Document:

EXHIBIT 10.59

                              AMENDED AND RESTATED
                       EMPLOYMENT AGREEMENT BY AND BETWEEN
                   THE NEPTUNE SOCIETY, INC. AND MARCO MARKIN

     AMENDED AND RESTATED  AGREEMENT,  dated as of March 12, 2004 by and between
The Neptune Society,  Inc., a Florida  Corporation;  Neptune Society of America,
Inc., a California  Corporation;  Neptune Management  Corporation,  a California
Corporation;  Heritage Alternatives, Inc., a California Corporation; and Trident
Society, Inc., a California Corporation,  (collectively the "Neptune Society" or
the "Company") and Marco Markin (the "Executive").

     WHEREAS,  the Company and the Executive  entered into a written  employment
agreement dated as of June 6, 2001, which was amended by written agreement dated
February 10, 2003 (the "2001 Employment Agreement"); and

     WHEREAS, the Company and the Executive have disagreed on the interpretation
of  certain  provisions  in  the  2001  Employment   Agreement  related  to  the
Executive's  option to convert his  compensation  into shares of common stock of
the Neptune Society, Inc.; and

     WHEREAS, the Company recognizes that the Executive has faithfully performed
his duties and possesses  unique talents and abilities which are integral to the
success of the Company; and

     WHEREAS, the Company wishes to secure the Executive's services, among other
things, to assure a smooth transition in the event of a change of control of the
Company; and

     WHEREAS,  the  Executive  and the  Company  wish to resolve  their  dispute
respecting  the terms of the 2001  Employment  Agreement  by  restructuring  the
compensation  paid  to  the  Executive  in the  event  of a  termination  of his
employment  or change of control of the Company and by extending the term of the
Executive's employment with the Company; and

     WHEREAS,  the Company and the Executive have  determined  that it is in the
best interests of the Company and its shareholders to amend and restate the 2001
Employment Agreement in its entirety as set forth in this Agreement;

     NOW,  THEREFORE,  in consideration of the premises and mutual covenants set
forth below, the parties hereby agree as follows:

     0.1 The 2001  Employment  Agreement is deleted in its entirety and replaced
with this Agreement.

     1.  Employment.  The Company hereby agrees to employ the Executive as Chief
Executive Officer and Chairman of the Board of Directors of the Company, and the
Executive  hereby  accepts  employment,  on the terms and  conditions  set forth
below.

     2.  Term.  The  Executive's   employment  by  the  Company  hereunder  (the
"Employment  Period") shall begin on January 1, 2001 as Chief Executive  Officer
of the Company (the "Effective  Date") and end on December 31, 2007.  Unless the
Executive has delivered  written notice to the contrary 90 days prior to the end
of any Employment Period, the Employment Period shall be automatically

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extended for successive one-year periods (the "Executive's Annual  Extensions"),
up to a maximum of three (3)  one-year  periods,  i.e.,  through  and  including
December 31, 2010.

     3. Position and Duties. During the Employment Period, Executive shall serve
as the Chief Executive Officer,  Chairman of the Board of Directors and Director
on the Board of Directors (the "Board") of the Company,  with such authority and
responsibilities,  including Company-wide executive,  administrative and finance
as are  normally  associated  with  and  appropriate  for  such  positions.  The
Executive shall report  directly to the Board of Directors.  The Executive shall
devote  substantially  all of his working time,  attention  and energies  during
normal  business  hours (other than  absences due to illness or vacation) in the
performance of his duties for the Company.  Notwithstanding the above, Executive
shall be permitted,  to the extent such  activities  do not  interfere  with his
performance of his duties and responsibilities hereunder or violate Section 9(a)
or (b) of this  Agreement,  to (i) manage his financial and legal affairs,  (ii)
serve on civic or charitable boards or committees (it being expressly understood
and agreed that the  Executive's  continuing  to serve on any such board  and/or
committees on which he is serving, or with which he is otherwise associated,  as
of the Effective  Date, not to interfere with his  performance of his duties and
responsibilities under this Agreement), (iii) serve on boards of other companies
and (iv) make  personal  appearances  and lectures,  and the Executive  shall be
entitled to receive and retain all  remuneration  received by him from the items
listed in clauses (i) through (iv) of this paragraph.

     4. Place of Performance.  During the Employment  Period,  the Company shall
maintain  executive  offices  for the  Executive  in the  greater  Los  Angeles,
California area and the executive shall not be required to relocate to any other
location.  During the Employment Period, the Company shall provide the Executive
with an office  and  staff  normally  associated  with and  appropriate  for the
discharge of his  responsibilities.  During the Employment  Period,  the Company
shall  provide  housing  costs in an amount  that allows  Executive  to maintain
housing  equal  to the  standard  Executive  was  accustomed  to  prior to being
required to move to California.

     5. Compensation and Related Matters.

     (a) Base Salary.  During the Employment  Period,  the Company shall pay the
Executive  a base salary at the rate of not less than  $200,000  per year ("Base
Salary").  The  Executive's  Base Salary  shall be paid in  approximately  equal
installments in accordance with the Company's  customary payroll  practices.  If
the  Executive's  Base Salary is increased by the Company,  such  increased Base
Salary shall then constitute the Base Salary for all purposes of this Agreement.
$30,000 ("Deferred Salary") of Base Salary shall be deferred until the Company's
Operating  Cash Flows  defined as net income plus bonus  compensation  plus cash
interest  expense plus non-cash  expenses plus net change in working  capital in
accordance with generally accepted accounting principles) are sufficient to make
the  entire  Deferred  Salary  payment,  or  portion  thereof.   Upon  achieving
sufficient  Operating Cash Flows,  Executive  shall not be required to defer any
portion of Base Salary.  At the commencement of the first of Executive's  Annual
Extensions,  if any,  Executive's Base Salary shall be increased by a minimum of
five percent (5%) of the total compensation then being paid to Executive,  i.e.,
including Base Salary,  Annual Bonus, housing costs, and automobile and business
expenses.  It is  agreed  that as of the  date of  this  Agreement,  Executive's
minimum annual total  compensation is equal to $406,000.  At the commencement of
each subsequent  Executive's Annual Extensions,  if any, Executive's Base Salary
shall  be  additionally  increased  by a

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minimum of five  percent (5%) of any increase  over the  subsequent  year of the
Executive's  housing costs,  automobile  expense and business and  entertainment
allowance.

     (b) For each full fiscal  year of the  Company  that begins and ends during
the Employment  Period,  the Executive  shall be eligible to earn an annual cash
bonus (the "Annual Bonus") in such amount as shall be determined by the Board or
the Compensation Committee of the Board (the "Compensation  Committee") based on
the achievement by the Company of performance  goals established by the Board or
the Compensation  Committee for each such fiscal year, which may include targets
related to the Operating  Cash Flows of the Company;  provided,  that the Annual
Bonus shall be no less than 50% of Base  Salary.  The Board or the  Compensation
Committee shall establish  objective criteria to be used to determine the extent
to which performance goals have been satisfied.

     (c)  Automobiles.  The Company shall  provide the Executive  with a monthly
automobile allowance of no less than $1,000.

     (d) Business,  Travel and Entertainment Expenses. The Company shall provide
the Executive  with a monthly  business and  entertainment  allowance of no less
than  $1,000.  The  Company  shall  promptly  reimburse  the  Executive  for all
business,  travel and  entertainment  expenses  consistent  with the Executive's
titles including, without limitation, first class transportation or travel.

     (e) Vacation. The Executive shall be entitled to four weeks of vacation per
year  during the first two years;  five weeks of  vacation  per year  during the
third and fourth years;  six weeks of vacation  during the five and sixth years;
seven weeks of vacation during the seventh and eighth years;  and eight weeks of
vacation  after the  eighth  year of  service.  Vacation  not taken  during  the
applicable fiscal year (but not in excess of two weeks) shall be carried over to
the next following fiscal year.

     (f) Welfare,  Pension and Incentive  Benefit  Plans.  During the Employment
Period, the Executive (and his eligible spouse and dependents) shall be entitled
to participate in all the welfare  benefit plans and programs  maintained by the
Company  from time to time for the benefit of its senior  executives  including,
without limitation, all medical, hospitalization, dental, disability, accidental
death and  dismemberment  and travel accident  insurance plans and programs.  In
addition,  during the  Employment  Period,  the  Executive  shall be eligible to
participate in all pension, retirement, savings and other employee benefit plans
and programs  maintained from time to time by the Company for the benefit of its
senior executives.

     (g) Dues. During the Employment  Period,  the Company shall pay or promptly
reimburse  the  Executive  for  annual  dues  for  membership  in  the  American
Management   Association,   National  Association  of  Accountants  and  similar
organizations.

     6.  Termination.  The  Executive's  employment  hereunder may be terminated
during the Employment Period under the following circumstances:

     (a) Death.  The Executive's  employment  hereunder shall terminate upon his
death.

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     (b)  Disability.  If,  as a result  of the  Executive's  incapacity  due to
physical  or  mental  illness  as  determined  by a  physician  selected  by the
Executive,  and reasonably  acceptable to the Company,  (i) the Executive  shall
have  been  substantially  unable  to  perform  his  duties  hereunder  for  six
consecutive  months, or for an aggregate of 180 days during any period of twelve
consecutive  months  and  (ii)  within  thirty  days  after  written  Notice  of
Termination  is given to the Executive  after such six- or twelve- month period,
the Executive  shall not have  returned to the  substantial  performance  of his
duties on a full-time  basis,  the Company shall have the right to terminate the
Executive's employment hereunder for "Disability".

     (c) Cause.  The Company shall have the right to terminate  the  Executive's
employment for "Cause." For purposes of this  Agreement,  the Company shall have
"Cause" to terminate the Executive's employment only upon the Executive's:

          (i) conviction of a felony or willful gross misconduct that, in either
case,  results  in  material  and  demonstrable  damage to the  business  of the
Company; or

          (ii)  willful and  continued  failure to perform his duties  hereunder
(other  than such  failure  resulting  from the  Executive's  incapacity  due to
physical or mental  illness or after the issuance of a Notice of  Termination by
the  Executive for Good Reason)  within  thirty  business days after the Company
delivers to him a written demand for performance  that  specifically  identifies
the actions to be performed.

     For  purposes  of  this  Section  6(c),  no  act or  failure  to act by the
Executive shall be considered  "willful" if such act is done by the Executive in
the good faith belief that such act is or was to be beneficial to the Company or
one or more of its businesses,  or such failure to act is due to the Executive's
good faith belief that such action would be materially harmful to the Company or
one of its  businesses.  Cause shall not exist  unless and until the Company has
delivered to the Executive a copy of a resolution  duly adopted by a majority of
the  Board at a meeting  of the Board  called  and held for such  purpose  after
reasonable  (but in no event less than thirty days) notice to the  Executive and
an opportunity for the Executive,  together with his counsel, to be heard before
the  Board,  finding  that in the good faith  opinion of the Board that  "Cause"
exists,  and specifying  the  particulars  thereof in detail.  This Section 6(c)
shall not prevent  the  Executive  from  challenging  in any court of  competent
jurisdiction the Board's  determination  that Cause exists or that the Executive
has failed to cure any act (or failure to act) that purportedly formed the basis
for the Board's determination.

     (d) Good Reason.  The  Executive may  terminate  his  employment  for "Good
Reason" after giving the Company  detailed written notice thereof if the Company
shall have failed to cure the event or circumstance  constituting  "Good Reason"
within ten business days after receiving such notice. Good Reason shall mean the
occurrence of any of the following  without the written consent of the Executive
or his approval in his capacity as a Board Member:

          (i) the assignment to the Executive of duties  inconsistent  with this
Agreement or a change in his titles or authority;

          (ii) any failure by the Company to comply with Section 5 hereof in any
material way;

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          (iii) the  requirement of the Executive to relocate to locations other
than those provided in Section 4 hereof;

          (iv) the failure of the  Company to comply  with and  satisfy  Section
12(a) of this Agreement;

          (v) the  Company,  other than  through the  actions of the  Executive,
intentionally  violates any federal or state law or  regulation  that results in
material  and  demonstrable  damage to the  business of the  Company  and/or the
reputation of the Executive;

          (vi) any material breach of this Agreement by the Company;

          (vii) the Company  loses or is unable to renew any  funeral  director,
crematory, pre-need or other license necessary to carry on a material portion of
the Company's  business in any State in which the Company is currently  licensed
as a result of a Change in Control of the Company as defined in Section  6(g) of
this Agreement; or

          (viii) the Company  engages in a material  transaction or transactions
out of the  ordinary  course of business  that  materially  affects the on-going
business of the Company.

     The Executive's right to terminate his employment hereunder for Good Reason
shall not be affected by his incapacity due to physical or mental  illness.  The
Executive's continued employment shall not constitute consent to, or a waiver of
rights  with  respect  to, any act or failure to act  constituting  Good  Reason
hereunder.

     (e)  Without  Cause.  The Company  shall have the right,  at any time after
February 28, 2005, to terminate the  Executive's  employment  hereunder  without
Cause by providing the Executive with a Notice of Termination.

     (f) Without Good Reason.  The  Executive  shall have the right to terminate
his  employment  hereunder  without Good Reason by providing  the Company with a
Notice of Termination.

     (g) Change of Control.  The Executive may terminate his employment due to a
change of control of The Neptune  Society,  Inc. by providing the Company with a
Notice of Termination.  However,  the Executive may not terminate his employment
until a date that is between six (6) and twelve (12) months on or after the date
that the Company  first  publicly  announces a definitive  agreement  that would
result in a Change of Control (even though such  definitive  agreement may still
be subject to approval by the Company's  stockholders  and other  conditions and
contingencies).  Change of Control for the  purposes of this  Section 6(g) shall
mean:

     (i) if any person or entity  becomes  the  beneficial  owner,  directly  or
indirectly,  of securities of The Neptune Society, Inc. representing 50% or more
of the  common  stock  and  voting  power of The  Neptune  Society,  Inc.  (this
provision  shall not be  applicable  to a Change in  Control  that  occurs on or
before March 10, 2006,  in which any one of Green Leaf  Investors,  LLC,  CapEx,
L.P., Bow River Capital Fund L.P., BG Capital Group Ltd., or any entity in which
the principals of any one of the foregoing  companies owns a majority  interest,
becomes the  beneficial  owner,  directly or  indirectly,  of  securities of The
Neptune  Society,   Inc.  representing  fifty  percent  (50%)  or  more  of  the
outstanding  shares of the common stock of The Neptune Society,  Inc., or of the
combined  voting  power  of  The  Neptune   Society,   Inc.'s   then-outstanding
securities.  For clarification purposes,

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a copy of the  shareholders  of record as of the date  that  this  Agreement  is
entered into is attached hereto as "Exhibit B")

          (ii) a change in the  shareholders  of record of The Neptune  Society,
Inc.  at the time that this  Agreement  is entered  into,  such that the current
shareholders  do not retain at least 50% of the common stock and voting power of
The Neptune Society, Inc. (this provision shall not be applicable to a Change in
Control that occurs on or before March 10, 2006,  in which any one of Green Leaf
Investors, LLC, CapEx, L.P., Bow River Capital Fund L.P., BG Capital Group Ltd.,
or any entity in which the principals of any one of the foregoing companies owns
a majority interest,  becomes the beneficial owner,  directly or indirectly,  of
securities of The Neptune Society, Inc. representing fifty percent (50%) or more
of the outstanding  shares of the common stock of The Neptune Society,  Inc., or
of the combined  voting power of The Neptune  Society,  Inc.'s  then-outstanding
securities.  For clarification purposes, a copy of the shareholders of record as
of the date that this  Agreement is entered into is attached  hereto as "Exhibit
B"); or

          (iii) in the event that on or after March 10,  2004,  any one of Green
Leaf Investors,  LLC, CapEx, L.P., Bow River Capital Fund L.P., BG Capital Group
Ltd.,  or any  entity  in  which  the  principals  of any  one of the  foregoing
companies owns a majority  interest,  becomes the beneficial owner,  directly or
indirectly,  of 50% or more of the common  stock and voting power of The Neptune
Society,  Inc. and subsequent to such  shareholder  owning 50% or more of the of
the common stock and voting power of The Neptune  Society,  Inc such shareholder
does not retain at least 50% of the common stock and voting power of The Neptune
Society, Inc

          (iii)  if  The  Neptune  Society,   Inc.  is  party  to  a  merger  or
consolidation,  or series of related  transactions,  which results in the voting
securities of The Neptune Society,  Inc.  outstanding  immediately prior thereto
failing to continue to represent  (either by remaining  outstanding  or by being
converted  into voting  securities of the surviving or another  entity) at least
fifty percent (50%) of the combined voting power of the voting securities of The
Neptune Society, Inc. or such surviving or other entity outstanding  immediately
after such merger or consolidation; or

          (iv) approval by the  shareholders of The Neptune  Society,  Inc. of a
liquidation,  dissolution  or sale of all of the assets of The Neptune  Society,
Inc.

     7. Termination Procedure.

     (a) Notice of Termination. Any termination of the Executive's employment by
the  Company  or by the  Executive  during the  Employment  Period  (other  than
pursuant to Section 6(a)) shall be communicated by written Notice of Termination
to the other party.  For purposes of this  Agreement,  a "Notice of Termination"
shall  mean a notice  indicating  the  specific  termination  provision  in this
Agreement  relied  upon and  setting  forth in  reasonable  detail the facts and
circumstances  claimed to  provide a basis for  termination  of the  Executive's
employment under that provision.

     (b)  Date of  Termination.  "Date  of  Termination"  shall  mean (i) if the
Executive's  employment is terminated by his death, the date of his death,  (ii)
if the  Executive's  employment is terminated  pursuant to Section 6(b),  thirty
(30) days after the date of receipt of the Notice of Termination

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(provided that the Executive does not return to the  substantial  performance of
his duties on a full-time  basis during such thirty (30) day  period),  (iii) if
the  Executive's  employment (A) is terminated  pursuant to Section 6(c), (B) is
terminated pursuant to Section 6(d), (C) is terminated pursuant to Section 6(e),
(D) is  terminated  by  reason of the  expiration  of the  Employment  Period on
December 31, 2010,  or (E) is terminated  pursuant to Section  6(g),  the day on
which the Executive receives the Purchase Price in full as hereinafter  provided
in Section 8(d),  and (iv) if the  Executive's  employment is terminated for any
other reason,  the date on which a Notice of  Termination  is given or any later
date (within thirty (30) days after the giving of such notice) set forth in such
Notice  of  Termination.  Upon  the  Date  of  Termination,  the  Executive,  if
applicable, shall resign as an officer, director and employee of the Company.

     8. Compensation Upon Termination,  Expiration of Employment Period,  Change
of Control or During Disability.  In the event the Executive is disabled or dies
or his employment  terminates  during the Employment  Period,  the Company shall
provide the  Executive  with the payments  and  benefits  set forth  below.  The
Executive  acknowledges and agrees that the payments set forth in this Section 8
constitute  liquidated  damages for  termination  of his  employment  during the
Employment Period and shall be the Executive's sole and exclusive remedy.

     (a) By Executive  Without Good Reason.  If the  Executive's  employment  is
terminated  by the  Executive  other  than for Good  Reason  or Due to Change of
Control,  then the Company  shall provide the Executive on or before the Date of
Termination  with (i) his Base  Salary,  all  deferred  compensation  (including
deferred,  accrued and/or board or compensation committee approved but unaccrued
compensation  and/or other type of consideration),  all payments due pursuant to
Section 15 and accrued  vacation pay through the Date of  Termination;  and (ii)
reimbursement  pursuant to Section 5(d) for business  expenses  incurred but not
paid  prior  to such  termination  of  employment  (hereafter  (i) and  (ii) are
referred to as "Accrued Obligations"); and the Executive shall retain the rights
to exercise any and/or all vested options to purchase the Company's common stock
until the tenth  anniversary of the Date of Termination.  The Company shall have
no further obligation to the Executive hereunder.

     (b)  Disability.  During any period that the Executive fails to perform his
duties  hereunder as a result of  incapacity  due to physical or mental  illness
("Disability  Period."),  the Executive  shall continue to receive his full Base
Salary set forth in Section 5(a) until his employment is terminated  pursuant to
Section  6(b).  In the  event  the  Executive's  employment  is  terminated  for
Disability  pursuant to Section  6(b),  the Company  shall provide the Executive
with the  excess,  if any,  of his full  Base  Salary  over  the  amount  of any
long-term  disability  benefits  that he receives  under the  Company's  welfare
benefit  plans and  programs,  payable in  accordance  with the  normal  payroll
practices of the Company, for the remainder of the Employment Period, payment on
or before the Date of  Termination of Executive's  Accrued  Obligations  and the
Executive  shall retain the rights to exercise any and/or all vested  options to
purchase the Company's  common stock until the tenth  anniversary of the Date of
Termination.  The Company  shall have no further  obligations  to the  Executive
hereunder.

     (c) Death.  If the Executive's  employment is terminated by his death,  the
Company shall provide to the Executive's  beneficiary,  legal representatives or
estate,  as the case may be,  the  Executive's  full  Base  Salary,  payable  in
accordance with the normal payroll practices of the Company,  for a

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period  equal to no longer  than one (1) year after the date of the  Executive's
death, or the remaining term of the Employment Period, which is earlier, payment
within  thirty  days of his death of  Executive's  Accrued  Obligations  and the
rights to  exercise  any and/or all vested  options to  purchase  the  Company's
common stock until the tenth anniversary of his death. The Company shall have no
further obligations to the Executive hereunder,

     (d) Termination By the Company With Cause, Without Cause, Due to Expiration
of  Employment  Period  or By  Executive  for Good  Reason  or Due to  Change of
Control.  If (A) the  Executive's  employment  is terminated by the Company with
Cause,  (B) the  Executive's  employment is  terminated  by the Company  without
Cause,  (C) the Executive is still  employed by the Company under this Agreement
as of  December  30,  2010,  or (D) the  Executive  has  delivered  a Notice  of
Termination to the Company pursuant to Sections 6(d) or 6(g):

          (i) the Company shall forthwith deliver a Notice of Termination to the
Executive  (even if the Executive has delivered a Notice of  Termination  to the
Company  pursuant to  Sections  6(d) or 6(g)) which shall state that the Company
shall purchase the following common shares,  options and warrants of The Neptune
Society, Inc. which are owned by the Executive or related parties as at the date
of this Agreement (the "Executive's Shares"):

               A. 123,376 common shares owned by the Executive;

               B. Options,  owned by the  Executive,  to acquire  150,000 common
               shares in the Company at an exercise price of $0.65 per share;

               C. 307,692 common shares owned by 570421 B.C. Ltd.;

               D. Warrants, owned by 570421 B.C. Ltd., to acquire 307,692 common
               shares in the  Company at an  exercise  price of $0.72 per share;
               and

               E. 107,750 common shares owned by Karla Markin;

and which shall state the amount which the Company will pay for the  Executive's
Shares (the "Purchase Price").

          (ii) if the Executive  disputes the amount of the Purchase Price,  the
Executive shall deliver  written notice to the Company (the "Valuation  Notice")
within  fifteen  (15) days of  receiving  the Notice of  Termination  under this
Section  8(d),  requesting  that the price which the  Company  shall pay for the
Executive's Shares be determined by a third party valuator (the "Valuator").  If
the Valuation Notice is not received by the Company within such fifteen (15) day
period,  then the  Purchase  Price  shall  remain  as set out in the  Notice  of
Termination.  Upon the Company  receiving  the Valuation  Notice,  the Executive
shall meet with the Directors of the Company for the purposes of identifying and
retaining  the  Valuator.  The Valuator  shall be from any one of the then three
largest  accounting firms in the United States.  In the event that the Executive
and the  Directors  of the Company do not agree upon the choice of the  Valuator
within 30 days of the delivery of the Valuation Notice, then a list comprised of
the three largest accounting firms in the United States shall be generated.  The
Executive shall,  within 3 business days, strike the name of one accounting

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firm from the list and the Company shall, within 3 business days after receiving
notice of the name stricken by the Executive,  strike the name of one accounting
firm from the list.  The remaining  accounting  firm shall be engaged to conduct
the valuation, with a request that the accounting firm assign the person or team
of persons best qualified to value a company in the death services industry.

          (iii) The Valuator  shall prepare and deliver to the Executive and the
Directors of the Company a written report (the "Valuation  Report")  setting out
the fair market value of the Executive's Shares as soon as possible,  but in any
event within 60 days after being  retained.  The Valuator shall prepare  his/her
Valuation Report based on the Company's value as an on-going  business  concern,
and  any  other  valuation  methods  that  the  Valuator  believes,  in  his/her
professional  judgment,  to be appropriate under all of the  circumstances.  The
Valuation  Report shall be based on the  performance and value of the Company as
averaged  over  the  three  years  immediately  preceding  the  delivery  of the
Valuation  Notice.  In the event that the Valuator  uses more than one method of
valuation,  the Executive's Shares shall be valued using the method of valuation
that assigns the highest value to  Executive's  Shares,  provided that method is
one of the general  accepted  methods of business  valuation  used in accounting
industry in the United States.  The Valuation  Report shall be final and binding
on the parties and the highest fair market value of the  Executive's  Shares set
forth in the Valuation Report shall be deemed to be the Purchase Price;

          (iv) The Company  shall  promptly  make  available to the Valuator all
books,  records and other data and information in their possession or control as
the Valuator may reasonably require for the purposes of his or her valuation;

          (v) The  value  of the  Executive's  Shares  to be  determined  by the
Valuator  shall be equal to 13% of the value of the Company.  The Valuator shall
base such  determination of 13% of the value of the Company on a pro-rated basis
of the fair market  value of all of the common  shares of the  Company,  without
considering a premium for a control position, a discount for a minority position
or the trading  price of the common stock on a stock  exchange.  The fair market
value  of the  Executive's  Shares  shall  also be  increased  by the sum of the
difference,  if any,  between the amount of dividends paid by the Company to the
Executive or related parties,  on account of the Executive's  Shares,  since the
date of this Agreement  until the date of the Valuation  Report,  and 13% of the
total amount of dividends  paid by the Company,  on account of any shares of the
Company, during such time period;

          (vi)  The  Company  shall  pay all fees and  expenses  charged  by the
Valuator for preparing the Valuation  Report and the Valuator  shall be entitled
to retain such qualified independent  appraisers as each may deem appropriate to
assist with its valuation;

          (vii) The Company shall pay the  Executive the Purchase  Price in full
no  later  than 90 days  following  the  Company's  delivery  of the  Notice  of
Termination  to the Executive,  or in the event that the Executive  delivers the
Valuation  Notice to the Company,  no later than 90 days following the Company's
receipt of the  Valuation  Report.  In no event will the Company be obligated to
pay the Purchase Price to the Executive if a continuing  Default Event (one that
has not  previously  been  waived or cured)  has  occurred  under the  Debenture
Purchase  and  Amendment  Agreement  dated July 31, 2003 between the Company and
CapEx,  LP and DH Blair  Investment  Banking Corp (the

                                       9
<PAGE>

"Senior  Lenders") or the Amended and Restated  Debentures  issued to the Senior
Lenders by the Company on July 31,  2003.  Also,  in the absence of a continuing
Default  Event (as defined in the above  referenced  agreements  with the Senior
Lenders),  the Company will not be  obligated to pay the Purchase  Price if such
payment  would  render the  Company  insolvent  or  otherwise  unable to pay its
liabilities in the normal course of business,  which  liabilities  would include
the regularly scheduled monthly and annual principal and interest due the Senior
Lenders.  Provided,  however,  that if the Company is unable to pay the Purchase
Price for such reasons,  the Company will use all reasonable  commercial efforts
to raise capital for the Company to enable the Company to pay the Purchase Price
to the Executive  when so obligated.  For so long as the purchase  price remains
unpaid,  the executive shall continue to be employed by the Company  pursuant to
the terms hereunder. (Employment period shall be so extended) until the Purchase
Price is paid in full to the Executive. During this time the base salary payable
to the  Executive  is to be  increased  by 12% per  annum.  Notwithstanding  the
forgoing and as long as a continuing Default Event has not occurred with respect
to the agreements with the Senior Lenders referred to above in this Section, the
Company shall  immediately pay to the Executive when due whatever portion of the
Purchase  Price the Company is able to pay without  rendering  it  insolvent  or
unable to pay its liabilities in the normal course of business.

          (viii) No  transfer  of the  Executive's  Shares  shall be made to the
Company unless and until the Purchase Price is paid in full. The Executive shall
retain full voting and other applicable rights until the Executive's  Shares are
transferred to the Company.

          (ix) Until the Company pays the Executive the Purchase  Price in full,
the  Executive  shall be  entitled  to continue to receive and shall be paid all
compensation  and  benefits,  including  pro-rated  Base Salary,  Annual  Bonus,
housing costs, automobile expense, business and entertainment expense and health
benefits,  set forth in  sections  4(a) and 5  hereof,  in  accordance  with the
Company's customary payroll practices; and

          (x) The  foregoing  provisions  shall be subject to the Right of First
Refusal Agreement between CapEx,  L.P., D.H. Blair Investment Banking Corp., The
Neptune Society,  Inc. and Marco Markin, dated as of December 24, 1999 CapEx has
the first right to purchase the Executive's Shares upon Notice of Termination at
the  Purchase  Price,  as provided for in the Right of First  Refusal  Agreement
("ROFR").  In addition  to the Notice (as  defined in the ROFR)  required in the
ROFR,  CapEx shall receive copies of the Notice of Termination  from the Company
to the  Executive  within 5 days of  receipt  of  Notice of  Termination  by the
Executive.  If the Executive does not accept the offered  Purchase Price,  CapEx
shall receive promptly copies of the Valuation Notice and the Valuation Report.

Upon payment in full of the Purchase Price by the Company to the Executive,  the
Company shall have no further obligation to the Executive hereunder.

     (e)  Mitigation.  The Executive  shall not be required to mitigate  damages
with  respect to the  termination  of his  employment  under this  Agreement  by
seeking  other  employment or  otherwise,  and there shall be no offset  against
amounts  due the  Executive  under  this  Agreement  on  account  of  subsequent
employment  except as  specifically  provided in this  Section 8.  Additionally,
amounts owed to the Executive  under this  Agreement  shall not be offset by any

                                       10
<PAGE>

claims the Company may have against the Executive,  and the Company's obligation
to make the payments  provided for in this  Agreement,  and otherwise to perform
its  obligations  hereunder,  shall not be affected by any other  circumstances,
including,  without limitation, any counterclaim,  recoupment,  defense or other
right which the Company may have against the Executive or others.

     8.1. Restrictions on Shares

     (a)  The  Executive,  shall  not,  at any  time  during  the  term  of this
Agreement,  without the consent of the Company, which consent may be withheld at
the Company's sole discretion,  exchange,  transfer, assign, donate or otherwise
dispose  of the  Executive's  Shares  or  cause  the  Executive's  Shares  to be
exchanged, transferred, assigned, donated or otherwise disposed of; and

     (b) The Executive shall not, at any time during the term of this Agreement,
without  the  consent of the  Company,  which  consent  may be  withheld  at the
Company's sole discretion,  create, incur, assume or suffer to exist upon any of
the Executive's Shares any liens whatsoever,  or cause to be created,  incurred,
assumed  or  suffered  to exist  upon any of the  Executive's  Shares  any liens
whatsoever.

     9. Confidential Information; Non-Competition; Nonsolicitation.

     (a) Confidential  Information.  Except as may be required or appropriate in
connection with his carrying out his duties under this Agreement,  the Executive
shall not  communicate to anyone other than the Company and those  designated by
the Company or on behalf of the Company in the furtherance of its business or to
perform  his duties  hereunder,  any trade  secrets,  confidential  information,
knowledge or data relating to the Company and its  businesses  and  investments,
obtained by the  Executive  during the  Executive's  employment  by the Company,
except as compelled by a judiciary proceeding of competent jurisdiction.

     (b)  Noncompetition.  In the  event  the  Purchase  Price  is  paid  to the
Executive,  the  Executive  shall not, for period of 12 months after the Date of
Termination,  engage in or become associated with any Competitive Activity.  For
purposes of this Section 9(b), a "Competitive  Activity" shall mean any business
or other endeavor that engages in any state in which the Company has significant
business  operations as of the Date of Termination to a significant  degree in a
business  that  directly  competes  with  all or  any  substantial  part  of the
Company's business as of the Date of Termination;  provided, that, a Competitive
Activity  shall not  include  (i) any  speaking  engagement  to the extent  such
speaking  engagement  does not  promote  or  endorse a product or service of the
Business,  (ii) the writing of any book or article  relating  to subjects  other
than the  Business  (e.g.,  nonfiction  relating  to the  Executive's  career or
general business advice) or (iii) the television,  video or movie business.  The
Executive  shall be  considered  to have become  "associated  with a Competitive
Activity"  if he becomes  involved  as an owner,  employee,  officer,  director,
independent  contractor,  agent,  partner,  advisor,  or in any  other  capacity
calling  for the  rendition  of the  Executive's  personal  services,  with  any
individual, partnership,  corporation or other organization that is engaged in a
Competitive  Activity and his involvement relates to a significant extent to the
Competitive Activity of such entity; provided, however, that the Executive shall
not be  prohibited  from (a) owning less than five  percent (5%) of any publicly

                                       11
<PAGE>

traded  corporation,  whether or not such corporation is in competition with the
Company or (b)  serving  as a  director  of a  corporation  or other  entity the
primary  business of which is not a Competitive  Activity.  If, at any time, the
provisions   of  this  Section  9(b)  shall  be  determined  to  be  invalid  or
unenforceable,  by reason of being vague or unreasonable as to area, duration or
scope of activity,  this Section 9(b) shall be  considered  divisible  and shall
become  and be  immediately  amended to only such  area,  duration  and scope of
activity as shall be determined to be reasonable and enforceable by the court or
other body having  jurisdiction  over the matter;  and the Executive agrees that
this Section 9(b) as so amended shall be valid and binding as though any invalid
or unenforceable provision had not been included herein.

     (c) Nonsolicitation.  During the Employment Period, and for 12 months after
the Executive's Date of Termination if the Executive's  employment is terminated
by the Company for Cause or the  Executive  terminates  employment  without Good
Reason,  the Executive will not, directly or indirectly,  solicit for employment
by other than the  Company  any person  (other than any  personal  secretary  or
assistant  hired to work directly for the Executive)  employed by the Company or
its  affiliated  companies,  nor will the  Executive,  directly  or  indirectly,
solicit  for  employment  by other  than the  Company  any  person  known by the
Executive (after  reasonable  inquiry) to be employed at the time by the Company
or its affiliated companies.

     (d)  Injunctive  Relief.  In the event of a breach or threatened  breach of
this  Section 9, the  Executive  agrees  that the  Company  shall be entitled to
injunctive  relief in a court of  appropriate  jurisdiction  to remedy  any such
breach or threatened breach,  the Executive  acknowledging that damages would be
inadequate and insufficient.

     10. Indemnification.

     (a) General. The Company agrees that if the Executive is made a party or is
threatened to be made a party to any action, suit or proceeding,  whether civil,
criminal,  administrative  or investigative (a  "Proceeding"),  by reason of the
fact that the Executive is or was a trustee, director or officer of the Company,
or any of its affiliates or is or was serving at the request of the Company,  or
any of its affiliates as a trustee, director, officer, member, employee or agent
of another  corporation  or a  partnership,  joint  venture,  limited  liability
company, trust or other enterprise,  including, without limitation, service with
respect to employee  benefit plans,  whether or not the basis of such Proceeding
is alleged action in an official capacity as a trustee, director officer, member
employee  or agent  while  serving  as a  trustee,  director,  officer,  member,
employee or agent,  the Executive  shall be indemnified and held harmless by the
Company to the fullest extent  authorized by California  law, as the same exists
or may  hereafter be amended,  against all Expenses  incurred or suffered by the
Executive in connection therewith, and such indemnification shall continue as to
the  Executive  even if the  Executive  has ceased to be an  officer,  director,
trustee or agent, or is no longer employed by the Company and shall inure to the
benefit of his heirs, executors and administrators.

     (b) Expenses. As used in this Agreement, the term "Expenses" shall include,
without limitation,  damages, losses, judgments,  liabilities, fines, penalties,
excise taxes,  settlements,  and costs,

                                       12
<PAGE>

attorneys' fees, accountants' fees, and disbursements and costs of attachment or
similar  bonds,  investigations,  and any  expenses of  establishing  a right to
indemnification under this Agreement.

     (c) Enforcement. If a claim or request under this Section 10 is not paid by
the Company or on its behalf;  within  thirty (30) days after a written claim or
request  has  been  received  by the  Company,  the  Executive  may at any  time
thereafter  bring suit  against the Company to recover the unpaid  amount of the
claim or request and if successful in whole or in part,  the Executive  shall be
entitled to be paid also the expenses of prosecuting  such suit. All obligations
for indemnification  hereunder shall be subject to, and paid in accordance with,
applicable California law.

     (d)  Partial  Indemnification.  If the  Executive  is  entitled  under  any
provision  of this  Agreement  to  indemnification  by the Company for some or a
portion of any Expenses,  but not,  however,  for the total amount thereof,  the
Company  shall  nevertheless  indemnify  the  Executive  for the portion of such
Expenses to which the Executive is entitled.

     (e) Advances of Expenses.  Expenses incurred by the Executive in connection
with any Proceeding  shall be paid by the Company in advance upon request of the
Executive  that the  Company pay such  Expenses,  but only in the event that the
Executive  shall have  delivered in writing to the Company (i) an undertaking to
reimburse  the Company for Expenses  with respect to which the  Executive is not
entitled to  indemnification  and (ii) a statement of his good faith belief that
the standard of conduct  necessary for  indemnification  by the Company has been
met.

     (f) Notice of Claim.  The Executive shall give to the Company notice of any
claim made against his for which  indemnification  will or could be sought under
this  Agreement.  In  addition,  the  Executive  shall  give  the  Company  such
information and cooperation as it may reasonably  require and as shall be within
the  Executive's  power and at such times and places as are  convenient  for the
Executive.

     (g)  Defense  of Claim.  With  respect  to any  Proceeding  as to which the
Executive notifies the Company of the commencement thereof:

          (i) The Company  will be entitled  to  participate  therein at its own
expense;

          (ii) Except as  otherwise  provided  below,  to the extent that it may
wish,  the Company  will be entitled to assume the defense  thereof with counsel
reasonably satisfactory to the Executive, which in the Company's sole discretion
may be regular  counsel to the Company and tray be counsel to other officers and
directors of the Company or any  subsidiary.  The Executive  also shall have the
right to  employ  his own  counsel  in such  action,  suit or  proceeding  if he
reasonably  concludes that failure to do so would involve a conflict of interest
between the Company and the Executive, and under such circumstances the fees and
expenses of such counsel shall be at the expense of the Company.

          (iii) The Company shall not be liable to indemnify the Executive under
this  Agreement  for any  amounts  paid in  settlement  of any  action  or claim
affected without its written consent. The Company shall not settle any action or
claim in any  manner  which  would  impose  any  penalty  that

                                       13
<PAGE>

would not be paid  directly or  indirectly  by the Company or  limitation on the
Executive without the Executive's  written consent.  Neither the Company nor the
Executive  will  unreasonably  withhold or delay their  consent to any  proposed
settlement.

     (h)  Non-exclusivity.  The  right to  indemnification  and the  payment  of
expenses  incurred in defending a Proceeding in advance of its final disposition
conferred in this Section 10 shall not be exclusive of any other right which the
Executive may have or hereafter may acquire under any statute or  certificate of
incorporation  or bylaws of the Company or any  subsidiary,  agreement,  vote of
shareholders or disinterested directors or trustees or otherwise.

     (i)  Insurance.  The Company  shall obtain,  if not already in effect,  and
maintain  adequate  and proper  liability  insurance as is customary of a public
company in its industry.

     11. Legal Fees and Expenses.  If any contest or dispute shall arise between
the Company and the Executive  regarding any  provision of this  Agreement,  the
Company shall reimburse the Executive for all legal fees and expenses reasonably
incurred by the Executive in connection  with such contest or dispute,  but only
if  the  Executive  prevails  to  a  substantial  extent  with  respect  to  the
Executive's  claims  brought  and  pursued in  connection  with such  contest or
dispute.  Such reimbursement shall be made as soon as practicable  following the
resolution  of such contest or dispute  (whether or not  appealed) to the extent
the Company receives reasonable written evidence of such fees and expenses.

     12. Successors; Binding Agreement.

     (a) Company's  Successors.  No rights or  obligations  of the Company under
this  Agreement  may be assigned or  transferred,  except that the Company shall
require  any  successor  (whether  direct  or  indirect,  by  purchase,  merger,
consolidation or otherwise) to all or  substantially  all of the business and/or
assets of the Company to expressly assume and agree to perform this Agreement in
the same manner and to the same  extent  that the  Company  would be required to
perform it if no such  succession  had taken place.  As used in this  Agreement,
"Company"  shall include any successor to its business and/or assets (by merger,
purchase or otherwise) which executes and delivers the agreement provided for in
this Section 12 or which otherwise becomes bound by all the terms and provisions
of this Agreement by operation of law.

     (b)  Executive's  Successors.  The Executive may assign this Agreement to a
company  in  which  he  is  a  majority   owner   provided   that  such  company
contemporaneously  agrees  to loan  out the  services  of the  Executive  to the
Company  pursuant to the terms herein.  Except for the  foregoing,  no rights or
obligations of the Executive under this Agreement may be assigned or transferred
by the Executive other than his rights to payments or benefits hereunder,  which
may be transferred  only by will or the laws of descent and  distribution.  Upon
the Executive's death, this Agreement and all rights of the Executive  hereunder
shall inure to the benefit of and be enforceable by the Executive's  beneficiary
or beneficiaries,  personal or legal  representatives,  or estate, to the extent
any such person succeeds to the Executive's  interests under this Agreement.  If
the Executive  should die following  his Date of  Termination  while any amounts
would still be payable to him  hereunder if he had  continued to live,  all such
amounts unless  otherwise  provided  herein shall be paid in accordance with the
terms of this Agreement to such person or persons so appointed in writing by the
Executive, or otherwise to his legal representatives or estate.

                                       14
<PAGE>

     13. Notice.  For the purposes of this Agreement,  notices,  demands and all
other  communications  provided  for in this  Agreement  shall be in writing and
shall be deemed to have been duly given when delivered  either  personally or by
United States certified oar registered mail, return receipt  requested,  postage
prepaid, addressed as follows:

     If to the Executive:  At his residence address most recently filed with the
                           Company.

     If to the Company:    The Neptune Society, Inc.,
                           4312 Woodman Ave., Third Floor
                           Sherman Oaks, CA 91423
                           Attn: Chief Financial Officer

or to such other address as any party may have furnished to the other in writing
in  accordance  herewith,  except  that  notices of change of  address  shall be
effective only upon receipt.

     14. Parachute Excise Tax Gross-Up.  Other than in respect of payment of the
Purchase Price to the Executive,  if the Executive becomes subject to the excise
tax applicable to excess  parachute  payments under Section 4999 of the Internal
Revenue Code of 1986, as amended, then the Company shall reimburse Executive for
that tax (subject to certain  limitations).  The details of the gross-up payment
are described in "Exhibit A" attached and amended hereto.

     15. Intentionally Deleted

     16.  Miscellaneous.  No  provisions  of  this  Agreement  may  be  amended,
modified,  or waived  unless  such  amendment  or  modification  is agreed to in
writing signed by the Executive and by a duly authorized officer of the Company,
and such  waiver is set forth in writing  and signed by the party to be charged,
No waiver by either  party  hereto at any time of any breach by the other  party
hereto of any  condition or provision of this  Agreement to be performed by such
other  party  shall be deemed a waiver of similar or  dissimilar  provisions  or
conditions  at the same or at any prior or  subsequent  time.  No  agreements or
representations,  oral or  otherwise  express or  implied,  with  respect to the
subject  matter  hereof  have been made by either  party which are not set forth
expressly  in this  Agreement.  The  respective  rights and  obligations  of the
parties hereunder of this Agreement shall survive the Executive's termination of
employment and the termination of this Agreement to the extent necessary for the
intended   preservation   of  such  rights  and   obligations.   The   validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of  California  without  regard to its conflicts of law
principles.

     17.  Validity.  The  invalidity  or  unenforceability  of any  provision or
provisions 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.

     18. Entire Agreement. This Agreement sets forth the entire agreement of the
parties hereto in respect of the subject matter  contained herein and supersedes
all  prior  agreements,  promises,  covenants,   arrangements,   communications,
representations  or  warranties,  whether  in  respect  of such  subject  matter
including,  without  limitation.  Any prior  agreement of the parties  hereto in
respect  of the  subject  matter  contained  herein  is  hereby  terminated  and
canceled.

                                       15
<PAGE>

     19.  Withholding.  All payments  hereunder shall be subject to any required
withholding of Federal, state, and local taxes pursuant to any applicable law or
regulation.

     20. Section Headings. The section headings in this Employment Agreement are
for  convenience of reference  only, and they form no part of this Agreement and
shall not affect its interpretation.

     WITNESS  WHEREOF,  the parties  hereto have executed this  Agreement on the
date first above written.

THE NEPTUNE SOCIETY, INC.                         EXECUTIVE

_____________________________                     ______________________________
By:                                               Marco Markin
         Mathew Hoogendoorn
         Chief Financial Officer

                                       16
<PAGE>

                                   EXHIBIT A

Parachute Excise Tax Gross-Up provisions.

     (a) Gross-Up  Payment.  If it is deemed that any payment or distribution of
any type to or for the  benefit  of the  Executive  by the  Company,  any of its
affiliates,  any  person who  acquires  ownership  or control of the  Company or
ownership of a substantial portion of the Company's assets within the meaning of
Section  280(g) of the Internal  Revenue Code of 1986,  as amended (the "Code"),
(and the regulations  thereunder) or any affiliate of such person,  whether paid
or payable or distributed or distributable  pursuant to the terms of this letter
or otherwise (the "Total Payments"),  would be subject to the excise tax imposed
by Section 4999 of the Code or any  interest or  penalties  with respect to such
excise tax (such excise tax and any such interest or penalties are  collectively
referred  to as the  "Excise  Tax"),  then the  Executive  shall be  entitled to
receive an additional payment (a "Gross-Up Payment"). The amount of the Gross-Up
Payment shall be as follows:

     (i) If the  Gross-Up  Payment  becomes  payable  in a  taxable  year of the
Company in which the Company has no taxable  income  (after  taking into account
net operating loss  carry-forwards),  the Gross-Up Payment shall be equal to the
product of (A) 505  multiplied by (B) an amount  calculated to ensure that after
pate by the  Executive of all taxes (and any interest or penalties  imposed with
respect to such  taxes),  including  any Excise Tax,  imposed  upon the Gross-Up
Payment,  the Executive  retains an amount of the Gross-Up  Payment equal to the
Excise Tax imposed upon the Total Payments.

     (ii) If the  Gross-Up  Payment  becomes  payable  in a taxable  year of the
Company in which the Company has taxable  income  (after taking into account net
operating  loss catty  forwards),  the  Gross-up  Payment  shall be equal to the
excise tax imposed on the Executive by Section 4999 of the Code,  without regard
to any taxes payable by the Executive with respect to the Gross-Up Payment.

     (b)  Determination  by  Accountant.  All  determinations  and  calculations
required  to be  made  under  this  Exhibit  B shall  be made by an  independent
accounting firm selected by the Executive from among the largest five accounting
firms in the United  States (the  "Accounting  Firm"),  which shall  provide its
determination   (the   "Determination"),   together  with  detailed   supporting
calculations regarding the amount of any Gross-Up Payment and any other relevant
matter,  both  to  the  Company  and  the  Executive  within  five  days  of the
termination of the Executive's employment,  if applicable,  or such earlier time
has is requested by the Company or the Executive  (if the  Executive  reasonably
believes  that any of the Total  Payments may be subject to the Excise Tax).  If
the Accounting  Firm  determines that no Excise Tax is payable by the Executive,
it shall furnish the Executive  with a written  statement  that such  Accounting
Firm  has  concluded  that no  Excise  Tax is  payable  (including  the  reasons
therefor)  and that the Executive  has  substantial  authority not to report any
Excise Tax on the Executive's  federal income tax return.  If a Gross-Up Payment
is determined to be payable,  it shall be paid to the Executive within five days
after the  Determination  is  delivered  to the  Company or the

                                       17
<PAGE>

Executive.  Any  determination  by the Accounting Finn shall be binding upon the
Company and the Executive, absent manifest error. The Company shall pay the fees
and costs of the Accounting Firm.

     (c) Over and  Underpayments.  As a result of uncertainty in the application
of Section  4999 of the Code at the tithe of the  initial  determination  by the
Accounting Firm hereunder, it is possible that Gross-Up Payments not made by the
Company should have been made  ("Underpayment"),  or that Gross-Up Payments will
have been made by the Company which should not have been made  ("Overpayments").
In either such event,  the  Accounting  Firm shall  determine  the amount of the
Underpayment or Overpayment  that has occurred.  In the case of an Underpayment,
the amount of such Underpayment  shall be promptly paid by the Company to or for
the  benefit of the  Executive.  In the case of an  overpayment,  the  Executive
shall,  at the  direction  and  expense of the  Company,  take such steps as are
reasonably  necessary  (including  the fling of returns and claims for  refund),
follow reasonable instructions from, and procedures established by, the Company,
and otherwise reasonably cooperate with the Company to correct such Overpayment.

     (d) Limitation on Parachute Payments. Any other provision of this Exhibit A
notwithstanding,  if the  Excise  Tax could be  avoided  by  reducing  the Total
Payments  by $45,000 or less,  then the Total  Payments  shall be reduced to the
extent  necessary to avoid the Excise Tax and no Gross-Up Payment shall be made.
If the  Accounting  Firm  determines  that the Total  Payments are to be reduced
under the preceding sentence, then the Company shall promptly give the Executive
notice  to  that  effect  and a copy of the  detailed  calculation  thereof  The
Executive may then elect, in the Executive's sole discretion, which and how much
of the Total  Payments  are to be  eliminated  or reduced (as long as after such
election no Excise Tax will be payable)  and shall advise the Company in writing
of the  Executive's  election  within 10 days of receipt  of notice.  If no such
election is made by the Executive  within such 10-day  period,  then the Company
may elect  which  and how much of the Total  Payments  are to be  eliminated  or
reduced (as long as after such election no Excise Tax will be payable) and shall
notify the Executive promptly of such election.

                                       18EXHIBIT 4.1

                                    DPL INC.

                              OFFICER'S CERTIFICATE

Caroline E. Muhlenkamp, the Group Vice President and Interim Chief Financial
Officer of DPL Inc., an Ohio corporation (the "Company"), pursuant to the
authority granted in the Board Resolutions of the Company dated March 24, 2004
and Sections 201 and 301 of that certain Indenture of the Company, dated as of
March 1, 2000 (the "Indenture") between the Company and J.P. Morgan Trust
Company, National Association, as trustee (the "Trustee"), does hereby certify
to the Trustee, as follows (capitalized terms not separately defined herein
having the respective meanings ascribed thereto in the Indenture):

1.    A series of securities to be issued under the Indenture is hereby
      established and shall be designated "8% Senior Notes due 2009" (the
      "Notes", which term shall include the Private Notes and the Exchange Notes
      (each as defined herein), unless the context otherwise requires).

2.    The Notes shall be limited to the aggregate principal amount of
      $175,000,000 at any time Outstanding.

3.    The Notes shall mature and the principal shall be due and payable together
      with all accrued and unpaid interest thereon on March 31, 2009.

4.    The Notes shall be issued in fully registered form only in minimum
      denominations of $1,000 and integral multiples of $1,000 in excess
      thereof.

5.    (a)   The Notes shall bear interest at the rate of 8% per annum payable
            quarterly on March 31, June 30, September 30 and December 31 of each
            year and at maturity (each, an "Interest Payment Date"), commencing
            on June 30, 2004. Interest on the Notes will accrue from March 25,
            2004, but if interest has been paid on such Notes, then from the
            most recent Interest Payment Date to which interest has been paid or
            duly provided for; provided that if there is no existing default in
            the payment of interest, and if the applicable Notes are
            authenticated between a Regular Record Date (as defined herein) and
            the next succeeding Interest Payment Date, interest shall accrue
            from such next succeeding Interest Payment Date. If the Company does
            not comply with certain of its obligations under clause (b) of this
            paragraph 5, the Notes shall, in accordance with Section 2(e) of the
            Registration Rights Agreement and such clause (b), as the case may
            be, bear additional interest ("Additional Interest") in addition to
            the interest provided for in the first sentence of this paragraph 5.
            For purposes of this Officer's Certificate and the Notes, the term
            "interest" shall be deemed to include interest provided for in the
            first sentence of this paragraph 5 and Additional Interest, if any.
            In the event that any Interest Payment Date is not a Business Day,
            then payment of interest payable on such date will be made on the
            next succeeding day which is a Business Day (and without any
            interest or other payment in respect of any such delay), with the
            same force and effect as if made on such Interest Payment Date,
            except if that Business Day falls in the next succeeding calendar
            year, the particular Interest Payment Date will be the immediately
            preceding Business Day. The amount of interest payable for any
            period will be computed on the basis of a 360-day year of twelve
            30-day months and for any period shorter than a full month, on the
            basis of the actual number of days elapsed.

      (b)   If, on or prior to July 30, 2004, the Company has not filed its
            Annual Report on Form 10-K for the year ended December 31, 2003 (the
            "2003 Form 10-K") with the Securities and Exchange Commission (the
            "Commission"), or, if filed, the 2003 Form 10-K does not comply with
            the applicable rules and regulations of the Commission in all
            material respects, then the per annum interest rate under the Notes
            will increase by 1.0%, to be effective from August 1, 2004 until the
            2003 Form 10-K is so filed or so complies in all material respects
            with the applicable rules and regulations of the Commission, as the
            case may be. Such adjustment in the interest rate under the Notes,
            if any, shall be deemed to be liquidated damages and not a penalty,
            and shall be the exclusive remedy available to any holder of the
            Notes for the failure of the Company to file the 2003 Form 10-K as
            required in this clause (b); provided, however, that nothing
            contained in this clause (b) shall modify or otherwise affect any
            rights purchasers have under Section 2(e) of the Registration Rights
            Agreement.

6.    Except for interest payable at maturity of the Notes (which shall be
      payable to the same Person that is entitled to the payment of principal),
      each installment of interest on a Note shall be payable to the Person in
      whose name such Note is registered at the close of business on the
      calendar day next preceding the corresponding Interest Payment Date (the
      "Regular Record Date") for the Notes. Any installment of interest on the
      Notes not punctually paid or duly provided for shall forthwith cease to be
      payable to the Holders of such Notes on such Regular Record Date, and may
      be paid to the Persons in whose name such Notes are registered at the
      close of business on a Special Record Date to be fixed by the Trustee for
      the payment of such Defaulted Interest. Notice of such Defaulted Interest
      and Special Record Date shall be given to the Holders of such Notes not
      less than 10 days prior to such Special Record Date, or may be paid at any
      time in any other lawful manner not inconsistent with the requirements of
      any securities exchange on which such Notes may be listed, and upon such
      notice as may be required by such exchange, all as more fully provided in
      the Indenture.

7.    The principal, premium, if any, and each installment of interest on the
      Notes shall be payable at, and registration and registration of transfers
      and exchanges in respect of the Notes may be effected at, the office or
      agency of the Company in The City of New York; provided that (i) payment
      of interest may be made at the option of the Company by check mailed to
      the address of the person entitled thereto, and (ii) so long as (x) Cede &
      Co. or another nominee of The Depository Trust Company, or (y) the
      investors party to the Purchase Agreement (as defined in the Registration
      Rights Agreement) are the registered Holders of the Notes, payment of
      interest shall be made by wire transfer of immediately available funds to
      the accounts specified from time to time by such Holders to the Company.
      Notices and demands to or upon the Company in respect of the Notes may be
      served at the office or agency of the Company in The City of New York. The
      corporate trust operations office of the Trustee in The City of New York
      will initially be the agency of the Company for such payment, registration
      and registration of transfers and exchanges and service of notices and
      demands, and the Company hereby appoints the Trustee as its agent for all
      such purposes; provided, however, that the Company reserves the right to
      change, by one or more Officer's Certificates, any such office or agency
      and such agent. The Trustee will be the Security Registrar and the Paying
      Agent for the Notes. No exchanges of Private Notes for Exchange Notes
      shall occur until a registration statement has been declared effective by
      the Commission and any Private Notes that are exchanged for Exchange Notes
      shall be canceled by the Trustee.

8.    The Notes will be redeemable at the option of the Company prior to
      maturity as provided in the forms thereof attached hereto as Exhibit A and
      Exhibit B, as applicable.

9.    The Company has entered into an Exchange and Registration Rights Agreement
      dated as of March 25, 2004 (the "Registration Rights Agreement") with the
      purchasers of the Notes pursuant to which the Notes that are issued
      without registration (the "Private Notes") under the Securities Act of
      1933 (the "Securities Act") may be exchanged for Notes that will be
      registered under the Securities Act and that will otherwise have
      substantially the same terms as the Private Notes (the "Exchange Notes")
      or, failing such exchange, the Company will file a shelf registration for
      the resale of the Notes. The Private Notes will be offered and sold in
      reliance on an exemption from, or in transactions not subject to, the
      Securities Act, and Private Notes will be exchanged for Exchange Notes
      only pursuant to an effective registration statement under the Securities
      Act and in accordance with the Registration Rights Agreement. Except as
      provided in the Registration Rights Agreement, nothing in the Indenture,
      the Notes or this Officer's Certificate shall be construed to require the
      Company to register any Notes under the Securities Act, or to make any
      transfer of such Notes in violation of applicable law.

10.   So long as any Notes remain Outstanding, the Company will comply with the
      following covenants in addition to those specified in the Indenture,
      including Article Six thereof:

      (a)   Limitation on Liens. Section 608 of the Indenture shall be
            applicable to the Notes; provided, however, that such Section 608
            shall be amended so that "any Significant Subsidiary" shall replace
            "DP&L" in each place that "DP&L" appears in such Section 608.

            For purposes of this paragraph 10(a), and for purposes of Section
            608 of the Indenture, as amended by this paragraph 10(a), the term
            "Significant Subsidiary" shall mean DP&L and any other Subsidiary
            that would be a Significant Subsidiary (as defined in Rule 405 under
            the Securities Act) substituting five percent (5%) for ten percent
            (10%) in each of clauses (1), (2) and (3) of such definition. For
            purposes of this paragraph 10(a), in addition to clauses (1) through
            (4) of Section 608 of the Indenture, the restriction set forth in
            Section 608 of the Indenture shall not apply to nor prevent the
            creation or existence of liens for taxes or assessments or other
            governmental charges or levies not yet subject to penalty or which
            are being contested in good faith and by appropriate proceedings.

      (b)   Limitation on Incurrence of Certain Indebtedness.

            (i)  The Company shall not, and shall not permit any Subsidiary
            (other than DP&L) to, directly or indirectly, create, incur, assume,
            guarantee or become liable for any Indebtedness unless the
            Consolidated Coverage Ratio of the Company for the four consecutive
            fiscal quarters immediately preceding the issuance of such
            Indebtedness (as shown by a pro forma consolidated income statement
            of the Company submitted to the Trustee for the four most recent
            fiscal quarters ending at least 30 days prior to the issuance of
            such Indebtedness after giving effect to (1) the issuance of such
            Indebtedness and (if applicable) the application of the net proceeds
            thereof to refinance other Indebtedness as if such Indebtedness was
            issued at the beginning of the period, (2) the issuance and
            retirement of any other Indebtedness since the first day of the
            period as if such Indebtedness was issued or retired at the
            beginning of the period and (3) the acquisition of any company or
            business acquired by the Company since the first day of the period
            (including giving effect to the pro forma historical earnings of
            such company or business), including any acquisition which will be
            consummated contemporaneously with the issuance of such
            Indebtedness, as if in each case such acquisition occurred at the
            beginning of the period) exceeds a ratio of 2.0 to 1.0.

            (ii)  The provisions of clause (i) of this paragraph 10(b) shall not
            apply to the incurrence by the Company or any Subsidiary (other than
            DP&L) of (1) Indebtedness created, incurred or assumed to refinance,
            extend, renew, refund, repay, prepay, redeem, defease or retire
            indebtedness in existence on the date of this Officer's Certificate
            or other Indebtedness incurred in compliance with the provisions of
            this Officer's Certificate, provided that the principal amount (or
            accreted value, if applicable) of such Indebtedness does not exceed
            the principal amount (or accreted value, if applicable) of the
            Indebtedness being so refinanced (plus all accrued interest on the
            Indebtedness and the amount of all reasonable expenses and
            reasonable premiums incurred in connection therewith), (2)
            Subordinated Indebtedness, (3) up to $150 million of Indebtedness of
            the Company at any one time outstanding, (4) Indebtedness of the
            Company to any of its Subsidiaries (other than DP&L) or Indebtedness
            of any Subsidiary to the Company or another Subsidiary, (5)
            contingent obligations of the Company or any of its Subsidiaries in
            respect of customary indemnification and purchase price adjustment
            obligations incurred in connection with a sale or other disposition
            of property or assets, (6) Indebtedness incurred in respect of
            performance, surety and other similar bonds and completion
            guarantees provided by, and letters of credit issued by, the Company
            or any of its Subsidiaries in the ordinary course of business, and
            extensions, refinancings and replacements thereof, (7) purchase
            money indebtedness and capitalized lease obligations of DPL Energy
            Inc. and its subsidiaries that is non-recourse to the Company and
            its Subsidiaries (other than DPL Energy Inc. and its subsidiaries)
            incurred to acquire, construct or improve property and assets in the
            ordinary course of business and any refinancings, renewals or
            replacements of any such purchase money indebtedness or capitalized
            lease obligations and (8) Indebtedness consisting of guarantees made
            in the ordinary course of business by the Company or any Subsidiary
            of Indebtedness of the Company or any Subsidiary (other than DP&L)
            provided that such guaranteed Indebtedness has been incurred in
            compliance with the provisions of this Officer's Certificate. For
            the avoidance of doubt, any interest expense in respect of
            Indebtedness incurred under this clause (ii) shall be included in
            the definition of "Consolidated Interest Expense" set forth in
            clause (iii) below.

            (iii)  For purposes of this paragraph 10(b):

                  (1) "Indebtedness" shall have the meaning set forth in Section
            608 of the Indenture, but shall also apply to "Indebtedness", as so
            defined, of each Subsidiary (other than DP&L) to the same extent it
            applies to the Company.

                  (2) "Consolidated Coverage Ratio" with respect to any period
            means the ratio of (1) the aggregate amount of Operating Cash Flow
            for such period to (2) the aggregate amount of Consolidated Interest
            Expense for such period.

                  (3) "Consolidated Interest Expense" means, for any period, the
            total interest expense in respect of Indebtedness of the Company and
            its Subsidiaries, including, without duplication: interest expense
            attributable to capital leases; amortization of debt discount;
            distributions on the 8.125% trust preferred securities of DPL
            Capital Trust II; capitalized interest; cash and noncash interest
            payments; commissions, discounts and other fees and charges owed
            with respect to letters of credit and bankers' acceptance financing;
            net costs under interest rate protection agreements (including
            amortization of discount); and interest expense in respect of
            obligations of other Persons constituting Indebtedness of the
            Company or any of its Subsidiaries under the definition of
            Indebtedness; provided, however, that Consolidated Interest Expense
            shall exclude any costs otherwise included in interest expense
            recognized on early retirement of debt.

                  (4) "Consolidated Net Income" means, for any period, the net
            income of the Company and its Subsidiaries determined on a
            consolidated basis in accordance with generally accepted accounting
            principles; provided, however, that there shall not be included in
            such Consolidated Net Income any net income of any Person if such
            Person is not a Subsidiary, except that (A) the Company's equity in
            the net income of any such Person for such period shall be included
            in such Consolidated Net Income up to the aggregate amount of cash
            actually distributed by such Person during such period to the
            Company or a Subsidiary as a dividend or other distribution and (B)
            the Company's equity in a net loss of any such Person for such
            period shall be included in determining such Consolidated Net
            Income.

                  (5) "Operating Cash Flow" means, for any period, with respect
            to the Company and its Subsidiaries, the aggregate amount of
            Consolidated Net Income after adding thereto Consolidated Interest
            Expense (adjusted to include costs recognized on early retirement of
            debt), income taxes, depreciation expense, amortization expense and
            any noncash amortization of debt issuance costs and any
            nonrecurring, noncash charges to earnings.

                  (6) "Subordinated Indebtedness" means any Indebtedness of the
            Company which is contractually subordinated and junior in right of
            payment to the Notes on terms reasonably satisfactory to the Holders
            of a majority in principal amount of the Notes.

      (c)   Offer to Repurchase Upon Change of Control. (i) Upon the  occurrence
            of a Change of Control, the Company shall make an offer (a "Change
            of Control Offer") to each Holder to repurchase all or any part of
            each Holder's Notes at a purchase price equal to 101% of the
            aggregate principal amount thereof plus accrued and unpaid interest
            thereon, if any, to the date of purchase (the "Change of Control
            Payment"). Within 30 days following any Change of Control, the
            Company shall mail a notice to each Holder stating: (1) that the
            Change of Control Offer is being made pursuant to this paragraph
            10(c) and that all Notes tendered will be accepted for payment; (2)
            the purchase price and the purchase date, which shall be no earlier
            than 30 days and no later than 60 days from the date such notice is
            mailed (the "Change of Control Payment Date"); (3) that any Note not
            promptly tendered will continue to accrue interest pursuant to the
            terms thereof; (4) that, unless the Company defaults in the payment
            of the Change of Control Payment, all Notes accepted for payment
            pursuant to the Change of Control Offer shall cease to accrue
            interest after the Change of Control Payment Date; (5) that Holders
            electing to have any Notes or portions thereof purchased pursuant to
            a Change of Control Offer will be required to surrender the Notes,
            with the form entitled "Option of Holder to Elect Purchase" on the
            reverse of the Notes completed, to the Paying Agent at the address
            specified in the notice prior to the close of business on the third
            Business Day preceding the Change of Control Payment Date; (6) that
            Holders will be entitled to withdraw their election, in whole or in
            part, if the Paying Agent receives, not later than the close of
            business on the second Business Day preceding the Change of Control
            Payment Date, a telegram, facsimile transmission or letter setting
            forth the name of the Holder, the principal amount of the Note the
            Holder delivered for purchase, and a statement that such Holder is
            withdrawing his election to have all or a portion of such Note
            purchased and a statement of the principal amount for which such
            Holder is withdrawing its election (it being understood that in the
            absence of such a statement it shall be assumed that such election
            is being withdrawn in toto); and (7) that Holders whose Notes are
            being purchased only in part will be issued new Notes equal in
            principal amount to the unpurchased portion of the Notes
            surrendered. The Company shall comply with the requirements of
            Section 14(e) of, and Rule 14e-1 under, the Securities Exchange Act
            of 1934 and any other securities laws and regulations thereunder to
            the extent such laws and regulations are applicable in connection
            with the repurchase of Notes in connection with a Change of Control.
            To the extent that the provisions of any securities laws or
            regulations conflict with the provisions of this Indenture relating
            to a Change of Control Offer, the Company shall comply with the
            applicable securities laws and regulations and shall not be deemed
            to have breached its obligations under this paragraph 10(c) by
            virtue of such conflict.

            (ii) On the Change of Control Payment Date, the Company shall, to
            the extent lawful, (1) accept for payment all Notes or portions
            thereof properly tendered pursuant to the Change of Control Offer,
            (2) deposit with the Paying Agent an amount equal to the Change of
            Control Payment in respect of all Notes or portions thereof properly
            tendered and (3) deliver or cause to be delivered to the Trustee the
            Notes properly accepted together with an Officer's Certificate
            stating the aggregate principal amount of Notes or portions thereof
            being purchased by the Company. The Paying Agent shall promptly mail
            or otherwise transmit to each Holder of Notes so tendered the Change
            of Control Payment for the Notes, and the Trustee shall promptly
            authenticate and mail (or cause to be transferred by book entry) to
            each Holder a new Note equal in principal amount to any unpurchased
            portion of the Notes surrendered by such Holder, if any. The Company
            shall publicly announce the results of the Change of Control Offer
            on or as soon as practicable after the Change of Control Payment
            Date.

            (iii) Notwithstanding anything to the contrary in this paragraph
            10(c), the Company shall not be required to make a Change of Control
            Offer upon a Change of Control if a third party makes the Change of
            Control Offer in the manner, at the times and otherwise in
            compliance with the requirements set forth in this paragraph 10(c)
            applicable to a Change of Control Offer made by the Company and
            purchases all Notes properly tendered and not withdrawn under such
            Change of Control Offer.

            (iv) For purposes of this paragraph 10(c), (A) "Change of Control"
            means the occurrence of any of the following: (a) the direct or
            indirect sale, transfer, conveyance or other disposition (other than
            by way of merger or consolidation), in one or a series of related
            transactions, of all or substantially all of the assets of the
            Company, taken as a whole, to any "person" or "group" (as such terms
            are used in Section 13(d)(3) of the Securities Exchange Act of 1934)
            (for purposes of this subclause (a), the direct or indirect sale,
            transfer, conveyance or disposition of the majority of the voting
            stock or all or substantially all of the assets of DP&L (including,
            but not limited to, by way of a merger or consolidation involving
            DP&L) shall be deemed to be a transfer of all or substantially all
            of the assets of the Company, taken as a whole); (b) the adoption of
            a plan relating to the liquidation or dissolution of the Company;
            (c) the consummation of any transaction (including, without
            limitation, any merger or consolidation) or series of related
            transactions the result of which is that any "person" or "group" (as
            defined above) becomes the Beneficial Owner, directly or indirectly,
            of more than 50% of the voting stock of the Company, measured by
            voting power rather than number of shares; or (d) the first day on
            which a majority of the members of the Board of Directors of the
            Company are not Continuing Directors, (B) "Beneficial Owner" has the
            meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the
            Securities Exchange Act of 1934, except that in calculating the
            beneficial ownership of any particular "person" (as that term is
            used in Section 13(d)(3) of the Securities Exchange Act of 1934),
            such "person" will be deemed to have beneficial ownership of all
            securities that such "person" has the right to acquire by conversion
            or exercise of other securities, whether such right is currently
            exercisable or is exercisable only upon the occurrence of a
            subsequent condition (the terms "Beneficially Owns" and
            "Beneficially Owned" have a corresponding meaning), (C) "Continuing
            Directors" means, as of any date of determination, any member of the
            Board of Directors of the Company who (a) was a member of such Board
            of Directors on the date of this Officer's Certificate; or (b) was
            nominated for election or elected to such Board of Directors with
            the approval of a majority of the Continuing Directors who were
            members of such Board at the time of such nomination or election,
            and (D) "voting stock" shall have the meaning set forth in the
            definition of "Subsidiary" contained in the Indenture.

      (d)   Repurchase Right Upon Breach of Representation and Warranty.  If the
            representation and warranty contained in the fourth sentence of
            Section 3(a) of the Purchase Agreement proves to have been false or
            inaccurate on the date as of which made and, as of the date made,
            the Company had knowledge (as defined in the Purchase Agreement) of
            facts and circumstances reasonably related to such falsehood or
            inaccuracy, then, upon written request to the Company by any Holder
            (or beneficial owner) who is a party to the Purchase Agreement (or
            an Affiliate of such party or such party's successor as provided
            therein), the Company shall repurchase the Notes held by such Holder
            (or beneficial owner) at a repurchase price of 100% of the principal
            amount of the Notes being repurchased, plus accrued and unpaid
            interest thereon to the repurchase date, as soon as practicable
            after the receipt of such notice but, in any event, no later than
            ten (10) Business Days after the receipt of such notice. For
            purposes of this paragraph 10(d), for the avoidance of doubt, a
            successor to a party to the Purchase Agreement does not include any
            purchaser who is not an Affiliate of such party. Such fourth
            sentence of Section 3(a) of the Purchase Agreement states that "The
            audited consolidated financial statements for the year ended
            December 31, 2003, when filed with the Company's Annual Report on
            Form 10-K for the year ended December 31, 2003, will not vary in any
            material respect from the unaudited financial information for the
            year ended December 31, 2003 that is contained in the March 15, 2004
            Form 8-K."

11.   (a)   So long as any of the Notes remain Outstanding, each of the
            following events will constitute an "Event of Default" with respect
            to the Notes in addition to those Events of Default specified in
            Section 801 of the Indenture:

            (i) A default occurs under any mortgage, indenture or instrument
            under which there may be issued or by which there may be secured or
            evidenced any Indebtedness by the Company or any of its Significant
            Subsidiaries (or the payment of which is guaranteed by the Company
            or any of its Significant Subsidiaries), whether such Indebtedness
            or guarantee now exists, or is created after the date of this
            Officer's Certificate, which default is caused by a failure to pay
            principal when due, upon maturity, whether by occurrence of stated
            final maturity, required prepayment, acceleration, demand or
            otherwise (after giving effect to any applicable grace period
            provided in such Indebtedness) (a "Payment Default"), or results in
            the acceleration of such Indebtedness prior to its express maturity
            and, in each case, the principal amount of any such Indebtedness,
            together with the principal amount of any other such Indebtedness
            under which there has been a Payment Default or the maturity of
            which has been so accelerated, aggregates $25,000,000 or more.

            (ii) Failure by the Company to pay the repurchase price of the Notes
            when due pursuant to paragraph 10(d) of this Officer's Certificate.

      (b)   For purposes of this paragraph 11, the term "Indebtedness" shall
            have the same meaning as set forth in Section 608 of the Indenture,
            but shall also apply to "Indebtedness," as so defined, of each
            Significant Subsidiary to the same extent it applies to the Company,
            and the term "Significant Subsidiary" shall have the same meaning as
            set forth in paragraph 10(a) of this Officer's Certificate.

      (c)   For purposes of Section 802 of the Indenture, the Event of Default
            set forth in paragraph 11(a)(i) hereof shall be deemed to be a
            covenant or warranty of the Company applicable to the Notes.

12.   So long as any of the Notes remain outstanding, Section 1202 of the
      Indenture shall be amended to add a new clause (d) as follows: "(d) change
      any of the provisions of paragraph 10(c) or 10(d) of the Officer's
      Certificate establishing the Company's 8% Senior Notes due 2009 without,
      in any such case, the consent of the Holder of each such
      Outstanding Senior Note."

13.   (a)   Private  Notes offered and sold in reliance on Section 4(2) of the
            Securities Act shall be issued initially in the form of one or more
            permanent global Notes, substantially in the form of Exhibit A (a
            "Private Placement Global Security"), deposited with The Depository
            Trust Company (the "Clearing Agency") or the Trustee as custodian
            for the Clearing Agency. Transfers of beneficial interests in the
            Private Placement Global Security will be subject to the
            restrictions on transfer contained in the non-registration legend
            set forth in Exhibit A. Transfers of beneficial interests in the
            Private Placement Global Security will be made in accordance with
            the standing instructions and procedures of the Clearing Agency.

      (b)   Private Notes offered and sold in offshore transactions in reliance
            on Regulation S shall be issued initially in the form of one or more
            permanent global Notes, substantially in the form of Exhibit A (a
            "Regulation S Global Security"), but without the non-registration
            legend set forth therein, deposited with the Clearing Agency or the
            Trustee as custodian for the Clearing Agency. Prior to the
            expiration of the Distribution Compliance Period, transfers of
            beneficial interests in the Regulation S Global Security will be
            subject to the restrictions on transfer contained in the Regulation
            S legend set forth in Exhibit A. After the expiration of the
            Distribution Compliance Period, transfers of beneficial interests in
            the Regulation S Global Security will not be subject to any
            restrictions. Transfers of beneficial interests in the Regulation S
            Global Security will be made in accordance with the standing
            instructions and procedures of the Clearing Agency.

            For purposes of this Officer's Certificate, (i) "Clearing Agency
            Participant" means a broker, dealer, bank, other financial
            institution or other person for whom from time to time a Clearing
            Agency effects book-entry transfers and pledges of securities
            deposited with the Clearing Agency, (ii) "Distribution Compliance
            Period" means the period of 40 consecutive days beginning on and
            including the later of (x) the day on which the offering of the
            Notes commences or (y) the original issue date of the Notes, and
            (iii) "Global Securities Certificate" or "Global Security" means any
            Private Note in the form of a Private Placement Global Security, a
            Regulation S Global Security and, if applicable, any Exchange Note
            represented in global form and deposited with the Clearing Agency or
            the Trustee as custodian for the Clearing Agency.

      (c)   Exchange Notes shall be issued in global form, substantially in the
            form, and bearing the legends, set forth in Exhibit B deposited with
            the Clearing Agency or the Trustee as custodian for the Clearing
            Agency.

14.   (a)   So long as the Private Notes are eligible for book-entry settlement
            in the Clearing Agency or unless otherwise required by law, all
            Private Notes that are so eligible will be represented by one or
            more Global Securities Certificates deposited with the Clearing
            Agency or the Trustee as custodian for the Clearing Agency. No owner
            of a beneficial interest in a Global Securities Certificate will
            receive Notes issued in definitive, fully registered form
            ("Definitive Notes Certificate") representing such owner's
            beneficial interest in the Private Notes, except as provided in
            paragraph 14(f) below; provided, however, that the Company shall
            issue a Definitive Notes Certificate upon any transfer of a
            beneficial interest in a Global Security to the Company or an
            Affiliate of the Company and no Definitive Notes Certificate, or
            portion thereof, in respect of which the Company or an Affiliate of
            the Company held any beneficial interest shall be resold,
            retransferred or included in any Global Security until such Private
            Note is freely tradeable in accordance with Rule 144(k) under the
            Securities Act or exchanged for an Exchange Note.

      (b)   Global Securities shall initially be registered in the name of a
            nominee of the Clearing Agency.

      (c)   Transfers of interests in Private Notes between any Private
            Placement Global Security and any Regulation S Global Security will
            be made in accordance with this Officer's Certificate (including
            paragraph 14(d)(1) and (2) below, as applicable) and in accordance
            with the standing instructions and procedures of the Clearing
            Agency. The Trustee shall make appropriate endorsements to reflect
            increases or decreases in the amount of such Global Securities.

      (d)   Unless and until the earlier of (i) the date upon which Private
            Notes are exchanged for Exchange Notes in connection with an
            effective registration statement pursuant to the Registration Rights
            Agreement or (ii) the Transfer Restriction Termination Date (meaning
            the first day in which the Notes (other than Notes acquired by the
            Company or any Affiliate thereof) may be sold pursuant to Rule
            144(k) under the Securities Act):

            (1)   Private Placement Global Security into Regulation S Global
                  Security. Any transfer in accordance with Rule 904 of
                  Regulation S of a beneficial interest in a Private Placement
                  Global Security shall be reflected by an increase in the
                  Regulation S Global Security and a corresponding decrease in
                  the Private Placement Global Security, in each case by the
                  Trustee making an endorsement on such Global Security, only
                  upon receipt by the Trustee of a written certificate in the
                  form of Exhibit C (or such other certifications, legal
                  opinions or other information as the Company may reasonably
                  require to confirm that such transfer is being made pursuant
                  to such Rule 904); and

            (2)   Regulation S Global Security into Private Placement Global
                  Security. Any transfer of a beneficial interest in a
                  Regulation S Global Security to a transferee that takes
                  delivery in the form of a beneficial interest in the Private
                  Placement Global Security shall be reflected by an increase in
                  the Private Placement Global Security and a corresponding
                  decrease in the Regulation S Global Security, in each case by
                  the Trustee making an endorsement on such Global Security and,
                  prior to the expiration of the Distribution Compliance Period,
                  only upon receipt by the Trustee of a written certificate in
                  the form of Exhibit D (or such other certifications, legal
                  opinions or other information as the Company may reasonably
                  require).

      (e)   Any Global Security may be endorsed with or have incorporated in the
            text thereof such legends or recitals or changes not inconsistent
            with the provisions of this Officer's Certificate and the Indenture
            as may be required by the Clearing Agency, by any national
            securities exchange or by the National Association of Securities
            Dealers, Inc. or as may be required for the Private Notes to be
            tradeable on any other market developed for trading of securities
            pursuant to Rule 144A under the Securities Act or required to comply
            with any applicable law or any regulation thereunder or with the
            rules and regulations of any securities exchange upon which the
            Notes may be listed or traded or to conform with any usage with
            respect thereto, or to indicate any special limitations or
            restrictions to which any particular Notes are subject.

      (f)   Notwithstanding any other provisions of this Officer's Certificate
            (other than the provisions set forth in this paragraph 14(f)), a
            Global Security may not be exchanged in whole or in part for
            Definitive Notes Certificates, and no transfer of a Global Security
            may be registered, in the name of any person other than the Clearing
            Agency or a nominee thereof unless (i) such Clearing Agency (A) has
            notified the Trustee and the Company that it is unwilling or unable
            to continue as Clearing Agency for such Global Security or (B) has
            ceased to be a clearing agency registered as such under the
            Securities Exchange Act of 1934 and no successor Clearing Agency has
            been appointed by the Company within 90 days after its receipt of
            such notice or its becoming aware of such cessation of registration
            or (ii) there has occurred and is continuing an Event of Default, or
            any event that after notice or lapse of time or both would be an
            Event of Default under the Indenture, with respect to the Notes.

      (g)   Unless and until Definitive Notes Certificates have been issued to
            owners pursuant to paragraph 16 below, the following provisions of
            this paragraph 14(g) shall be in full force and effect:

            (i) the Security Registrar and the Trustee shall be entitled to deal
            with the Clearing Agency for all purposes of this Officer's
            Certificate relating to the Global Securities (including the payment
            of principal, premium, if any, and interest on the Notes evidenced
            by Global Securities Certificates and the giving of instructions or
            directions to owners of Notes evidenced by Global Securities) as the
            sole Holder of Notes evidenced by Global Securities and shall have
            no obligations to the owners thereof; and

            (ii) the rights of the owners of the Global Securities shall be
            exercised only through the Clearing Agency and shall be limited to
            those established by law and agreements between such owners and the
            Clearing Agency and/or the Clearing Agency Participants. Unless and
            until Definitive Notes Certificates are issued pursuant to this
            paragraph 14(g) or paragraph 16 below, the initial Clearing Agency
            will make book-entry transfers among the Clearing Agency
            Participants and receive and transmit payments on the Notes to such
            Clearing Agency Participants.

      (h)   The Company shall inform the Trustee of the effective date of any
            registration statement registering the Exchange Notes under the
            Securities Act. Upon the receipt of an Officer's Certificate from
            the Company, the Trustee will take such actions as shall be
            necessary to effectuate the exchange of any of the Private Notes for
            Exchange Notes, including but not limited to the issuance of
            Exchange Notes in the form substantially set forth in Exhibit B, the
            entry of decreases in the Regulation S Global Security and the
            Private Placement Global Security or, if applicable, the
            cancellation of Definitive Notes Certificates.

15.   To the extent that a notice or other communication to the owners is
      required under this Officer's Certificate, unless and until Definitive
      Notes Certificates shall have been issued to owners pursuant to paragraph
      16 below, the Trustee shall give all such notices and communications
      specified herein to be given to owners to the Clearing Agency, and shall
      have no obligations to the owners.

16.   Upon surrender to the Security Registrar of the Global Securities by the
      Clearing Agency upon occurrence of any of the events described in
      paragraph 14(f) above, accompanied by registration instructions, the
      Trustee shall authenticate and deliver and the Security Registrar shall
      register the Definitive Notes Certificates (in a form substantially
      consistent with the forms of Notes attached hereto as Exhibit A or Exhibit
      B, as applicable, but modified to reflect the non-global form of such
      Notes) in accordance with the instructions of the Clearing Agency
      (including any legends on such Definitive Notes Certificates as may have
      been applicable to the Global Securities at such time). Neither the
      Security Registrar nor the Trustee shall be liable for any delay in
      delivery of such instructions and may conclusively rely on, and shall be
      protected in relying on, such instructions. Upon the issuance of
      Definitive Notes Certificates, the Trustee shall recognize the Holders of
      the Definitive Notes Certificates as Securityholders.

17.   Any beneficial interest in one of the Global Securities that is
      transferred to a person who takes delivery in the form of an interest in
      the other Global Security will, upon transfer, cease to be an interest in
      such Global Security and become an interest in the other Global Security
      and, accordingly, will thereafter be subject to all restrictions, if any,
      and procedures applicable to beneficial interests in such other Global
      Security for as long as it remains such an interest.

18.   If the Company shall make any deposit of money and/or Eligible Obligations
      with respect to any Notes, or any portion of the principal amount thereof,
      as contemplated by Section 701 of the Indenture, the Company shall not
      deliver an Officer's Certificate described in clause (z) in the first
      paragraph of said Section 701 unless the Company shall also deliver to the
      Trustee, together with such Officer's Certificate, either:

      (a)   an instrument wherein the Company, notwithstanding the satisfaction
            and discharge of its indebtedness in respect of the Notes, shall
            assume the obligation (which shall be absolute and unconditional) to
            irrevocably deposit with the Trustee or Paying Agent such additional
            sums of money, if any, or additional Eligible Obligations (meeting
            the requirements of Section 701), if any, or any combination
            thereof, at such time or times, as shall be necessary, together with
            the money and/or Eligible Obligations theretofore so deposited, to
            pay when due the principal of and premium, if any, and interest due
            and to become due on such Notes or portions thereof, all in
            accordance with and subject to the provisions of said Section 701,
            provided, however, that such instrument may state that the
            obligation of the Company to make additional deposits as aforesaid
            shall be subject to the delivery to the Company by the Trustee of a
            notice asserting the deficiency accompanied by an opinion of an
            independent public accountant of nationally recognized standing,
            selected by the Trustee, showing the calculation thereof; or

      (b)   an opinion of independent nationally recognized tax counsel to the
            effect that, based on a change in law or administrative ruling
            issued after the date hereof, the Holders of such Notes, or portions
            of the principal amount thereof, will not recognize income, gain or
            loss for United States federal income tax purposes as a result of
            the satisfaction and discharge of the Company's indebtedness in
            respect thereof and will be subject to United States federal income
            tax on the same amounts, at the same times and in the same manner as
            if such satisfaction and discharge had not been effected.

19.   For purposes of Section 1101 of the Indenture, the direct or indirect
      sale, transfer, conveyance or disposition of the majority of the voting
      stock or all or substantially all of the assets of DP&L (including, but
      not limited to, by way of a merger or consolidation involving DP&L) shall
      be deemed to be a transfer of the Company's properties and assets
      substantially as an entirety.

20.   To the extent permitted by applicable law, the Company and the Trustee
      agree that the Holders of the Notes are not required to comply with
      Section 807 of the Indenture and hereby waive such compliance. Insofar as
      Section 814 of the Indenture relates to the Company, to the extent
      permitted by applicable law, the Company agrees that the Holders of the
      Notes are not required to comply with such Section 814 and hereby waive
      such compliance.

21.   The Notes shall have such other terms and provisions as are provided in
      the forms thereof set forth in Exhibit A and Exhibit B hereto, as
      applicable, and shall be issued in substantially such forms.

22.   The undersigned has read all of the covenants and conditions contained in
      the Indenture relating to the issuance of the Notes and the definitions in
      the Indenture relating thereto and in respect of which this certificate is
      made.

23.   The statements contained in this certificate are based upon the
      familiarity of the undersigned with the Indenture, the documents
      accompanying this certificate, and upon discussions by the undersigned
      with officers and employees of the Company familiar with the matters set
      forth herein.

24.   In the opinion of the undersigned, he has made such examination or
      investigation as is necessary to enable him to express an informed opinion
      whether or not such covenants and conditions have been complied with.

25.   In the opinion of the undersigned, such conditions and covenants and
      conditions precedent, if any (including any covenants compliance with
      which constitutes a condition precedent) to the authentication and
      delivery of the Notes requested in the accompanying Company Order have
      been complied with.
<PAGE>

      IN WITNESS WHEREOF, I have executed this Officer's Certificate this 25th
day of March, 2004.

                                       /s/ Caroline E. Muhlenkamp
                                       ---------------------------------
                                       Name:  Caroline E. Muhlenkamp
                                       Title: Group Vice President
                                              and Interim Chief Financial
                                              Officer

Officer's Certificate
<PAGE>

                                    EXHIBIT A

                           FORM OF GLOBAL PRIVATE NOTE

                               [depository legend]

      UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

      TRANSFER OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
OFFICER'S CERTIFICATE ESTABLISHING THIS SERIES.

                            [non-registration legend]

      THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND,
ACCORDINGLY, MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED WITHIN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS
SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, EACH HOLDER OF
THE NOTES EVIDENCED HEREBY, AND EACH PERSON THAT ACQUIRES A BENEFICIAL INTEREST
IN SUCH NOTES, (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER"
(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL
"ACCREDITED INVESTOR" (AS DEFINED IN RULE 501 (a)(1),(2),(3) OR (7) UNDER THE
SECURITIES ACT) ("INSTITUTIONAL ACCREDITED INVESTOR") OR (C) IT IS NOT A U.S.
PERSON AND IS ACQUIRING THE NOTES EVIDENCED HEREBY IN AN OFFSHORE TRANSACTION,
(2) AGREES THAT IT WILL NOT, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD
APPLICABLE TO SALES OF THE NOTES EVIDENCED HEREBY UNDER RULE 144(k) UNDER THE
SECURITIES ACT (OR ANY SUCCESSOR PROVISION), OFFER, RESELL OR OTHERWISE TRANSFER
SUCH NOTES EXCEPT (A) TO DPL INC. OR A SUBSIDIARY THEREOF, (B) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED
STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, (D) INSIDE THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED
INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO J.P. MORGAN TRUST COMPANY,
NATIONAL ASSOCIATION, AS TRUSTEE, A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF SUCH
NOTES (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM SUCH TRUSTEE), (E) OUTSIDE
THE UNITED STATES IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT OR (F)
PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE) AND (G) IN EACH CASE, IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES OR ANY OTHER
APPLICABLE JURISDICTION AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO
WHOM THE NOTES EVIDENCED HEREBY ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND. IF THE PROPOSED TRANSFEREE IS AN INSTITUTIONAL ACCREDITED
INVESTOR OR A PURCHASER WHO IS NOT A U.S. PERSON, THE HOLDER MUST, PRIOR TO SUCH
TRANSFER, FURNISH TO J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, AS
TRUSTEE, SUCH CERTIFICATIONS OR OTHER INFORMATION AS DPL INC. MAY REASONABLY
REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. THIS LEGEND WILL BE REMOVED AFTER THE EXPIRATION OF THE HOLDING
PERIOD APPLICABLE TO SALES OF THE NOTES EVIDENCED HEREBY UNDER RULE 144(k) UNDER
THE SECURITIES ACT OR SUCH EARLIER TIME AS A TRANSFER OF SUCH NOTES IS MADE
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT. AS
USED HEREIN, THE TERMS "OFFSHORE TRANSACTION" "UNITED STATES" AND "U.S. PERSON"
HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.

                          [registration rights legend]

      BY ITS ACCEPTANCE OF THE NOTES EVIDENCED HEREBY OR A BENEFICIAL INTEREST
IN SUCH NOTES, THE HOLDER OF, AND ANY PERSON THAT ACQUIRES A BENEFICIAL INTEREST
IN, SUCH NOTES AGREES TO BE BOUND BY THE PROVISIONS OF THE EXCHANGE AND
REGISTRATION RIGHTS AGREEMENT DATED AS OF MARCH 25, 2004 AND RELATING TO THE
REGISTRATION UNDER THE SECURITIES ACT OF NOTES EXCHANGEABLE FOR THE NOTES
EVIDENCED HEREBY AND REGISTRATION OF THE NOTES EVIDENCED HEREBY.

                              [Regulation S legend]

      BY ITS ACQUISITION HEREOF, EACH HOLDER OF THE NOTES EVIDENCED HEREBY, AND
EACH PERSON THAT ACQUIRES A BENEFICIAL INTEREST IN SUCH NOTES, AGREES THAT PRIOR
TO THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD (AS DEFINED IN THE
OFFICER'S CERTIFICATE), BENEFICIAL INTERESTS IN THIS SECURITY MAY ONLY BE
OFFERED, RESOLD OR OTHERWISE TRANSFERRED (A) INSIDE THE UNITED STATES TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT OR (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF THE STATES OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION.

                           [OID legend, if applicable]

      THIS SECURITY WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR U.S. FEDERAL
INCOME TAX PURPOSES. FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED. THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS $___
PER $1,000 PRINCIPAL AMOUNT OF THIS SECURITY.

No. __-_______                                                 CUSIP No. _____

                                    DPL INC.

                             8% SENIOR NOTE DUE 2009

      DPL Inc., a corporation duly organized and existing under the laws of the
State of Ohio (herein referred to as the "Company", which term includes any
successor Person under the Indenture), for value received, hereby promises to
pay to CEDE & CO. or registered assigns, the principal sum listed on Schedule I
attached hereto on March 31, 2009, and to pay interest on said principal sum
quarterly on March 31, June 30, September 30 and December 31 of each year and at
maturity (each, an "Interest Payment Date"), commencing on June 30, 2004, at the
rate of 8% per annum until the principal hereof is paid or made available for
payment. Interest on the Securities of this series will accrue from March 25,
2004 to the first Interest Payment Date, and thereafter will accrue from the
last Interest Payment Date to which interest has been paid or duly provided for;
provided that if there is no existing default in the payment of interest, and if
this Security is authenticated between a Regular Record Date (as referred to
below) and the next succeeding Interest Payment Date, interest shall accrue from
such next succeeding Interest Payment Date. In the event that any Interest
Payment Date is not a Business Day, then payment of interest payable on such
date will be made on the next succeeding day which is a Business Day (and
without any interest or other payment in respect of such delay) with the same
force and effect as if made on the Interest Payment Date, except if that
Business Day falls in the next succeeding calendar year, the particular Interest
Payment Date will be the immediately preceding Business Day. Except for interest
payable at maturity of this Security (which shall be payable to the same Person
that is entitled to the payment of principal), the interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, which shall be the calendar day
next preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in the Indenture referred to on the reverse hereof. The
interest rate per annum on this Security set forth in the first sentence of this
Security (plus any applicable Additional Interest) shall increase by 2.0% for so
long as any default has occurred and is continuing under the Indenture. The
Company shall pay interest (including post-petition interest in any proceeding
under any bankruptcy law, whether or not allowed in such proceeding) on overdue
installments of principal and interest (without regard to any applicable grace
periods), from time to time on demand at the same rate as applicable to this
Security at such time to the extent lawful.

      Payment of the principal of (and premium, if any) and interest on this
Security will be made at the office or agency of the Company maintained for that
purpose in The City of New York, the State of New York in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts, provided, however, that, (i) payment of
interest may be made at the option of the Company, by check mailed to the
address of the person entitled thereto, and (ii) so long as (x) Cede & Co. or
another nominee of The Depository Trust Company, or (y) the investors party to
the Purchase Agreement are the registered Holders of the Notes, payment of
interest shall be made by wire transfer of immediately available funds to the
accounts specified from time to time by such Holders to the Company.

      Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
<PAGE>

      Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                    DPL INC.

                                    By:_______________________________________
                                       Title:

                          CERTIFICATE OF AUTHENTICATION

Dated:

      This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.

                                    J.P. MORGAN TRUST COMPANY, NATIONAL
                                    ASSOCIATION, as Trustee

                                    By:_______________________________________
                                          Authorized Signatory

<PAGE>

                        [REVERSE OF GLOBAL PRIVATE NOTE]

      This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities") issued and to be issued in one or more
series under an Indenture, dated as of March 1, 2000 (herein, together with any
amendments thereto, called the "Indenture", which term shall have the meaning
assigned to it in such instrument), between the Company and J.P. Morgan Trust
Company, National Association, as trustee (herein called the "Trustee", which
term includes any successor trustee under the Indenture), and reference is
hereby made to the Indenture, and the Officer's Certificate filed with the
Trustee on March 25, 2004 creating the series designated on the face hereof (the
"Officer's Certificate") for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof, issued in the aggregate principal amount of
$175,000,000.

      The Company may redeem the Securities of this series, in whole or in part,
at any time prior to maturity, at a redemption price equal to the Make-Whole
Amount, plus accrued interest, if any, to the Redemption Date with respect to
the Securities of this series, or portions thereof, being redeemed.

      As used herein:

                  "Comparable Treasury Issue" means, with respect to any
            Redemption Date, the United States Treasury security selected by the
            Quotation Agent as having a maturity comparable to the time period
            from the Redemption Date to March 25, 2009 that would be utilized,
            at the time of selection and in accordance with customary financial
            practice, in pricing new issues of corporate debt securities of
            comparable maturity to the time period. If no United States Treasury
            security has a maturity which is within a period from three months
            before to three months after March 25, 2009, the two most closely
            corresponding United States Treasury securities shall be used as the
            Comparable Treasury Issue, and the Treasury Rate shall be
            interpolated and extrapolated on a straight-line basis, rounding to
            the nearest month using such securities.

                  "Comparable Treasury Price" means (i) the average of up to
            five Reference Treasury Dealer Quotations for such Redemption Date,
            after excluding the highest and lowest Reference Treasury Dealer
            Quotations, or (ii) if the Trustee obtains fewer than five such
            Reference Treasury Dealer Quotations, the average of all such
            Quotations.

                  "Make-Whole Amount" shall be equal to the greater of (i) 100%
            of the principal amount of the Securities of this series being
            redeemed or (ii) as determined by the Quotation Agent as of the
            Redemption Date, the sum of the present value of the scheduled
            payments of principal and interest on such Securities of this series
            being redeemed from the Redemption Date to March 25, 2009,
            discounted to the Redemption Date on a semi-annual basis (assuming a
            360-day year consisting of twelve 30-day months) at a discount rate
            equal to the Treasury Rate plus 25 basis points.

                  "Quotation Agent" means a primary United States Government
            securities dealer in New York City (a "Primary Treasury Dealer").

                  "Reference Treasury Dealer" means up to five Primary Treasury
            Dealers selected by the Trustee after consultation with the Company.

                  "Reference Treasury Dealer Quotations" means, with respect to
            each Reference Treasury Dealer and any Redemption Date, the average,
            as determined by the Trustee, of the bid and asked prices for the
            Comparable Treasury Issue (expressed in each case as a percentage of
            its principal amount) quoted in writing to the Trustee by such
            Reference Treasury Dealer at 5:00 p.m., New York City time, on the
            third Business Day preceding such Redemption Date.

                  "Treasury Rate" means (i) the yield, under the heading which
            represents the average for the immediately prior week, appearing in
            the most recently published statistical release designated "H.15
            (519)" or any successor publication which is published weekly by the
            Federal Reserve and which establishes yields on actively traded
            United States Treasury securities adjusted to constant maturity
            under the caption "Treasury Constant Maturities," for the maturity
            corresponding to the time period from the Redemption Date to March
            25, 2009 (if no maturity is within three months before or after such
            time period, yields for the two published maturities most closely
            corresponding to such time period shall be determined and the
            Treasury Rate shall be interpolated or extrapolated from such yields
            on a straight-line basis, rounding to the nearest month) or (ii) if
            such release (or any successor release) is not published during the
            week preceding the calculation date or does not contain such yields,
            the rate per annum equal to the semi-annual equivalent yield to
            maturity of the Comparable Treasury Issue, calculated using a price
            for the Comparable Treasury Issue (expressed as a percentage of its
            principal amount) equal to the Comparable Treasury Price for such
            Redemption Date. The Treasury Rate shall be calculated on the third
            Business Day preceding the Redemption Date.

      Notice of any redemption will be mailed at least 30 days but no more than
60 days before the Redemption Date to each holder of the Securities of this
series to be redeemed. If, at the time notice of redemption is given, the
redemption moneys are not held by the Trustee, the redemption may be made
subject to their receipt on or before the Redemption Date and such notice shall
be of no effect unless such moneys are so received. Upon payment of the
redemption price, on and after the Redemption Date, interest will cease to
accrue on the Securities of this series or portions thereof called for
redemption. If a redemption of the Securities of this series is effected in
part, the redemption shall be effected on a pro rata basis among the Holders of
the Securities of this series then Outstanding. The Securities of this series
are not subject to any sinking fund.

      The Company shall deliver to the Trustee before any Redemption Date for
the Securities of this series being redeemed its calculation of the Redemption
Price applicable to such redemption. Except with respect to the obligations of
the Trustee expressly set forth in the foregoing definitions of "Comparable
Treasury Price" and "Reference Treasury Dealer Quotations", the Trustee shall be
under no duty to inquire into, may presume the correctness of, and shall be
fully protected in acting upon the Company's calculation of any Redemption Price
of the Securities of this series being redeemed.

      In lieu of stating the Redemption Price, notices of redemption of the
Securities of this series shall state substantially the following: "The
Redemption Price of the Securities of this series to be redeemed shall be the
Make-Whole Amount (as defined in the Indenture)."

      Except as provided herein, Article Four of the Indenture shall apply to
redemptions of the Securities of this series.

      If the Company does not comply with certain of its obligations under the
Officer's Certificate, this Security shall bear Additional Interest as set forth
therein in addition to the interest provided for in the first sentence of
paragraph 5 of the Officer's Certificate and in this Security.

      The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security upon compliance with certain conditions set forth
in the Indenture and the Officer's Certificate.

      If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture and the Officer's Certificate.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of all series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

      In certain circumstances and subject to compliance with certain
conditions, the Indenture and the Officer's Certificate also permit the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities under the Indenture
without the consent of the Holders.

      No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and interest
on this Security at the times, place and rate, and in the coin or currency,
herein prescribed.

      The Securities of this series are issuable only in registered form without
coupons in denominations of $1,000 and in integral multiples of $1,000 in excess
thereof. As provided in the Indenture and subject to certain limitations therein
and in the Officer's Certificate set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series
and of like tenor and of authorized denominations, as requested by the Holder
surrendering the same.

      No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      The Company, the Trustee and any agent of the Company or the Trustee may
treat the Person in whose name this Security is registered as the absolute owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

      All terms used in this Security which are defined in the Indenture or the
Officer's Certificate shall have the meanings assigned to them in the Indenture
or the Officer's Certificate.
<PAGE>

                             CERTIFICATE OF TRANSFER

                                    DPL INC.
                            8% Senior Notes due 2009
                        Principal Amount: $______________

      FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

      Name and address of assignee must be printed or typewritten.

the within Security of the Company and does hereby irrevocable constitute and
appoint

to transfer the said Security on the books of the within-named Company, with
full power of substitution in the premises.

      __________________________________________________________________________

      __________________________________________________________________________

Dated:

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to
         have this Note purchased
         by the Company pursuant to
         paragraph 10(c) of the
         Officer's Certificate
         check the box.  |_|

            If you want to elect to have only part of the Note purchased by the
Company pursuant to paragraph 10(c) of the Officer's Certificate, state the
principal amount you elect to have purchased:

                            $______________________

Date:_______________

                                 Your Signature:_______________________________
                                 (Sign exactly as your name appears on the face
                                 of this note)

                                                       Tax Identification No.:

                                                       _________________________

Signature Guarantee1(1)*:____________________

--------------------------
(1)  Participant in a recognized Signature Guarantee Medallion Program (or
     other signature guarantor acceptable to the Trustee).
<PAGE>

                          [INSERT APPROPRIATE SCHEDULE]

                                   SCHEDULE I

                        PRIVATE PLACEMENT GLOBAL SECURITY

The initial  principal  amount of Notes  evidenced by this  Private  Placement
Global Security is _____________.

<TABLE>
<CAPTION>

                                  CHANGES TO PRINCIPAL AMOUNT OF NOTES EVIDENCED BY
                                          PRIVATE PLACEMENT GLOBAL SECURITY
------------------------------- ---------------------------- ---------------------------- ----------------------------
                                 Principal Amount of Notes
                                   by which this Private
                                 Placement Global Security   Remaining Principal Amount
                                    is to be Reduced or        of Notes Represented by
                                 Increased, and Reason for     this Private Placement
             Date                  Reduction or Increase           Global Security             Notation Made by
------------------------------- ---------------------------- ---------------------------- ----------------------------
<S>                             <C>                          <C>                          <C>

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------
</TABLE>
<PAGE>

                                   SCHEDULE I

                          REGULATION S GLOBAL SECURITY

The initial  principal  amount of Notes  evidenced by this Regulation S Global
Security is ____________________.

<TABLE>
<CAPTION>
                   CHANGES TO PRINCIPAL AMOUNT OF NOTES EVIDENCED BY REGULATION S GLOBAL SECURITY
------------------------------- ---------------------------- ---------------------------- ----------------------------
                                 Principal Amount of Notes
                                by which this Regulation S
                                 Global Security is to be    Remaining Principal Amount
                                 Reduced or Increased, and     of Notes Represented by
                                  Reason for Reduction or         this Regulation S
             Date                        Increase                  Global Security             Notation Made by
------------------------------- ---------------------------- ---------------------------- ----------------------------
<S>                             <C>                          <C>                          <C>

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------

------------------------------- ---------------------------- ---------------------------- ----------------------------
</TABLE>
<PAGE>

                                    EXHIBIT B

                          FORM OF GLOBAL EXCHANGE NOTE

                               [depository legend]

      UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

      TRANSFER OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE, AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
OFFICER'S CERTIFICATE ESTABLISHING THIS SERIES.

                           [OID legend, if applicable]

      THIS SECURITY WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR U.S. FEDERAL
INCOME TAX PURPOSES. FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED. THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS $___
PER $1,000 PRINCIPAL AMOUNT OF THIS SECURITY.

No. R-_________                                           CUSIP No. __________

                                    DPL INC.

                             8% SENIOR NOTE DUE 2009

      DPL Inc., a corporation duly organized and existing under the laws of the
State of Ohio (herein referred to as the "Company", which term includes any
successor Person under the Indenture), for value received, hereby promises to
pay to CEDE & CO. or registered assigns, the principal sum of __________________
Dollars ($______________) on March 31, 2009, and to pay interest on said
principal sum quarterly on March 31, June 30, September 30 and December 31 of
each year and at maturity (each an "Interest Payment Date"), commencing on June
30, 2004, at the rate of 8% per annum until the principal hereof is paid or made
available for payment. Interest on the Securities of this series will accrue
from March 25, 2004 to the first Interest Payment Date, and thereafter will
accrue from the last Interest Payment Date to which interest has been paid or
duly provided for; provided that if there is no existing default in the payment
of interest, and if this Security is authenticated between a Regular Record Date
(as referred to below) and the next succeeding Interest Payment Date, interest
shall accrue from such next succeeding Interest Payment Date. In the event that
any Interest Payment Date is not a Business Day, then payment of interest
payable on such date will be made on the next succeeding day which is a Business
Day (and without any interest or other payment in respect of such delay) with
the same force and effect as if made on the Interest Payment Date, except if
that Business Day falls in the next succeeding calendar year, the particular
Interest Payment Date will be the immediately preceding Business Day. Except for
interest payable at maturity of the Security (which shall be payable to the same
Person that is entitled to the payment of principal), the interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, which shall be the calendar day
next preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in the Indenture referred to on the reverse hereof. The
interest rate per annum on this Security set forth in the first sentence of this
Security (plus any applicable Additional Interest) shall increase by 2.0% for so
long as any default has occurred and is continuing under the Indenture. The
Company shall pay interest (including post-petition interest in any proceeding
under any bankruptcy law, whether or not allowed in such proceeding) on overdue
installments of principal and interest (without regard to any applicable grace
periods), from time to time on demand at the same rate as applicable to this
Security at such time to the extent lawful.

      Payment of the principal of (and premium, if any) and interest on this
Security will be made at the office or agency of the Company maintained for that
purpose in The City of New York, the State of New York in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts, provided, however, that, (i) payment of
interest may be made at the option of the Company, by check mailed to the
address of the person entitled thereto, and (ii) so long as (x) Cede & Co. or
another nominee of The Depository Trust Company, or (y) the investors party to
the Purchase Agreement are the registered Holders of the Notes, payment of
interest shall be made by wire transfer of immediately available funds to the
accounts specified from time to time by such Holders to the Company.

      Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

      Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                    DPL INC.

                                    By:_______________________________________
                                       Title:

                          CERTIFICATE OF AUTHENTICATION

Dated:

      This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.

                                    J.P. MORGAN TRUST COMPANY, NATIONAL
                                    ASSOCIATION, as Trustee

                                    By:_______________________________________
                                               Authorized Signatory
<PAGE>

                        [REVERSE OF GLOBAL EXCHANGE NOTE]

      This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities") issued and to be issued in one or more
series under an Indenture, dated as of March 1, 2000 (herein, together with any
amendments thereto, called the "Indenture", which term shall have the meaning
assigned to it in such instrument), between the Company and J.P. Morgan Trust
Company, National Association, as Trustee (herein called the "Trustee", which
term includes any successor trustee under the Indenture), and reference is
hereby made to the Indenture and to the Officer's Certificate filed with the
Trustee on March 25, 2004 creating the series designated on the face hereof (the
"Officer's Certificate") for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof, issued in the aggregate principal amount of
$175,000,000.

      The Company may redeem the Securities of this series, in whole or in part,
at any time prior to maturity, at a redemption price equal to the Make-Whole
Amount, plus accrued interest, if any, to the Redemption Date with respect to
the Securities of this series, or portions thereof, being redeemed.

      As used herein:

                  "Comparable Treasury Issue" means, with respect to any
            Redemption Date, the United States Treasury security selected by the
            Quotation Agent as having a maturity comparable to the time period
            from the Redemption Date to March 25, 2009 that would be utilized,
            at the time of selection and in accordance with customary financial
            practice, in pricing new issues of corporate debt securities of
            comparable maturity to the time period. If no United States Treasury
            security has a maturity which is within a period from three months
            before to three months after March 25, 2009, the two most closely
            corresponding United States Treasury securities shall be used as the
            Comparable Treasury Issue, and the Treasury Rate shall be
            interpolated and extrapolated on a straight-line basis, rounding to
            the nearest month using such securities.

                  "Comparable Treasury Price" means (i) the average of up to
            five Reference Treasury Dealer Quotations for such Redemption Date,
            after excluding the highest and lowest Reference Treasury Dealer
            Quotations, or (ii) if the Trustee obtains fewer than five such
            Reference Treasury Dealer Quotations, the average of all such
            Quotations.

                  "Make-Whole Amount" shall be equal to the greater of (i) 100%
            of the principal amount of the Securities of this series being
            redeemed or (ii) as determined by the Quotation Agent as of the
            Redemption Date, the sum of the present value of the scheduled
            payments of principal and interest on such Securities of this series
            being redeemed from the Redemption Date to March 25, 2009,
            discounted to the Redemption Date on a semi-annual basis (assuming a
            360-day year consisting of twelve 30-day months) at a discount rate
            equal to the Treasury Rate plus 25 basis points.

                  "Quotation Agent" means a primary United States Government
            securities dealer in New York City (a "Primary Treasury Dealer").

                  "Reference Treasury Dealer" means up to five Primary Treasury
            Dealers selected by the Trustee after consultation with the Company.

                  "Reference Treasury Dealer Quotations" means, with respect to
            each Reference Treasury Dealer and any Redemption Date, the average,
            as determined by the Trustee, of the bid and asked prices for the
            Comparable Treasury Issue (expressed in each case as a percentage of
            its principal amount) quoted in writing to the Trustee by such
            Reference Treasury Dealer at 5:00 p.m., New York City time, on the
            third Business Day preceding such Redemption Date.

                  "Treasury Rate" means (i) the yield, under the heading which
            represents the average for the immediately prior week, appearing in
            the most recently published statistical release designated "H.15
            (519)" or any successor publication which is published weekly by the
            Federal Reserve and which establishes yields on actively traded
            United States Treasury securities adjusted to constant maturity
            under the caption "Treasury Constant Maturities," for the maturity
            corresponding to the time period from the Redemption Date to March
            25, 2009 (if no maturity is within three months before or after such
            time period, yields for the two published maturities most closely
            corresponding to such time period shall be determined and the
            Treasury Rate shall be interpolated or extrapolated from such yields
            on a straight-line basis, rounding to the nearest month) or (ii) if
            such release (or any successor release) is not published during the
            week preceding the calculation date or does not contain such yields,
            the rate per annum equal to the semi-annual equivalent yield to
            maturity of the Comparable Treasury Issue, calculated using a price
            for the Comparable Treasury Issue (expressed as a percentage of its
            principal amount) equal to the Comparable Treasury Price for such
            Redemption Date. The Treasury Rate shall be calculated on the third
            Business Day preceding the Redemption Date.

      Notice of any redemption will be mailed at least 30 days but no more than
60 days before the Redemption Date to each holder of the Securities of this
series to be redeemed. If, at the time notice of redemption is given, the
redemption moneys are not held by the Trustee, the redemption may be made
subject to their receipt on or before the Redemption Date and such notice shall
be of no effect unless such moneys are so received. Upon payment of the
redemption price, on and after the Redemption Date, interest will cease to
accrue on the Securities of this series or portions thereof called for
redemption. If a redemption of the Securities of this series is effected in
part, the redemption shall be effected on a pro rata basis among the Holders of
the Securities of this series then Outstanding. The Securities of this series
are not subject to any sinking fund.

      The Company shall deliver to the Trustee before any Redemption Date for
the Securities of this series being redeemed its calculation of the Redemption
Price applicable to such redemption. Except with respect to the obligations of
the Trustee expressly set forth in the foregoing definitions of "Comparable
Treasury Price" and "Reference Treasury Dealer Quotations", the Trustee shall be
under no duty to inquire into, may presume the correctness of, and shall be
fully protected in acting upon the Company's calculation of any Redemption Price
of the Securities of this series being redeemed.

      In lieu of stating the Redemption Price, notices of redemption of the
Securities of this series shall state substantially the following: "The
Redemption Price of the Securities of this series to be redeemed shall be the
Make-Whole Amount (as defined in the Indenture)."

      Except as provided herein, Article Four of the Indenture shall apply to
redemptions of the Securities of this series.

      If the Company does not comply with certain of its obligations under the
Officer's Certificate, this Security shall bear Additional Interest as set forth
therein in addition to the interest provided for in the first sentence of
paragraph 5 of the Officer's Certificate and in this Security.

      The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security upon compliance with certain conditions set forth
in the Indenture and the Officer's Certificate.

      If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture and the Officer's Certificate.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of all series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

      In certain circumstances and subject to compliance with certain
conditions, the Indenture and the Officer's Certificate also permit the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities under the Indenture
without the consent of the Holders.

      No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and interest
on this Security at the times, place and rate, and in the coin or currency,
herein prescribed.

      The Securities of this series are issuable only in registered form without
coupons in denominations of $1,000 and in integral multiples thereof. As
provided in the Indenture and subject to certain limitations therein and in the
Officer's Certificate set forth, Securities of this series are exchangeable for
a like aggregate principal amount of Securities of this series and of like tenor
and of authorized denominations, as requested by the Holder surrendering the
same.

      No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      The Company, the Trustee and any agent of the Company or the Trustee may
treat the Person in whose name this Security is registered as the absolute owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

      All terms used in this Security which are defined in the Indenture or the
Officer's Certificate shall have the meanings assigned to them in the Indenture
and in the Officer's Certificate.
<PAGE>

                             CERTIFICATE OF TRANSFER

                                    DPL INC.
                            8% Senior Notes due 2009
                        Principal Amount: $______________

    FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

      Name and address of assignee must be printed or typewritten.

the within Security of the Company and does hereby irrevocable constitute and
appoint

to transfer the said Security on the books of the within-named Company, with
full power of substitution in the premises.

      __________________________________________________________________________

      __________________________________________________________________________

Dated:

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to
         have this Note purchased
         by the Company pursuant to
         paragraph 10(c) of the
         Officer's Certificate
         check the box.  |_|

            If you want to elect to have only part of the Note purchased by the
Company pursuant to paragraph 10(c) of the Officer's Certificate, state the
principal amount you elect to have purchased:

                            $____________________

Date:_______________

                                 Your Signature:________________________________
                                 (Sign  exactly  as your name  appears  on the
                                 face of this note)

                                                       Tax Identification No.:
                                                       _________________________

Signature Guarantee(1)*:____________________

-----------------------
(1)   Participant in a recognized Signature Guarantee Medallion Program (or
      other signature guarantor acceptable to the Trustee).
<PAGE>

                                    EXHIBIT C

                          FORM OF TRANSFER CERTIFICATE
                PRIVATE PLACEMENT GLOBAL SECURITY TO REGULATION S
                                 GLOBAL SECURITY

J.P. Morgan Trust Company, National Association
1 Bank One Plaza, Suite IL1-0126
Chicago, Illinois 60670-0126
Attention:  Global Corporate Trust Services

      Re:   DPL Inc.

      Private Notes

      Reference is hereby made to the Indenture, dated as of March 1, 2000,
among DPL Inc. (the "Company") and J.P. Morgan Trust Company, National
Association, as trustee, and the Officer's Certificate dated March 25, 2004
relating to the Company's 8% Senior Notes Due 2009 (the "Officer's
Certificate"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Officer's Certificate.

      This letter relates to _________________ principal amount of Private Notes
which are evidenced by a Private Placement Global Security (CUSIP No.
__________) and held with the Clearing Agency indirectly in the name of [insert
name of transferor] (the "Transferor"). The Transferor has requested a transfer
of such beneficial interest in such Private Notes to a Person that will take
delivery thereof in a transaction effected pursuant to and in accordance with
Rule 904 under the United States Securities Act of 1933, as amended (the
"Securities Act"), and, accordingly, the Transferor does hereby further certify
that:

      The offer of such Private Notes was not made to a person in the United
States;

      (A) either:

      (i) at the time the buy order was originated, the transferee was outside
the United States or the Transferor and any person acting on its behalf
reasonably believed that the transferee was outside the United States, or

      (ii) the transaction was executed in, on or through the facilities of a
designated offshore securities market and neither the Transferor nor any person
acting on its behalf knows that the transaction was pre-arranged with a buyer in
the United States;

      (B) no directed selling efforts have been made in contravention of the
requirements of 904(b) under the Securities Act, as applicable;

      (C) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act; and

      (D) we have advised the transferee of the transfer restrictions applicable
to such Private Notes.

      You and the initial purchasers of the Notes are entitled to rely upon this
letter and are irrevocably authorized to produce this letter or a copy hereof to
any interested party in any administrative or legal proceeding or official
inquiry with respect to the matters covered hereby. Terms used in this
certificate and not otherwise defined herein or in the Officer's Certificate
have the meanings set forth in Regulation S under the Securities Act.

Dated:__________________

                                    [Insert Name of Transferor]

                                    By: ______________________________
                                        Name:
                                        Title:
                                    (If the registered owner is a corporation,
                                    partnership or fiduciary, the title of the
                                    Person signing on behalf of such registered
                                    owner must be stated.)

<PAGE>

                                    EXHIBIT D

                          FORM OF TRANSFER CERTIFICATE
                REGULATION S GLOBAL SECURITY TO PRIVATE PLACEMENT
                                 GLOBAL SECURITY

J.P. Morgan Trust Company, National Association
1 Bank One Plaza, Suite IL1-0126
Chicago, Illinois 60670-0126
Attention:  Global Corporate Trust Services

      Re:   DPL Inc.

      Private Notes

      Reference is hereby made to the Indenture, dated as of March 1, 2000,
among DPL Inc. (the "Company") and J.P. Morgan Trust Company, National
Association, as trustee, and the Officer's Certificate dated March 25, 2004
relating to the Company's 8% Senior Notes Due 2009 (the "Officer's
Certificate"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Officer's Certificate.

      This letter relates to _________________ Private Notes which are evidenced
by a Regulation S Global Security (CUSIP No. __________) and held with the
Clearing Agency indirectly in the name of [insert name of transferor] (the
"Transferor"). The Transferor has requested a transfer of such beneficial
interest in such Private Notes to a Person that will take delivery thereof in a
transaction effected pursuant to and in accordance with Rule 144A under the
United States Securities Act of 1933, as amended (the "Securities Act"), and,
accordingly, the Transferor does hereby certify that (i) the Transferor's
interest in such Private Notes is being transferred in accordance with the
transfer restrictions set forth in the Trust Agreement; and (ii) the transferee
is a person who the Transferor reasonably believes is a "qualified institutional
buyer" within the meaning of Rule 144A under the Securities Act, purchasing for
its own account or the account of a qualified institutional buyer in a
transaction meeting the requirements of Rule 144A, in accordance with all
applicable securities laws of the states of the United States and other
jurisdictions.

      You and the initial purchaser of the Notes are entitled to rely upon this
letter and are irrevocably authorized to produce this letter or a copy hereof to
any interested party in any administrative or legal proceeding or official
inquiry with respect to the matters covered hereby.

Dated:__________________

                                    [Insert Name of Transferor]

                                    By: ___________________________________
                                        Name:
                                        Title:
                                    (If the registered owner is a corporation,
                                    partnership or fiduciary, the title of the
                                    Person signing on behalf of such registered
                                    owner must be stated.)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]