Document:

Exhibit 4.1

 

OFFICERS’
CERTIFICATE 

PURSUANT TO SECTION 301 OF THE INDENTURE

5.21% NOTES DUE SEPTEMBER 1, 2020

 

We, the
undersigned David W. Stevens, President and Chief Executive Officer, and Larry
C. Rosok, Vice President – Human Resources and Corporate Secretary, of Cascade
Natural Gas Corporation (the “Company”), in accordance with Section 301 of
the Indenture, dated as of August 1, 1992, as amended and supplemented
through the date hereof, including by this Officers’ Certificate (the “Indenture”),
between the Company and The Bank of New York Trust Company, N.A., as successor
trustee to The Bank of New York (the “Trustee”), and pursuant to the Board
Resolution adopted by the Company’s Board of Directors on July 26, 2005,
do hereby establish a series of debt securities with the following terms and
characteristics (capitalized terms used and not defined herein have the
meanings specified in the Indenture, and the numbered clauses set forth below
correspond to the numbered subsections of Section 301 of the Indenture):

 

(1)           the title of the securities of such
series shall be “5.21% Notes due September 1, 2020” (the “Notes”); the
form of the Notes shall be in substantially the form attached hereto as Exhibit A
which form is hereby authorized and approved;

 

(2)           the initial aggregate principal
amount of Notes to be authenticated and delivered under the Indenture shall be
$15,000,000 (additional Notes, without limitation as to amount, and without the
consent of the Holders of the then outstanding Notes, may also be authenticated
and delivered in the manner provided in the Indenture);

 

(3)           except as otherwise provided in the
form of Note attached hereto with respect to payment at the Stated Maturity
Date (as hereinafter defined) or any redemption thereof, interest on the Notes
shall be payable to the Person or Persons in whose names the Notes are
registered at the close of business on the Regular Record Date (as hereinafter
defined) for such interest; any such interest that is not so punctually paid or
duly provided for will forthwith cease to be payable to the Holders on such
Regular Record Date and may either be paid to the Person or Persons in whose
name the Notes are registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to the Holders of the Notes not less than ten (10) nor
more than fifteen (15) days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which such Notes may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in the
Indenture;

 

(4)           the principal of the Notes shall be
due and payable on September 1, 2020 (the “Stated Maturity Date”), unless
redeemed or otherwise repaid prior to the Stated Maturity Date as provided
herein;

 

(5)           the Notes shall bear interest at a
fixed rate of 5.21% per year; interest shall accrue on any Note from September 1,
2005 or the most recent date to

 

1

 

which interest has been paid or duly provided
for, or, if the authentication date of any Note is after any Regular Record
Date but before the next succeeding Interest Payment Date, from the next
succeeding Interest Payment Date; the Interest Payment Dates for the Notes
shall be March 1 and September 1 of each year, with an initial
Interest Payment Date of March 1, 2006, and the Regular Record Date shall
be the close of business on the fifteenth calendar day of the month immediately
preceding the month in which the applicable Interest Payment Date falls
(whether or not a Business Day); and interest shall be calculated on the basis
of a 360-day year of twelve 30-day months;

 

(6)           in addition to the corporate trust
office of The Bank of New York (an affiliate of the Trustee) in the Borough of
Manhattan, the City of New York, State of New York, the Trustee’s corporate
trust office in Los Angeles, California, shall be the office or agency of the
Company at which the principal of and interest on the Notes shall be payable,
at which Notes may be surrendered for registration of transfer and exchange,
and at which notices and demands to or upon the Company with respect to the
Notes and the Indenture may be served;

 

(7)           the Notes shall be redeemable at the
option of the Company, in whole at any time or in part from time to time, upon
not less than 30 nor more than 60 days prior written notice, at a redemption
price equal to the greater of (1) 100% of the principal amount being
redeemed on that redemption date or (2) the sum of the present values of
the remaining scheduled payments of principal and interest on the notes being
redeemed on that redemption date (exclusive of interest accrued to the redemption
date), discounted to the redemption date on a semi-annual basis, assuming a 360-day
year consisting of twelve 30-day months, at the “treasury yield,” as defined in
the Notes, plus 0.20%, as determined by a reference treasury dealer appointed
by the Company for such purpose, plus, in each case, accrued and unpaid
interest to the redemption date; in the event of redemption of the Notes in
part only, a new Note or Notes for the unredeemed portion will be issued in the
name or names of the Holders thereof upon the surrender thereof;

 

(8)           the Notes shall be issued in global
form and the depository for Notes issued in global form shall be The Depository
Trust Company (the “Depository”); beneficial interests in Notes issued in
global form may not be exchanged, in whole or in part, for the individual
securities represented thereby, except that (a) if the Depository is at
any time unwilling or unable to continue as depository and a successor
depository is not appointed within 90 days, the Company will issue individual
certificate notes in exchange for global notes, (b) if the Company at any
time and in its sole discretion determines not to have the Notes represented by
one or more global notes, or (c) if there shall have occurred an Event of
Default with respect to the Notes, the Company will issue individual
certificate notes in exchange for the global notes; owners of beneficial
interests in such global notes will not be considered the Holders thereof for
any purpose under the Indenture, and no global note representing a Note shall
be exchangeable, except for another global note of like denomination and tenor
to be registered in the name of the Depository or its nominee or to a successor
depository or its nominee; the rights of Holders of such global notes shall be
exercised only through the Depository;

 

2

 

(9)           not applicable;

 

(10)         the Notes issued shall be issued in
denominations of $1,000 or any amount in excess thereof that is an integral
multiple of $1,000;

 

(11)         not applicable;

 

(12)         not applicable; and

 

(13)         the Opinion of Counsel referred to in
clause (z) of Section 401 of the Indenture, as such Section 401 was
amended by the First Supplemental Indenture dated as of October 25, 1993
between the Company and the Trustee, shall be based upon a change in federal
income tax law after the date of issuance of the Notes or a ruling of the
Internal Revenue Service and, in addition to what is required by such Section 401,
shall be to the effect that the Holders of the Notes will be subject to federal
income tax on the same amounts, in the same manner and at the same times as
would have been the case but for the discharge.

 

IN WITNESS
WHEREOF, we have hereunto signed our names this 1st day of September, 2005.

 

	
   

  	
  /s/ David W. Stevens

  	
   

  
	
   

  	
  David W. Stevens

  
	
   

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Larry C. Rosok

  	
   

  
	
   

  	
  Larry C. Rosok

  
	
   

  	
  Vice President – Human Resources and

  Corporate Secretary

  

 

3

 

EXHIBIT A

 

[FORM OF 5.21% NOTES DUE SEPTEMBER 1,
2020]

 

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

 

This
instrument is a global instrument within the meaning of the Indenture
hereinafter referred to and is registered in the name of a depository or a
nominee of a depository.  This instrument
is exchangeable for instruments registered in the name of a person other than
the depository or its nominee only in the limited circumstances described in
the Indenture, and no transfer of this instrument (other than a transfer of
this instrument as a whole by the depository to a nominee of the depository or
by a nominee of the depository to the depository or another nominee of the
depository) may be registered except in such limited circumstances.

 

Unless and
until this Note is exchanged in whole or in part for certificated Notes
registered in the names of the various beneficial holders hereof, as then
certified to the Company by the Depository or a successor depository, this Note
may not be transferred except as a whole by the Depository to a nominee of the
Depository or by a nominee of the Depository to the Depository or another
nominee of the Depository or by the Depository or any such nominee to a
successor depository or a nominee of such successor depository.

 

4

 

	
  No. R-1

  	
   

  	
  CUSIP No. 147339AK1

  

 

CASCADE NATURAL GAS CORPORATION

5.21% Notes due September 1,
2020

 

	
  Principal Amount:

  	
   

  	
  $15,000,000

  
	
   

  	
   

  	
   

  
	
  Regular Record Dates:

  	
   

  	
  Fifteenth calendar day of the month
  immediately preceding the month in which the applicable Interest Payment Date
  falls (whether or not a Business Day)

  
	
   

  	
   

  	
   

  
	
  Original Issue Date:

  	
   

  	
  September 1, 2005

  
	
   

  	
   

  	
   

  
	
  Stated Maturity Date:

  	
   

  	
  September 1, 2020

  
	
   

  	
   

  	
   

  
	
  Interest Payment Dates:

  	
   

  	
  Semi-annually in arrears on March 1
  and September 1 of each year, beginning March 1, 2006

  
	
   

  	
   

  	
   

  
	
  Interest Rate:

  	
   

  	
  5.21% per annum

  
	
   

  	
   

  	
   

  
	
  Authorized Denominations:

  	
   

  	
  $1,000 or any integral multiple thereof

  
	
   

  	
   

  	
   

  
	
  Optional Redemption:

  	
   

  	
  In whole at any time, or in part from time
  to time, at the option of the Company, as described herein

  

 

Cascade
Natural Gas Corporation, a corporation duly organized and existing under the
laws of the State of Washington (herein called the “Company”, which term
includes any successor corporation under the Indenture referred to
hereinafter), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of Fifteen Million Dollars ($15,000,000)
on the Stated Maturity Date specified above, and to pay interest thereon from
the Original Issue Date specified above or from the most recent Interest
Payment Date to which interest has been paid or duly provided for or, if
authentication is after any Regular Record Date but before the next succeeding
Interest Payment Date, from the next succeeding Interest Payment Date,
semi-annually in arrears on March 1 and September 1 of each year,
commencing March 1, 2006, at the Interest Rate per annum specified above
until the principal hereof is paid or made available for payment and on any
overdue principal and on any overdue installment of interest.  The interest so payable, and punctually paid
or duly provided for, on any Interest Payment Date (other than an Interest
Payment Date that is the Stated Maturity Date or on a Redemption Date or upon
acceleration) shall, as provided in the Indenture, be paid to the Person in
whose name this Note is registered at the close of business on the Regular
Record Date for such interest as specified above next preceding such Interest
Payment Date, provided that any interest payable at the Stated Maturity Date or
on any

 

5

 

Redemption Date will be paid to the Person to
whom principal is payable.  Except as
otherwise provided in the Indenture, any such interest not so punctually paid
or duly provided for shall forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Note is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee (notice whereof
shall be given to Holders of Notes of this series not less than ten (10) nor
more than fifteen (15) days prior to such Special Record Date), or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Notes for this series may be listed (and
upon such notice as may be required by such exchange), all as more fully
provided in the Indenture.

 

Payments of
interest on this Note will include interest accrued to but excluding the
respective Interest Payment Dates. 
Interest payments for this Note shall be computed and paid on the basis
of a 360-day year of twelve 30-day months. 
If any Interest Payment Date, any Redemption Date or the Stated Maturity
Date shall not be a Business Day, payment of the amounts due on this Note on
such date may be made on the next succeeding Business Day, as if each such
payment were made on the date such payment were due, and no interest shall
accrue on such amounts for the period from and after such Interest Payment
Date, Redemption Date or Stated Maturity Date, as the case may be, to such
Business Day.

 

Payment of the
principal of, and interest on, this Note at the Stated Maturity Date or earlier
redemption shall be paid by wire transfer in immediately available funds
(except that payment on certificated notes shall be paid by check except in
certain circumstances) upon surrender of the Notes at the Corporate Trust
Office of the Trustee or at such other office or agency as may be designated
for such purpose by the Company from time to time.  Payment of interest on this Note shall be
paid by wire transfer in immediately available funds (except that payment on
certificated notes shall be paid by check except in certain circumstances) to
the Person entitled thereto as indicated in the Instrument Register.  Payment of the principal of and interest on
this Note, as aforesaid, shall be made in such coin or currency of the United
States of America as at the time of payment shall be legal tender for the
payment of public and private debts.

 

REFERENCE IS
HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE
HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS
IF SET FORTH AT THIS PLACE.

 

6

 

Unless the
certificate of authentication hereon has been executed by the Trustee by manual
signature of an authorized officer, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

 

IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

 

 

	
   

  	
  CASCADE NATURAL GAS

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  David W. Stevens

  
	
   

  	
   

  	
  President and Chief Executive Officer

  

 

 

[Seal]

 

 

	
  ATTEST:

  	
   

  	
   

  
	
   

  	
  Corporate
  Secretary

  

 

7

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes of the series designated herein referred to in
the within-mentioned Indenture.

 

Dated:  September 1, 2005

 

 

	
   

  	
  THE BANK OF NEW YORK

  TRUST COMPANY, N.A.,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

8

 

(Reverse Side of Note)

 

This Note is
one of a duly authorized issue of Instruments of the Company issued and
issuable in one or more series under an Indenture, dated as of August 1,
1992 (such Indenture, as amended and supplemented through the date hereof,
including by an Officers’ Certificate dated the date hereof, together with any
constituent instruments establishing the terms of particular Instruments, being
herein called the “Indenture”), of the Company to The Bank of New York Trust
Company, N.A., as trustee (herein called the “Trustee,” which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a more complete statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the Holders of the Notes and of the terms upon
which the Notes are, and are to be, authenticated and delivered.  The acceptance of this Note shall be deemed
to constitute the consent and agreement by the Holder hereof to all of the
terms and provisions of the Indenture. 
This Note is one of the series designated on the face hereof as 5.21%
Notes due September 1, 2020 in the initial aggregate principal amount of
$15,000,000.  Capitalized terms used but
not defined herein shall have the meanings set forth in the Indenture.

 

The Company shall have the right, at its
option, subject to the terms and conditions of the Indenture, to redeem this
Note in whole at any time or in part from time to time, at a redemption price
equal to the greater of (1) 100% of the principal amount being redeemed on
that redemption date or (2) the sum of the present values of the remaining
scheduled payments of principal and interest on the Note being redeemed on that
redemption date (exclusive of interest accrued to the redemption date),
discounted to the redemption date on a semi-annual basis, assuming a 360-day
year consisting of twelve 30-day months, at the “treasury yield,” as defined
below, plus 0.20%, as determined by a reference treasury dealer appointed by
the Company for such purpose, plus, in each case, accrued and unpaid interest
to the redemption date.

 

“Business Day”
means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which banking institutions or trust companies in The City of New York, or
any place where the principal of or interest on the Notes is payable, are
generally authorized or obligated by law or executive order to close.

 

“Comparable
treasury issue” means the United States Treasury security selected by an “independent
investment banker,” as defined below, as having a maturity comparable to the
remaining term of the Notes that the independent investment banker would
utilize, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Notes.

 

“Comparable
treasury price” means, with respect to any redemption date, (1) the
average of the bid and asked prices for the comparable treasury issue,
expressed in each case as a percentage of its principal amount, on the third
Business Day preceding the redemption date, as set forth in the daily
statistical release, or any successor release,

 

9

 

published by
the Federal Reserve Bank of New York and designated “Composite 3:30 p.m.
Quotations for U.S. Government Securities” or (2) if that release or any
successor release is not published or does not contain those prices on that
Business Day, (A) the average of the “reference treasury dealer
quotations,” as defined below, for the redemption date, after excluding the
highest and lowest reference treasury dealer quotations for the redemption
date, or (B) if the Company obtains fewer than four reference treasury
dealer quotations, the average of all the quotations which the Company obtains.

 

“Independent
investment banker” means one of the “reference treasury dealers” as defined
below, appointed by the Company.

 

“Reference
treasury dealer” means any primary U.S. Government securities dealer in New
York City selected by the Company.

 

“Reference
treasury dealer quotations” means, with respect to each reference treasury
dealer and any redemption date, the average, as determined by the Company, of
the bid and asked prices for the comparable treasury issue, expressed in each
case as a percentage of its principal amount, quoted in writing to the Company
by the reference treasury dealer at 5:00 p.m. on the third Business Day preceding
the redemption date.

 

“Treasury yield” means, with respect to any
redemption date, the rate per year equal to the semi-annual equivalent yield to
maturity of the “comparable treasury issue,” as defined above, assuming a price
for the comparable treasury issue, expressed as a percentage of its principal
amount, equal to the “comparable treasury price,” as defined above, for such
redemption date.  The treasury yield will
be calculated on the third Business Day preceding the redemption date.

 

Notice of
redemption shall be given by mail to Holders of Notes, not less than 30 days
nor more than 60 days prior to the date fixed for redemption, all as provided
in the Indenture.  In the event of
redemption of this Note in part only, a new Note or Notes of this series, of
like tenor, for the unredeemed portion hereof will be issued in the name of the
Holder hereof upon the cancellation hereof.

 

If, at the time notice of redemption is
given, the redemption moneys are not held by the trustee, the redemption may be
made subject to their receipt on or before the date fixed for redemption and
such notice shall be of no effect unless such moneys are so received. If the
redemption notice is given and funds deposited as required by the Indenture,
then interest will cease to accrue on and after the redemption date on the
Notes or portions of Notes called for redemption.  If redemption moneys are not deposited on or
before the date fixed for redemption, the principal amount of the Notes called
for redemption will continue to bear interest at the rate stated above until
paid.

 

If an Event of
Default with respect to the Notes of this series shall occur and be continuing,
the principal of and interest on the Notes of this series may be

 

10

 

declared due and payable in the manner, with
the effect and subject to the conditions provided in the Indenture.

 

The Indenture
permits, with certain exceptions as therein provided, the Trustee to enter into
one or more supplemental indentures for the purpose of adding any provisions
to, or changing in any manner or eliminating any of the provisions of, the
Indenture with the consent of the Holders of not less than a majority in
principal amount of the Outstanding Instruments of each series affected.  The Indenture also contains provisions
permitting the Holders of specified percentages in principal amount of the
Instruments then Outstanding, on behalf of the Holders of all Instruments, to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange therefor or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Note.

 

As provided in
the Indenture and subject to certain limitations therein set forth, the
transfer or exchange of this Note is registrable in the Instrument Register,
upon surrender of this Note for registration of transfer or exchange at the
offices of The Bank of New York, New York City, New York, or at the Trustee’s
corporate trust office in Los Angeles, California, or such other office or
agency as may be designated by the Company from time to time, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Instrument Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Notes of
like tenor and aggregate principal amount, will be issued to the designated
transferee or transferees or to the Holder, as the case may be.  No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

 

The Notes of
this series are issuable only in registered form, without coupons, in
denominations of $1,000, and any amount in excess thereof that is an integral
multiple of $1,000.  As provided in the
Indenture and subject to certain limitations therein set forth, Notes of this
series are exchangeable for a like tenor and aggregate principal amount of
Notes of this series, of any authorized denominations, as requested by the
Holder surrendering the same, upon surrender of the Note or Notes to be
exchanged at the office or agency designated by the Company from time to
time.  The Company shall not be required
to (a) issue, register the transfer of or exchange Notes of this series
during a period of 15 days immediately preceding the date notice is given
identifying the serial numbers of the Notes of this series called for
redemption or (b) issue, register the transfer of or exchange any Note so
selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part.

 

Prior to due
presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name
this Note is registered as the absolute owner hereof for all purposes,

 

11

 

whether or not this Note be overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary.

 

The Indenture and the Notes
shall be governed by and construed in accordance with the laws of the State of
New York.

 

12

 

FOR VALUE RECEIVED the
undersigned hereby sells, assigns and transfers

 

unto

 

[please insert social security
or
 other identifying number of assignee]

 

[please print or typewrite name
and address of assignee]

 

the within Note of CASCADE NATURAL GAS CORPORATION and does hereby
irrevocably constitute and appoint                                           ,
Attorney, to transfer said Note on the books of the above-mentioned Company,
with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  

 

	
   

  	
   

  
	
   

  	
  Notice: The signature to this assignment
  must correspond with the name as written upon the face of the Note in every
  particular without alteration or enlargement or any change whatsoever.

  

 

13Exhibit 10(a)

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT is
made as of August 29,  2005 among
DPL INC., an Ohio corporation (“DPL”), The Dayton Power and Light Company, an
Ohio corporation (“DP&L”; and, collectively with DPL, the “Company”) and
Joseph R. Boni III (“Mr. Boni”) under the following circumstances:

 

A.                                   DPL is a holding company
headquartered in Dayton, Ohio, having as its principal subsidiary DP&L.

 

B.                                     The Company, subject to the
terms and conditions set forth herein, desires to employ Mr. Boni as
Treasurer of the Company.

 

C.                                     Mr. Boni desires to be
employed as the Treasurer of Company subject to the terms and conditions set
forth herein.

 

NOW, THEREFORE, the parties
agree as follows:

 

Section 1. Employment and Duties.  The Company hereby employs Mr. Boni as
Treasurer of the Company and Mr. Boni hereby accepts such employment.  In his capacity as Treasurer of the Company, Mr. Boni
shall report directly to the Senior Vice President and Chief Financial Officer
of the Company, and shall have the duties customarily performed by a treasurer
of a similarly situated company.  In his
capacity as Treasurer of the Company, Mr. Boni will be responsible for the Company’s treasury function
encompassing all aspects of the Company’s cash and liquidity management,
investments and borrowings, bank relationships, tax and payroll, and for
recommending and executing the Company’s capital structure requirements.  Mr. Boni shall also perform such other
and further duties as may be assigned to him from time to time by the Vice
President and Chief Financial Officer, and as are consistent with the position
of Treasurer.  During the Term, Mr. Boni
shall devote his entire business time and attention to the performance of his
duties hereunder and shall use his best efforts to perform his duties hereunder
faithfully and efficiently.

 

Section 2. Term.  Subject to the terms of Section 7
hereof, the term of this Agreement (the “Term”) shall be effective as of August 29,
2005 and shall continue thereafter until terminated in accordance with Section 7.

 

Section 3. Compensation and Benefits.  Mr. Boni shall receive the following
compensation and benefits for his services during the Term.

 

(a)                                  Base
Salary.  Mr. Boni shall receive a base salary at
the annual rate of $200,000 or such greater amount as the Compensation
Committee of the Board of Directors of DPL (the “Compensation Committee”) may
determine from time to time in its sole discretion (the “Base

 

 

Salary”), to be paid in
installments in accordance with the Company’s customary payroll practices.

 

(b)                                 Participation
in MICP.  For each calendar year during the Term, Mr. Boni
shall have the opportunity to receive an annual bonus under the Company’s
Management Incentive Compensation Plan (“MICP”), and for each such year Mr. Boni
will have the opportunity to earn $70,000 at 100% of the target performance in
accordance with the terms of the MICP. 
For 2005, the annual bonus under the MICP will be prorated to reflect Mr. Boni’s
period of employment during 2005.  Any
MICP amounts due for a given year will be paid by April 1 of the following
year.

 

(c)                                  Participation
in LTIP.  For each calendar year during the Term, Mr. Boni
shall have the opportunity to participate in the Company’s Long Term Incentive
Plan (“LTIP”), and for each such year Mr. Boni will have the opportunity
to earn $100,000 at 100% of target performance in accordance with the terms of
the LTIP.  For 2005, the award under the
LTIP will be prorated to reflect Mr. Boni’s period of employment during
2005.  In no event will the LTIP award
exceed 200% of Mr. Boni’s target.

 

(d)                                 Vesting.  Any award earned by Mr. Boni under the
LTIP will vest in three equal annual installments of one-third each on December 31st
of each year if Mr. Boni is in the employ of the Company on such date, commencing
with the year to which the award relates.

 

(e)                                  DPL’s
Executive Stock Ownership Plan.  Subject to the last sentence of this Section 3(e),
Mr. Boni will be required to comply with the provisions of DPL’s Executive
Stock Ownership Guidelines (the “Guidelines”) which require that Mr. Boni
achieve a specified minimum threshold of DPL share ownership within a specified
period of time following the effective date of this Agreement and thereafter
maintain DPL share ownership at the requisite minimum level.  The minimum threshold of share ownership
applicable to Mr. Boni as Treasurer of the Company will be determined
under such Guidelines established by DPL’s Board of Directors and communicated
to Mr. Boni.  The parties agree that
Mr. Boni’s ownership of DPL shares pursuant to this Section 3(e) will
only be acquired with proceeds from the LTIP and any proceeds from the MICP in
excess of the 100% “target” payout.

 

(f)                                    Fringe
Benefits.  During the
Term, Mr. Boni shall be entitled to receive such fringe benefits
(including, but not limited to, medical, dental and disability insurance
benefits, life insurance benefits and qualified retirement benefits) as are
generally made available to other executive level employees of the Company in
accordance with the plans, practices, programs and policies of the Company in
effect from time to time, including participation in the Company’s Key
Employees Deferred Compensation Plan, and 401(k) plan.  In addition, during the Term Mr. Boni
shall be entitled to the life insurance benefits currently provided by the
Company.

 

(g)                                 Relocation
Expenses.  The Company shall reimburse Mr. Boni for
the reasonable expenses incurred in relocating his family and single family
residence from a single location in the Cleveland, Ohio area to the Dayton,
Ohio area.  In addition, the Company will
reimburse Mr. Boni for up to two hundred and seventy (270) days rental for
temporary housing in the greater Dayton, Ohio area and for travel between the Dayton, Ohio area and the Cleveland, Ohio
area, including reimbursement for mileage (at standard IRS reimbursement
rates), airfare and airport parking charges, not to exceed $25,000 in
the aggregate.  The Company shall
reimburse Mr. Boni for customary real estate commissions incurred in
connection with the sale of his current 

 

 

residence in the Cleveland area and
for the cost of one appraisal for a residence in the Dayton area.  The Company shall pay Mr. Boni a moving
incentive bonus equal to $20,000.  The
Company will reimburse Mr. Boni for mileage (at standard IRS reimbursement
rates) for driving his 2 cars from the Cleveland, Ohio area to Dayton,
Ohio.  Finally, the Company will pay Mr. Boni
$5,000 for miscellaneous relocation expenses incurred by the employee (and his
family).  To the extent any of the
foregoing payments or reimbursements are subject to income taxes or other taxes
similar to income taxes, the Company shall pay Mr. Boni an additional
amount sufficient to gross him up for the amount of such taxes.  In the event that Mr. Boni terminates his
employment for any reason or his employment is terminated by the Company for “Cause”
(as defined below) within one year of the date of the relocation, Mr. Boni
shall fully reimburse the Company for any payments made by the Company pursuant
to this Section 3(g).

 

Section 4. Vacations.  During the Term, Mr. Boni shall be
entitled to paid vacation time of three weeks annually.

 

Section 5. Expenses.  The Company shall reimburse Mr. Boni for
all reasonable out-of-pocket expenses properly incurred by him in connection
with the performance of his duties hereunder in accordance with the policies
established from time to time by the Company.

 

Section 6. Withholdings.  The Company may withhold from any amounts
payable to Mr. Boni hereunder such federal, state or local taxes or other
amounts as the Company shall be required to withhold pursuant to applicable
law.

 

Section 7. Termination.  a) 
This Agreement, and Mr. Boni’s employment hereunder, may be
terminated: (i) by the Company or Mr. Boni without Cause upon at least
90 days’ prior written notice to the other; and (ii) by the Company for
Cause without prior written notice.

 

(b)                                 In addition,
this Agreement and Mr. Boni’s employment with the Company shall
automatically terminate upon Mr. Boni’s death or Disability (as
hereinafter defined).

 

(c)                                  Upon the
termination of the Agreement for any reason, this Agreement shall forthwith be
of no further force and effect (except that the provisions of Sections 3(g) and
8 through 28 shall continue in full force and effect) and there shall be no
further liability on the part of either party, other than based upon (i) its
obligations under this Agreement arising prior to such termination or (ii) the
obligations of such party contained in Sections 3(g) and 8 through 11.

 

Section 8. Severance Benefits Generally.  Notwithstanding any other provisions of this
Agreement to the contrary, upon termination of employment for any reason at any
time, the Company shall pay or provide the following amounts and benefits (the “Section 8
Amounts”) to Mr. Boni in compensation for services previously rendered:

 

(a)                                  the amount of Mr. Boni’s
unpaid Base Salary earned through the Date of Termination at the rate in effect
at the Date of Termination;

 

(b)                                 the amounts of
any MICP and LTIP awards with respect to any completed period or periods which,
pursuant to the MICP or LTIP (as applicable) have been earned by Mr. Boni
and vested, but which have not yet been paid to him; and

 

(c)                                  all other accrued
benefits of any kind to which Mr. Boni is, or would otherwise have been,
entitled through the Date of Termination.

 

 

Section 9. Severance Benefits Prior to a Change of Control.  In the event of a termination of Mr. Boni’s
employment prior to a Change of Control, the following provisions shall apply:

 

(a)                                  Termination for
Cause; Death or Disability.  If (i) the Company terminates Mr. Boni’s
employment for Cause; or (ii) Mr. Boni’s employment is terminated due
to his death or Disability, Mr. Boni shall receive the Section 8
Amounts.

 

(b)                                 Termination Without Cause. If the Company terminates Mr. Boni’s
employment without Cause, Mr. Boni shall receive:

 

(i) the Section 8
Amounts;

 

(ii) an amount equal to the sum of (i) 1 year’s Base Salary
and (ii) the amount of Mr. Boni’s target MICP bonus for the year of
termination; and

 

(iii) continued coverage under the health benefit plan for
executive employees at the same cost and terms as in effect immediately prior
to the date of notice until the earlier of (A) the first anniversary of
his Termination Date or (B) the date an essentially equivalent and no less
favorable benefit is made available to Mr. Boni at substantially similar
cost.

 

(c)                                  Termination by Mr. Boni.  If Mr. Boni terminates his employment
for any reason at any time, Mr. Boni shall receive the Section 8
Amounts.

 

(d)                                 Full
Satisfaction.  The
foregoing payments and benefits under this Section 9 shall be the Company’s
entire obligation to Mr. Boni in the event of a termination of Mr. Boni’s
employment not related to a Change of Control, and Mr. Boni will execute a
full and unconditional release of any claims which he may have against the
Company as a condition to receiving such payment, except for termination
pursuant to Section 9(a).

 

Section 10. Severance
Benefits Related to a Change of Control.  In the event of the occurrence of Change of
Control, the following provisions shall apply:

 

(a)                                  Termination For Cause; Resignation Without Good Reason; Death or
Disability.  If, within
36 months following a Change of Control, (i) the Company terminates Mr. Boni’s
employment for Cause; (ii) Mr. Boni terminates his employment without
Good Reason; or (iii) Mr. Boni’s employment is terminated due to his
death or Disability, Mr. Boni shall receive the Section 8 Amounts.

 

(b)                                 Termination Without Cause; For Good Reason.  If, within 36 months following a Change of
Control, (i) the Company terminates Mr. Boni’s employment without
Cause or (ii) Mr. Boni terminates his employment for Good Reason, Mr. Boni
shall receive the following:

 

(i) the Section 8 Amounts;

 

(ii) an amount equal to 200% of the sum of (1) Mr. Boni’s
annual Base Salary (which Base Salary is computed before deduction for any
deferred compensation or other employee deferrals) at the highest of (A) the
rate in effect as of Date of Termination, or (B) the rate in effect at the
time of the Change of Control, plus (2) the average of the award payments
made to him under the MICP for the three years preceding the Date of
Termination (or for the number of years he has

 

 

participated in such plan, if less than three), including any portion
of any such payments that Mr. Boni elected to defer to his Standard
Deferral Account in the Company’s Key Employees Deferred Compensation Plan;

 

(iii) the amount of any MICP awards earned with respect to any
completed period, but unvested as of the Date of Termination; provided that in
the event the Date of Termination precedes the completion of a period in which,
pursuant to the MICP, Mr. Boni could have earned compensation thereunder,
or in the event the Date of Termination precedes the determination of
compensation that he has earned for a completed period under the MICP, then,
with respect to each such period, Mr. Boni shall be entitled to an amount
equal to the average of the award payments made to him under the MICP for the
three years preceding the Date of Termination (or for the number of years he
has participated in such plan, if less than three), including any portion of
any such payments that he elected to defer to his Standard Deferral Account in
the Company’s Key Employees Deferred Compensation Plan;

 

(iv) the Company shall, at its expense, maintain in full force and
effect for Mr. Boni’s continued benefit all life insurance, health and
accident, and disability plans in which he was entitled to participate
immediately prior to the Date of Termination, or, if more favorable to Mr. Boni,
on the date of a prior Change of Control, provided that his continued
participation is possible under the terms of such plans and programs.  In the event that the terms of any such plan
do not permit Mr. Boni’s continued participation or that any such plan is
discontinued or the benefits thereunder materially reduced, the Company shall
arrange to provide, at its expense, benefits to Mr. Boni that are
substantially similar to those that he was entitled to receive under such plan
immediately prior to the Date of Termination. 
The Company’s obligation under this subsection (iv) shall
terminate on the earlier of: (1) the third anniversary of the Date of
Termination or (2) the date an essentially equivalent and no less
favorable benefit is made available to Mr. Boni at no cost by a subsequent
employer. At the end of the applicable period of coverage set forth above, Mr. Boni
shall have the option to have assigned to him, at no cost and with no
apportionment of prepaid premiums, any assignable insurance owned by the
Company and relating specifically to Mr. Boni.  In the event that because of their
relationship to Mr. Boni, members of his family or other individuals are
covered by a plan described in this subsection (iv) immediately prior
to the Date of Termination, the provisions set forth in this subsection (iv) shall
apply equally to require the continued coverage of such persons; provided,
however, that if under the terms of any such plan, any such person would have
ceased to be eligible for coverage during the period in which the Company is
obligated to continue coverage for Mr. Boni, nothing set forth herein
shall obligate the Company to continue to provide coverage which would have
ceased even if he had remained an employee of the Company during such period;
and

 

(v) any gross up amount payable under Section 15
hereof.

 

 

The Company shall make the
foregoing cash payments to Mr. Boni as severance in a lump sum in cash not
later than the Date of Termination (or in the case of any payments due under
clause (v), if, and to the extent the amount of such payments are not known or
calculable as of such due date, as soon as the amount is known and calculable).

 

(c)                                  Enhanced
Disability Protection.  In
addition to the Severance Benefits provided in this Section 10, if Mr. Boni’s
employment is terminated because of a Disability within thirty-six (36) months
following the occurrence of a Change of Control, Mr. Boni shall be
entitled to receive benefits under any Company employee salary continuation
plan or employee disability insurance plan then in effect in accordance with
the then applicable terms thereof; provided that Mr. Boni shall be
entitled to receive benefits under any similar plan in effect as of the date of
the occurrence of such Change of Control if such plan shall result in a higher
amount of benefits being paid to Mr. Boni as a result of the Disability in
question.

 

(d)                                 Notice of
Termination.  Any
termination of Mr. Boni’s employment subsequent to a Change of Control,
unless by Mr. Boni without Good Reason or because of Mr. Boni’s
death, shall be consummated by written Notice of Termination given to the other
party.  For purposes of this agreement, “Notice
of Termination” shall mean a notice given by the Company, or by Mr. Boni
with Good Reason, which indicates the specific termination provision or
provisions in this agreement relied upon, if any, and sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
of employment.

 

(e)                                  Nature of
Payments; No Mitigation.  The
payments and benefits provided upon termination of employment under this Section 10
shall not be treated as damages, but rather shall be treated as severance
compensation to which Mr. Boni is entitled under the terms and conditions
provided herein.  Mr. Boni shall not
be required to mitigate the amount of any benefit provided under this agreement
by seeking other employment or otherwise.

 

Section 11. Non-Solicitation and Confidentiality.  In consideration of the Company’s entering
into this Agreement and as an inducement for it to do so, Mr. Boni agrees
as follows:

 

(a)                                  Non-Solicitation. For a period
of two years after termination of Mr. Boni’s employment for any reason, he
will not, without the Company’s prior written consent, directly or indirectly, (i) solicit
for employment with himself or any firm or entity with which he is associated,
any employee of the Company or otherwise disrupt, impair, damage or interfere
with the Company’s relationship with its employees, or (ii) solicit for
his own behalf or on behalf of any other person(s), any customer of the Company
that has purchased goods from the Company at any time in the twelve (12) months
preceding his date of termination or that the Company is actively soliciting or
has known plans to solicit, for the purpose of marketing or distributing any
product, pricing or service competitive with any product, pricing or service
then offered by the Company or which the Company has known plans to solicit.

 

(b)                                 Confidentiality.  At all times, Mr. Boni (i) will
keep all confidential, nonpublic and/or proprietary information (including, for
example, trade secrets, financial information, customer information and
business and strategic plans) of the Company (regardless of when he became
aware of such information) in strict confidence and (ii) will not,
directly or indirectly, use or disclose to any person in any manner any of such
information, except to the extent directly related to and required by his
performance of the duties assigned to him by the Company.  Mr. Boni will take all appropriate steps
to safeguard such information and to protect it against

 

 

unauthorized disclosure, misuse, loss or
theft.  Upon termination of his
employment, Mr. Boni will promptly return to the Company, without
retaining any copies, all written or computer readable material containing any
of such information, as well as all other property and records of the Company,
in his possession or control.  For purposes
of this Section 11(b), information shall be deemed not to be confidential
information if such information becomes a matter of public record or is
published in a newspaper, magazine or other periodical or on electronic or
other media available to the general public, other than as a result of any act
or omission of Mr. Boni.

 

Section 12. Certain Definitions.  For purposes of this
Agreement, the following terms have the following meanings:

 

“Cause” means (a) proven
commission of a felony, (b) proven embezzlement, (c) the proven
illegal use of drugs, or (d) proven breach of fiduciary duty or
responsibility to the Company. 
Notwithstanding the foregoing, Cause shall not be deemed to exist unless
and until there shall have been delivered to Mr. Boni a copy of a
resolution duly adopted by written consent of not less than three-fourths of
the number of directors then in office (after reasonable notice to him and an
opportunity for him, together with his counsel, to be heard at a meeting of the
Board of Directors called and held for that purpose), finding that in the good
faith opinion of the Board of Directors he was guilty of conduct set forth
above in clauses (a), (b), (c) or (d) of the first sentence of this
definition and specifying the particulars thereof in detail.  For purposes of this Section 12, no act
or failure to act on Mr. Boni’s part shall be considered “willful” unless
it is done, or omitted to be done, by him in bad faith or without reasonable
belief that his action or omission was in the best interests of the Company.

 

“Change
of Control” means the consummation of any Change of 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 of DPL 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 the
official owner, directly or indirectly, of securities of DPL or DP&L
representing (A) 25% or more of the combined voting power of the then
outstanding securities of DP&L if the acquisition of such beneficial
ownership or such tender offer is not approved by the Board of Directors of DPL
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 consummates a merger or consolidation, or consummates a ‘combination’
or ‘majority share acquisition’ in which it is the ‘acquiring corporation’ (as
such terms are defined in Ohio Rev. Code § 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, 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 consummates a
sale, lease, exchange or other 

 

 

transfer or disposition 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 subsidiary(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; or (iv) those persons serving as directors of DPL or DP&L on
the date of this Agreement (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).

 

“Date
of Termination” means:

 

(a)                                  if Mr. Boni’s
employment is terminated by the Company for Cause, the date specified in the
Notice of Termination;

 

(b)                                 if Mr. Boni
terminates his employment for Good Reason, the date specified in his Notice of
Termination; or

 

(c)                                  if Mr. Boni’s
employment is terminated by the Company or by him for any other reason, the date
of such termination.

 

“Disability” means, for the
purposes of this Agreement, Mr. Boni’s inability to perform the duties
required of him on a full-time basis for a period of six (6) consecutive
months because of physical or mental illness or other physical or mental
disability or incapacity, followed by the Company giving him thirty (30) days’
written notice of its intention to terminate his employment by reason thereof,
and Mr. Boni’s failure because of physical or mental illness or other
physical or mental disability or incapacity to resume the full-time performance
of his duties within such period of thirty (30) days and thereafter perform the
same for a period of two (2) consecutive months.

 

“Good
Reason” means:

 

(a)                                  The assignment to Mr. Boni,
without his express consent, of any duties inconsistent with the duties of
Treasurer and/or written objectives approved by the Company with respect to his
position, duties, responsibilities and status with the Company in effect
immediately prior to a Change of Control, or a change in his reporting
responsibilities, titles or offices as in effect immediately prior to a Change
of Control, or his removal from or any failure to re-elect him to any of such
positions or offices, except in connection with the termination of his
employment for Disability or Cause, or by him other than for Good Reason, or as
a result of Mr. Boni’s death,

 

(b)                                 Failure by the Company to
increase Mr. Boni’s annual Base Salary, at the time when salary
adjustments were historically made by the Company prior to the Change of
Control, by an amount that at least equals on a percentage basis the average
percentage increase in his Base Salary during

 

 

the three (3) full
calendar years immediately preceding the Change of Control (or for the number of
years he has been employed by the Company, if less than three).

 

(c)                                  A reduction by the Company
of Mr. Boni’s Base Salary as in effect on the date hereof or as the same
may be increased from time to time.

 

(d)                                 Failure by the Company to
continue in effect any benefit or compensation plan (including but not limited
to the Company’s MICP, Key Employees Deferred Compensation Plan or any other
pension, employee stock ownership, life insurance, medical, health and
accident, or disability plan) in which Mr. Boni is participating at the
time of a Change of Control or plans providing Mr. Boni with substantially
similar benefits; or the taking of any action by the Company which would
adversely affect Mr. Boni’s participation in or materially reduce his
benefits under any of such plans or deprive him of any material fringe benefit
enjoyed by him at the time of the Change of Control; or the failure by the
Company to provide Mr. Boni with the number of paid vacation days to which
be would then be entitled in accordance with the Company’s vacation policy in
effect at the time of the Change of Control.

 

(e)                                  The relocation of the
Company’s principal executive offices to a location outside Montgomery County,
Ohio, if at the time of a Change of Control Mr. Boni is based at the
Company’s principal executive offices.

 

(f)                                    The Company’s requiring Mr. Boni
to be based anywhere more than fifty (50) miles from the location where he is
based at the time of a Change of Control (except for required travel on the
Company’s business to an extent substantially consistent with Mr. Boni’s
business travel obligations as they existed at the time of a Change of
Control); or, in the event Mr. Boni consents to being based anywhere more
than fifty (50) miles from such location, the failure by the Company to pay (or
reimburse him for) all reasonable moving expenses incurred by him relating to a
change of his principal residence in connection with such relocation and to
indemnify him against any loss (defined as the difference between the actual sale
price of such residence after the deduction of all real estate brokerage
charges and related selling expenses and the higher of (1) Mr. Boni’s
aggregate investment in such residence or (2) the fair market value of
such residence as determined by a real estate appraiser designated by him and
reasonably satisfactory to the Company realized upon the sale of such residence
in connection with any such change of residence.

 

(g)                                 The Company’s requiring Mr. Boni
to perform duties or services which necessitate absence overnight from his
place of residence, because of travel involving the business or affairs of the
Company, to a degree not substantially consistent with the extent of such
absence necessitated by such travel during the period of twelve (12) months immediately
preceding a Change of Control.

 

 

(h)                                 The failure of the Company
to obtain the assumption of this agreement by any successor as provided in Section 14
hereof.

 

(i)                                     The Company’s termination of
Mr. Boni’s employment without satisfying any applicable requirements in
connection with termination for Cause or sending a Notice of Termination.

 

“Person” means any
individual, corporation, association, partnership, firm, limited liability
company, trust or other entity or enterprise.

 

Section 13. Rights As Former Employee.  Nothing contained in this agreement shall be
construed as preventing Mr. Boni, and shall not prevent him, following any
termination of his employment whether pursuant to this Agreement or otherwise,
from thereafter participating in any benefit or insurance plans (including,
without limitation thereto, any retirement plans) in the same manner and to the
same extent that he, as a former employee of the Company, would have been
entitled to participate had this agreement not have been entered into.

 

Section 14. Successors.  (a) The Company shall require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company, by agreement to expressly and unconditionally assume and agree to
perform this agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken
place.  Failure of the Company to obtain
such agreement prior to the effectiveness of such succession shall be a breach
of this agreement and shall entitle Mr. Boni to compensation from the
Company in the same amount and on the same terms as he would be entitled
hereunder if he terminated his employment for Good Reason regardless of whether
he in fact has done so, except that for purposes of implementing the foregoing,
the date on which any such succession becomes effective shall be deemed the
Date of Termination.  The foregoing
provisions of this Section 14(a) shall not apply to (i) a
spin-off or sale of assets, or (ii) a transaction described in item (ii) of
the definition of Change of Control above involving only DP&L if in each
case 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.

 

(b)                                 This Agreement
shall inure to the benefit of and be enforceable by Mr. Boni’s personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.  If Mr. Boni
should die while any amounts would still be payable to him hereunder if he had
continued to live, all such amounts, unless otherwise provided herein, shall be
paid to such beneficiary or beneficiaries as he shall have designated by
written notice delivered to the Company prior to his death or, failing written
notice, to his estate.

 

Section 15. Gross-Up Payment.  In the event that any payment pursuant to
this agreement or any other agreement will be subject to the tax (the “Excise
Tax”) imposed by Section 4999 of the Internal Revenue Code of 1986 (“Code”)
or any successor or similar provision, the Company shall pay Mr. Boni an
additional amount (the “Gross-Up Payment”) such that the net amount retained by
Mr. Boni after deduction of any Excise Tax on such payments (excluding
payments pursuant to this Section 15), and after deduction for any
federal, state and local income tax and Excise Tax upon the payment provided
for by this Section 15, shall be equal to the amount of such payments
(excluding payments pursuant to this Section 15) before payment of any
Excise Tax (hereinafter the “Excise Tax Compensation Net Payment”).  For 

 

 

purposes of determining whether any of such payments will be subject to
the Excise Tax and the amount of such Excise Tax, any payments or benefits
received or to be received by Mr. Boni in connection with a Change of
Control or his termination of employment shall be treated as “parachute
payments” within the meaning of Section 280G of the Code, and all “excess
parachute payments” within the meaning of Section 280G of the Code shall
be treated as subject to the Excise Tax, unless in the opinion of tax counsel
selected by the Company’s independent auditors and acceptable to Mr. Boni
such payments or benefits do not constitute parachute payments or excess
parachute payments.  For purposes of
determining the amount of the Gross-Up Payment, Mr. Boni shall be deemed
to pay all federal income taxes at the highest marginal rate of federal income
taxation in the calendar year in which the Gross-Up Payment is to be made and
state and local income taxes at the highest marginal rates of taxation in the
state and locality of his residence on the Date of Termination, net of the
maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes. In the event that the Excise Tax is
subsequently determined to be less than the amount taken into account hereunder
at the time of termination of Mr. Boni’s employment, Mr. Boni shall
repay to the Company, at the time that the amount of such reduction in Excise
Tax is finally determined, an amount necessary so that the total payments
hereunder equal the Excise Tax Compensation Net Payment, plus interest on the
amount of such repayment at a rate equivalent to the rate described in Section 280G(d)(4) of
the Code.  In the event that the Excise
Tax is determined to exceed the amount taken into account hereunder at the time
of the termination of his employment, the Company shall make an additional
Gross-Up Payment in respect of such excess (plus any interest payable with
respect to such excess) at the time that the amount of such excess is finally
determined.  The Gross-Up Payment shall
be paid not later than the Date of Termination or, if and to the extent such
payment is not known or calculable as of such date, as soon as the amount is
known and calculable.

 

Section 16. Funding of Master Trust.  Upon a Change of Control, the Company shall
immediately transfer to the Amended and Restated Master Trust dated February 1,
1995, as amended (or to an Other Trust as defined in such Trust) previously
established to secure the Company’s obligations to participants under various
Company deferred and incentive compensation plans, cash in an amount sufficient
to fund all payments which would be made to Mr. Boni hereunder if his
employment was terminated on the date of the Change of Control under
circumstances in which payments under Section 10 hereof would become due
and payable to him, including, without limitation, cash in an amount sufficient
to fund payments of all future medical, life insurance, accident and disability
plans as provided in Section 10 hereof, and the Gross-Up Payment as
defined in Section 15 herein, in each case based on reasonable estimates.

 

Section 17. Legal Fees.  The Company shall reimburse Mr. Boni in
full for all legal fees and expenses reasonably incurred by him in enforcing
his rights under this Agreement in connection with a termination of his
employment.

 

Section 18. Notices.  All notices required or permitted to be given
under this agreement shall be in writing and shall be mailed (postage prepaid
by either registered or certified mail) or delivered, if to the Company,
addressed to the Corporate Secretary of the Company at:

 

The Dayton Power and Light Company

MacGregor Park

1065 Woodman Drive

Dayton, Ohio 45432

Attention: 
Corporate Secretary

 

 

and if to Mr. Boni,
addressed to Mr. Joseph R. Boni III at the address of his personal residence
on file in the Company’s records.  Any
party may change the address to which notices to such party are to be directed
by giving written notice of such change to the other parties in the manner
specified in this Section 18.

 

Section 19. Parties In Interest. This Agreement is for the sole
benefit of the parties and shall not create any rights to any person not a
party.  This Agreement is personal and
may not be assigned by any party without the prior written consent of the other
party.  Subject to the foregoing, this
Agreement shall be binding upon, inure to the benefit of, and be enforceable
by, the respective successors and assigns of the parties, but on assignment
shall, of itself, relieve any party of its obligations hereunder.

 

Section 20. Entire Agreement.  This Agreement sets forth the entire
agreement and understandings of the parties in respect to the subject matter
hereof and supersedes all prior agreements, arrangements and understandings
relating to the subject matter hereof.

 

Section 21. Interpretation.  The Section and other headings contained
in this Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement.  Words used in this Agreement in the singular
number shall include the plural, and vice versa, unless the context requires
otherwise.  Words of gender used in this
Agreement may be read as masculine, feminine or neuter as the context may
require.  The terms “this Agreement”, “hereto”,
“herein”, “hereby”, “hereof’ and similar expressions refer to this Agreement in
its entirety and not to any particular provision or portion of this
Agreement.  When a reference is made to
Sections, such reference shall be to a Section of this Agreement, unless
otherwise indicated.  Whenever the words “include”,
“includes” or “including” are used herein, they shall be deemed to be followed
by the words “without limitation”.

 

Section 22. Law Governing.  This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Ohio
without regard to its conflicts of laws rules.

 

Section 23. Counterparts.  This Agreement may be executed simultaneously
in two or more counterparts, each of which shall be deemed an original but all
of which taken together shall constitute one and the same instrument.

 

Section 24. Amendment.  Any amendment to this Agreement or any waiver
of rights or any consent hereunder shall not be operative unless it is in
writing and signed by the party sought to be charged.

 

Section 25. Equitable Relief.  Mr. Boni acknowledges that the Company
may be irreparably injured by any breach of Section 11.  Accordingly, the Company shall be entitled to
specific performance and other injunctive relief as remedies for any breach (or
threatened breach) of such Section, in addition to all other remedies available
at law or in equity.

 

Section 26. Severability.  If any provision of
this Agreement or the application thereof to any party or circumstance shall be
held invalid or unenforceable to any extent, the remainder of this Agreement
and the application of such provision to another party or circumstance shall
not

 

 

be affected thereby and such
provision shall be enforced to the greatest extent permitted by applicable law.

 

Section 27. Waiver.  The failure or delay on the part of any party
to insist upon strict performance of any of the terms or conditions of this
Agreement will not constitute a waiver of any of its rights hereunder. No right
or remedy herein conferred upon or reserved to any party is intended to be
exclusive of any other right or remedy and all such rights and remedies shall
be cumulative.

 

Section 28. Insurance and Indemnification.  To the extent that Company provides directors
and officers liability insurance or similar
indemnification for its officers and directors, the Company shall provide the
same coverage or indemnification to Mr. Boni, in accordance with and
subject to the same terms and conditions.

 

Section 29. Tax Penalty Avoidance.  The provisions of this Agreement are not
intended, and should not be construed, to be legal, business or tax
advice.  To ensure compliance with
requirements imposed by the IRS, the parties hereto are informed that the U.S.
federal tax advice contained in this document (if any) is not intended or
written to be used, and cannot be used, for the purpose of (i) avoiding
penalties under the Code or (ii) promoting, marketing or recommending to
any party any transaction or matter addressed herein.

 

 

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first written above.

 

	
   

  	
  DPL Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  James V. Mahoney

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  John J. Gillen

  	
   

  
	
   

  	
   

  	
  Senior Vice President and

  	
   

  
	
   

  	
   

  	
   Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Dayton Power and
  Light Company.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  James V. Mahoney

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  John J. Gillen

  	
   

  
	
   

  	
   

  	
  Senior Vice President and

  	
   

  
	
   

  	
   

  	
   Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Joseph R. Boni III

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]