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EXHIBIT 10(c)

                       THE DAYTON POWER AND LIGHT COMPANY

                         MANAGEMENT STOCK INCENTIVE PLAN

                     (AS AMENDED THROUGH DECEMBER 31, 2000)

SECTION 1.  PURPOSES.

     The purposes of the Plan are (i) to attract and retain in the employment of
the Company executives of experience and ability by providing incentives to
those who contribute to the successful operation of the business and affairs of
the Company, (ii) to increase the identity of interests of such key employees
with those of the Company's shareholders, (iii) to encourage achievement of the
Company's long term goals and objectives, and (iv) to prevent frustration of the
goals of this Plan in the event of a Change of Control.

SECTION 2.  DEFINITIONS.

     The following terms as used herein shall have the following meanings:

     (a) "BOARD OF DIRECTORS" means the Board of Directors of DPL Inc. in place
from time to time prior to a Change of Control.

     (b) "CHANGE OF CONTROL" means any change in control of DPL, or its
principal subsidiary, DP&L, of a nature that would be required to be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the
Securities Exchange Act of 1934, as amended (the "Exchange Act") as determined
by the Board of Directors in its sole discretion; provided that, without
limitation, such a Change of Control shall be deemed to have occurred if (i) any
"person" (as such term is defined in Sections 13(d) and 14(d)(2) of the Exchange
Act; hereafter, a "Person") other than DPL or DP&L or an entity then directly or
indirectly controlling, controlled by or under common control with DPL or DP&L
is on the date hereof or becomes or commences a tender offer to become the
beneficial owner, directly or indirectly, of securities of DPL or DP&L
representing (A) 15% or more of the combined voting power of the then
outstanding securities of DPL or DP&L if the acquisition of such beneficial
ownership or such tender offer is not approved by the Board of Directors prior
to the acquisition or the commencement of such tender offer or (B) 50% or more
of such combined voting power in all other cases; (ii) DPL or DP&L enters into
an agreement to merge or consolidate itself, or an agreement to consummate a
"combination" or "majority share acquisition" in which it is the "acquiring
corporation" (as such terms are defined in Ohio Rev. Code ss.1701.01 as in
effect on December 31, 1990) and in which shareholders of DPL or DP&L, as the
case may be, immediately prior to entering into such agreement, will
beneficially own, immediately after the effective time of the merger,
consolidation, combination or majority share acquisition,

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securities of DPL or DP&L or any surviving or new corporation, as the case may
be, having less than 50% of the "voting power" of DPL or DP&L or any surviving
or new corporation, as the case may be, including "voting power" exercisable on
a contingent or deferred basis as well as immediately exercisable "voting
power", excluding any merger of DPL into DP&L or of DP&L into DPL; (iii) DPL or
DP&L enters into an agreement to sell, lease, exchange or otherwise transfer or
dispose of all or substantially all of its assets to any Person other than to a
wholly owned subsidiary or, in the case of DP&L, to DPL or a wholly owned
subsidiar(ies) of DPL; but not including (A) a mortgage or pledge of assets
granted in connection with a financing or (B) a spin-off or sale of assets if
DPL continues in existence and its common shares are listed on a national
securities exchange, quoted on the automated quotation system of a national
securities association or traded in the over-the-counter market; (iv) any
transaction referred to in (ii) or (iii) above is consummated; or (v) those
persons serving as directors of DPL or DP&L on February 1, 2000 (the "Original
Directors") and/or their Successors do not constitute a majority of the whole
Board of Directors of DPL or DP&L, as the case may be (the term "Successors"
shall mean those directors whose election or nomination for election by
shareholders has been approved by the vote of at least two-thirds of the
Original Directors and previously qualified Successors serving as directors of
DPL or DP&L, as the case may be, at the time of such election or nomination for
election).

     (c) "CEO" means the Chief Executive Officer of DPL, duly installed, from
time to time, prior to a Change of Control. However, "Committee" will be
substituted for "CEO" in discussing the CEO's rights and benefits under the
Plan.

     (d) "COMMITTEE" means the Management Review and Compensation Committee of
the Board of Directors of DPL Inc. or such other committee(s) as may be
designated by the Board of Directors of DPL Inc. from time to time to administer
the Plan.

     (e) "COMPANY" means The Dayton Power and Light Company ("DP&L"), DPL Inc.
("DPL") and any entity which, prior to a Change of Control, is controlling,
controlled by or under common control with DP&L or DPL Inc.

     (f) "DEFERRED COMPENSATION PLAN" means the Company's Key Employees Deferred
Compensation Plan, as the same may be amended, modified or supplemented from
time to time.

     (g) "DIVIDEND EQUIVALENT" means the expression on the Company's books of a
dividend with respect to a Stock Incentive Unit; each Dividend Equivalent being
equal to the cash dividends paid from time to time on one Share.

     (h) "EARNED STOCK INCENTIVE UNITS" means Stock Incentive Units which have
been awarded and have been earned in accordance with Section 6, together with
all Dividend Equivalents with respect to such Earned Stock Incentive Units in
accordance with Section 6 (including any Stock Incentive Units credited to the

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Participant's account as the result of the conversion of such Dividend
Equivalents into Stock Incentive Units).

     (i) "FAIR MARKET VALUE" means the average of the closing sale price of a
Share on the last trading day of each of the four calendar months preceding the
date the value of a Share is to be determined, as reported on the New York Stock
Exchange--Composite Transactions Tape.

     (j) "INCENTIVE PERIOD" means the period established by the Committee with
respect to each Stock Incentive Award, over which period the Stock Incentive
Units included in such award are to be earned as provided in Section 6(d) of the
Plan. The Incentive Period shall be specified by the Committee in and with
respect to each Stock Incentive Award made. If the Incentive Period is not so
specified then it shall be the calendar plan year to which the Stock Incentive
Award relates.

     (k) "PLAN" means this Management Stock Incentive Plan.

     (l) "SHARE" means a Common Share of DPL Inc.

     (m) "STOCK INCENTIVE AWARD" means an award made under the Plan with respect
to a specified Incentive Period.

     (n) "STOCK INCENTIVE UNIT" means the expression on the Company's books of a
unit which is equivalent to one Share.

     (o) "TERMINATION OF EMPLOYMENT" means, when used with respect to the
payments to be made to a Participant pursuant to Section 8 of the Plan, (i) the
date such Participant's employment with the Company terminates, if such
termination occurs on or after such Participant's 55th birthday or (ii) if such
Participant's employment with the Company terminates prior to such Participant's
55th birthday, the date of such Participant's 55th birthday.

SECTION 3.  ADMINISTRATION.

     (a) COMMITTEE. The Plan shall be administered by the Committee. No director
shall serve as a voting member of the Committee if he is then, or was at any
time within one year prior to his appointment, eligible to participate in the
Plan or eligible for selection as a person to whom Shares may be allocated or to
whom stock options may be granted pursuant to any other plan of the Company or
any of its affiliates, other than the DP&L Directors' Deferred Stock
Compensation Plan and the Directors' Deferred Compensation Plan, entitling the
participants therein to acquire Shares, options or stock appreciation rights of
the Company or any of its affiliates.

     (b) AUTHORITY AND DISCRETION. Prior to a Change of Control, the Committee
shall have the power to interpret the Plan and, subject to the provisions herein
set forth, to prescribe, amend and rescind rules and regulations and make all
other determinations necessary or desirable for the administration of the Plan.
The decision of the Committee on any questions

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concerning or involved in the interpretation or administration of the Plan shall
be final and conclusive, and nothing in the Plan shall be deemed to give any
officer or employee, his legal representatives or assigns, any right to
participate in the Plan except to such extent, if any, as the Committee may have
determined or approved pursuant to the provisions of the Plan.

SECTION 4.  ELIGIBILITY.

     Employees eligible to participate in the Plan shall be those full-time
salaried employees of the Company or any entity comprising the Company who, in
the opinion of the Committee, serve in key executive, administrative,
professional or technical capacities with the Company or any entity comprising
the Company and have made a significant contribution to the successful operation
of the Company or any entity comprising the Company.

SECTION 5.  PARTICIPANTS.

     From the employees eligible to participate in the Plan, the Committee may
annually choose those who shall actually participate for that year in the Plan
(the "Participants"), and shall determine the number of Stock Incentive Units to
comprise each Participant's Stock Incentive Award. In choosing the Participants
and in determining the number of Stock Incentive Units comprising a Stock
Incentive Award, the Committee shall consider, after consulting with the CEO
concerning his recommendations on these matters, the positions and
responsibilities of the eligible employees, their accomplishments during recent
periods, the corporate and individual objectives jointly established with the
CEO, the value of such accomplishments to the Company, and such other factors as
the Committee deems pertinent. The Company may determine in any year during the
term of the Plan not to make any Stock Incentive Awards with respect to such
year.

SECTION 6.  OPERATION OF THE PLAN.

     (a) STOCK INCENTIVE AWARDS. Stock Incentive Awards shall be made by the
Committee at such time or times as it may determine; however, Stock Incentive
Awards shall generally be made in the year preceding commencement of the next
plan year. At the time the Committee makes a Stock Incentive Award, it shall
determine the aggregate number of Stock Incentive Units which may be earned by
each Participant over the Incentive Period. Except as expressly provided in a
Stock Incentive Award, the terms and conditions of the Plan shall be deemed to
be incorporated in and shall control all Stock Incentive Awards. However, to the
extent inconsistent with any provision of this Plan (including, without
limitation, Section 10), the terms of a Stock Incentive Award (other than a
Stock Incentive Award applicable to Previously Earned Units) shall control this
Plan.

     (b) PREVIOUSLY AWARDED STOCK INCENTIVE UNITS. Previously awarded Stock
Incentive Units shall be deemed to have been earned or, in the future, will be
earned to the extent to which they would have been earned if Section 6(d) had
been in effect at the

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time they previously were awarded and based on the Incentive Period applicable
to the related Stock Incentive Award previously awarded.

     (c) CREDITING OF STOCK INCENTIVE UNITS AND DIVIDEND EQUIVALENTS. Earned
Stock Incentive Units for each year following the effective date of the Plan
accrue and shall be credited to a Participant's separate account under the Plan
on the first day of the month following the date on which they are earned. On
each dividend payment date a Dividend Equivalent shall be credited to such
account for each Earned Stock Incentive Unit (or, if and to the extent that the
related Stock Incentive Award otherwise provides, for Stock Incentive Units
awarded, whether or not such units are Earned Stock Incentive Units) credited to
the Participant's account. On any dividend payment date when the value of
accumulated Dividend Equivalents on Stock Incentive Units as provided above in a
Participant's account equals the Fair Market Value of a full Share on such date,
such Dividend Equivalents shall, subject to the terms of the Stock Incentive
Award, the terms of which shall control this Plan to the extent inconsistent
herewith, be credited to the Participant's account as an Earned Stock Incentive
Unit. Such separate accounts are established only as a mechanism for measuring
the potential number of Shares which may be distributed under the Plan. The
Company shall retain beneficial ownership of all Stock Incentive Units and
Dividend Equivalents credited to the accounts and such Stock Incentive Units and
Dividend Equivalents will be subject to the claims of DP&L's creditors. No
Participant or beneficiary has or will have any property interest in any Stock
Incentive Units or Dividend Equivalents credited to such Participant's account
or in any specific assets of the Company.

     (d) EARNING OF STOCK INCENTIVE UNITS. Awarded Stock Incentive Units shall
be earned as specified in the related Stock Incentive Award or as otherwise
determined by the Committee. Subject to such Stock Incentive Award and any
determinations by the Committee, the terms of which shall control this Plan to
the extent inconsistent herewith, the maximum number of Stock Incentive Units
which may be earned in any one year shall be equal to the product obtained by
multiplying the total number of Stock Incentive Units included in a Stock
Incentive Award by a fraction, the numerator of which is one and the denominator
of which is the number of calendar years in the Incentive Period. For example,
in the case of a Stock Incentive Award for which a one-year Incentive Period
applies, all of the Stock Incentive Units may be earned in the calendar year to
which the Stock Incentive Award relates, and in the case of a Stock Incentive
Award for which a three year Incentive Period has been fixed by the Committee,
up to one-third of the Stock Incentive Units included in the Stock Incentive
Award may be earned each year. Unless the related Stock Incentive Award
otherwise provides, by its terms or by implication, prior to or as soon as
practicable after the end of each calendar year the Committee will review with
each Participant his or her achievement of the related performance goals and
will specify the number of Stock Incentive Units which have been earned for that
year by the Participant.

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SECTION 7.  PAYMENTS UNDER THE PLAN.

     (a) RIGHT TO PAYMENT OF EARNED STOCK INCENTIVE UNITS. A Participant shall
be entitled to receive payment for an awarded Stock Incentive Unit in a given
year of the Incentive Period only if such Stock Incentive Unit shall have been
earned under the provisions of Section 6(d) and, except as provided under
Section 10 and Section 7(d) hereof, or in the Stock Incentive Award, a Stock
Incentive Unit, though earned, only becomes vested (and, thus, ultimately
payable in accordance with Section 8) if the Participant is employed by the
Company on the last day of the year of the Incentive Period in which the
Participant could earn a portion of the particular Stock Incentive Units
awarded. All Stock Incentive Units which do not become so vested shall be
forfeited. The CEO or the Committee may, however, accelerate the earning and
vesting of any Stock Incentive Units awarded whether or not earned or vested, if
he or it determines in his or its sole opinion that such action is warranted.

     Notwithstanding any provision of the Plan to the contrary, in the event of
the death of a Participant, then all of such Participant's awarded Stock
Incentive Units (other than to the extent related to a completed Incentive
Period for which the determination of the number of Earned Stock Incentive Units
has already been made; and not to exceed the number of Stock Incentive Units
comprising the target award under the applicable Stock Incentive Award
regardless of the potential to earn more than such target award if and as
provided in such Stock Incentive Award) shall be deemed to be Earned Stock
Incentive Units and shall immediately become fully vested and shall be paid in
accordance with the provisions of Section 8.

     (b) TIME OF PAYMENT OF EARNED STOCK INCENTIVE UNITS. Payment for Earned
Stock Incentive Units which have been vested under Section 7(a) and Section 7(d)
shall be made in accordance with the provisions of Section 8 hereof.

     (c) WITHHOLDINGS. There shall be deducted from all payments any taxes
required by an Federal, state, or local government to be withheld and paid over
to the government for the account of the Participant.

     (d) SPECIAL PROVISION FOR VESTING OF CERTAIN EARNED STOCK INCENTIVE UNITS.
All Earned Stock Incentive Units comprising the 1997 award (which covers the
period 1998-2000) and the 1998 award (which covers the period 1999-2001)
("Previously Earned Units") will vest in three equal annual installments
commencing on December 31, 2000 and December 31 of each year thereafter. The
Participant must be employed by the Company on the date of an installment in
order to become vested in and be entitled to payment with respect to the
Previously Earned Units vesting on that date. Notwithstanding the above
sentence, in the event a Participant is entitled to benefits pursuant to
paragraph 3 (or successor provision) of the Participant's severance letter
agreement with the Company (or, if the Participant is not then a

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party to a severance letter agreement, pursuant to paragraph 3 (or successor
provision) of the most restrictive severance letter agreement between the
Company and any employee [in terms of triggering the Company's obligation to pay
benefits to the employee]), then all Previously Earned Units which have not yet
vested shall immediately become fully vested and shall be paid in accordance
with the provisions of Section 10 of the Plan.
SECTION 8.  DEFERRAL PROVISIONS.

     (a) FILING OF ELECTION FORM. Under the Plan, a Participant must elect to
defer payment of any amounts payable under the Plan by providing the Company
with a written Election Form, in the form attached hereto as Exhibit A or such
other form as the Committee may designate from time to time (the "Deferral
Election Form"), prior to the commencement of the Incentive Period which the
Committee uses as a basis for determining what portion of the particular annual
installment of his Stock Incentive Award may be earned. For example, if a
Participant were to elect to defer payment of Stock Incentive Units which would
be deemed to be earned on December 31, 2000, the Election Form must be received
by the Company prior to January 1, 2000.

     (b) PAYMENT OF AMOUNTS DEFERRED UNDER THE PLAN. Payment of a Participant's
deferred Stock Incentive Units which become earned and vested shall be made in
the form of Shares in a lump sum or in annual installments over a period of up
to twenty years, as the Participant may elect in his Deferral Election Form, and
shall be made, or commence, unless otherwise determined by the Committee in its
discretion, on or prior to the January 31 immediately following the date
specified by the Participant in his Deferral Election Form, provided such date
is after his termination of employment, and with subsequent annual installments,
if payments are to be made in annual installments, to be paid on or prior to
each January 31 thereafter. All payments under the Plan with respect to earned
and vested Stock Incentive Units shall be in the form of Shares and a
Participant shall be entitled to receive one Share for each earned and vested
Stock Incentive Unit credited to his account (with a cash payment being made for
any fractional shares). After termination of a Participant's employment, such
Participant's account shall continue to be credited with Dividend Equivalents as
provided in Section 6(c) with respect to any unpaid earned and vested Stock
Incentive Units.

     Notwithstanding any other provision of the Plan (other than Sections 8(d)
and 10(b)) or any election made by a Participant under the Plan or in any
Deferral Election Form, no Participant who has been granted stock options under
the DPL Inc. Stock Option Plan (the "Stock Option Plan") shall be entitled to
receive any payment under the Plan prior to January 1, 2005 with respect to that
number of earned and vested Stock Incentive Units which is equal to 1/3 of the
aggregate number of stock options which have been granted to such Participant
under the Stock Option Plan. Notwithstanding the foregoing, any Participant may
receive

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payment of his earned and vested Stock Incentive Units in accordance with
Sections 8(d) and 10(b).

     (c) EARNED STOCK INCENTIVE UNITS CREDITED AS CASH. Prior to December 31,
1999, certain Participants (the "Electing Participants") elected to convert a
portion of their Earned Stock Incentive Units to cash. The amount each Electing
Participant so elected to convert to cash was credited to the Standard Deferral
Account of such Electing Participant under the Deferred Compensation Plan. Since
February 2, 1999, no further conversion of any Earned Stock Incentive Units into
cash has been permitted under the Plan and payment of the Earned Stock Incentive
Units previously converted into cash shall be in accordance with the Deferred
Compensation Plan.

     (d) EARLY PAYMENT. A Participant may in no event receive a distribution of
all or a portion of the Stock Incentive Units which are earned and vested and
credited to his account prior to the time that the Participant elected to
receive such distribution pursuant to Section 8(a). Notwithstanding the
foregoing: (i) the Committee may, upon receiving a written request from the
Participant, or his or her beneficiary in the event of the death of a
Participant, upon determining that a distribution is in the best interest of the
Company and the Participant (or his or her beneficiary) taking into account the
financial condition of each, distribute all or a portion of the Participant's
account; and (ii) upon written request by a Participant to receive his entire
account balance in the Plan made at any time after termination of his or her
employment (or consultation arrangement) with DP&L or DPL Inc., for any reason,
after a Change of Control, the amount credited to such Participant's account
shall be paid to such Participant in a lump sum within ten (10) days after the
date of such written request, provided that the Participant shall be entitled to
only 90% of such account balance and shall irrevocably forfeit 10% of such
account balance by making the withdrawal.

     (e) LACK OF STOCK EXCHANGE LISTING. In the event that the Shares cease to
be listed on the New York Stock Exchange, then, unless a Participant's Earned
Stock Incentive Units are then immediately payable to such Participant in
accordance with Section 10(b), such Participant's Standard Deferral Account
under the Deferred Compensation Plan shall be credited with an amount equal to
the Conversion Price multiplied by the number of Earned Stock Incentive Units
credited to his account (or if the Participant does not have a Standard Deferral
Account the Company shall establish such an account for him), and thereafter
payment of the amount so credited to such Participant's Standard Deferral
Account shall be in accordance with the Deferred Compensation Plan. For this
purpose, "Conversion Price" means: (i) the Fair Market Value of a Share on the
date that the Shares cease to be listed on the New York Stock Exchange or (ii)
if the Shares cease to be so listed as a result of a Change of Control, the
greater of (x) the amount determined in accordance with the foregoing clause
(i), (y) the closing sales price of a Share on the New York Stock
Exchange--Composite Transaction Tape on the date the Shares cease to be so
listed or (z) the closing sales price of a

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Share on the New York Stock Exchange--Composite Transaction Tape on the date on
which a Change of Control occurs.

SECTION 9.  MASTER TRUSTS.

     (a) PARTICIPANT'S ACCOUNT. The Company has established, and may in the
future establish, one or more trusts (each such trust, as it may be amended from
time to time, is referred to herein as a "Master Trust") for the purpose, among
others, of securing the performance by the Company of its obligations to
Participants under the Plan and has funded one or more of the Master Trusts in
an aggregate amount of Shares and/or cash as the Company has determined to be
equal to the value of all Earned Stock Incentive Units and other currently
vested or earned benefits of the Participants under the Plan. Pursuant to one or
more of the Master Trusts, each Participant has been assigned a separate account
as a mechanism for measuring the potential benefits which may be distributed in
the future. Subsequent transfers of Shares and/or cash which the Company is
required to make to the Master Trusts pursuant to Section 9(b) or 10(d) hereof
or otherwise shall be allocated among the Master Trusts as the Committee may
determine from time to time.

     (b) SUCCESSIVE TRANSFERS. On or before the twentieth day following the end
of each successive calendar quarter, the Company shall transfer to one or more
of the Master Trusts an aggregate amount of Shares and/or cash as it shall
determine to be equal to the value of benefits of Participants under the Plan
which benefits have vested or have been earned (I.E., all Earned Stock Incentive
Units) during such calendar quarter.

     (c) TITLE TO FUNDS. DP&L shall retain beneficial ownership of all assets
transferred to the Master Trusts and such assets will be subject to the claims
of DP&L's creditors. No Participant or beneficiary has or will have any property
interest in the assets held in the Master Trusts or in any other specific asset
of the Company.

SECTION 10.  CHANGE OF CONTROL.

     (a) AUTOMATIC TRANSFER OF AUTHORITY. In the event of a Change of Control,
any and all authority and discretion which is exercisable by the Committee, or
the CEO, as heretofore or hereafter described in the Plan, shall automatically
be transferred to the Trustees of each Master Trust to the extent that benefits
under the Plan are being funded under such Master Trust.

     (b) ACCELERATION UPON CHANGE OF CONTROL. In the event any Participant who
is a party to a Severance Contract (as defined in the Master Trust or as
otherwise determined by the Committee) is entitled to benefits pursuant to
paragraph 3 (or successor provision) of such Severance Contract, any and all of
his awarded Stock Incentive Units (other than to the extent related to a
completed Incentive Period for which the determination of the number of Earned
Stock Incentive Units has already been made; and not to exceed the number of
Stock Incentive Units comprising the

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target award under the applicable Stock Incentive Award regardless of the
potential to earn more than such target award if and as provided in such Stock
Incentive Award) shall be deemed to be Earned Stock Incentive Units which are
vested and, notwithstanding the second paragraph of Section 8(b) hereof, all
such Earned Stock Incentive Units (including, without limitation, Previously
Earned Units), shall be payable to such Participant as the Participant has
elected on his Deferral Election Form. For purposes of any payment to a
Participant pursuant to the foregoing sentence, all Earned Stock Incentive Units
shall be valued as at the date of termination of employment at an amount equal
to the greater of (i) an amount based on the higher of the closing sales price
on the New York Stock Exchange--Composite Transaction Tape on the date of
termination or the date on which a Change of Control occurs, whichever is
greater, of Common Shares of DPL Inc. or (ii) the Conversion Price (as
determined in accordance with Section 8(e)). If such Earned Stock Incentive
Units are not payable in a lump sum upon termination of employment in accordance
with the Participant's Deferral Election Form, the value of such Earned Stock
Incentive Units shall be immediately credited to the Standard Deferral Account
of such Participant under the Deferred Compensation Plan (or if the Participant
does not have such an account, the Company shall establish such an account for
him or her), and thereafter payment of the amount so credited shall be in
accordance with the Deferred Compensation Plan.

     (c) (Intentionally left blank.)

     (d) FUNDING OF MASTER TRUSTS. Upon a Change of Control, the Company shall
immediately transfer to one more of the Master Trusts an aggregate amount of
Shares and/or cash which, when combined with the other assets of the Master
Trusts contributed or accruing thereto under or by reason of Section 9 hereof,
is equal to the value of benefits of Participants under the Plan (I.E., the
value of all Earned Stock Incentive Units) accrued through the date of
occurrence of the Change of Control event, determined after application of
Section 10(b).

SECTION 11.  NOTICES.

     Any notice, election or any request required or permitted hereunder, which
is to be mailed or requested from the Secretary or the CEO of the Company, shall
be delivered or mailed, postage prepaid, as follows:

         (a)      Prior to a Change of Control, to the Corporate Secretary of
                  the Company at:

                  The Dayton Power and Light Company
                  MacGregor Park
                  1065 Woodman Drive, P.O. Box 1247
                  Dayton, Ohio 45432
                  Attention:  Corporate Secretary

         (b)      After a Change of Control, to the Trustees of each Master
                  Trust pursuant to which benefits under the Plan

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are being funded, at the notice address specified by such Trustees in the
applicable trust agreement.

     The Company or Trustees may from time to time change their addresses for
receipt of notices by giving notice of such change to the Participants, but no
such change shall be deemed to be effective until notice thereof is actually
received by the Participant to whom it is directed.

SECTION 12.  CONDITIONS UPON AWARDS AND PAYMENTS.

     No provision of the Plan or any Stock Incentive Award shall be binding upon
the Company or enforceable against the Company to the extent that it would cause
the Company not to comply with all relevant provisions of state and federal law.

SECTION 13.  NO RIGHT TO EMPLOYMENT.

     Nothing in the Plan shall confer upon any Participant or other eligible
employee the right to continue in the employment of the Company or affect any
right the Company may have to terminate the employment of any Participant or
other eligible employee.

SECTION 14.  NO RIGHTS AS SHAREHOLDERS.

     No Participant who receives a Stock Incentive Award under the Plan shall
have any rights as a shareholder of the Company as a result thereof unless and
until Shares are issued to such Participant in accordance with the Plan.

SECTION 15.  NON-UNIFORM DETERMINATIONS.

     The Committee's determination under the Plan (including, without
limitation, its selection of Participants to receive Stock Incentive Awards, the
length of Incentive Periods, and the amount of timing of awards) need not be
uniform, and may be made by it selectively among persons who receive, or are
eligible to receive Stock Incentive Awards under the Plan, whether or not such
persons are similarly situated.

SECTION 16.  NON-TRANSFERABILITY.

     Neither a Participant, nor his beneficiary, nor any other individual shall
have any right by way of anticipation or otherwise to alienate, sell, transfer,
assign, pledge, charge or otherwise dispose of any benefits which may become
payable under this Plan, prior to the time that payment of any such benefit is
made, and any attempted anticipation, alienation, sale, transfer, assignment,
pledge, charge, or other disposition shall be null and void. Furthermore, none
of the benefits payable under this Plan shall be subject to the claim or legal
process of the creditors of any Participant or of the beneficiary, spouse or
former spouse of any Participant or of any other person or entity.

SECTION 17.  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

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     In the event of a share dividend, a stock split, recapitalization, merger,
consolidation, reorganization, split-up, combination or exchange of shares,
spin-off, extraordinary dividend in property or in kind, or other similar
corporate changes (each of the foregoing, an "Extraordinary Transaction") the
number and/or kind of Stock Incentive Units allocated to a Participant's account
shall be appropriately adjusted by the Committee (whose determination in each
case shall be conclusive) as the Committee may determine to be necessary to
ensure equitable treatment to each Participant as a result of the consummation
of any Extraordinary Transaction.

SECTION 18.  INTERPRETATION AND AMENDMENT.

     This Plan will be administered by the Committee. The decision of the
Committee with respect to the administration or interpretation of the Plan will
be final and binding. The Committee reserves the right, prior to a Change in
Control, to amend, modify or terminate the Plan; provided, however that (i) no
amendment, modification or termination of the Plan shall affect an election to
defer payments already in effect for the current calendar year or any preceding
calendar year or shall otherwise adversely affect any right or benefit earned or
accrued under the Plan by any Participant prior to any such amendment,
modification or termination without the prior written consent of such
Participant, and (ii) following a Change of Control the Committee's discretion
will be exercised as provided in Section 10(a) hereof; provided further that the
Trustees shall have no authority to terminate the Plan.

SECTION 19.  GENDER AND NUMBER.

     Except when indicated by the context, any masculine terminology used herein
shall also include the feminine, and the use of any term herein in the singular
may also include the plural.

SECTION 20.  CHOICE OF LAW.

     This Plan shall be construed, rendered and governed by the laws of the
State of Ohio.

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                                    EXHIBIT A

                       THE DAYTON POWER AND LIGHT COMPANY

                         MANAGEMENT STOCK INCENTIVE PLAN

                             DEFERRAL ELECTION FORM

INSTRUCTIONS:

     This Election Form relates to Stock Incentive Units deferred pursuant to
the Management Stock Incentive Plan (the "Plan"). Under the Plan, deferred Stock
Incentive Units are credited to a Participant's Account in a Master Trust or
Trusts created by DP&L.

     PAYMENTS. Payments shall be made from the Plan in the form of DPL Inc.
     common shares after termination -------- of employment (check one):

     a.   ___ in a lump sum payment;

     b.   ___ annually over a period of up to twenty years. (Specify number of
          years _____.)

     Such payment(s) shall be made or commence by no later than the January 31
immediately following: __________________ (specify date).

    Upon my death (check one):

          ___  payments to my beneficiary shall continue or commence in the same
               method to be paid to me as elected above.

          ___  payments are to be made to my beneficiary in a lump sum.

DESIGNATION OF BENEFICIARY

     In the event of my death all payments required to be made under the Plan
shall be made to the following person:

Name of designated
beneficiary:                         ___________________________________

Address of designated
beneficiary:                         ___________________________________

                                     ___________________________________

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<PAGE>

                                     ___________________________________

     If the above-designated beneficiary does not survive me, payments will be
made to the following successor beneficiary (or to my estate on failure to
designate otherwise):

Name of designated
beneficiary:                         ___________________________________

Address of designated
beneficiary:                         ___________________________________

                                     ___________________________________

                                     ___________________________________

                                     ___________________________________
                                                  Signature

                                     ___________________________________
                                                     Date

     This Election Form was received by the Secretary of the Company on
______________________.

                                     ___________________________________
                                                  Secretary

                                       83<PAGE>

EXHIBIT 10(d)

                       THE DAYTON POWER AND LIGHT COMPANY

                             KEY EMPLOYEES DEFERRED

                                COMPENSATION PLAN

                     (As Amended Through December 31, 2000)

1.   GENERAL.

     Effective January 1, 1991, this document ("Plan"), which supersedes the
Deferred Compensation Plan for Key Employees of The Dayton Power and Light
Company as in effect on September 1, 1985, as amended effective January 1, 1989
(the "Prior Plan"), continues a program established for the purpose of providing
deferred compensation for a select group of management employees.

2.   DEFINITIONS.

     A. "Board of  Directors"  means The Board of Directors of DPL Inc. in place
from time to time prior to a Change of Control.

     B. "CEO" means the Chief Executive Officer of DPL duly installed, from time
to time, prior to a Change of Control. However, "Committee" will be substituted
for "CEO" in discussing the CEO's rights and benefits in the Plan.

     C. "Change of Control" means any change in control of DPL, or its principal
subsidiary, DP&L, of a nature that would be required to be reported in response
to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities
Exchange Act of 1934, as amended (the "Exchange Act") as determined by the Board
of Directors in its sole discretion; provided that, without limitation, such a
Change of Control shall be deemed to have occurred if (i) any "person" (as such
term is defined in Sections 13(d) and 14(d)(2) of the Exchange Act; hereafter, a
"Person") other than DPL or DP&L or an entity then directly or indirectly
controlling, controlled by or under common control with DPL or DP&L is on the
date hereof or becomes or commences a tender offer to become the beneficial
owner, directly or indirectly, of securities of DPL or DP&L representing (A) 15%
or more of the combined voting power of the then outstanding securities of DPL
or DP&L if the acquisition of such beneficial ownership or such tender offer is
not approved by the Board of Directors prior to the acquisition or the
commencement of such tender offer or (B) 50% or more of such combined voting
power in all other cases; (ii) DPL or DP&L enters into an agreement to merge or
consolidate itself, or an agreement to consummate a "combination" or "majority
share acquisition" in which it is the "acquiring corporation" (as such terms are
defined in Ohio Rev. Code ss.1701.01 as in effect on December 31, 1990) and in
which shareholders of DPL or DP&L, as the case may be, immediately prior to
entering into such agreement, will beneficially own, immediately after the
effective time of the merger,

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consolidation, combination or majority share acquisition, securities of DPL or
DP&L or any surviving or new corporation, as the case may be, having less than
50% of the "voting power" of DPL or DP&L or any surviving or new corporation, as
the case may be, including "voting power" exercisable on a contingent or
deferred basis as well as immediately exercisable "voting power", excluding any
merger of DPL into DP&L or of DP&L into DPL; (iii) DPL or DP&L enters into an
agreement to sell, lease, exchange or otherwise transfer or dispose of all or
substantially all of its assets to any Person other than to a wholly owned
subsidiary or, in the case of DP&L, to DPL or a wholly owned subsidiar(ies) of
DPL; but not including (A) a mortgage or pledge of assets granted in connection
with a financing or (B) a spin-off or sale of assets if DPL continues in
existence and its common shares are listed on a national securities exchange,
quoted on the automated quotation system of a national securities association or
traded in the over-the-counter market; (iv) any transaction referred to in (ii)
or (iii) above is consummated; or (v) those persons serving as directors of DPL
or DP&L on February 1, 2000 (the "Original Directors") and/or their Successors
do not constitute a majority of the whole Board of Directors of DPL or DP&L, as
the case may be (the term "Successors" shall mean those directors whose election
or nomination for election by shareholders has been approved by the vote of at
least two-thirds of the Original Directors and previously qualified Successors
serving as directors of DPL or DP&L, as the case may be, at the time of such
election or nomination for election).

     D. "Committee"  means the  Compensation and Management  Review Committee of
the Board of  Directors of DPL Inc. or such other  committee(s)  as the Board of
Directors of DPL Inc. may designate from time to time to administer the Plan.

     E. "Company"  means The Dayton Power and Light Company  ("DP&L"),  DPL Inc.
("DPL")  and any entity  which,  prior to a Change of Control,  is  controlling,
controlled by or under common control with DP&L or DPL Inc.

     F. "Compensation"  means amounts payable by the Company to a Participant in
the form of salary and/or incentive awards.

     G. "Deferral Form" means the form attached hereto as Exhibit A (or such
other form as the Committee may designate from time to time) or any forms filed
under the Prior Plan pursuant to which a Participant (hereinafter defined) may
elect to defer his/her Compensation.

     H. "Election Form" means the form attached hereto as Exhibit A (or such
other form as the Committee may designate from time to time) pursuant to which a
Participant may elect the form and timing of payments under this Plan.

     I.  "Eligible  Participant"  means any  Participant  who is employed by the
Company as of October 1, 1996 or at any time thereafter.

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<PAGE>

     J. "Other  Participant"  means any  Participant  whose  employment with the
Company  terminated  (by reason of retirement or otherwise)  prior to October 1,
1996.

     K.  "Participant"  means any  officer or  management  key  employee  of the
Company designated by the CEO prior to a Change of Control.

     L. "Unreimbursed Amount" means, at any time as to any Eligible Participant
who, either directly or through any affiliate, including through a trust
established by such Eligible Participant, has entered into a split-dollar life
insurance arrangement with the Company, the amount of such Eligible
Participant's or affiliate's then obligation to reimburse the Company under such
split-dollar arrangement for life insurance premiums paid by the Company.

3.   ELECTION TO DEFER AND ACCOUNT DESIGNATION.

     A. ELECTION TO DEFER. The Company has established a Standard Deferral
Account for each Participant to which (i) deferred Compensation has been or will
be credited from time to time pursuant to Section 3(B) hereof and (ii) in the
case of certain of the Participants, amounts have been credited pursuant to the
second, third and fourth paragraphs of this Section 3(A). By delivering a
Deferral Form to the Secretary of the Company on or before December 31 preceding
the calendar year such election is to be effective, a Participant may elect to
defer Compensation relating to all future services, until such election is
terminated in accordance with Section 6.

     Prior to December 31, 1999, Supplementary Deferral Accounts had been
established under the Plan for certain Participants. Effective as of
December 31, 1999, the present value, as determined by the Committee, of a
Participant's Supplementary Deferral Account was credited to the Standard
Deferral Account of such Participant. Accordingly, effective as of December 31,
1999, the Supplementary Deferral Accounts were terminated and no amounts are
credited thereto.

     In addition, effective as of January 1, 2000, the participation in the
Company's Supplemental Executive Retirement Plan (the "SERP") by certain of the
Participants (the "Former SERP Participants") was terminated and, in connection
therewith, the present value, as determined by the Committee, of a Former SERP
Participant's accrued benefits under the SERP was credited to the Standard
Deferral Account of such Former SERP Participant (the amount so credited to the
Standard Deferral Account of a Former SERP Participant is hereinafter referred
to as the "SERP Amount").

     Moreover, prior to December 31, 1999, certain participants (the "Electing
Participants") in the Company's Management Stock Incentive Plan (the "MSIP")
elected, as permitted by the MSIP, to convert a portion of their Earned Stock
Incentive Units under the MSIP into cash and the amount each Electing
Participant so elected to convert to cash was credited to the Standard Deferral
Account of such Electing Participant

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<PAGE>

under the Plan; further, as provided in Sections 8(e) and 10(b) of the MSIP, in
the event the common shares of DPL Inc. cease to be listed on the New York Stock
Exchange, or upon termination of a Participant's employment after a Change of
Control, additional amounts may be credited to a Participant's Standard Deferral
Account from the MSIP.

     B. STANDARD DEFERRAL ACCOUNT. All deferred amounts will be credited to each
Participant's Standard Deferral Account. The Participants' Standard Deferral
Accounts are established only as a mechanism for measuring the potential amount
of cash or shares of DPL Inc. common stock which may be distributed under the
Plan. DP&L shall retain beneficial ownership of all amounts credited to
Participants' Standard Deferral Accounts and such deferred amounts will be
subject to the claims of DP&L's creditors. No Participant or beneficiary has any
property interest in deferred amounts or in any specific assets of the Company.

     C. INTEREST ON STANDARD DEFERRAL ACCOUNTS. For purposes of measuring the
amounts which may be distributed under the Plan to the Participants, for periods
prior to January 1, 2001, the Company credited interest to the Standard Deferral
Account of each Other Participant on a quarterly basis, calculated by
multiplying the balance in such account (including interest) on the first day of
each month of the preceding quarter by one-twelfth of the simple average yield
of the annualized AA utility bond averages as published monthly in Moody's Bond
Survey for the preceding quarter. With respect to all amounts credited to the
Standard Deferral Account of each Other Participant as of January 1, 2001 or at
any time thereafter, such Standard Deferral Account shall be deemed invested in
the Vanguard Total Bond Index Fund, or a comparable fund designated by the
Committee in its sole discretion (the "Bond Fund"), and all dividends, interest,
distributions and other amounts paid with respect to the Bond Fund shall be
credited to the Standard Deferral Account of each Other Participant and shall be
deemed reinvested in the Bond Fund.

     D. EARNINGS ON STANDARD DEFERRAL ACCOUNTS OF ELIGIBLE PARTICIPANTS. For
purposes of measuring the amounts which may be distributed under the Plan to
Eligible Participants, all amounts credited to the Standard Deferral Account of
an Eligible Participant as of January 1, 1997 and all amounts thereafter
credited to the Standard Deferral Account of an Eligible Participant pursuant to
Section 3(A), together with the amount of any dividends, interest, distributions
or other amounts credited to such Standard Deferral Account pursuant to this
Section 3(D), shall be deemed invested in such "Eligible Investment Options" as
such Eligible Participant may designate from time to time as provided herein.
For purposes of the Plan, "Eligible Investment Options" means those securities,
mutual funds or other investment vehicles set forth on Schedule I hereto, as
such Schedule I may be modified from time to time by the Committee upon at least
30 days' prior written notice to the Eligible Participants.

     Subject to Section 3(E) hereof, each Eligible Participant shall have the
option, by delivering to the Secretary

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<PAGE>

of Company a completed Investment Option Election Form in the form attached
hereto as Exhibit B (or such other form as the Committee may designate from time
to time) on or prior to each such date as the Committee may specify from time to
time for such purpose (each such date, an "Election Date"), to designate or
change, in a percentage equal to at least 10%, the portions of such Eligible
Participant's Standard Deferral Account which shall be deemed invested in each
Eligible Investment Option as of such Election Date. Any such designation by an
Eligible Participant shall remain in effect until changed in accordance with the
preceding sentence or as provided in Section 3(E) hereof. Subject to Section
3(E) hereof, any increase in the percentage of an Eligible Participant's
Standard Deferral Account deemed invested in an Eligible Investment Option
effected on any Election Date shall be deemed to be a purchase of such Eligible
Investment Option and any decrease in the percentage of an Eligible
Participant's Standard Deferral Account deemed invested in an Eligible
Investment Option effected on any Election Date shall be deemed to be a sale of
such Eligible Investment Option, and any such purchase or sale shall be deemed
to have occurred as of the last business day immediately prior to such Election
Date at the closing price of such Eligible Investment Option on such date. In
the absence of any such designation by an Eligible Participant with respect to
all or any portion of his Standard Deferral Account, such Standard Deferral
Account (or such portion) shall be deemed invested in the Bond Fund (as defined
in Section 3(C) above), and the Bond Fund shall be an Eligible Investment Option
for such Eligible Participant. All dividends, interest, distributions and other
amounts paid or distributed from time to time with respect to any Eligible
Investment Option in which all or any portion of an Eligible Participant's
Standard Deferral Account is deemed invested shall be credited to such Eligible
Participant's Standard Deferral Account and shall be deemed reinvested in such
Eligible Investment Option.

     The Company shall not be required to purchase, hold or dispose of any
Eligible Investment Options designated by Eligible Participants. To the extent
that the Company does, in its discretion, purchase or hold any of the Eligible
Investment Options designated by Eligible Participants, the same shall remain
the sole property of the Company, subject to the claims of its general
creditors, and shall not be deemed to form a part of any Eligible Participant's
Standard Deferral Account, and no Participant shall have any property interest
therein or claim thereto.

     E. INVESTMENT IN PRIVATE EQUITY INVESTMENTS. In its sole discretion the
Committee may designate one or more Eligible Investment Options which, if
purchased, may not be immediately saleable; such Eligible Investment Options may
include interests in partnerships or other entities which are not readily
tradable on an established securities market including, for purposes of
illustration, interests in partnerships investing in private equity investments
(collectively referred to herein as "Private Equity Investments"). The Committee
may, in its sole discretion, establish procedures to regulate the ability of an
Eligible Participant's designation of an Private Equity Investments as one of
his or her Eligible Investment Options pursuant to Section

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<PAGE>

3(D) hereof. Without limitation, these procedures may include the following:

     (i)  Limiting the right of an Eligible Participant to designate a Private
          Equity Investment to those Eligible Participants (a) who have a
          Standard Deferral Account balance greater than a specified minimum
          amount, and (b) whose payment dates, as specified in their Election
          Form, in the sole and unrestricted discretion of the Committee, are
          sufficiently deferred to allow for any Private Equity Investment to
          fully mature prior to payment of such Eligible Participant's Standard
          Deferral Account in the event the Company does choose to purchase such
          Eligible Investment Option;

     (ii) Requiring a minimum dollar allocation to any Private Equity
          Investment;

    (iii) Restricting or eliminating an Eligible Participant's right to
          reallocate that portion of his Standard Deferral Account allocated to
          such Private Equity Investment until it has fully matured;

     (iv) Reallocation, by the Committee, to an Private Equity Investment
          previously designated by the Eligible Participant, of all or a portion
          of an Eligible Participant's Standard Deferral Account not so invested
          to the extent necessary to fully cover any capital calls made with
          respect to such Private Equity Investment (which reallocation shall
          proportionately reduce the amount which is deemed invested in each of
          the Eligible Participant's other Eligible Investment Options);

     (v)  Establishing the date on which an Eligible Participant's Standard
          Deferral Account is deemed invested in a Private Equity Investment
          following such designation by the Eligible Participant.

     In addition, notwithstanding anything in Section 4 hereof to the contrary,
and notwithstanding any payment election specified in such Eligible
Participant's Election Form, the Committee may, in its sole discretion, defer
payment of any amounts credited to an Eligible Participant's Standard Deferral
Account which have been deemed invested in a Private Equity Investment until any
such Private Equity Investment has fully matured, and, in the case of partial
distributions from an Eligible Participant's Standard Deferral Account, the
Committee may reduce the amount which is deemed invested in each Eligible
Investment Option other than such Private Equity Investment.

     F. UNREIMBURSED AMOUNTS. Notwithstanding any other provision of the Plan,
in the event that there exists an Unreimbursed Amount as to an Eligible
Participant, the Unreimbursed Amount of such Eligible Participant in effect from
time to time shall reduce the amount of such Eligible Participant's Standard
Deferral Account which would otherwise be deemed invested in Eligible Investment
Options pursuant to

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<PAGE>

Section 3(D) in the manner designated by such Eligible Participant in the
Investment Election Form most recently delivered to the Secretary of the Company
or, failing such designation, shall proportionately reduce the amount which
would otherwise be deemed invested in each Eligible Investment Option pursuant
to Section 3(D).

4.   PAYMENTS UNDER THE PLAN.

     A. STANDARD DEFERRAL ACCOUNT. Subject to Section 3(E) hereof, amounts
credited to a Participant's Standard Deferral Account, together with accumulated
earnings, will be distributed in a lump sum or over a period of years, up to
twenty, in such installments as specified in the Election Form, with such lump
sum payment being made or such installment payments commencing, unless otherwise
determined by the Committee in its discretion, on or prior to the January 31
immediately following:

          (i) The date, either before or after the termination of the
     Participant's employment, specified by the Participant in the Election
     Form; or

          (ii) Notwithstanding any provision to the contrary, no later than the
     date a Participant reaches an age at which the Participant may earn
     unlimited amounts without reduction of benefits under the Social Security
     Act and the regulations promulgated thereunder;

and with subsequent annual installments, if payments are to be made in annual
installments, to be paid on or prior to each January 31 thereafter until all
amounts credited to the Participant's Standard Deferral Account have been paid
in full.

     For purposes of any distribution pursuant to this Section 4(A), the amount
credited to an Eligible Participant's Standard Deferral Account on any date
shall be equal to the value (determined on the basis of the closing prices on
the last business day immediately preceding such date) of all Eligible
Investment Options in which such Eligible Participants' Standard Deferral
Account is deemed to be invested on such date pursuant to Section 3(D) and, in
the case of a partial distribution from an Eligible Participant's Standard
Deferral Account, the amount of such distribution shall proportionately reduce
the amount which is deemed invested in each Eligible Investment Option pursuant
to Section 3(D).

     Notwithstanding any other provision of the Plan (other than Section 4(C))
or any election made by a Former SERP Participant under the Plan or in any
Election Form, no Former SERP Participant shall in any event be entitled to
receive any payment under the Plan with respect to such Former SERP
Participant's SERP Amount (or any earnings thereon) if, at the time of any such
payment, and after giving effect thereto, the aggregate amount paid to such
Former SERP Participant under the Plan with respect to such SERP Amount (and
earnings) would exceed the aggregate amount which would have been paid to such
Former

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<PAGE>

SERP Participant if such SERP Amount had been paid to such Former SERP
Participant in three equal annual installments commencing on January 1, 2001.
Notwithstanding the foregoing, any Former SERP Participant may receive payment
of his SERP Amount (and earnings thereon) in accordance with Section 4(C).

     B. PAYMENT IN CASH OR STOCK. All distributions from a Participant's
Standard Deferral Account will be paid in cash unless, within 30 days before
each scheduled date for distribution of benefits, such Participant files an
election with the Secretary of the Company to have benefits payable in the form
of shares of DPL Inc.'s common stock.

     Subsequent installments, if any, will be paid annually or quarterly, as
elected by the Participant, as specified in the Election Form, until the entire
amount credited to his/her accounts are paid. Shares of DPL Inc.'s common stock
will be valued at their closing sales price on the New York Stock Exchange
Composite Transaction Tape on the date a cash payment would otherwise have been
paid. (If no sale occurs on such date, the common shares shall be valued on the
next preceding date on which a sale occurs). As soon as practical thereafter,
DPL Inc. will issue and deliver that number of shares of DPL Inc.'s common stock
equal in value to the amount of the payment, divided by the determined price of
such common shares; provided, however, that DPL Inc. will not be obligated to
issue and deliver fractional shares and, in lieu thereof, the Participant shall
receive cash.

     C. EARLY DISTRIBUTION. A Participant may in no event receive a distribution
of all or a portion of amounts credited to his Standard Deferral Account prior
to the time that the Participant elected to receive such amounts pursuant to the
Plan. Notwithstanding the foregoing: (i) the CEO may, upon receiving a written
request from the Participant or his or her beneficiary as provided in Section 5
hereof in the event of the death of a Participant, upon determining that a
distribution is in the best interest of the Company and the Participant (or his
or her beneficiary) taking into account the financial condition of each,
distribute all or a portion of the amount credited to the Participant's Standard
Deferral Account; and (ii) upon written request by a Participant to receive his
entire account balance in the Plan made at any time after termination of his or
her employment (or consultation arrangement) with DP&L or DPL Inc., for any
reason, after a Change of Control, the amount credited to such Participant's
Standard Deferral Account shall be paid to such Participant in a lump sum within
ten (10) days after the date of such written request, provided that the
Participant shall be entitled to only 90% of such account balance and shall
irrevocably forfeit 10% of such account balance by making the withdrawal.

     D. WITHHOLDINGS.  Any taxes required to be withheld by any Federal,  state,
or local government will be deducted from all deferred payments and paid for the
account of the Participant.

     E. PAYMENTS IN KIND. Notwithstanding any other provision of the Plan, after
a Change of Control,  any portion of a distribution  to be made from an Eligible
Participant's  Standard

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Deferral Account may, at the request of such Eligible Participant at least 30
days prior to the scheduled date of such distribution, be made by the Trustees
of the Master Trust(s) pursuant to which benefits under the Plan are being
funded, in the sole and absolute discretion of such Trustees, in the form of any
Eligible Investment Options actually held by such Master Trust(s) for purposes
of funding such distribution to such Eligible Participant under the Plan. For
purposes of making any such distribution, any Eligible Investment Option so
distributed shall be valued at its closing price on the last business day
immediately preceding the date of such distribution and such distribution shall
be net of any applicable federal, state or local withholding taxes unless the
Eligible Participant makes a cash payment, concurrently with such distribution,
to the Master Trust(s) making such distribution for the purpose of paying such
withholding taxes. Nothing contained in this Section 4(F) shall require the
Company (or any of the Master Trusts) to purchase, hold or dispose of any
Eligible Investment Options designated by Eligible Participants. To the extent
that any Master Trust holds any Eligible Investment Options, the same shall
remain the sole property of the Company, subject to the claims of its general
creditors and shall not be deemed to form a part of any Eligible Participant's
Standard Deferral Account and no Participant shall have any property interest
therein or claim thereto.

     F. UNREIMBURSED AMOUNTS. Notwithstanding any other provision of the Plan,
in the event that there exists an Unreimbursed Amount as to an Eligible
Participant, then (a) no distribution of the amount credited to such Eligible
Participant's Standard Deferral Account shall be made pursuant to Section 4(A)
or otherwise to the extent that, after giving effect to any such proposed
distribution, the amount then credited to such Eligible Participant's Standard
Deferral Account would be less than the Unreimbursed Amount of such Eligible
Participant and (b) any amounts which are not distributed from such Eligible
Participant's Standard Deferral Account by reason of the foregoing clause (a)
shall be paid to such Eligible Participant promptly after the date of, and only
to extent of, any reimbursement of such Unreimbursed Amount.

     G. LUMP SUM DISTRIBUTION IN CERTAIN CIRCUMSTANCES. Notwithstanding any
other provision of the Plan or any election made by a Participant in an Election
Form, in the event that, at the time of the termination of a Participant's
employment or at any time thereafter, the amount then credited to such
Participant's Standard Deferral Account is less than $100,000, then the Company
may, at its option, distribute to such Participant in a single lump sum payment
the entire amount then credited to such Participant's Standard Deferral Account.

5.   PAYMENTS IN THE EVENT OF DEATH.

     A.  DESIGNATION OF BENEFICIARY.  On his/her Election Form, each Participant
will  designate one or more  beneficiaries  to whom payments will be made in the
event of his/her death.  The Participant may change the beneficiary  without the
beneficiary's  consent;  however,  no change will be effective until received in
writing  by the  Committee  (or its  delegate)  or,  in the event of a

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Change of Control, by the Trustees of the Master Trust(s) pursuant to which
benefits under the Plan are being funded. If a beneficiary survives the
Participant, all amounts credited to such Participant's account will be paid to
the designated beneficiary or his estate as provided below. If a Participant has
not designated a beneficiary, or the designated beneficiary does not survive the
Participant, then the unpaid deferred amounts will be paid to the Participant's
estate.

     B. PAYMENT TO DESIGNATED BENEFICIARY. If a Participant dies before payment
of all deferred amounts credited to his/her Standard Deferral Account, amounts
so credited will be paid as directed by the Participant on his/her Election
Form.

6.  TERMINATION OR MODIFICATION OF ELECTION.

     In any year, a Participant may terminate or modify, for that year, his/her
deferred election by written notice delivered to the Secretary of the Company.
Any such notice will become effective on the last day of the month it is given
and will apply only to compensation payable after such effective date. Amounts
credited to a Participant's accounts prior to the effective date of any
termination or modification will not be affected and will be paid in accordance
with Sections 4 and 5.

7.  MASTER TRUSTS.

     A. PARTICIPANT'S ACCOUNTS. The Company has established, and may in the
future establish, one or more trusts (each such trust, as it may be amended from
time to time, is referred to herein as a "Master Trust") for the purpose, among
others, of securing the performance by the Company of its obligation to
Participants to make the distributions under the Plan and has funded one or more
of the Master Trusts in an aggregate amount of cash and/or DPL Inc.'s common
shares as the Company has determined to be equal to the value of all currently
vested or earned benefits of the Participants under the Plan. Pursuant to one or
more of the Master Trusts, each Participant has been assigned a separate account
as a mechanism for measuring the potential benefits which may be distributed in
the future. Subsequent transfers of cash and/or DPL Inc.'s common shares which
the Company is required to make to the Master Trusts pursuant to Section 7.B or
8.C hereof or otherwise shall be allocated among the Master Trusts as the
Committee may determine from time to time.

     B. SUCCESSIVE TRANSFERS. On or before the twentieth day following the end
of each successive calendar quarter, the Company shall transfer to one or more
of the Master Trusts an aggregate amount of cash and/or shares of DPL Inc.'s
common stock as it shall determine to be equal to the value of benefits of
Participants under the Plan which benefits have vested or have been earned
during such calendar quarter.

     C. TITLE TO FUNDS.  DP&L shall retain  beneficial  ownership of all cash or
shares  transferred to the Master Trusts and such cash or shares will be subject
to the claims of DP&L's  creditors.  No Participant  or beneficiary  has or will
have any

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property interest in the cash or shares held in the Master Trusts or in any
other specific asset of the Company.

8.   CHANGE OF CONTROL.

     A. AUTOMATIC TRANSFER OF AUTHORITY. In the event of a Change of Control,
any and all authority and discretion which is exercisable by the Committee, or
the CEO, as heretofore or hereafter described in the Plan, including, without
limitation, the authority to change the Eligible Investment Options as provided
in Section 3.D. hereof, shall automatically be transferred to the Trustees of
each Master Trust to the extent that benefits under the Plan are being funded
under such Master Trust.

     B. (Intentionally left blank.)

     C. FUNDING OF MASTER TRUSTS. Upon a Change of Control, the Company shall
immediately transfer to one or more of the Master Trusts an aggregate amount of
cash which, when combined with the other assets of the Master Trusts contributed
or accruing thereto under or by reason of Section 7 hereof, is equal to all
amounts credited to the Participants' Standard Deferral Accounts, including
accumulated earnings.

9.   NOTICES.

     Any notice, election or any request required or permitted hereunder, which
is to be mailed or requested from the Secretary or the CEO of the Company shall
be delivered or mailed, postage prepaid, as follows:

     (i) Prior to a Change of Control; to the Secretary of DP&L at:

                       The Dayton Power and Light Company
                       MacGregor Park
                       1065 Woodman Drive
                       Dayton, Ohio 45432
                       Attention: Corporate Secretary

     (ii) After a Change of Control; to the Trustees of each Master Trust
     pursuant to which the benefits under the Plan are being funded, at the
     notice address specified by such Trustees in the applicable trust
     agreement.

     The Company or Trustees may from time to time change their addresses for
receipt of notices by giving notice of such change to the Participants, but no
such change shall be deemed to be effective until notice thereof is actually
received by the Participant to whom it is directed.

10.  NONASSIGNABILITY.

     Neither a Participant, nor his beneficiary, nor any other individual shall
have any right by way of anticipation or otherwise to alienate, sell, transfer,
assign, pledge, charge

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or otherwise dispose of any benefits which may become payable under this Plan,
prior to the time that payment of any such benefit is made, and any attempted
anticipation, alienation, sale, transfer, assignment, pledge, charge, or other
disposition shall be null and void. Furthermore, none of the benefits payable
under this Plan shall be subject to the claim or legal process of the creditors
of any Participant or of the beneficiary, spouse or former spouse of any
Participant or of any other person or entity.

11.  INTERPRETATION AND AMENDMENT.

     This Plan will be administered by the Committee. The decision of the
Committee with respect to the administration or interpretation of the Plan will
be final and binding. The Committee reserves the right, prior to a Change in
Control, to amend, modify or terminate the Plan; provided, however, that (i) no
amendment, modification or termination of the Plan shall affect an election to
defer payments already in effect for the current calendar year or any preceding
calendar year or shall otherwise adversely affect any right or benefit earned or
accrued under the Plan by any Participant prior to any such amendment,
modification or termination without the prior written consent of such
Participant, and (ii) following a Change of Control the Committee's discretion
will be exercised as provided in Section 8.A hereof; provided further that the
Trustees shall have no authority to terminate the Plan.

12.  GENDER AND NUMBER.

     Except when indicated by the context, any masculine terminology used herein
shall also include the feminine, and the use of any term herein in the singular
may also include the plural.

13.  NO RIGHTS AS SHAREHOLDERS.

     Participants whose accounts are credited with amounts under the Plan shall
have no rights as shareholders of the Company as a result thereof unless and
until the shares of DPL Inc. common stock, if any, are distributed to the
respective Participants.

14.  NO RIGHT TO EMPLOYMENT.

     Nothing in the Plan shall confer upon any Participant the right to
     continued employment with the Company, nor shall it interfere with the
     rights of the Company to discharge any person and/or to treat him without
     regard to the effect which such treatment might have upon him as a person
     covered by this Plan.

15.  GOVERNING LAW.

     This Plan shall be construed, rendered and governed by the laws of the
State of Ohio.

                                      95

<PAGE>

                                    EXHIBIT A

                       THE DAYTON POWER AND LIGHT COMPANY

                       KEY EMPLOYEES DEFERRED COMPENSATION

                           DEFERRAL AND ELECTION FORM

DEFERRAL INSTRUCTIONS:

     A key employee may defer compensation pursuant to the provisions of the Key
Employees Deferred Compensation Plan (the "Plan"). Amounts deferred under the
Plan will be paid in accordance with the Participant's Election as provided
below to the extent that it is consistent with the terms and conditions of the
Plan.

STANDARD DEFERRAL ACCOUNT
ELECTION TO PARTICIPATE:

     I elect to defer the following percentage or dollar amount of my [insert
date] compensation pursuant to the Standard Deferral Provisions of the Plan.

     Base Salary                   $_____________   or     ______________%

     Incentive Compensation        $_____________   or     ______________%

ELECTION (PAYMENT) INSTRUCTIONS:

STANDARD DEFERRAL ACCOUNT

     1.   PAYMENTS. Payments shall be made or commence from my Standard Deferral
          Account by no later than the January 31 immediately following (check
          one):

          a.   ___ a  specified  date  either  before  or after  termination  of
                   employment (Specify Date: ___________); or

          b.   ___ at such date as I reach the age at which I can earn unlimited
                   amounts  without  reduction of benefits under the Social
                   Security Act and the regulations promulgated thereunder.

     Such payments from my account shall be paid as follows (check one):

          a.   ___ lump sum payment; or

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          b. ___ annually over a period of up to twenty years.  (Specify  number
                 of years ___________).

     I request that such payments be made in the form of DPL Inc. shares, rather
than cash.

             ___ Yes                                        ___ No

     Upon my death (check one):

             ____   payments to my beneficiary shall continue or commence in the
                    same method to be paid to me as elected above.

             ____ payments are to be made to my beneficiary in a lump sum

DESIGNATION OF BENEFICIARIES

     All payments required to be made under the Plan to my designated
beneficiary in the event of my death shall be made to the following person:

Name of designated
beneficiary:                                      ______________________________

Address of designated
beneficiary:                                      ______________________________

                                                  ______________________________

                                                  ______________________________

     If the above-designated beneficiary does not survive me, the payments will
be made to the following successor beneficiary (or to my estate on failure to
designate otherwise):

Name of designated
beneficiary:                                      ______________________________

Address of designated
beneficiary:                                      ______________________________

                                                  ______________________________

                                                  ______________________________

                                                  ______________________________
                                                      Signature of Executive

                                                  ______________________________
                                                      Date

                                      97

<PAGE>

     This Deferral and Election Form was received by the Secretary of the
Company on _______________________.

                                                  ______________________________
                                                  Secretary

                                      98

<PAGE>

                                    EXHIBIT B

                       THE DAYTON POWER AND LIGHT COMPANY

                    KEY EMPLOYEES DEFERRED COMPENSATION PLAN

                         INVESTMENT OPTION ELECTION FORM

     I elect to have amounts credited to my Standard Deferral Account under the
Plan to be deemed invested, effective [insert date], in the following Eligible
Investment Options, as provided in Section 3(D) of the Plan:

                                                 Percentage of Standard
                                                 Deferral Account Invested
                                                 (whole percentages, not
ELIGIBLE INVESTMENT OPTION                            less than 10%)
--------------------------                  ------------------------------------

Vanguard Index Trust - 500 Portfolio                          _____%

Vanguard Index Trust - Small Cap Stock                        _____%
  Portfolio

Vanguard Index Trust - Total International                    _____%
  Portfolio

Vanguard Index Trust - Total Bonds                            _____%

(Note: In the absence of any designation with respect to all or any portion of
your Standard Deferral Account, your Standard Deferral Account (or such portion)
will be deemed invested in the Vanguard Index Trust - Total Bonds as provided in
Section 3(D) of the Plan).

     If the Company and I have entered into a split-dollar life insurance
arrangement, then the Unreimbursed Amount (as defined in the Plan) shall reduce
the amount which would otherwise be deemed invested in the following Eligible
Investment Options in the following percentages of the Unreimbursed Amount:

                                                           Percentage of
                                                           Unreimbursed
Eligible Investment Option                                     Amount
--------------------------                                 -------------

Vanguard Index Trust - 500 Portfolio                          _____%

Vanguard Index Trust - Small Cap  Stock                       _____%
  Portfolio

Vanguard Index Trust - Total International                    _____%
  Portfolio

Vanguard Index Trust - Total Bonds                            _____%

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<PAGE>

                                                  ______________________________
                                                    Signature of Executive

                                                  ______________________________
                                                    Date

     This  Investment  Option  Election  was  received by the  Secretary  of the
Company on ________________.

                                                  ______________________________
                                                    Secretary

                                      100

<PAGE>

                                       154

                                   SCHEDULE I

                           ELIGIBLE INVESTMENT OPTIONS

                        Vanguard Index Trust -- 500 Portfolio

                        Vanguard Index Trust -- Small Cap Stock Portfolio

                        Vanguard Index Trust -- Total International Portfolio

                        Vanguard Index Trust -- Total Bonds

                                      101

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