Document:

PROMISSORY NOTE
                               FOR LONG-TERM LOANS

$50,000,000                                               November 30, 2001

         FOR VALUE RECEIVED, Southern Indiana Gas and Electric Company, an
Indiana corporation ("Borrower") hereby promises to pay to VECTREN UTILITY
HOLDINGS, INC., an Indiana corporation ("Lender"), in same day funds at its
principal offices in Evansville, Indiana, or at such other place Lender may from
time to time designate, the principal sum of Fifty Million Dollars
($50,000,000), together with interest thereon from the date hereof until paid in
full, all without relief from valuation or appraisement laws. Interest shall be
charged on the unpaid outstanding balance of this Note at a rate per annum equal
to the rate paid and to be paid by Lender with respect to the borrowings it made
in order to provide funds to Borrower hereunder. Interest on borrowings shall be
due and payable in immediately available funds on the same business day on which
Lender must pay interest on the borrowings it made in order to provide funds to
the Borrower hereunder. The principal hereof shall be due and payable hereunder
at such times and in such amounts and in such installments hereunder as Lender
must pay with respect to the borrowings it made in order to provide funds to
Borrower hereunder. Lender has provided Borrower with a copy of the
documentation evidencing the borrowings made by Lender in order to provide funds
to Borrower hereunder. Borrower's share of the Lender borrowings represents 20%
of the underlying notes and net proceeds approximate $49.46 million. In the
absence of manifest error, such documentation and the records maintained by
Lender of the amount and term, if any, of borrowings hereunder shall be deemed
conclusive.

         The terms and conditions of the borrowings made by Lender in order to
provide funds to Borrower hereunder, such documentation of which is attached
hereto as Appendix A, are hereby incorporated by reference and made a part
hereof; provided, however, that the principal sum under this Note shall be in
such amount as set forth in this Note. In the event of any conflict or
inconsistency between the terms of this Note and the terms of the borrowings
made by Lender in order to provide funds to Borrower hereunder, the terms of
this Note shall govern.

         Presentment, notice of dishonor and demand, protest and diligence and
collection and bringing suit are hereby severally waived by Borrower and each
endorser hereby consents that the time for payment of this Note or any
installment hereunder may be extended from time to time without notice by
Lender. No waiver of any default or failure or delay to exercise any right or
remedy by Lender shall operate as a waiver of any other default or of the same
default in the future or as a waiver of any right or remedy with respect to the
same or any other occurrence. No single or partial exercise by Lender of any
right or remedy shall preclude other or further exercises thereof or of any
other right or remedy.

         This Note inures to the benefit of Lender and binds Borrower and
Lender's and Borrower's respective successors and assigns, and the terms
"Lender" and Borrower" whenever occurring herein shall be deemed and construed
to include such respective successors and assigns.

         This Note shall be construed according to, and governed by, the laws of
the State of Indiana.

<PAGE>

         This Note is one of the promissory notes referred to in the Financial
Services Agreement, dated January 5th, 2001, between Lender, Borrower and
certain other public utility subsidiaries of Lender to which reference is made
for a statement of additional rights and obligations of the parties hereto.

         IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date and the year first hereinabove written.

                            SOUTHERN INDIANA GAS AND
                                ELECTRIC COMPANY

                                          By: /S/ Jerome A. Benkert, Jr.
                                               Jerome A. Benkert, Jr.
                                               Executive Vice President and
                                               Chief Financial Officer

<PAGE>

                                                                  Appendix A

Refer to the Second Supplemental Indenture, between Vectren Utility Holdings,
Inc., Indiana Gas Company, Inc., Southern Indiana Gas and Electric Company,
Vectren Energy Delivery of Ohio, Inc., and U.S. Bank Trust National Association.
Filed and designated with the Securities and Exchange Commission in Form 8-K,
dated November 29, 2001, File No. 1-16739, as Exhibit 4.1.MANAGEMENT’S DISCUSSION AND ANALYSIS OF

 

EXHIBIT

ITEM 10(ii)A(6)

 

Amendment to the Life Insurance

Endorsement Method Split Dollar Plan Agreement Dated

January 6, 2000

 

 

AMENDMENT

TO THE LIFE INSURANCE ENDORSEMENT

METHOD SPLIT DOLLAR PLAN AGREEMENT

DATED JANUARY 6, 2000

 

This Amendment, made and entered into this 16th  day

of  August, 2001 by and between Monterey County Bank, a Bank

organized and existing under the laws of the State of California, hereinafter

referred to as the, “Bank”, and Charles T. Chrietzberg, Jr., a Key Employee and

Executive of the Bank, hereinafter referred to as the, “Executive”, shall

effectively amend the Life Insurance Endorsement Method Split Dollar Plan

Agreement dated January 6, 2000 as specifically set forth herein. Said

agreement shall be amended as follows:

 

1.) The following life insurance policy information shall be added to

page one (1) of the agreement:

 

Insurer:                  Alexander

Hamilton Life Insurance Company

 

Policy Number:     0008658250

 

This Amendment shall be effective on the 16th day of

August, 2001. To the extent that any paragraph, term, or provision of

the January 6, 2000 agreement is not specifically amended herein, or in any

other amendment thereto, said paragraph, term, or provision shall remain in

full force and effect as set forth in said agreement.

 

IN WITNESS WHEREOF, the parties hereto acknowledge

that each has carefully read this Amendment and executed the original thereof

on the first day set forth hereinabove and that, upon execution, each has

received a conforming copy.

 

	

   

  	

  MONTEREY COUNTY BANK

  
	

   

  	

  Monterey,

  California

  
	

   /s/ Dorina Chan

  	

   

  	

  By:

  	

   /s/ Bruce N. Warner, Sr. V. P.

  	

   

  
	

  Witness

  	

   

  	

  Title

  	

   

  
	

   /s/ Dorina Chan

  	

   

  	

  /s/ Charles

  T. Chrietzberg, Jr.

  	

   

  
	

  Witness

  	

  Charles T.

  Chrietzberg, Jr.

  
							

 

1MANAGEMENT’S DISCUSSION AND ANALYSIS OF

 

EXHIBIT

ITEM 10(ii)A(7)

 

Amendment to the Life Insurance Endorsement Method Split Dollar Plan

Agreement

 

 

AMENDMENT

TO

THE LIFE INSURANCE ENDORSEMENT

METHOD

SPLIT DOLLAR PLAN AGREEMENT

 

This Amendment, made and entered into this 16th

day of August, 2001, by and between Monterey County Bank, a Bank

organized and existing under the laws of the State of California, hereinafter

referred to as the, “Bank”, and Charles T. Chrietzberg, Jr., a Key Employee and

Executive of the Bank, hereinafter referred to as the, “Executive”, shall

effectively amend the Life Insurance Endorsement Method Split Dollar Plan

Agreement as specifically set forth herein.

 

1.)  The following “Insurer” and the “Policy

Number” shall be added to page one (1) of said agreement:

 

Insurer:                  Alexander

Hamilton

New York Life

Jefferson Pilot

 

Policy Number:     8658250

56600429

JP5209671

 

2.)  To delete Subparagraphs VI (A) and (B)

entirely and replace said Subparagraphs with the following as Subparagraph VI

(A):

 

A.)          Upon the death of the Insured, the

Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall

be entitled to the following amounts that correspond to the age of the Insured

at the time of death, or one-hundred percent (100%) of the net-at-risk

insurance portion of the life insurance proceeds of the respective policies

listed hereinbelow, whichever amount is less. 

The net-at-risk insurance portion is the total proceeds less the cash

value of the policy.

 

i)                                         The

amount set forth in Exhibit A-1, attached hereto and fully incorporated herein

by reference, from insurance policies:

 

a.)            Southland

Life                      0600087068

b.)           Union

Central                       U200000615

and U200000513; and

c.)            Alexander

Hamilton             8658250; AND

 

ii)                                      The

amount set forth in Exhibit A-2, attached hereto and fully incorporated herein

by reference, from insurance policies:

 

a.)            New York Life                       56600429; and

b.)           Jefferson Pilot                       JP5209671

 

All

references in said Agreement shall be revised accordingly.

 

1

 

3.)                                   The

following language shall be deleted from Paragraph XV: “... and, therefore,

upon the death of the Insured, the Insured’s beneficiary(ies) (designated in

accordance with Paragraph III) shall receive the death benefit provided herein

as if the Insured had died while employed by the Bank [See Subparagraphs VI (A)

and (B)].”

 

This Amendment shall be

effective the 15th day of August, 2001.

 

To the extent that any

paragraph, term, or provision of the January 6, 2000  agreement is not specifically amended herein, or in any other

amendment thereto, said paragraph, term, or provision shall remain in full

force and effect as set forth in said agreement.

 

IN WITNESS WHEREOF, the

parties hereto acknowledge that each has carefully read this Amendment and

executed the original thereof on the first day set forth hereinabove, and that,

upon execution, each has received a conforming copy.

 

	

   

  	

  MONTEREY COUNTY BANK

  
	

   

  	

  Monterey, California

  
	

   

  	

   

  
	

  /s/ Dorina Chan

  	

   

  	

  By:

  	

   /s/ Bruce N. Warner  Sr. Vice President

  	

   

  
	

  Witness

  	

  Title

  	

   

  
	

   

  	

   

  
	

  /s/ Dorina Chan

  	

   

  	

  /s/ Charles T.

  Chrietzberg, Jr.

  	

   

  
	

  Witness

  	

  Charles T. Chrietzberg,

  Jr.

  
						

 

2

 

EXHIBIT A-1

 

(for

Charles T. Chrietzberg, Jr.)

 

	

  Age of Insured at the 

  Time of Death

  	

   

  	

  Amount of Death Benefit, or 100% 

  of the net-at-risk, whichever amount is less

  
	

  60

  	

   

  	

  $

  	

  1,440,000

  
	

  61

  	

   

  	

  1,440,000

  
	

  62

  	

   

  	

  1,440,000

  
	

  63

  	

   

  	

  1,440,000

  
	

  64

  	

   

  	

  1,440,000

  
	

  65

  	

   

  	

  1,000,000

  
	

  66

  	

   

  	

  1,000,000

  
	

  67

  	

   

  	

  1,000,000

  
	

  68

  	

   

  	

  1,000,000

  
	

  69

  	

   

  	

  1,000,000

  
	

  70

  	

   

  	

  1,000,000

  
	

  71

  	

   

  	

  1,000,000

  
	

  72

  	

   

  	

  1,000,000

  
	

  73

  	

   

  	

  1,000,000

  
	

  74

  	

   

  	

  1,000,000

  
	

  75

  	

   

  	

  1,000,000

  
	

  76

  	

   

  	

  1,000,000

  
	

  77

  	

   

  	

  1,000,000

  
	

  78

  	

   

  	

  1,000,000

  
	

  79

  	

   

  	

  1,000,000

  
	

  80

  	

   

  	

  1,000,000

  
	

  81

  	

   

  	

  1,000,000

  
	

  82

  	

   

  	

  1,000,000

  
	

  83

  	

   

  	

  1,000,000

  
	

  Age 84 or older

  	

   

  	

  1,000,000

  

 

	

  Policies:

  	

   

  	

  Policy Number:

  
	

  1) Southland Life

  	

   

  	

  0600087068

  
	

  2) Union Central

  	

   

  	

  U200000615

  
	

  3) Union Central

  	

   

  	

  U200000513

  
	

  4) Alexander Hamilton

  	

   

  	

  8658250

  

 

3

 

EXHIBIT A-2

 

(for

Charles T. Chrietzberg, Jr.)

 

	

  Age of Insured at the 

  Time of Death

  	

   

  	

  Amount of Death Benefit, or 100% 

  of the net-at-risk, whichever amount is less

  
	

  60

  	

   

  	

  $

  	

  1,500,000

  
	

  61

  	

   

  	

  1,500,000

  
	

  62

  	

   

  	

  1,500,000

  
	

  63

  	

   

  	

  1,500,000

  
	

  64

  	

   

  	

  1,500,000

  
	

  65

  	

   

  	

  1,500,000

  
	

  66

  	

   

  	

  1,500,000

  
	

  67

  	

   

  	

  1,494,118

  
	

  68

  	

   

  	

  1,491,175

  
	

  69

  	

   

  	

  1,486,506

  
	

  70

  	

   

  	

  807,157

  
	

  71

  	

   

  	

  750,742

  
	

  72

  	

   

  	

  744,984

  
	

  73

  	

   

  	

  731,249

  
	

  74

  	

   

  	

  722,617

  
	

  75

  	

   

  	

  713,595

  
	

  76

  	

   

  	

  709,537

  
	

  77

  	

   

  	

  695,233

  
	

  78

  	

   

  	

  680,565

  
	

  79

  	

   

  	

  673,313

  
	

  80

  	

   

  	

  664,438

  
	

  81

  	

   

  	

  654,198

  
	

  82

  	

   

  	

  642,120

  
	

  83

  	

   

  	

  628,183

  
	

  Age 84 or older

  	

   

  	

  612,459

  

 

	

  Policies:

  	

   

  	

  Policy Number:

  
	

  1) New York Life

  	

   

  	

  56600429

  
	

  2) Jefferson Pilot

  	

   

  	

  JP5209671

  

 

4

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