the Participant's spouse under the Retirement Income Plan. If a
               Participant has no surviving spouse, the benefits remaining under
               the Plan shall be forfeited.

                      ARTICLE V - TERMINATION AND AMENDMENT

     5.01 TERMINATION. The Company reserves the right to terminate the Plan at
          any time by action of its board of directors. The termination of the
          Plan shall not adversely affect any Participant or his beneficiary who
          has become entitled to the payment of any benefits under the Plan as
          of the date of termination, provided, however, that the Company shall
          have the right to accelerate payments by paying the Actuarial Value or
          Actuarial Equivalent of such payments. For all other Participants,
          upon the termination of the Plan, the Actuarial Value of each such
          Participant's vested Total SERP Benefit shall be paid out in a lump
          sum.

     5.02 AMENDMENT. The Company may, at any time, amend or modify the Plan in
          whole or in part by action of its board of directors; provided,
          however, that no amendment or modification shall be effective to
          decrease or restrict a Participant's then vested Total SERP Benefit,
          determined on an Actuarial Equivalent basis. The amendment or
          modification of the Plan shall not affect any Participant or his
          beneficiary who has become entitled to the payment of benefits under
          the Plan as of the date of the amendment or modification; provided,
          however, that the Employer shall have the right to accelerate
          installment payments by paying the Actuarial Value of such payments in
          a lump sum or the Actuarial Equivalent in some other accelerated form
          of payment.

                   ARTICLE VI - OTHER BENEFITS AND AGREEMENTS

     6.01 COORDINATION WITH OTHER BENEFITS. Except as provided in Section 6.02
          and except as otherwise expressly provided under any other plan or
          program for employees of the Employer, the benefits provided under
          this Plan to a Participant are in addition to the benefits available
          to such Participant under any other such plan or program. The Plan
          shall supplement and shall not supersede, modify or amend any other
          such plan or program except as my otherwise be expressly provided.

     6.02 REDUCTION IN SERP BENEFITS. Notwithstanding any provision in this Plan
          that may be interpreted to the contrary, the Total SERP Benefit
          payable to any Participant hereunder shall be reduced by the
          equivalent monthly lifetime benefit payable to such Participant under
          any other supplemental retirement agreement or plan with his Employer.
          If the benefit under such other retirement plan or agreement is
          payable in the form of a lump sum, such benefit shall be converted to
          a monthly lifetime benefit in accordance with the

<Page>

          applicable Actuarial Value assumptions set forth in the Retirement
          Income Plan for purposes of determining the benefit offset under this
          Section 6.02.

                    ARTICLE VII - ADMINISTRATION OF THE PLAN

     7.01 COMMITTEE DUTIES. This Plan shall be administered by a Committee which
          shall consist of the Board, or such committee as the Board shall
          appoint. Members of the Committee may be Participants under this Plan.
          The Committee shall also have the discretion and authority to (i)
          make, amend, interpret and enforce all appropriate rules and
          regulations for the administration of this Plan and (ii) decide or
          resolve any and all questions including interpretations of this Plan,
          as may arise in connection with the Plan.

     7.02 AGENTS. In the administration of this Plan, the Committee may employ
          agents and delegate to them such administrative duties as it sees fit
          (including acting through a duly appointed representative) and may
          from time to time consult with counsel who may be counsel to any
          Employer.

     7.03 BINDING EFFECT OF DECISIONS. The decision or action of the Committee
          with respect to any question arising out of or in connection with the
          administration, interpretation and application of the Plan and the
          rules and regulations promulgated hereunder shall be final and
          conclusive and binding upon all persons having any interest in the
          Plan.

     7.04 INDEMNITY OF COMMITTEE. The Employers shall indemnify and hold
          harmless the members of the Committee against any and all claims,
          losses, damages, expenses or liabilities arising from any action or
          failure to act with respect to this Plan, except in the case of
          willful misconduct by the Committee or any of its members.

     7.05 EMPLOYER INFORMATION. To enable the Committee to perform its
          functions, each Employer shall supply full and timely information to
          the Committee on all matters relating to the compensation of its
          Participants, the date and circumstances of the retirement,
          disability, death or termination of employment of its Participants,
          and such other pertinent information as the Committee may reasonably
          require.

                        ARTICLE VIII - CLAIMS PROCEDURES

     8.01 PRESENTATION OF CLAIM. Any Participant or beneficiary of a deceased
          Participant (such Participant or beneficiary being referred to below
          as a "Claimant") may deliver to the Committee a written claim for a
          determination with respect to the amounts distributable to such
          Claimant from the Plan. If such a claim relates to the contents of a
          notice received by the Claimant, the claim must be made within 60 days
          after such notice was received by the Claimant. The claim must state
          with particularity the determination desired by the Claimant. All
          other claims must be made within 180 days of the date on which the
          event that caused the claim to arise occurred.

     8.02 NOTIFICATION OF DECISION. The Committee shall consider a Claimant's
          claim within 90 days (unless special circumstances require additional
          time), and shall notify the Claimant in writing:

          (i)  that the Claimant's requested determination has been made, and
               that the claim has been allowed in full; or

<Page>

          (ii) that the Committee has reached a conclusion contrary, in whole or
               in part, to the Claimant's requested determination, and such
               notice must set forth in a manner calculated to be understood by
               the Claimant:

               (1)  the specific reason(s) for the denial of the claim, or any
                    part of it;

               (2)  specific reference(s) to pertinent provisions of the Plan
                    upon which such denial was based;

               (3)  a description of any additional material or information
                    necessary for the Claimant to perfect the claim, and an
                    explanation of why such material or information is
                    necessary; and

               (4)  an explanation of the claim review procedure set forth
                    in Section 8.03) below.

     8.03 REVIEW OF A DENIED CLAIM. Within 60 days after receiving a notice from
          the Committee that a claim has been denied, in whole or in part, a
          Claimant (or the Claimant's duly authorized representative) may file
          with the Committee a written request for a review of the denial of the
          claim. Thereafter, but not later than 30 days after the review
          procedure began, the Claimant (or the Claimant's duly authorized
          representative):

          (i)   may review pertinent documents;

          (ii)  may submit written comments or other documents; and/or

          (iii) may request a hearing, which the Committee, in its sole
                discretion, may grant.

     8.04 DECISION ON REVIEW. The Committee shall render its decision on review
          promptly, and not later than 60 days after the filing of a written
          request for review of the denial, unless a hearing is held or other
          special circumstances require additional time, in which case the
          Committee's decision must be rendered within 120 days after such date.
          Such decision must be written in a manner calculated to be understood
          by the Claimant, and it must contain:

          (i)   specific reasons for the decision;

          (ii)  specific reference(s) to the pertinent Plan provisions upon
                which the decision was based; and

          (iii) such other matters as the Committee deems relevant.

     8.05 LEGAL ACTION. A Claimant's compliance with the foregoing provisions of
          this Article VIII is a mandatory prerequisite to a Claimant's right to
          commence any legal action with respect to any claim for benefits under
          this Plan.

                           ARTICLE IX - MISCELLANEOUS

     9.01 UNSECURED GENERAL CREDITOR. Participants and their Beneficiaries
          successors and assigns shall have no legal or equitable rights,
          interests or claims in any property or assets of an Employer. Any and
          all of an Employer's assets shall be, and remain, the general,

<Page>

          unpledged, unrestricted assets of the Employer. An Employer's
          obligation under the Plan shall be merely that of an unfunded and
          unsecured promise to pay money in the future.

     9.02 EMPLOYER'S LIABILITY. An Employer's liability for the payment of
          benefits shall be defined only by the Plan. An Employer shall have no
          obligation to a Participant under the Plan except as expressly
          provided in the Plan.

     9.03 NONASSIGNABILITY. Neither a Participant nor any other person shall
          have any right to commute, sell, assign, transfer, pledge, anticipate,
          mortgage or otherwise encumber, transfer, hypothecate or convey in
          advance of actual receipt, the amounts, if any, payable hereunder, or
          any part thereof, which are, and all rights to which are, expressly
          declared to be, unassignable and non-transferable. No part of the
          amounts payable shall, prior to actual payment, be subject to seizure
          or sequestration for the payment of any debts, judgments, alimony or
          separate maintenance owed by a Participant or any other person, nor be
          transferable by operation of law in the event of a Participant's or
          any other person's bankruptcy or insolvency.

     9.04 NOT A CONTRACT OF EMPLOYMENT. The terms and conditions of this Plan
          shall not be deemed to constitute a contract of employment between any
          Employer and the Participant. Such employment is hereby acknowledged
          to be an "at will" employment relationship that can be terminated at
          any time for any reason, with or without cause, unless expressly
          provided in a written employment agreement. Nothing in this Plan shall
          be deemed to give a Participant the night to be retained in the
          service of any Employer or to interfere with the right of any Employer
          to discipline or discharge the Participant at any time.

     9.05 FURNISHING INFORMATION. A Participant or his beneficiary will
          cooperate with the Committee by furnishing any and all information
          requested by the Committee and take such other actions as may be
          requested in order to facilitate the administration of the Plan and
          the payments of benefits hereunder, including but not limited to
          taking such physical examinations as the Committee may deem necessary.

     9.06 TERMS. Whenever any words are used herein in the masculine, they shall
          be construed as though they were in the feminine in all cases where
          they would so apply: and wherever any words are used herein in the
          singular or in the plural, they shall be construed as though they were
          used in the plural or the singular, as the case may be, in all cases
          where they would so apply.

     9.07 CAPTIONS. The captions of the articles, sections and paragraphs of
          this Plan are for convenience only and shall not control or affect the
          meaning or construction of any of its provisions.

     9.08 GOVERNING LAW. Subject to ERISA, the provisions of this Plan shall be
          construed and interpreted according to the internal laws of the State
          of Missouri without regard to its conflict of laws principles.

     9.09 VALIDITY. In case any provision of this Plan shall be illegal or
          invalid for any reason, said illegally or invalidity shall not affect
          the remaining parts hereof, but this Plan shall be construed and
          enforced as if such illegal and invalid provision had never been
          inserted herein.

<Page>

     9.10 NOTICE. Any notice or filing required or permitted to be given to the
          Committee under this Plan shall be sufficient if in writing and
          hand-delivered, or sent by registered or certified mail, to the
          address below:

               UtiliCorp United Inc.
               Attn:  Director of Benefits
               20 West Ninth Street
               Kansas City, MO 64105-1711

          Such notice shall be deemed given as of the date of delivery or, if
          delivery is made by mail, as of the date shown on the postmark on the
          receipt for registration or certification.

          Any notice or filing required or permitted to be given to a
          Participant under this Plan shall be sufficient if in writing and
          hand-delivered, or sent by mail, to the last known address of the
          Participant.

     9.11 SUCCESSORS. The provisions of this Plan shall bind and inure to the
          benefit of the Participant's Employer and its successors and assigns
          and the Participant and the Participant's beneficiary.

     9.12 SPOUSE'S INTEREST. The interest in the benefits hereunder of a spouse
          of a Participant who has predeceased the Participant shall
          automatically pass to the Participant and shall not be transferable by
          such spouse in any manner, including but not limited to such spouse's
          will, nor shall such interest pass under the laws of intestate
          succession.

     9.13 INCOMPETENT. If the Committee determines in its discretion that a
          benefit under this Plan is to be paid to a minor, a person declared
          incompetent or to a person incapable of handling the disposition of
          that person's property, the Committee may direct payment of such
          benefit to the guardian, legal representative or person having the
          care and custody of such minor, incompetent or incapable person. The
          Committee may require proof of minority, incompetency, incapacity or
          guardianship, as it may deem appropriate prior to distribution of the
          benefit. Any payment of a benefit shall be a payment for the account
          of the Participant and the Participant's beneficiary, as the case may
          be, and shall be a complete discharge of any liability under the Plan
          for such payment amount.

     9.14 COURT ORDER. The Committee is authorized to make any payments directed
          by court order in any action in which the Plan or Committee has been
          named as a party.

     9.15 DISTRIBUTION IN THE EVENT OF TAXATION. If, for any reason, all or any
          portion of a Participant's benefit under this Plan becomes taxable to
          the Participant prior to receipt, a Participant may petition the
          Committee for a distribution of that portion of his benefit that has
          become taxable. Upon the grant of such a petition, which grant shall
          not be unreasonably withheld, the Employer shall distribute to the
          Participant immediately available funds in an amount equal to the
          taxable portion of his benefit (which amount shall not exceed a
          Participant's unpaid vested benefit under the Plan). If the petition
          is granted, the tax liability distribution shall be made within 90
          days of the date when the Participant's petition is granted. Such a
          distribution shall affect and reduce the benefits to be paid under
          this Plan.

<Page>

                                ARTICLE X - TRUST

     10.01 TRUST.

          (a)  ESTABLISHMENT. Each Employer may transfer to the trust created
          pursuant that certain Executive Benefit Security Trust Agreement dated
          as of January 1, 1997 by and between the Company and the trustee named
          therein (hereinafter referred to as the "Trust"), such assets as the
          Employer determines, in its sole discretion, are necessary to fund the
          Trust in accordance with an actuarial funding method and actuarial
          assumptions designed, in the reasonable judgment of an actuary
          appointed by the Company, to replicate the funding policy followed
          with respect to the Retirement Income Plan.

          (b)  CONTRIBUTION FOLLOWING CHANGE OF CONTROL. Notwithstanding Section
          10.01(a) above, in the event of a Change of Control, the Company shall
          as soon as administratively possible, but in no event later than ten
          (10) days following such Change of Control, make an irrevocable
          contribution to the Trust, in cash or other readily marketable
          property acceptable to the Trustee, equal to the sum of (i) an amount
          which, when added to the fair market value of the assets then held in
          the Trust which are attributable to this Plan, shall cause the fair
          market value of such assets to equal the actuarially determined
          present value of the benefits payable under the Plan as of the date of
          such Change of Control, and (ii) an amount equal to a reasonable
          estimate of the present value of the administrative, Trustee's, legal
          and consulting fees to be incurred during the life of the Trust on and
          after the Change of Control. The amount of the Company's contribution
          paid or payable to the Trust pursuant to the foregoing shall be
          determined by a benefits consultant appointed by the Company.

     10.02 INTERRELATIONSHIP OF THE PLAN AND THE TRUST. The provisions of the
           Plan shall govern the rights of a Participant to receive
           distributions pursuant to the Plan. The provisions of the Trust shall
           govern the rights of the Employers, Participants and the creditors of
           the Employers to the assets transferred to the Trust. Each Employer
           shall at all times remain liable to carry out its obligations under
           the Plan.

     10.03 DISTRIBUTIONS FROM THE TRUST. Each Employer's obligations under the
           Plan may be satisfied with Trust assets distributed pursuant to the
           terms of the Trust, and any such distribution shall reduce the
           Employer's obligations under this Plan.

                          ****************************

<Page>

                                 SIGNATURE PAGE

     IN WITNESS WHEREOF, UtiliCorp United Inc. has caused this Plan document to
be executed this 28th day of June, 2001.

                                        UTILICORP UNITED INC.

                                        By: /s/ Dale J. Wolf
                                            --------------------------

<Page>

                            SUMMARY OF MODIFICATIONS

          UTILICORP UNITED INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

               (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2001)

-    Executives employed in pay bands I-V are eligible for the SERP.

-    The SERP was amended to add a new "Bonus SERP Benefit" and "Supplemental
     SERP Benefit."

-    The Bonus SERP Benefit is designed to provide executives an additional
     retirement benefit based on the executives' annual bonus pay. Bonus pay is
     currently excluded from consideration under UtiliCorp's qualified defined
     benefit pension plan. All SERP participants are eligible for the Bonus SERP
     Benefit. (See SERP sections 1.02 and 4.02)

-    The Supplemental SERP Benefit is designed to provide executives employed in
     pay bands I - IVa an additional market-based retirement benefit. The
     maximum retirement benefit is generally equal to 7.5% of the executive's
     average total pay in excess of the annual Internal Revenue Code dollar
     limitation. (See SERP sections 1.10, 1.12, 1.13 and 4.03)

-    In order to receive the Bonus SERP Benefit and Supplemental SERP Benefit,
     an executive must either (i) retire from employment on or after attaining
     age 55, or (ii) separate from service after completing ten (10) or more
     years of service. All SERP benefits are adjusted to take into account early
     retirement and other applicable actuarial adjustments. (See SERP section
     3.01)

-    If a married executive dies after having satisfied the vesting requirements
     for the Bonus SERP and Supplemental SERP Benefits, the executive's
     surviving spouse will receive a benefit equal to 50% of the benefit that
     would have been paid to the executive. There is no death benefit for
     unmarried executives. (See SERP section 4.07)

-    The Committee has the discretion to adopt a mandatory pay-out policy
     pursuant to which an executive's SERP benefit would be paid in a single
     lump sum if the actuarial value of such benefit is less than specified
     dollar amount. (See SERP section 4.05)

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