Document:

UIL Holdings Exhibit 10.1 dated 07/08/05

                  EXHIBIT
      10.1

    

    FIRST
      AMENDMENT TO

    RESTATED
      EMPLOYMENT AGREEMENT

    BETWEEN
      UIL HOLDINGS CORPORATION

    AND

    NATHANIEL
      D. WOODSON

    

    

    WHEREAS,
      UIL Holdings Corporation (“the Company”) and Nathaniel D. Woodson (“Executive”)
      desire to amend the restated employment agreement between the Company and Mr.
      Woodson dated as of November 8, 2004 (the “Employment Agreement”), subject to
      shareholder approval, to provide that the phantom stock options provided for
      in
      said Agreement will be settled only in actual shares of stock of UIL Holdings
      Corporation rather than cash in order (i) to avoid variable accounting and
      (ii)
      the possibility that such options will be treated as deferred compensation
      subject to Section 409A of the Internal Revenue Code;

    

    NOW
      THEREFORE, the Employment Agreement is amended as follows:

    

    1.
      Effective as of January 1, 2005, subject to approval of the shareholders of
      UIL
      Holdings Corporation, the second paragraph of Section 4(b) of the Employment
      Agreement is revised to read as follows:

    

    In
      addition, until the earlier of (A) the first anniversary of the Executive’s Date
      of Termination, or (B) February 23, 2008, the Executive shall be entitled to
      exercise any or all of the 80,000 phantom stock options that were granted on
      February 20, 1998, and which became fully exercisable on February 23, 2003,
      to
      the extent that they are still unexercised, all at an exercise price equal
      to
      the average of the high and low per share sales prices of the common stock
      of
      The United Illuminating Company on the New York Stock Exchange on February
      20,
      1998. Upon the exercise of said phantom stock options, the Executive shall
      receive shares of UIL Holdings Corporation common stock (“UIL stock”) equal to
      the difference between the fair market value of such stock on the date of
      exercise, and the option exercise price net of any applicable withholding taxes.
      Such phantom stock options may be settled only in shares of UIL stock. For
      purposes of this paragraph, ‘fair market value’ shall have the meaning accorded
      the term under the Phantom Stock Option Agreement entered into between The
      United Illuminating Company (“UI”) and the Executive dated as of February 23,
      1998 as amended (the “Phantom Option Agreement”). To the extent that UI
      discharges this obligation pursuant to the terms of the Phantom Option
      Agreement, then UIL Holdings Corporation’s obligation under this paragraph shall
      be extinguished.

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates
      set forth below.

    

    

    

    
      	
              Date:
                

            	
              July
                8, 2005

            

    

    

    UIL
      HOLDINGS CORPORATION

    

    Attest: 

    

    

    
      	
              /s/
                Susan E. Allen

            	 	
              By:

            	
              /s/
                Thelma R. Albright

            
	
              Susan
                E. Allen, Vice President

              Investor
                Relations, Corporate Secretary & Treasurer

            	 	 	
              Thelma
                R. Albright, Chairman Compensation and Executive Development
                Committee

            

    

    

    

    

    
      	
              July
                8, 2005

            	 	
              /s/
                Nathaniel D. Woodson

            
	
              Date

            	 	
              Nathaniel
                D. Woodson

            

    

    

    
      
        
        

      

      
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          -UIL Holdings Exhibit 10.2 dated 07/08/05

                    EXHIBIT
      10.2

    

    SECOND
      AMENDMENT TO

    EMPLOYMENT
      AGREEMENT

    BETWEEN
      UIL HOLDINGS CORPORATION

    AND

    NATHANIEL
      D. WOODSON

    

    

    WHEREAS,
      the Department of the Treasury has issued interim guidance contained in Notice
      2005-1 concerning the implementation of the new non-qualified deferred
      compensation rules contained in Section 409A of the Internal Revenue Code;
      and

    

    WHEREAS,
      the interim guidance has made it clear that amounts accrued under a supplemental
      executive retirement arrangement through December 31, 2004 may be
‘grandfathered’ and not subject to the new, more restrictive rules, provided
      that there is no material amendment made to such arrangement after October
      3,
      2004; and

    

    WHEREAS,
      in light of the guidance, UIL Holdings Corporation (“the Company”) and Nathaniel
      D. Woodson (“the Executive”) wish to clarify the SERP provisions contained in
      the employment agreement dated as of November 8, 2004 between the Company and
      the Executive, as amended (the “Employment Agreement”), to clearly bifurcate
      SERP accruals before and after January 1, 2005, and to restrict applicability
      of
      the new, more restrictive rules to post-2004 accruals; and

    

    WHEREAS,
      the Company and the Executive further wish to take advantage of certain
      transition rules that allow elections as to time and form of payment to be
      made
      up through December 31, 2005 without running afoul of Section 409A of the
      Code;

    

    WHEREAS,
      it is anticipated that this will be the first in a series of such amendments
      required to comply with the new non-qualified deferred compensation rules;
      

    

    NOW
      THEREFORE, Section 4(g) of the Employment Agreement is revised in its entirety
      to read as follows:

    

    (g)
      Supplemental
      Executive Retirement Benefit. 

    

    (i)
      Benefit
      Formula.
      Upon
      termination of the Executive's employment with the Company and all affiliates
      other than for Cause (as defined in Section 5(b) of this Agreement), a
      supplemental retirement benefit (“SERP”) shall be payable in accordance with the
      provisions of this Section (4)(g). The annual supplemental retirement benefit,
      expressed in the form of a single life annuity beginning at the Executive's
      Normal Retirement Date as defined in The United Illuminating Company Pension
      Plan (the “UI Pension Plan”), shall be the excess, if any, of (A) less (B),
      where (A) is 2.0% (.020) of the Executive's highest three-year average Total
      Compensation times his number of years of service as an employee of the Company
      (including any deemed service credited under this Agreement or the CIC Plan
      II)
      at termination (not to exceed thirty), and (B) is the benefit payable under
      the
      Company's Pension Plan expressed as a single life annuity commencing as of
      the
      Executive’s Normal Retirement Date. For purposes of this Section, Total
      Compensation shall mean the Executive’s Base Salary, and any amount paid to the
      Executive as short-term incentive compensation pursuant to the Company’s annual
      executive incentive compensation plan. For purposes of this Section, the
      Executive’s deemed service as an employee of the Company will be calculated by
      adding two additional years of service for each actual year of service worked
      on
      each of the first five anniversaries of February 23, 1998, so that as of
      February

    
      
         

      

      
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    23,
      2003,
      the Executive will be deemed to be credited with fifteen years of service for
      purposes of calculating his supplemental retirement benefit under this Section.
      With the exception of the lump sum methodology noted below (i.e., the present
      value of an immediate annuity), the benefits payable under this Section 4(g)
      shall be calculated using the same definitions of actuarial equivalence, and
      the
      same early retirement reduction factors that are specified in the Pension Plan
      in the event that the Executive becomes entitled to payment of the supplemental
      retirement benefit prior to what would have been his Normal Retirement Date,
      except that, in the event that the Executive is credited with deemed years
      of
      service, the reductions shall be based on the Executive's service deemed as
      an
      employee of the Company. If the form of payment provides for a death benefit,
      such benefit shall be payable to the Executive's estate, unless another
      beneficiary has been designated by the Executive. If the Executive dies prior
      to
      the commencement of benefit payments, then the pre-retirement death benefit
      provisions of the Pension Plan shall apply to the supplemental retirement
      benefit payable pursuant to this Section (4)(g).

    

    (ii)
      Grandfathering
      Pre-2005 Accruals; Time and Form of Payment.
      SERP
      accruals through December 31, 2004 (the ‘grandfathered amount’) shall be subject
      to the tax law in effect prior to the enactment of Section 409A of the Internal
      Revenue Code, including without limitation requirements as to election of the
      timing and form of payment. For purposes of calculating the grandfathered
      amount, the grandfathered amount shall be determined to be the actuarially
      equivalent present value as of December 31, 2004 of the SERP to which the
      Executive would be entitled under this Section 4(g) if the Executive had
      voluntarily terminated service as of that date and received an actuarially
      equivalent lump sum equal to the present value of the immediate life annuity
      payable upon his termination of service. Early retirement subsidies to which
      the
      Executive would not in fact be entitled as of December 31, 2004 because the
      Executive had not attained sufficient age or service shall not be included
      in
      determining the grandfathered amount. The normal form of benefit payment for
      the
      grandfathered amount shall be an actuarially equivalent lump sum equal to the
      present value of the immediate life annuity to which the Executive would have
      been entitled had he terminated service as of December 31, 2004. The Executive
      may instead elect to receive the grandfathered amount in any other one of the
      actuarially equivalent forms provided for under the Pension Plan; provided
      that
      such election is made in accordance with the law in effect prior to January
      1,
      2005 and any transition rules provided in IRS Notice 2005-1.

    

    (iii)
      Time
      and Form of Payment for Non-Grandfathered Amounts.
      Distribution of SERP accruals occurring on or after January 1, 2005 (the
“non-grandfathered amount”) shall be shall be paid, or commence to be paid, in
      the month of January following the Executive’s termination of service with the
      Company and its affiliates, but in no event earlier than six months following
      the Executive’s termination of service in the event that the Executive is a ‘key
      employee’ as defined in Section 416 of the Internal Revenue Code. The
      non-grandfathered amount, determined as of the Executive’s termination date,
      shall be paid in an actuarially equivalent lump sum equal to the present value
      of the immediate life annuity payable as of such distribution date, unless
      the
      Executive shall have elected at least 12 months in advance of such distribution
      date to commence distributions in one of the other actuarially equivalent forms
      of benefits permitted under the Company’s Pension Plan, in which case the
      commencement of the non-grandfathered amount shall be deferred, except in the
      case of termination due to death or disability, for a period of at least five
      years from the date on which such distribution otherwise would have been made.
      Notwithstanding the foregoing to the contrary, on or before December 31, 2005,
      the Executive shall be permitted to make an election, pursuant to IRS Notice
      2005-1, Question and Answer 19(c) to alter the form of distribution that would
      otherwise apply under this Subsection (iii) to the non-grandfathered amount,
      and
      to take the non-grandfathered amount in any actuarially equivalent form of
      distribution available under the Pension Plan, without the necessity of making
      such election 12 months in advance of such distribution commencement date,
      and
      without being deemed to have violated either the 5 year deferral rule contained
      in Sections 409A(4) or the ‘anti-acceleration’ rule of Section 409A(3) of the
      Code.

    
       

      
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    (iv)
      Payments
      Conditioned upon Release. All
      payments under this Section 4(g) are conditioned upon the Executive executing
      the release provided for in Section 6(f).

    

    (v)
      Compliance
      with Applicable Tax Law.
      The
      provisions of this section are intended to comply in good faith with all laws
      applicable to the taxation of non-qualified deferred compensation, and the
      Company and Executive agree to revise this subsection as necessary or advisable
      on or before December 31, 2005 in order to comply with such laws and to
      incorporate the applicable provisions of Section 409A of the Internal Revenue
      Code (and guidance issued thereon) with respect to non-grandfathered
      amounts.

    

    The
      provisions of the foregoing amendment shall be effective as of January 1,
      2005.

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates
      set forth below.

    

    

    
      	
              Date:
                

            	
              July
                8, 2005

            

    

    

    UIL
      HOLDINGS CORPORATION

    Attest:

    

    

    
      	
              /s/
                Susan E. Allen

            	 	
              By:

            	
              /s/
                Thelma R. Albright

            
	
              Susan
                E. Allen, Vice President

              Investor
                Relations, Corporate Secretary & Treasurer

            	 	 	
              Thelma
                R. Albright, Chairman Compensation and Executive Development
                Committee

            

    

    

    

    

    
      	
              July
                8, 2005

            	 	
              /s/
                Nathaniel D. Woodson

            
	
              Date

            	 	
              Nathaniel
                D. Woodson

            

    

    

    
      
         

      

      
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