Document:

EXHIBIT 10.32

                            UIL HOLDINGS CORPORATION
                            ------------------------

                             NON-EMPLOYEE DIRECTORS
                             ----------------------

                        CHANGE IN CONTROL SEVERANCE PLAN
                        --------------------------------

                                    ARTICLE I

                                 PURPOSE OF PLAN

         1.1  The purpose of The UIL Holdings Corporation Non-Employee Directors
Change  in  Control   Severance   Plan  (the   "Corporation"   and  the  "Plan,"
respectively)  is to  provide  the  non-employee  directors  of the  Corporation
("Directors")  with appropriate  assurances of continued income for a reasonable
period of time in the event that the  individual's  service as a director of the
Corporation (or a successor to the Corporation,  whether direct or indirect,  by
purchase,  merger,  consolidation  or otherwise -- a "Successor")  is terminated
under  any  of the  circumstances  described  herein,  thereby  encouraging  the
continued  attention and dedication of the Directors to the continued success of
the Corporation.

                                   ARTICLE II

                          ELIGIBILITY FOR PARTICIPATION

         2.1  All Directors shall, during the term of their service on the Board
of Directors  of the  Corporation  (the  "Board") be covered by the Plan (each a
"Participant").   The  Secretary  of  the  Corporation  shall  provide  to  each
Participant a copy of the Plan.

                                   ARTICLE III

                                      TERM

         3.1  Except under the circumstances described in Section 3.3 below, the
Board (or the governing body of its Successor) may, at any time and from time to
time,  modify or amend, in whole or in part, any or all of the provisions of the
Plan, or suspend or terminate it entirely.

         3.2  Except under the circumstances described in Section 3.3 below, the
Board (or the  governing  body of its  Successor),  may, at any time, by written
notice to any  Participant,  terminate the  participation of such Participant in
the Plan or amend the Plan so as to impair the rights of such Participant in the
Plan.

<PAGE>

         3.3  Termination  or  suspension  of the Plan,  or  termination  of any
Participant's  participation  in the  Plan,  or any  amendment  of the Plan that
impairs  the  rights  of any  Participant,  occurring  on or after the date of a
Change in Control,  as that term is defined herein,  shall not take effect until
the date of the Annual  Meeting of the  Shareowners of the  Corporation  (or its
Successor) next following the date of such Change in Control.

                                   ARTICLE IV

                            ELIGIBILITY FOR BENEFITS

         4.1  For  the  purpose of the Plan, Change in Control shall mean any of
the following events:

                  (a)  any merger or consolidation  of the  Corporation  (or its
Successor)  with any corporate  shareholder  or group of corporate  shareholders
holding twenty-five percent (.25) or more of the Common Stock of the Corporation
(or its Successor) or with any other corporation or group of corporations  which
is, or after such merger or  consolidation  would be, or be  affiliated  with, a
shareholder owning at least twenty-five percent (.25) of the Common Stock of the
Corporation (or its Successor); or

                  (b)  any sale, lease, exchange, mortgage,  pledge, transfer or
other  disposition to or with any shareholder or group of  shareholders  holding
twenty-five percent (.25) or more of the Common Stock of the Corporation (or its
Successor),  or any affiliate of such shareholder or group of  shareholders,  of
any assets of the Corporation (or its Successor) having an aggregate fair market
value of $50 million or more; or

                  (c)  the  issuance  or  sale  by   the  Corporation   (or  its
Successor)  of any  securities  of the  Corporation  (or its  Successor)  to any
shareholder or group of shareholders  holding  twenty-five percent (.25) or more
of the Common Stock of the Corporation  (or its Successor),  or to any affiliate
of such shareholder or group of shareholders, in exchange for cash securities or
other  consideration  having an  aggregate  fair market  value of $50 million or
more; or

                  (d)   the implementation  of any  plan  or  proposal  for  the
liquidation or dissolution of the Corporation (or its Successor)  proposed by or
on  behalf  of  any  shareholder  or  group  of  shareholders  owning  at  least
twenty-five  percent  (.25)  of the  Common  Stock  of the  Corporation  (or its
Successor), or any affiliates of such shareholder or group of shareholders; or

                  (e)  any reclassification  of securities  (including a reverse
stock split), or  recapitalization  of the Corporation (or its Successor) or any
other  transaction which has the effect,  directly or indirectly,  of increasing
the proportionate share of outstanding shares of any class of equity securities,
or securities convertible into any equity securities, of the Corporation (or its
Successor),  which is directly or indirectly  owned by a shareholder or group of
shareholders  owning at least  twenty-five  percent (.25) of the

                                       2
<PAGE>

Common Stock of the  Corporation  (or its  Successor),  or any affiliate of such
shareholder or group of shareholders.

         The Board may, from time to time, by affirmative  vote of not less than
a majority  of the  entire  membership  of the Board,  at a meeting of the Board
called and held for the purpose,  modify the phrase "twenty-five  percent (.25)"
in one or more of (a),  (b),  (c), (d) and/or (e) above to a lesser  percentage,
but not less than twenty-percent (.20).

         4.2  The benefits described in Article V hereof shall become payable to
a Participant:

                  (a)  in the event  that,  after a Change in  Control  has been
approved by all  necessary  shareowner,  creditor and  regulatory  actions,  the
Participant's service as a Director is terminated,  involuntarily and other than
by a judicial  proceeding  pursuant to Section 33-743 of the General  Statues of
Connecticut  (Revision  of 1958) on the  effective  date of the Plan and as that
statute may be amended  from time to time  ("Statutory  Removal"),  prior to the
date of the Change in Control; or

                  (b)  if the Participant's service as a Director is  terminated
on the date of a Change  in  Control  or on the date of any  termination  of the
Corporation (or its Successor's) existence; or

                  (c)  if the Participant's service as a Director is terminated,
involuntarily  and other  than by  Statutory  Removal,  following  the date of a
Change in Control and prior to the date of the Annual Meeting of the Shareowners
of the  Corporation  (or a  Successor)  next  following  the date of a Change in
Control.

         4.3  In no event shall the voluntary resignation of a Participant  give
rise to any benefits under the Plan.

                                    ARTICLE V

                                    BENEFITS

         5.1  In the event of a termination  covered by Section  4.2 above,  the
Corporation  (or its Successor)  shall pay such  Participant  within thirty (30)
days a lump sum  amount  equal to such  Participant's  Total  Remuneration.  For
purposes  of  the  Plan,  Total   Remuneration  is  defined  as  the  sum  of  a
Participant's  annual  retainer  fee,  plus, if the  Participant  is a Committee
Chairperson,  the  annual  fee  payable  to such  Participant  for  service as a
Chairperson,  plus an amount  equal to the  product of the fee  payable for each
meeting of the Board attended by the Participant multiplied by ten, each of said
fees as in effect  immediately  prior to the  termination  of the  Participant's
service.

                                       3
<PAGE>

                                   ARTICLE VI

                                   PROVISIONS

         6.1  If any Participant receiving benefits under Article V of this Plan
should die while any amounts  are still  payable to him or her  thereunder,  all
such amounts shall be paid to the Participant's designated beneficiary or, if no
designation has been made, to his or her spouse,  if any, and if none, to his or
her  children  then  living,  if any,  in equal  payments,  and if none,  to the
Participant's personal representatives.

         6.2  In the event that a  Participant  institutes  any legal  action to
enforce his or her rights  under the Plan,  and  provided  that he or she is the
prevailing  party,  such  Participant  shall be  entitled  to  recover  from the
Corporation (or its Successor) any actual and documented expenses for reasonable
attorney's fees and disbursements incurred by him or her.

         6.3  Any dispute or controversy arising under or in connection with the
Plan shall be settled exclusively by arbitration in New Haven,  Connecticut,  in
accordance  with  the  rules of the  American  Arbitration  Association  then in
effect; and judgment may be entered on the arbitration award in any court having
jurisdiction.

         6.4  Any  notice  or  other communication pursuant to the Plan intended
for a  Participant  shall be deemed  given  when  personally  delivered  to such
Participant or sent to such Participant by registered or certified mail,  return
receipt requested,  at such Participant's residence address as it appears on the
records of the Corporation (or its Successor),  or at such other address as such
Participant shall have specified by notice to the Corporation (or its Successor)
in the manner herein provided. Any notice or other communication pursuant to the
Plan intended for the Corporation (or its Successor)  shall be deemed given when
personally  delivered to the Secretary or Assistant Secretary of the Corporation
(or its  Successor),  or sent to the  attention  of the  Secretary  or Assistant
Secretary by registered or certified  mail,  return  receipt  requested,  at its
headquarters  at 157 Church  Street,  New Haven,  Connecticut,  or at such other
address as the Corporation (or its Successor)  shall have specified by notice to
all of the Participants in the manner herein provided.

         6.5  A  Participant  may  not  assign,  anticipate,  transfer,  pledge,
hypothecate  or alienate in any manner any interest  arising under the Plan, nor
shall any such interest be subject to attachment,  bankruptcy  proceedings or to
any other legal  processes  or to the  interference  or control of  creditors or
others.

         6.6  In the event any  provision of the Plan,  if challenged,  would be
declared invalid,  illegal or  unenforceable,  such provision shall be construed
and  enforced  as if it had been more  narrowly  drawn so as not to be  illegal,
invalid or unenforceable,  and the validity,  legality and enforceability of the
remaining provisions shall not be affected or impaired thereby.

                                       4Exhibit (10)-1

          SENIOR OFFICER CHANGE IN CONTROL, SEVERANCE,
            SPECIAL PENSION AND NON-COMPETE AGREEMENT

     THIS SENIOR OFFICER CHANGE IN CONTROL, SEVERANCE AND
NON-COMPETE AGREEMENT (the "Agreement") is made as of this 8th
day of November, 2000 between WISCONSIN ENERGY CORPORATION (the
"Company") and PAUL DONOVAN (the "Executive").

     The Executive is currently a Senior Vice President and Chief
Financial Officer of the Company and the Board of Directors of
the Company (the "Board") wishes to encourage the Executive to
continue to devote his time and attention to pursuit of Company
matters without distractions relating to his employment security.

     In consideration of the terms and conditions set forth
below, the parties agree as follows:

     1.   Defined Terms.  All of the capitalized terms used in
this Agreement are defined in the attached Appendix.

     2.   Purpose of Agreement.  This Agreement is intended to
provide the Executive with certain minimum compensation rights in
the event of his termination of employment under certain
circumstances as set forth herein, to provide for certain pension
rights and for a non-compete agreement from the Executive.

     3.   Obligation of the Company on a Covered Termination of
Employment Associated with a Change in Control.  In the event of
a Covered Termination of Employment Associated with a Change in
Control, then the Company shall provide the Executive with the
following compensation and benefits:

           (a) General Compensation and Benefits.  The Company
     shall pay the Executive's full salary to the Executive from
     the time notice of termination is given through the date of
     termination of employment at the rate in effect at the time
     such notice is given or, if higher, at an annual rate not
     less than twelve times the Executive's highest monthly base
     salary for the twelve-month period immediately preceding the
     month in which the Effective Date occurs, together with all
     compensation and benefits payable to the Executive through
     the date of termination of employment under the terms of any
     compensation or benefit plan, program or arrangement
     maintained by the Company during such period.  Such payments
     shall be made in a lump sum not later than ten business days
     after such termination.  The Company shall also pay the
     Executive's normal post-termination compensation and
     benefits to the Executive as such payments become due,
     except that any normal cash severance benefits shall be
     superseded and replaced entirely by the benefits provided
     under this Agreement.  Such post-termination compensation
     and benefits shall be determined under, and paid in
     accordance with, the Company's retirement, insurance and
     other compensation or benefit plans, programs and
     arrangements most favorable to the Executive in effect at
     any time during the 180-day period immediately preceding the
     Effective Date or, if more favorable to the Executive, those
     provided generally at any time after the Effective Date to
     executives of the Company of comparable status and position
     to the Executive.

          (b)  Incentive Compensation.  Notwithstanding any
     provision of any cash bonus or incentive compensation plan
     of the Company, the Company shall pay to the Executive,
     within ten business days after the Executive's termination
     of employment, a lump sum amount, in cash, equal to the sum
     of (i) any bonus or incentive compensation which has been
     allocated or awarded to the Executive for a fiscal year or
     other measuring period under the plan that ends prior to the
     date of termination of employment, but which has not yet
     been paid, and (ii) a pro rata portion of the Highest Bonus
     Amount for all uncompleted periods under any bonus or
     incentive compensation plan.

          (c)  Special Compensation.  The Company shall pay to
     the Executive a lump sum equal to three times the sum of (a)
     the highest per annum base rate of salary in effect with
     respect to the Executive during the three-year period
     immediately prior to the termination of employment plus (b)
     the Highest Bonus Amount.  Such lump sum shall be paid by
     the Company to the Executive within ten business days after
     the Executive's termination of employment, unless the
     provisions of Section 3(e) below apply.  The amount of the
     aggregate lump sum provided by this Section 3(c), whether
     paid immediately or deferred, shall not be counted as
     compensation for purposes of any other benefit plan or
     program applicable to the Executive.

           (d) Special Retirement Plans Lump Sum.  The Company
     shall pay to the Executive an aggregate lump sum equal to
     the total of the amounts described in (a) and (b) herein.
     Amount (a) is a lump sum equal to the difference between (i)
     the actuarial equivalent of the benefit under the Company's
     tax-qualified pension plan, the Retirement Account Plan (the
     "Retirement Plan"), the Supplemental Executive Retirement
     Plan (the "SERP") discussed in Section 7 below which the
     Executive would receive if his employment continued for a
     three-year period following termination of employment,
     assuming that the Executive's compensation during such
     three-year period would have been equal to the Executive's
     salary as in effect immediately before the termination or,
     if higher, as in effect at any time during the 180-day
     period immediately preceding the termination date, and the
     Highest Bonus Amount, and (ii) the actuarial equivalent of
     the Executive's actual benefit (paid or payable) under the
     Retirement Plan and the SERP as of the termination date.
     Actuarial equivalency for this purpose shall be determined
     using an interest rate equal to the five-year United States
     Treasury note yield in effect on the last business day of
     the month prior to the date of termination of employment as
     such yield is reported in the Wall Street Journal or
     comparable publication, and the mortality table used for
     purposes of determining lump sum amounts then in use under
     the Retirement Plan.  Amount (b) is a lump sum equal to the
     total of (i) the additional contributions which would have
     been made to the Executive's account under the Company's
     tax-qualified 401(k) plan, plus (ii) the additional
     contributions which would have been credited to the
     bookkeeping account balance of the Executive attributable to
     the 401(k) match feature of the EDCP, had the Executive
     continued in employment for a three-year period following
     termination of employment and assuming that the Executive's
     compensation would have been the same as set forth above and
     that the Executive had made maximum utilization of the
     pre-tax and after-tax opportunity in the qualified 401(k)
     plan and obtained the maximum matching contributions in such
     plan.  The amount of the aggregate lump sum under this
     Section 3(d) shall be paid by the Company to the Executive
     within ten business days after the Executive's termination
     of employment, unless the provisions of Section 3(e) below
     apply.  The amount of the lump sum provided by this Section
     3(d) shall not be treated as compensation for purposes of
     any other benefit plan or program applicable to the
     Executive.

          (e)  Deferral Option.  Notwithstanding any other
     provision of this Agreement, the Executive may file a
     written irrevocable deferral election form with the Company
     prior to the first date on which a Change in Control of the
     Company occurs electing to defer all or part of the special
     compensation provided by Section 3(c) and the special
     retirement plans lump sum otherwise provided for in Section
     3(d).  Such form shall irrevocably specify a method of
     payment for such compensation from among the methods
     allowable under the Company's Executive Deferred
     Compensation Plan (the "EDCP").  Any deferred amounts shall
     be credited with earnings in the same manner as the Interest
     Rate Fund provided for in the EDCP or any other investment
     alternative that may later become allowable under the EDCP
     and the EDCP provisions shall apply to deferrals made
     hereunder except that (i) any provisions for a mandatory
     lump sum payment upon a "Change in Control" as defined in
     the EDCP shall not apply to deferrals made hereunder, (ii)
     any amounts which become payable under this Section 3(e)
     shall be deemed for purposes of the EDCP to have become
     payable on account of the Executive's "retirement," and
     (iii) the entire amount deferred under this Section 3(e)
     shall be paid in a lump sum by the Company immediately prior
     to the occurrence of a Change in Control to such grantor or
     "rabbi" trust as the Company shall have established as a
     vehicle to hold such amount pending payment, but with such
     trust designed so that the Executive's rights to payment of
     such benefits are no greater than those of an unsecured
     creditor.

           (f) Welfare Benefits.  Subject to Section 3(g) below,
     for the "relevant three-year period" as defined below, the
     Company shall provide the Executive (and his family) with
     health, disability, life and other welfare benefits
     substantially similar to the benefits received by the
     Executive (and his family) pursuant to welfare benefit
     programs of the Company or its affiliates as in effect
     immediately during the 180 days preceding the Effective Date
     (or, if more favorable to the Executive, as in effect at any
     time thereafter until the termination of employment);
     provided, however, that no compensation or benefits provided
     hereunder shall be treated as compensation for purposes of
     any of the programs or shall result in the crediting of
     additional service thereunder.  For purposes of determining
     the amount of such welfare benefits, any part of which shall
     be based on compensation, the Executive's compensation
     during the relevant three-year period shall be deemed to be
     equal to the Executive's salary as in effect immediately
     before the termination of employment or, if higher, as in
     effect at any time during the 180-day period immediately
     preceding the termination date, and the Highest Bonus
     Amount.  To the extent that any of the welfare benefits
     covered by this Section 3(f) cannot be provided pursuant to
     the plan or program maintained by the Company or its
     affiliates, the Company shall provide such benefits outside
     the plan or program at no additional cost (including,
     without limitation, tax cost) to the Executive and his
     family.  The Executive shall be entitled to be covered by a
     retiree medical and dental program at the end of the
     relevant three-year period, at a cost to the Executive not
     to exceed the lesser of the cost, if any, charged to other
     retirees or the COBRA continuation premium charged to
     terminees who elect to continue in the Company's health plan
     at their expense under applicable law.  The Company shall
     become obligated to continue such benefits for the remainder
     of the Executive's life and that of his surviving spouse,
     notwithstanding any contrary provision or power of amendment
     or termination reserved to the Company in any otherwise
     applicable document.  The "relevant three-year period" shall
     mean a three-year period beginning on the later of the
     Executive's termination of employment or the expiration of
     the welfare benefits coverage provided to the Executive
     under an agreement dated June 1, 1998 between the Executive
     and Sundstrand Corporation.  In addition, the "relevant
     three-year period" shall be extended for a period of time
     equal to the "Excluded Period" under paragraph 5(c) of the
     letter agreement dated August 20, 1999 from the Company to
     the Executive extending an offer of employment to him, which
     is incorporated by reference into this Agreement.

          (g)  New Employment.  If the Executive secures new
     employment during the three-year period following
     termination of employment, the level of any benefit being
     provided pursuant to Section 3(f) hereof shall be reduced to
     the extent that any such benefit is being provided by the
     Executive's new employer.  The Executive, however, shall be
     under no obligation to seek new employment and, in any
     event, no other amounts payable pursuant to this Agreement
     shall be reduced or offset by any compensation received from
     new employment or by any amounts claimed to be owed by the
     Executive to the Company or its affiliates.

          (h)  Split-Dollar Life Insurance.  Notwithstanding the
     provisions of Section 3(f) above, the Company shall continue
     to make premium payments on any split-dollar type life
     insurance program in effect on the life of the Executive
     during the 180 days preceding the Effective Date (or, if
     more favorable to the Executive, as in effect at any time
     thereafter until the termination of employment), in a manner
     consistent with the past practices of the Company as to
     timing and amount, until each policy has achieved paid-up
     status.

          (i)  Equity Incentive Awards.  Notwithstanding the
     provisions in any stock option award, restricted stock award
     or other equity incentive compensation award (the "Awards"),
     the Executive shall become fully vested in all outstanding
     Awards and all otherwise applicable restrictions shall lapse
     and for purposes of determining the length of time the
     Executive has to exercise rights, if applicable under any
     such Award, the Executive shall be treated as if he had
     retired from the service of the Company at or after age 55
     and completion of ten years of service.

           (j) Outplacement and Financial Planning.  The Company
     shall, at its sole expense as incurred, provide the
     Executive with outplacement services, the scope and provider
     of which shall be selected by the Executive in his sole
     discretion (but at a cost to the Company of not more than
     $30,000) or, at the Executive's option, the use of office
     space, office supplies and equipment and secretarial
     services for a period not to exceed one year.  The Company
     shall also continue to provide the Executive with financial
     planning counseling benefits through the third anniversary
     of the date of the Executive's termination of employment, on
     the same terms and conditions as were in effect immediately
     before the termination or, if more favorable, on the
     Effective Date.

     4.   Obligation of the Company on a Covered Termination of
Employment Not Associated with a Change in Control of the
Company.  In the event of a Covered Termination of Employment Not
Associated with a Change in Control of the Company, then the
Company shall provide the Executive with the same compensation
and benefits and subject to the same terms and conditions as are
specified in Section 3 above, but the tax gross-up provisions of
Section 5 hereof shall not apply.  Further, the deferral election
for the Executive described in Section 3(e) above shall apply,
but only if the written irrevocable deferral form is filed with
the Company both prior to the expiration of thirty days from the
date this Agreement is signed by the Executive and prior to the
Executive's termination of employment.

     5.   Certain Additional Payments by the Company.

          (a)  Anything in this Agreement to the contrary
     notwithstanding, and whether or not a Covered Termination of
     Employment occurs, in the event it shall be determined that
     any payment or distribution by the Company to or for the
     benefit of the Executive (whether paid or payable or
     distributed or distributable pursuant to the terms of this
     Agreement or otherwise, but determined without regard to any
     additional payments required under this Section 5) (a
     "Payment") would be subject to the excise tax imposed by
     Section 4999 of the Internal Revenue Code of 1986, as
     amended (the "Code") or any interest or penalties are
     incurred by the Executive with respect to such excise tax
     (such excise tax, together with any such interest and
     penalties, are hereinafter collectively referred to as the
     "Excise Tax"), then the Executive shall be entitled to
     receive an additional payment (a "Gross-Up Payment") in an
     amount such that after payment by the Executive of all taxes
     (including any interest or penalties imposed with respect to
     such taxes), including, without limitation, any income taxes
     (and any interest and penalties imposed with respect
     thereto) and Excise Tax imposed on the Gross-Up Payment, the
     Executive retains an amount of the Gross-Up Payment equal to
     the Excise Tax imposed upon the Payments.

           (b) Subject to the provisions of paragraph (c) of this
     Section 5, all determinations required to be made under this
     Section 5, including whether and when a Gross-Up Payment is
     required and the amount of such Gross-Up Payment and the
     assumptions to be utilized in arriving at such
     determination, shall be made by a certified public
     accounting firm designated by the Executive (the "Accounting
     Firm"), which shall provide detailed supporting calculations
     both to the Company and the Executive within fifteen
     business days of the receipt of notice from the Executive
     that there has been a Payment, or such earlier time as is
     requested by the Company.  In the event that the Accounting
     Firm is serving as accountant or auditor for the individual,
     entity or group effecting the Change in Control, the
     Executive shall appoint another nationally recognized
     accounting firm to make the determinations required
     hereunder (which accounting firm shall then be referred to
     as the Accounting Firm hereunder).  All fees and expenses of
     the Accounting Firm shall be borne solely by the Company.
     Any Gross-Up Payment, as determined pursuant to this Section
     5, shall be paid by the Company to the Executive within five
     days of the receipt of the Accounting Firm's determination.
     Any determination by the Accounting Firm shall be binding
     upon the Company and the Executive.  As a result of the
     uncertainty in the application of Section 4999 of the Code
     at the time of the initial determination by the Accounting
     Firm hereunder, it is possible that Gross-Up Payments which
     will not have been made by the Company should have been made
     ("Underpayment"), consistent with the calculations required
     to be made hereunder.  In the event that the Company
     exhausts its remedies pursuant to paragraph (c) of this
     Section 5 and the Executive thereafter is required to make a
     payment of any Excise Tax, the Accounting Firm shall
     determine the amount of the Underpayment that has occurred
     and any such Underpayment shall be promptly paid by the
     Company to or for the benefit of Executive.

          (c)  The Executive shall notify the Company in writing
     of any claim by the Internal Revenue Service that, if
     successful, would require the payment by the Company of the
     Gross-Up Payment.  Such notification shall be given as soon
     as practicable but no later than ten business days after the
     Executive is informed in writing of such claim and shall
     apprise the Company of the nature of such claim and the date
     on which such claim is requested to be paid.  The Executive
     shall not pay such claim prior to the expiration of the
     thirty-day period following the date on which he gives such
     notice to the Company (or such shorter period ending on the
     date that any payment of taxes with respect to such claim is
     due).  If the Company notifies the Executive in writing
     prior to the expiration of such period that it desires to
     contest such claim, the Executive shall:

               (i)  give the Company any information reasonably
          requested by the Company relating to such claim,

               (ii) take such action in connection with
          contesting such claim as the Company shall reasonably
          request in writing from time to time, including,
          without limitation, accepting legal representation with
          respect to such claim by an attorney reasonably
          selected by the Company.

               (iii)     cooperate with the Company in good faith
          in order effectively to contest such claim, and

               (iv) permit the Company to participate in any
          proceedings relating to such claim;

     provided, however, that the Company shall bear and pay
     directly all costs and expenses (including additional
     interest and penalties) incurred in connection with such
     contest and shall indemnify and hold the Executive harmless,
     on an after-tax basis, for any Excise Tax or income tax
     (including interest and penalties with respect thereto)
     imposed as a result of such representation and payment of
     costs and expenses.  Without limitation on the foregoing
     provisions of this paragraph (c) of Section 5, the Company
     shall control all proceedings taken in connection with such
     contest and, at its sole option, may pursue or forego any
     and all administrative appeals, proceedings, hearings and
     conferences with the taxing authority in respect of such
     claim and may, at its sole option, either direct the
     Executive to pay the tax claimed and sue for a refund or
     contest the claim in any permissible manner, and the
     Executive agrees to prosecute such contest to a
     determination before any administrative tribunal, in a court
     of initial jurisdiction and in one or more appellate courts,
     as the Company shall determine; provided, however, that if
     the Company directs the Executive to pay such claim and sue
     for a refund, the Company shall advance the amount of such
     payment to the Executive, on an interest-free basis and
     shall indemnify and hold the Executive harmless, on an
     after-tax basis, from any Excise Tax or income tax
     (including interest or penalties with respect thereto)
     imposed with respect to such advance or with respect to any
     imputed income with respect to such advance; and provided,
     further, that any extension of the statute of limitations
     relating to payment of taxes for the taxable year of the
     Executive with respect to which such contested amount is
     claimed to be due is limited solely to such contested
     amount.  Furthermore, the Company's control of the contest
     shall be limited to issues with respect to which a Gross-Up
     Payment would be payable hereunder and the Executive shall
     be entitled to settle or contest, as the case may be, any
     other issue raised by the Internal Revenue Service or any
     other taxing authority.

          (d)  If, after the receipt by the Executive of an
     amount advanced by the Company pursuant to paragraph (c) of
     this Section 5, the Executive becomes entitled to receive
     any refund with respect to such claim, the Executive shall
     (subject to the Company's complying with the requirements of
     paragraph (c) of this Section 5) promptly pay to the Company
     the amount of such refund (together with any interest paid
     or credited thereon after taxes applicable thereto).  If
     after the receipt by the Executive of an amount advanced by
     the Company pursuant to paragraph (c) of this Section 5, a
     determination is made that the Executive shall not be
     entitled to any refund with respect to such claim and the
     Company does not notify the Executive in writing of its
     intent to contest such denial of refund prior to the
     expiration of thirty days after such determination, then
     such advance shall be forgiven and shall not be required to
     be repaid and the amount of such advance shall offset, to
     the extent thereof, the amount of Gross-Up Payment required
     to be paid.

     6.   Termination of Employment.  The Company shall be
entitled to terminate the Executive's employment on account of
Disability pursuant to the procedures set forth in Section (e) of
the Appendix, for Cause pursuant to the procedures set forth in
Section (a) of the Appendix, or without Cause by giving written
notice to the Executive of such termination.  The Executive may
terminate his employment for Good Reason by giving the Company
written notice of the termination, setting forth in reasonable
detail the specific conduct of the Company that constitutes Good
Reason.  A termination of employment by the Executive for Good
Reason shall be effective on the fifth business day following the
date such notice is given, unless the notice sets forth a later
date (which date shall in no event be later than thirty days
after the notice is given).  In the event of a dispute regarding
whether the Executive's voluntary termination qualifies as a
termination for Good Reason, no claim by the Company that the
same does not constitute a termination for Good Reason shall be
given effect unless the Company establishes by clear and
convincing evidence that such termination does not constitute a
termination for Good Reason.  The Executive may also terminate
his employment without Good Reason by giving the Company written
notice of such termination.
     7.   Special Pension Provisions.  The Executive shall be
eligible to participate in the Company's Supplemental Executive
Retirement Plan (the "SERP") with respect to monthly benefits "A"
and "B," but on the following modified terms which shall override
any contrary provisions in the SERP:

          (a)  The Executive or his beneficiary will become
     entitled to monthly benefit "A" on his retirement at or
     after age 55, or in the event of his termination of service
     because of death or Disability while in the service of the
     Company prior to age 55.

          (b)  Further, the Executive will be entitled to past
     service credit under monthly benefit "A," calculated as if
     his participation in the Company's tax-qualified pension
     plan, the Retirement Account Plan, had commenced at age 25
     and as if the benefit formula under such pension plan for
     all periods before December 31, 1995 was the same as in
     effect on December 31, 1995, and for all periods after
     December 31, 1995, pursuant to the actual benefit formula
     used in such pension plan (including the grandfathered
     minimum benefit provisions thereof), offset by the value of
     any benefits payable to the Executive from Social Security
     which is the actuarial equivalent of a single life annuity
     benefit payable to the Executive at the later of age 65 or
     the date when benefits commence under monthly benefit "A."
     Actuarial equivalency for this purpose shall be determined
     using an interest rate equal to the five-year United States
     Treasury Note yield in effect on the last business day of
     the month prior to the month in which benefits commence
     under monthly benefit "A," as such yield is reported in the
     Wall Street Journal or comparable publication, and the
     mortality table used for purposes of determining lump sum
     amounts then in use under the qualified defined benefit plan
     of the Company or its subsidiaries applicable to the
     Executive.

          (c)  Any early retirement reduction factor that would
     otherwise apply to the Executive at any time between ages 55
     and 62 will be disregarded and in lieu thereof, the
     Executive will be deemed entitled for purposes of monthly
     benefit "A" to the following percentages of the calculated
     benefit:

                                 % of Benefit "A"
                 Age             Becoming Payable
                 ---             ----------------

                 55                     75%
                 56                     81%
                 57                     86%
            58 or later                100%

     For ages in between those above stated, the percentage of
     benefit "A" payable shall be increased.  The amount of the
     increase shall be determined by multiplying 1/12th of
     the increase in the percentage which would have become
     payable on the Executive's next birthday by the number of
     months (with each 30-day period to be counted as one month)
     completed since the Executive's last birthday and before the
     start of payments of benefit "A."

           (d) The Executive will become entitled to monthly
     benefit "B" on his retirement at or after 55.

     8.   Wisconsin Housing Assistance.  The parties acknowledge
that the Executive is in the process of acquiring a home in
Wisconsin and agree to the following provisions in connection
therewith:

          (a)  Upon the Executive's termination of employment
     with the Company, the Executive (or his estate as the case
     may be) shall have the right by written notice to the
     Company at any time within seven (7) years of such
     termination (the "7-Year Period") to require the Company to
     buy the Executive's Wisconsin house and lot (the "House")
     for a cash price equal to the greater of the Cost Price or
     Fair Market Value.  For this purpose the Cost Price shall
     mean the price paid by the Executive for the House, or,
     should the Executive build the House, the Executive's total
     costs of obtaining the lot and constructing the House.  The
     Executive will provide the Company with his Cost Price
     within 30 days of his purchase of the House, or, should the
     Executive build the House, the Executive will provide the
     Company with a detailed listing of his costs within 6 months
     of the completion of the House.  Such detailed listing, if
     applicable, shall be the final determination of the Cost
     Price.  The Cost Price may be amended by the Executive from
     time to time if part of the lot is sold or if additional
     improvements are made to the House or lot.  For this
     purpose, "Fair Market Value" shall mean the average of the
     highest two of three appraisals obtained from qualified
     residential appraisers, one to be selected by the Executive,
     one by the Company and the third by the other two, with the
     Company to bear the appraisal costs.  The Company shall also
     make a gross-up payment to the Executive to the extent that
     the Cost Price is higher than Fair Market Value, so that
     after the Executive's payment of any income taxes which may
     be due on such excess and the gross-up payment, the
     Executive will be left with an amount equal to the Cost
     Price.

          (b)  The terms of this Section 8 shall apply upon the
     Executive's termination of employment with the Company at
     any time after the Executive's purchase of the House, or
     should the Executive intend to build the House, at any time
     after the Executive's purchase of the lot, even if prior to
     the start of construction of the House.

          (c)  The closing of any purchase and sale contemplated
     by this Section 8 will be on the terms herein set forth and
     otherwise on standard terms and conditions as are customary
     for residential real estate transactions in Wisconsin.  The
     parties acknowledge that the Executive may not take title to
     the House in his own name, but that the Company will be
     obligated to honor its purchase obligations under Section
     8(a) upon timely written notice to it, so long as the
     Executive or his estate causes the legal title holder to
     convey the property to the Company upon closing of such
     purchase and sale.

           (d) The Company shall reimburse the Executive his out
     of pocket living expenses associated with maintaining an
     apartment in Wisconsin pending acquisition of the House, or
     should the Executive intend to build the House, while the
     House is being constructed.  Such amounts will be
     "grossed-up" for any taxes the Executive may be required to
     pay.

     9.   Obligations of the Company on Termination of Employment
for Death, Disability, for Cause or by the Executive Other than
for Good Reason.  If the Executive's employment is terminated by
reason of his death or Disability (but not under the
circumstances covered by paragraph (c)(iv) of the Appendix), or
if such employment is terminated by the Company for Cause or by
the Executive other than for Good Reason, the Company will pay to
the Executive's estate or legal representative or to the
Executive, as the case may be, all accrued but unpaid base salary
and all other benefits and amounts which may become due in
accordance with the terms of any applicable benefit plan,
contract, agreement or practice (including pursuant to the SERP
as modified pursuant to Section 7 above), but no other
compensation or benefits will be paid under this Agreement.
However, under such circumstances, the following provisions shall
apply.

          (a)  Section 8 of this Agreement shall remain in full
     force and effect in accordance with its terms.

          (b)  If the Executive's separation from the service of
     the Company occurs at or after his attainment of age 55,
     then notwithstanding any contrary provisions in any
     restricted stock award, he shall become fully vested in any
     such outstanding award and all otherwise applicable
     restrictions shall lapse.

          (c)  For purposes of all applicable stock option
     awards, other equity incentive compensation awards, retiree
     health care plans, and any other employee welfare benefit
     plan, program or fringe benefit (but specifically excluding
     any tax-qualified retirement plan), the Executive shall be
     treated as if his service with the Company had commenced at
     age 25.

     10.  Non-Compete Agreement.  In consideration of this
Agreement, the Executive agrees that he will not, for a period of
one year from the date of his or her termination of employment
with the Company, directly or indirectly own, manage, operate,
join, control, be employed by, or participate in the ownership,
management, operation or control of, or be connected in any
manner, including but not limited to, holding the position of
shareholder, director, officer, consultant, independent
contractor, executive partner, or investor with any "Competing
Enterprise."  For purposes of this paragraph, a "Competing
Enterprise" means any entity, firm or person engaged in a
business within the State of Wisconsin or the upper peninsula
area of the State of Michigan (the "Territory") which is in
competition with any of the businesses of the Company or any of
its subsidiaries within the Territory as of the date the
Executive's termination of employment, and whose aggregate gross
revenues, calculated for the most recently completed fiscal year
of the Competing Enterprise, derived from all such competing
activities within the Territory during such fiscal year, equal at
least 10% or more of such Enterprise's consolidated net revenues
for such fiscal year.  If the Executive notifies the Company in
writing of any employment or opportunity which the Executive
proposes to undertake during the one year non-compete period, and
supplies the Company with any additional information which the
Company may reasonably request, the Company agrees to promptly
notify the Executive within thirty days after all information
reasonably requested by it has been provided, whether the Company
considers the proposed employment or opportunity to be prohibited
by these provisions and, if so, whether the Company is willing to
waive the same.  Notwithstanding anything in this Section 10, the
Executive shall not be prohibited from acquiring or holding up to
2% of the common stock of an entity that is traded on a national
securities exchange or a nationally recognized over-the-counter
market.

     11.  Successors and Binding Agreements.

          (a)  The Company shall require any successor (whether
     direct or indirect, by purchase, merger, consolidation,
     reorganization or otherwise) and the direct and indirect
     parent of any such successor, to all or substantially all of
     the business and/or assets of the Company expressly to
     assume and to agree to perform this Agreement in the same
     manner and to the same extent the Company would be required
     to perform if no succession had taken place.  This Agreement
     shall be binding upon and inure to the benefit of the
     Company and any such successor, and such successor shall
     thereafter be deemed the "Company" for the purposes of this
     Agreement.

          (b)  This Agreement shall inure to the benefit of and
     be enforceable by the Executive's respective personal or
     legal representative, executor, administrator, successor,
     heirs, distributees and/or legatees.

          (c)  Neither the Company nor the Executive may assign,
     transfer or delegate this Agreement or any rights or
     obligations hereunder except as expressly provided in this
     Section.  Without limiting the generality of the foregoing,
     the Executive's right to receive payments hereunder shall
     not be assignable or transferable, whether by pledge,
     creation of a security interest or otherwise, other than by
     a transfer by will or the laws of descent and distribution.
     In the event the Executive attempts any assignment or
     transfer contrary to this Section, the Company shall have no
     liability to pay any amount so attempted to be assigned or
     transferred.

     12.  Notices.  All communications provided for herein shall
be in writing and shall be deemed to have been duly given when
delivered or five business days after having been mailed by
United States registered or certified mail, return receipt
requested, postage prepaid, addressed to the Company (to the
attention of the Secretary of the Company) at its principal
executive office and to the Executive at his/her principal
residence, or to such other address as any party may have
furnished to the other in writing in accordance herewith, except
that notices of a change of address shall be effective only upon
receipt.

     13.  Governing Law.  The validity, interpretation,
construction and performance of this Agreement shall be governed
by the laws of the State of Wisconsin without giving effect to
the principles of conflict of laws of such state, except that
Section 14 shall be construed in accordance with the Federal
Arbitration Act if arbitration is chosen by the Executive as the
method of dispute resolution.

     14.  Settlement of Disputes; Arbitration; Attorneys' Fees.
Any dispute or controversy arising under or in connection with
this Agreement shall be settled, at the Executive's election,
either by arbitration in Milwaukee, Wisconsin in accordance with
the rules of the American Arbitration Association then in effect
or by litigation; provided, however, that in the event of a
dispute regarding whether the Executive's employment has been
terminated for Cause or whether the Executive's voluntary
termination qualifies as a termination for Good Reason, the
evidentiary standards set forth in this Agreement shall apply.
Judgment may be entered on the arbitrator's award in any court
having jurisdiction.  The Company agrees to pay, as incurred, to
the fullest extent permitted by law, all legal fees and expenses
that the Executive may reasonably incur as a result of any
contest (regardless of outcome) by the Company, the Executive or
others of the validity or enforceability of or liability under,
or otherwise involving any provision of this Agreement.

     15.  Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement which
shall remain in full force and effect.  If any provision of this
Agreement shall be held invalid or unenforceable in part, the
remaining portion of such provision, together with all other
provisions of this Agreement, shall remain valid and enforceable
and continue in full force and effect to the fullest extent
consistent with law.

     16.  Entire Agreement; Amendments.  This Agreement
constitutes the entire understanding and agreement of the parties
with respect to the matters discussed herein and supersedes all
other prior agreements and understandings, written or oral,
between the parties with respect thereto including, without
limitation, the Senior Officer Change in Control, Severance and
Special Pension Agreement dated March 8, 2000 between the
parties.  There are no representations, warranties or agreements
of any kind relating thereto that are not set forth in this
Agreement.  This Agreement may not be amended or modified except
by a written instrument signed by the parties hereto or their
respective successors and legal representatives.

     17.  Withholding.  The Company may withhold from any amounts
payable under this Agreement all federal, state and other taxes
as shall be legally required.

     18.  Certain Limitations.  Nothing in this Agreement shall
grant the Executive any right to remain an executive, director or
employee of the Company or of any of its subsidiaries for any
period of time.

     IN WITNESS WHEREOF, the parties have executed this Agreement
on the day and date first written above.

                                   WISCONSIN ENERGY CORPORATION

                                   By:/s/ Paul Donovan
                                   ----------------------------
                                   Paul Donovan

                            APPENDIX
                            --------

     This is an appendix to the Senior Officer Change in Control,
Severance and Non-Compete Agreement between WISCONSIN ENERGY
CORPORATION and PAUL DONOVAN dated November 8, 2000 (the
"Agreement").

     As used in the Agreement, the terms set forth below shall
have the following meanings:

     (a)  "Cause" means:

          (i)  the willful and continued failure of the Executive
     to substantially perform the Executive's duties (other than
     failure resulting from incapacity due to physical or mental
     illness), after a written demand for substantial performance
     is delivered to the Executive by the Board of Directors of
     the Company (the "Board"), or the Compensation Committee of
     the Board (the "Committee") which specifically identifies
     the manner in which the Board or the Committee or the
     elected officer believes that the Executive has not
     substantially performed the Executive's duties, or

          (ii) the willful engaging by the Executive in illegal
     conduct or gross misconduct which is determined by the Board
     to have been materially and demonstrably injurious to the
     Company.  However, no act, or failure to act, on the
     Executive's part shall be considered "willful" unless done,
     or omitted to be done, by the Executive not in good faith
     and without reasonable belief that his action or omission
     was in the best interest of the Company.

The Executive may only be terminated for Cause if the Company
gives written notice to the Executive of its intention to
terminate the Executive's employment for Cause, setting forth in
reasonable detail the specific conduct of the Executive that it
considers to constitute Cause and the specific provision(s) of
this Agreement on which it relies, and stating the date, time and
place of the Special Meeting for Cause.  The "Special Meeting for
Cause" means a meeting of the Board called and held specifically
for the purpose of considering the Executive's termination for
Cause, that takes place not less than ten and not more than
twenty business days after the Executive receives the notice of
termination for Cause.  The Executive shall be given an
opportunity, together with counsel, to be heard at the Special
Meeting for Cause.  The Executive's termination for Cause shall
be effective when and if a resolution is duly adopted by the
affirmative vote of at least two-thirds (_) of the entire
membership of the Board, excluding employee directors, at the
Special Meeting for Cause, stating that in the good faith opinion
of the Board, the Executive is guilty of the conduct described in
the notice of termination for Cause and that conduct constitutes
Cause under this Agreement.  In the event of a dispute regarding
whether the Executive's employment has been terminated for Cause,
no claim by the Company that Cause exists shall be given effect
unless the Company establishes by clear and convincing evidence
that Cause exists.

     (b)  A "Change in Control" with respect to the Company shall
be deemed to have occurred if the event set forth in any one of
the following paragraphs shall have occurred:

           (i) 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) representing 20% or more of the combined
     voting power of the Company's then outstanding securities,
     excluding any Person who becomes such a Beneficial Owner in
     connection with a transaction described in clause (a) of
     paragraph (iii) below; or

          (ii) the following individuals cease for any reason to
     constitute a majority of the number of directors then
     serving:  individuals who, on the date hereof, constitute
     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, including but not limited to
     a consent solicitation, relating to the election of
     directors of the Company) whose appointment or election by
     the Board or nomination for election by the Company's
     shareholders was approved or recommended by a vote of at
     least two-thirds (_) of the directors then still in office
     who either were directors on the date hereof or whose
     appointment, election or nomination for election was
     previously so approved or recommended; or

          (iii)     there is consummated a merger or
     consolidation of the Company or any direct or indirect
     subsidiary of the Company with any other corporation, other
     than (a) a merger or consolidation immediately following
     which the directors of the Company immediately prior to such
     merger or consolidation continue to constitute at least a
     majority of the board of directors of the Company, the
     surviving entity or any parent thereof or (b) 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) representing
     20% or more of the combined voting power of the Company's
     then outstanding securities; or

          (iv) the shareholders of the Company approve a plan of
     complete liquidation or dissolution of the Company or there
     is consummated an agreement (or series of related
     agreements) for the sale or disposition by the Company of
     all or substantially all of the Company's assets,
     disregarding any sale or disposition to a company, at least
     a majority of the directors of which were directors of the
     Company immediately prior to such sale or disposition; or

          (v)  the Board determines in its sole and absolute
     discretion that there has been a Change in Control of the
     Company.

     For purposes of this Change in Control definition, the terms
     set forth below shall have the following meanings:

          "Beneficial Owner" shall have the meaning set forth in
     Rule 13d-3 under the Exchange Act.

           "Exchange Act" shall mean the Securities Exchange Act
     of 1934, as amended from time to time.

          "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
     subsidiaries, (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 stockholders of the Company in
     substantially the same proportions as their ownership of
     stock of the company.

     (c)  "Covered Termination of Employment Associated with a
Change in Control" means:

          (i)  a termination of employment by the Company other
     than because of death or Disability and without Cause, which
     occurs within a period of eighteen months following the
     Effective Date or,

          (ii) a termination of employment by the Company other
     than because of death or Disability and without Cause within
     a period of six months prior to the Effective Date, and it
     is reasonably demonstrated by the Executive that such
     termination of employment was at the request of a third
     party who has taken steps reasonably calculated to effect a
     Change in Control or otherwise arose in connection with or
     in anticipation of a Change in Control, or

          (iii)     a termination of employment by the Executive
     for Good Reason within a period of eighteen months following
     the Effective Date and also subsequent to the occurrence,
     without the Executive's written consent, of any event
     described in Section (g) after the Effective Date, or a
     termination of employment by the Executive within a period
     of six months prior to the Effective Date and following the
     occurrence without the Executive's consent of any event
     described in Section (g)(i), (ii), (iii) or (iv) and it is
     reasonably demonstrated by the Executive that such event
     occurred at the request of a third party who has taken steps
     reasonably calculated to effect a Change in Control or
     otherwise arose in connection or in anticipation of a Change
     in Control, or

          (iv) a voluntary termination of employment by the
     Executive without Good Reason following completion of one
     year of service after a Change in Control of the Company,
     provided that the voluntary termination must be effected by
     the Executive within six months after the completion of that
     one-year of service.  Further, if the Executive gives
     written notice to the Company any time after a Change in
     Control of the Company but before completion of one year of
     service thereafter that the Executive intends to so
     voluntarily terminate and if the Executive should thereafter
     die while in the employ of the Company or incur a
     termination of employment because of Disability, in either
     case before completion of such one year of service, such
     death or termination of employment shall be treated as a
     Covered Termination Associated with a Change in Control.

     If within fifteen days after the Company notifies the
Executive that it is terminating his employment for Cause or the
Executive notifies the Company that he is terminating his
employment for Good Reason, the party receiving such notice
notifies the other party that a dispute exists concerning the
termination, then for purposes of this Section (c) the date of
the Executive's termination of employment shall not be deemed to
have occurred until the earlier of (i) the date that is 18 months
following the Effective Date or (ii) the date on which the
dispute is finally resolved, either by mutual written agreement
of the parties or by a final judgment, order or decree of an
arbitrator or a court of competent jurisdiction (which is not
appealable or with respect to which the time for appeal therefrom
has expired and no appeal has been perfected); provided, however,
that the date of termination shall be extended by a notice of
dispute given by the Executive only if such notice is given in
good faith and the Executive pursues the resolution of such
dispute with reasonable diligence.

     If a purported termination occurs prior to or following a
Change in Control and the date of termination is extended in
accordance with the preceding paragraph, the Company shall
continue to pay the Executive the full compensation and benefits
as are provided in the first sentence of Section 3(a) of the
Agreement until the date of termination, as determined in
accordance with the preceding paragraph.  Amounts paid under this
Section (c) are in addition to all other amounts due under the
Agreement and shall not be offset against or reduce any other
amounts due under the Agreement, other than amounts due under the
first sentence of Section 3(a) of the Agreement.

     (d)  "Covered Termination of Employment Not Associated with
a Change in Control of the Company" means:

          (i)  a termination of employment by the Company other
     than because of death or Disability and without Cause, or

          (ii) a termination of employment by the Executive for
     Good Reason subsequent to the occurrence, without the
     Executive's written consent, of any event described in
     Section (g).

     (e)  "Disability" means that the Executive has been unable,
for a period of 180 consecutive business days, to perform the
material duties of his job, as a result of physical or mental
illness or injury and that a physician selected by the Company or
its insurers and acceptable to the Executive or his legal
representative, has determined that the Executive's incapacity is
total and permanent.  A termination of the Executive's employment
by the Company for Disability shall be communicated to the
Executive by written notice and shall be effective on the
thirtieth day after receipt of such notice by the Executive,
unless the Executive returns to full-time performance of his
duties before the expiration of such thirty-day period.

     (f)  "Effective Date" means the first date on which a Change
in Control of the Company occurs, except that if Section 4 of the
Agreement applies, the term shall mean the date immediately prior
to the Executive's termination of employment.

      (g) "Good Reason" means:

          (i)  the assignment to the Executive of any duties
     inconsistent, in the reasonable judgment of the Executive,
     with the customary duties of a Chief Financial Officer of a
     comparably sized company or any other action by the Company
     that results in material reduction of the Executive's duties
     and responsibilities, or

          (ii) any reduction in the Executive's base salary or
     percentage of base salary available as an incentive
     compensation or bonus opportunity relative to those most
     favorable to the Executive in effect at any time during the
     180-day period prior to the Effective Date or to the extent
     more favorable to the Executive, those in effect after the
     Effective Date, or any failure by the Company to continue to
     provide for the Executive's participation in the Company's
     long-term incentive plans and programs on a basis
     commensurate with other senior executives of the Company, or
     reduction in any material element of the Executive's
     compensation or benefits, or

          (iii)     the relocation of the Executive's principal
     place of employment to a location more than 35 miles from
     the Executive's principal place of employment immediately
     prior to the Effective Date, or

          (iv) the Company's requiring the Executive to travel on
     Company business to a materially greater extent than was
     required immediately prior to the Effective Date, or

          (v)  the failure by the Company to comply with Section
     11(a) of this Agreement.

     (h)  "Highest Bonus Amount" means the highest dollar bonus
which would result from three calculations, as follows:  (i) the
highest percentage of base salary ever used with respect to the
calculation of the Executive's bonus during the three complete
fiscal years of the Company immediately preceding the termination
of employment or, if more favorable to the Executive, during the
three complete fiscal years of the Company immediately preceding
the Change in Control of the Company, multiplied times the
highest per annum base rate of salary in effect with respect to
the Executive during the three-year period immediately prior to
the termination of employment; (ii) the highest dollar bonus
earned by the Executive under any cash bonus or incentive
compensation plan of the Company during either of the three
complete fiscal year periods of the Company listed in (i) above,
whichever is more favorable to the Executive; or (iii) the
Executive's bonus or incentive compensation "target" for the
fiscal year in which the termination of employment occurs.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]