Document:

Exhibit 4(s)

 

 

 

THE DAYTON POWER AND LIGHT COMPANY

 

 

AND

 

 

THE BANK OF NEW YORK

(formerly Irving Trust Company)

Trustee

 

 

 

Forty-Fourth Supplemental Indenture

 

 

 

Dated as of September 1, 2006

 

 

 

 

THE DAYTON POWER AND LIGHT COMPANY

FORTY-FOURTH SUPPLEMENTAL INDENTURE

DATED AS OF SEPTEMBER 1, 2006

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  Parties

  	
  1

  
	
   

  	
   

  
	
  Recitals

  	
  1

  
	
   

  	
   

  
	
  Granting Clauses

  	
  7

  
	
   

  	
   

  
	
  FIRST. REAL PROPERTY AND INTERESTS IN REAL
  PROPERTY

  	
  8

  
	
   

  	
   

  
	
  SECOND. ELECTRIC GENERATING PLANTS

  	
  8

  
	
   

  	
   

  
	
  THIRD. TRANSMISSION LINES

  	
  8

  
	
   

  	
   

  
	
  FOURTH. SUBSTATIONS AND SUBSTATION SITES

  	
  8

  
	
   

  	
   

  
	
  FIFTH. ELECTRIC DISTRIBUTION SYSTEMS

  	
  9

  
	
   

  	
   

  
	
  SIXTH. LIQUEFIED PETROLEUM GAS PRODUCTION AND
  STORAGE FACILITIES

  	
  9

  
	
   

  	
   

  
	
  SEVENTH. GAS DISTRIBUTION SYSTEMS

  	
  9

  
	
   

  	
   

  
	
  EIGHTH. OFFICE AND DEPARTMENTAL BUILDINGS

  	
  10

  
	
   

  	
   

  
	
  NINTH. TELEPHONE LINES

  	
  10

  
	
   

  	
   

  
	
  TENTH. FRANCHISES

  	
  10

  
	
   

  	
   

  
	
  ELEVENTH. OTHER REAL ESTATE AND APPURTENANCES

  	
  10

  
	
   

  	
   

  
	
  TWELFTH. PROPERTY HEREAFTER TO BECOME SUBJECT TO
  THE LIEN OF THE FIRST MORTGAGE AS AMENDED

  	
  11

  
	
   

  	
   

  
	
  Habendum Clause

  	
  11

  
	
   

  	
   

  
	
  Subject Clause

  	
  12

  
	
   

  	
   

  
	
  Grant in Trust

  	
  12

  

 

 

	
  ARTICLE ONE. BONDS OF THE 4.80% POLLLUTION CONTROL
  SERIES 2006 DUE 2036 AND ISSUE THEREOF

  	
  13

  
	
   

  	
   

  
	
  Sec. 1.

  	
  Series and
  Form of New Bonds

  	
  13

  
	
  Sec. 2.

  	
  Issue
  of New Bonds

  	
  13

  
	
  Sec. 3.

  	
  Dates,
  Interest, etc., of New Bonds

  	
  13

  
	
  Sec. 4.

  	
  Denominations and Exchangeability of New Bonds;
  Temporary Bonds may be Authenticated and Delivered

  	
  14

  
	
  Sec. 5.

  	
  Mandatory
  Redemption of New Bonds and Redemption Price

  	
  14

  
	
  Sec. 6.

  	
  Extraordinary
  Optional Redemptin of New Bonds and Redemption Price

  	
  15

  
	
  Sec. 7.

  	
  Optional
  Redemption of New Bonds and Redemption Price

  	
  15

  
	
  Sec. 8.

  	
  Notice
  of Redemption of New Bonds

  	
  15

  
	
  Sec. 9.

  	
  New
  Bonds Deemed Paid in Certain Circumstances

  	
  16

  
	
  Sec. 10.

  	
  New
  Bonds Deemed Paid in Additional Circumstances

  	
  16

  
	
  Sec. 11.

  	
  Surrender
  of New Bonds in Certain Circumstances

  	
  16

  
	
  Sec. 12.

  	
  Application
  of Article Ten of First Mortgage as Amended

  	
  16

  
	
  Sec. 13.

  	
  Form of
  New Bonds

  	
  17

  
	
   

  	
   

  
	
  ARTICLE TWO. COVENANTS OF THE COMPANY

  	
  17

  
	
   

  	
   

  
	
  Sec. 1.

  	
  Confirmation
  of Covenants by Company in First Mortgage

  	
  17

  
	
  Sec. 2.

  	
  Covenant
  of the Company and Legal Opinion as to Recording

  	
  17

  
	
   

  	
   

  
	
  ARTICLE THREE. MISCELLANEOUS

  	
  17

  
	
   

  	
   

  
	
  Sec. 1.

  	
  Authentication and Delivery of New Bonds in
  Advance of the Recording of Forty-Fourth Supplemental Indenture

  	
  17

  
	
  Sec. 2.

  	
  Forty-Fourth Supplemental Indenture to Form Part of
  First Mortgage

  	
  17

  
	
  Sec. 3.

  	
  Definitions in First Mortgage Shall Apply to
  Forty-Fourth Supplemental Indenture

  	
  18

  
	
  Sec. 4.

  	
  Execution in Counterparts

  	
  18

  
	
   

  	
   

  
	
  Testimonium

  	
  S-1

  
	
   

  	
   

  
	
  Signatures

  	
  S-1

  
	
   

  	
   

  
	
  Acknowledgments

  	
  S-2

  
	
   

  	
   

  
	
  Exhibit A - Form of New
  Bond

  	
   

  

 

 

FORTY-FOURTH
SUPPLEMENTAL INDENTURE, dated as of September 1, 2006, between THE DAYTON
POWER AND LIGHT COMPANY, a corporation of the State of Ohio (hereinafter
sometimes called the Company), party of the first part, and THE BANK OF NEW
YORK (formerly Irving Trust Company), a corporation of the State of New York
(hereinafter sometimes called the Trustee), as Trustee, party of the second
part.

 

WHEREAS, the Company has
heretofore executed and delivered to Irving Trust Company (now The Bank of New
York) a certain Indenture, dated as of October 1, 1935 (hereinafter
sometimes called the First Mortgage), to secure the payment of the principal of
and interest on an issue of bonds of the Company, unlimited in aggregate
principal amount (hereinafter sometimes called the Bonds); and

 

WHEREAS, the Company has
issued under the First Mortgage its Bonds of a series known as the First and
Refunding Mortgage Bonds, 31⁄2% Series Due 1960, authorized in unlimited
aggregate principal amount, all of which have been redeemed or otherwise
retired; and

 

WHEREAS, in Article Two
of the First Mortgage it is provided in substance, among other things, that the
Bonds may be issued in series, the Bonds of each series maturing on such dates
and bearing interest at such rates, respectively, as the Board of Directors of
the Company may determine prior to the authentication thereof; and

 

WHEREAS, the Company has
heretofore executed and delivered to the Trustee forty-three supplemental
Indentures numbered, dated and, except as set forth below, providing for their
respective series of First Mortgage Bonds, all as set forth in the tabulation
below:

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Principal

  	
   

  
	
  Supplemental

  	
   

  	
   

  	
   

  	
  Series

  	
   

  	
  Amount

  	
   

  
	
  Indenture

  	
   

  	
  Dated As Of

  	
   

  	
  Provided For

  	
   

  	
  Outstanding

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  First

  	
   

  	
  March
  1, 1937

  	
   

  	
  31/4% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1962

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Second

  	
   

  	
  January
  1, 1940

  	
   

  	
  3% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1970

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Third

  	
   

  	
  October
  1, 1945

  	
   

  	
  23/4% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1975

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fourth

  	
   

  	
  January
  1, 1948

  	
   

  	
  3% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1978

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fifth

  	
   

  	
  December
  1, 1948

  	
   

  	
  3% Series A,

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1978

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sixth

  	
   

  	
  February
  1, 1952

  	
   

  	
  31/4% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1982

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Seventh

  	
   

  	
  September
  1, 1954

  	
   

  	
  3% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1984

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Principal

  	
   

  
	
  Supplemental

  	
   

  	
   

  	
   

  	
  Series

  	
   

  	
  Amount

  	
   

  
	
  Indenture

  	
   

  	
  Dated As Of

  	
   

  	
  Provided For

  	
   

  	
  Outstanding

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eighth

  	
   

  	
  November
  1, 1957

  	
   

  	
  5% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1987

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ninth

  	
   

  	
  March
  1, 1960

  	
   

  	
  51/8% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1990

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tenth

  	
   

  	
  June
  1, 1963

  	
   

  	
  4.45% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1993

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eleventh

  	
   

  	
  May
  1, 1967

  	
   

  	
  55/8% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1997

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twelfth

  	
   

  	
  June
  15, 1968

  	
   

  	
  63/4% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1998

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirteenth

  	
   

  	
  October
  1, 1969

  	
   

  	
  81/4% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1999

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fourteenth

  	
   

  	
  June
  1, 1970

  	
   

  	
  91/2% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fifteenth

  	
   

  	
  August
  1, 1971

  	
   

  	
  81/8% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2001

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sixteenth

  	
   

  	
  October
  3, 1972

  	
   

  	
  None issued

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Seventeenth

  	
   

  	
  November
  1, 1973

  	
   

  	
  8% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2003

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eighteenth

  	
   

  	
  October
  1, 1974

  	
   

  	
  101/8% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1981

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nineteenth

  	
   

  	
  August
  1, 1975

  	
   

  	
  10.70% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2005

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twentieth

  	
   

  	
  November
  15, 1976

  	
   

  	
  83/4% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2006

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-First

  	
   

  	
  April
  15, 1977

  	
   

  	
  6.35% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2007

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Second

  	
   

  	
  October
  15, 1977

  	
   

  	
  81/2% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2007

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Third

  	
   

  	
  April
  1, 1978

  	
   

  	
  8.95% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1998

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Fourth

  	
   

  	
  November
  1, 1978

  	
   

  	
  91/2% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2003

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Fifth

  	
   

  	
  August
  1, 1979

  	
   

  	
  101/4% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1999

  	
   

  	
   

  	
   

  

 

2

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Principal

  	
   

  
	
  Supplemental

  	
   

  	
   

  	
   

  	
  Series

  	
   

  	
  Amount

  	
   

  
	
  Indenture

  	
   

  	
  Dated As Of

  	
   

  	
  Provided For

  	
   

  	
  Outstanding

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Sixth

  	
   

  	
  December
  1, 1979

  	
   

  	
  121/8% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2009

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Seventh

  	
   

  	
  February
  1, 1981

  	
   

  	
  145/8% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1988

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Eighth

  	
   

  	
  February
  18, 1981

  	
   

  	
  141/2% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1988

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Twenty-Ninth

  	
   

  	
  September
  1, 1981

  	
   

  	
  17% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 1991

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirtieth

  	
   

  	
  March
  1, 1982

  	
   

  	
  163/4% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2012

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-First

  	
   

  	
  November
  1, 1982

  	
   

  	
  111/2% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2012-A

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Second

  	
   

  	
  November
  1, 1982

  	
   

  	
  111/2% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2012-B

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Third

  	
   

  	
  December
  1, 1985

  	
   

  	
  91/2% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2015

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Fourth

  	
   

  	
  April
  1, 1986

  	
   

  	
  9% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2016

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Fifth

  	
   

  	
  December
  1, 1986

  	
   

  	
  87/8% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2016

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Sixth

  	
   

  	
  August
  15, 1992

  	
   

  	
  6.40% Pollution

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Control Series

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1992-A

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2027

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  6.40% Pollution

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Control Series

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1992-B

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2027

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Seventh

  	
   

  	
  November
  15, 1992

  	
   

  	
  6.50% Pollution

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Control Series

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1992-C

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2022

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Eighth

  	
   

  	
  November
  15, 1992

  	
   

  	
  8.40% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2022

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thirty-Ninth

  	
   

  	
  January
  15, 1993

  	
   

  	
  8.15% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2026

  	
   

  	
   

  	
   

  

 

3

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Principal

  	
   

  
	
  Supplemental

  	
   

  	
   

  	
   

  	
  Series

  	
   

  	
  Amount

  	
   

  
	
  Indenture

  	
   

  	
  Dated As Of

  	
   

  	
  Provided For

  	
   

  	
  Outstanding

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fortieth

  	
   

  	
  February
  15, 1993

  	
   

  	
  77/8% Series

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2024

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-First

  	
   

  	
  February
  1, 1999

  	
   

  	
  None issued

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-Second

  	
   

  	
  September
  1, 2003

  	
   

  	
  5.125% Series

  	
   

  	
  $

  	
  470,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Due 2013

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forty-Third

  	
   

  	
  August
  1, 2005

  	
   

  	
  4.80%

  Pollution

  Control Series

  2005-A Due

  2034

  	
   

  	
  $

  	
  41,300,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  4.80%

  Pollution

  Control Series

  2005-B Due

  2034

  	
   

  	
  $

  	
  137,800,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  4.70%

  Pollution

  Control Series

  2005-C Due

  2028

  	
   

  	
  $

  	
  35,275,000

  	
   

  

 

WHEREAS, said Eleventh
Supplemental Indenture, which created the 55/8% Series Due 1997, provided in its Article Three for certain
amendments to the First Mortgage, as theretofore amended, each such amendment
to become effective on the earliest date on which either (a) there shall
not be any Bonds outstanding of Series Due 1975, Series Due 1978, Series A,
Due 1978, Series Due 1982, Series Due 1984, or Series Due 1993,
or (b) there shall have been executed and delivered a supplemental
indenture or indentures embodying said amendment (either alone or with other
amendments) consented to by the holders of seventy-five per centum (75%) in
aggregate principal amount of the Bonds at the time outstanding of the series
enumerated in the foregoing clause (a), or of each said series of which Bonds
are then outstanding; and

 

WHEREAS, said Fifteenth
Supplemental Indenture, which created the 81/8% Series Due 2001, provided (a) in its Article Four for
an amendment to the First Mortgage, as theretofore amended, to become effective
on the date on which the amendments provided for by Section 3 of Article Three
of said Eleventh Supplemental Indenture shall become effective and (b) in
its 

 

4

 

Article Five
for certain additional amendments to the First Mortgage, as theretofore
amended, to become effective on the earliest date on which either (i) there
shall not be any Bonds outstanding of Series Due 1975, Series Due
1978, Series A, Due 1978, Series Due 1982, Series Due 1984, Series Due
1993, Series Due 1997, Series Due 1998, Series Due 1999, or Series Due
2000, or (ii) there shall have been executed and delivered a supplemental
indenture or indentures embodying said amendments (either alone or with other
amendments) consented to by the holders of seventy-five per centum (75%) in
aggregate principal amount of the Bonds at the time outstanding of the series
enumerated in the foregoing clause (i), or of each said series of which Bonds
are then outstanding; and

 

WHEREAS, the Company has
heretofore executed and delivered to the Trustee a Sixteenth Supplemental
Indenture dated as of October 3, 1972, which provided in its Article One
for an amendment of Article Five of the First Mortgage, as theretofore
amended, altering the requirements for the opinion of counsel to be delivered
to the Trustee as a condition precedent to the authentication and delivery of
additional Bonds under Article Five or the withdrawal of cash under Article Seven
of the First Mortgage, as theretofore amended; and

 

WHEREAS, none of the Bonds
of Series Due 1975, Series Due 1978, Series A, Due 1978, Series Due
1982, Series Due 1984, or Series Due 1993 remain outstanding and the
amendments contained in said Eleventh Supplemental Indenture have become
effective; and

 

WHEREAS, none of the Bonds
of Series Due 1975, Series Due 1978, Series A, Due 1978, Series Due
1982, Series Due 1984, Series Due 1993, Series Due 1997, Series Due
1998, Series Due 1999, or Series Due 2000 remain outstanding and the
amendments contained in said Fifteenth Supplemental Indenture that did not
theretofore become effective by virtue of the Sixteenth Supplemental Indenture
have become effective; and

 

WHEREAS,
said Forty-Second Supplemental Indenture, which created the 51/8% Series Due 2013, provided in its Article Two
for certain amendments to the First Mortgage, as theretofore amended, to become
effective on the earliest date on which either (i) there shall not be any
Bonds outstanding of 6.35% Series Due 2007, Pollution Control Series 1992-A
Due 2027, Pollution Control Series 1992-B Due 2027, Pollution Control Series 1992-C
Due 2022, Series Due 2026 and Series Due 2024, or (ii) there
shall have been executed and delivered a supplemental indenture or indentures
embodying said amendment (either alone or with other amendments) consented to
by the holders of seventy-five per centum (75%) in aggregate principal amount
of the Bonds at the time outstanding of the series enumerated in the foregoing
clause (i); and

 

WHEREAS, none of the Bonds
of 6.35% Series Due 2007, Pollution Control Series 1992-A Due 2027,
Pollution Control Series 1992-B Due 2027, Pollution Control Series 1992-C
Due 2022, Series Due 2026 and Series Due 2024 remain outstanding and
the amendments contained in said Forty-Second Supplemental Indenture have
become effective; and

 

  WHEREAS, the First Mortgage as amended by the
First through the Forty-Third Supplemental Indentures is hereinafter called the
First Mortgage as amended; and

 

5

 

WHEREAS, it is provided in Article Seven
of the First Mortgage as amended, among other things, that the Company may
issue additional Bonds thereunder upon the deposit with the Trustee of cash
equal to the principal amount of such additional Bonds to be issued; it is
provided in Article Six of the First Mortgage as amended, among other
things, that if Bonds are paid, retired, redeemed, canceled or surrendered to
the Trustee for cancellation (except when canceled pursuant to certain
provisions of the First Mortgage as amended), the Company may issue additional
Bonds thereunder in principal amount equivalent to the principal amount of the
Bonds so paid, retired, redeemed, canceled or surrendered to the Trustee for
cancellation; it is provided in Article Five of the First Mortgage as
amended, among other things, that the Company may issue additional Bonds
thereunder upon the basis of property additions in accordance with and subject
to the conditions, provisions and limitations set forth in said Article Five;
and it is provided in Article Eighteen of the First Mortgage as amended,
among other things, that the Company and the Trustee may from time to time
enter into one or more indentures supplemental to the First Mortgage as amended
for the purposes, among other things which may be therein set forth, to
mortgage or pledge additional property under the First Mortgage as amended and
to establish the terms and provisions of any series of Bonds other than the Series Due
1960; and

 

WHEREAS, the Company,
pursuant to resolutions duly adopted by its Board of Directors at a meeting of
said Board of Directors duly called and held, has determined under and in
accordance with the provisions of the First Mortgage as amended and of this
Forty-Fourth Supplemental Indenture to create a new series of Bonds to be known
as its First Mortgage Bonds, 4.80% Pollution Control Series 2006 Due 2036
(hereinafter sometimes called the New Bonds), which shall be limited to the
aggregate principal amount of $100,000,000; and

 

WHEREAS,
the New Bonds are to be issued by the Company to the Ohio Air Quality
Development Authority (hereinafter called the Authority), or its assignee, to
evidence and secure the obligations of the Company to repay the loan of the
proceeds of the sale of the Project Bonds (as hereinafter defined) made by the
Authority to the Company, pursuant to a certain Loan Agreement, dated as of September 1,
2006, between the Authority and the Company (hereinafter called the Loan
Agreement), to assist in the financing of the Company’s portion of the cost of
acquisition, construction and installation of certain “air quality facilities”
(as that term is defined and used in Section 3706.01, of the Ohio Revised
Code) installed in connection with: Units 7 and 8 at the Miami Fort Generating
Station located in Hamilton County, Ohio as to which the Company at the date
hereof owns an undivided 36% interest as tenant in common with another public
utility company, Unit 2 at the Killen Generating Station located in Adams
County, Ohio as to which the Company at the date hereof owns an undivided 67%
interest as tenant in common with another public utility company, Units 1-4 at
the J. M. Stuart Generating Station located in Brown and Adams Counties, Ohio
as to which the Company at the date hereof owns an undivided 35% interest as
tenant in common with two other public utility companies, and Unit 4 at the
Conesville Generating Station in Coshocton County, Ohio as to which the Company
at the date hereof owns an undivided 16.5% interest as tenant in common with
two other public utility companies (such interests in said facilities being
hereinafter called the Project); and

 

WHEREAS,
the loan by the Authority in respect of the Project is to be funded by the
proceeds derived from the sale by the Authority of State of Ohio Collateralized
Air Quality 

 

6

 

Development
Revenue Bonds, 2006 Series A (The Dayton Power and Light Company Project),
in the aggregate principal amount of $100,000,000 (hereinafter called the Project
Bonds); and

 

WHEREAS, the Project Bonds
are to be issued under a certain Trust Indenture, dated as of September 1,
2006 (hereinafter called the Project Bonds Indenture), between the Authority
and The Bank of New York, as Trustee (hereinafter in such capacity called the
Project Bond Trustee), and the New Bonds are to be assigned by the Authority to
the Project Bond Trustee as security for the payment of the principal of and
interest on the Project Bonds and are to be delivered by the Company on behalf
of the Authority directly to the Project Bond Trustee; and

 

WHEREAS, the New Bonds and
the Trustee’s certificate to be endorsed on all the New Bonds are to be
respectively and substantially in the forms established hereby and approved by
the aforesaid resolutions, which are substantially in the form of Exhibit A
hereto; and

 

WHEREAS, at a meeting of the
Board of Directors of the Company, the Board of Directors adopted a resolution
that authorized officers of the Company to approve the form, terms and provisions
of this Forty-Fourth Supplemental Indenture (including the form of the New
Bonds), and the execution by the Company of this Forty-Fourth Supplemental
Indenture; and

 

WHEREAS, all things
necessary to make the New Bonds hereinafter described, when duly authenticated
by the Trustee and issued by the Company, valid, binding and legal obligations
of the Company, and to make this Indenture a valid and binding agreement
supplemental to the First Mortgage as amended, have been done and performed.

 

NOW, THEREFORE, THIS
INDENTURE WITNESSETH

 

that, in order further to
secure the payment of all the Bonds at any time issued and outstanding under
the First Mortgage as amended or this Forty-Fourth Supplemental Indenture
according to their tenor, purport and effect, as well the interest thereon as
the principal thereof, and further to secure the performance and observance of
all the covenants and conditions therein and in the First Mortgage as amended
and herein contained, and further to set forth the terms and conditions upon
which the New Bonds are to be issued, secured and held, and for and in
consideration of the premises and of the acceptance or purchase of the New
Bonds by the holders or registered owners thereof, and of the sum of one
dollar, lawful money of the United States of America, to the Company duly paid
by the Trustee at or before the ensealing and delivery of this Forty-Fourth
Supplemental Indenture, the receipt whereof is hereby acknowledged, the Company
has executed and delivered this Forty-Fourth Supplemental Indenture, and has
granted, bargained, sold, released, conveyed, assigned, transferred, pledged,
set over and confirmed, and by these presents does grant, bargain, sell,
release, convey, assign, transfer, pledge, set over and confirm unto the Trustee,
and to its successor or successors in said trust, and to it and its and their
assigns forever, and does hereby subject to the lien of the First Mortgage as
heretofore and hereby amended all the following described properties (all of
which properties are included in and constitute a part of the “mortgaged
property” and the “mortgaged and pledged property” as such terms are used and
defined in the First Mortgage as heretofore and hereby amended and whenever
used in the First Mortgage as heretofore and hereby amended such terms include
and refer to such properties), to wit:

 

7

 

FIRST.

REAL PROPERTY AND INTERESTS IN REAL PROPERTY.

 

All and singular, all real
property and interests in real property acquired by the Company between August 1,
2005, the date of the Forty-Third Supplemental Indenture, and the date of this
Forty-Fourth Supplemental Indenture, and owned by the Company at the latter
date.

 

SECOND.

ELECTRIC GENERATING PLANTS.

 

All electric generating plants
and stations of the Company acquired by it between August 1, 2005, the
date of the Forty-Third Supplemental Indenture, and the date of this
Forty-Fourth Supplemental Indenture, and owned by it at the latter date,
including all power houses, buildings, structures and works, and the land on
which the same are situated, and all other lands and easements, rights-of-way,
permits, privileges, towers, poles, wires, machinery, equipment, appliances,
appurtenances and supplies forming a part of such plants and stations, or any
of them, or occupied, enjoyed or used in connection therewith.

 

THIRD.

TRANSMISSION LINES.

 

All electric overhead and
underground transmission lines of the Company acquired by it between August 1,
2005, the date of the Forty-Third Supplemental Indenture, and the date of this
Forty-Fourth Supplemental Indenture, and owned by it at the latter date,
including towers, poles, pole lines, conduits, manholes, switching devices,
insulators, and other structures, appliances, devices and equipment, and all
the property forming a part thereof or appertaining thereto, and all service
lines extending therefrom, together with all real property, rights-of-way,
easements, permits, privileges, franchises, and rights for or relating to the
construction, maintenance or operation thereof, through, over, under or upon
any private property or any public way within as well as without the corporate
limits of any municipal corporation.

 

FOURTH.

SUBSTATIONS AND SUBSTATION SITES.

 

All substations and
switching stations of the Company acquired by it between August 1, 2005,
the date of the Forty-Third Supplemental Indenture, and the date of this
Forty-Fourth Supplemental Indenture, and owned by it at the latter date, for
transforming or otherwise regulating electric current at any of its plants,
together with all buildings, transformers, wires, cables, insulators,
structures, appliances, devices, equipment and all other property, real or
personal, forming a part of, or appertaining thereto, or used, occupied or
enjoyed in connection with any of such substations and switching stations.

 

8

 

FIFTH.

ELECTRIC DISTRIBUTION SYSTEMS.

 

All electric distribution
systems of the Company acquired by it between August 1, 2005, the date of
the Forty-Third Supplemental Indenture, and the date of this Forty-Fourth
Supplemental Indenture, and owned by it at the latter date, including
substations, transformers, switchboards, towers, poles, wires, insulators,
conduits, cables, manholes, appliances, devices, equipment and all other
property, real or personal, forming a part of or appertaining thereto, or used,
occupied or enjoyed in connection with such distribution systems or any of
them, together with all rights-of-way, easements, permits, privileges,
franchises, and rights in or relating to the construction, maintenance or
operation thereof, through, over, under or upon any private property or public
ways within as well as without the corporate limits of any municipal
corporation.

 

SIXTH.

LIQUEFIED PETROLEUM GAS PRODUCTION AND STORAGE FACILITIES.

 

All additions to liquefied
petroleum gas production plants and storage facilities of the Company acquired
by it between August 1, 2005, the date of the Forty-Third Supplemental
Indenture, and the date of this Forty-Fourth Supplemental Indenture, and owned
by it at the latter date, including all buildings, structures, underground
storage caverns, and works, and the land on which the same are situated, and
all other lands and easements, rights-of-way, permits, privileges, pipe lines,
machinery, equipment, appliances, appurtenances and supplies forming a part of
such plants and stations, or any of them, or occupied, enjoyed or used in
connection therewith.

 

SEVENTH.

GAS DISTRIBUTION SYSTEMS.

 

All gas distribution systems
of the Company acquired or constructed by it between August 1, 2005, the
date of the Forty-Third Supplemental Indenture, and the date of this
Forty-Fourth Supplemental Indenture, and owned by it at the latter date, for
distribution of gas, including pipes, mains, conduits, meters, appliances,
equipment, and all other property, real or personal, forming a part of or
appertaining to or used, occupied or enjoyed in connection with such
distribution systems, or any of them, together with all rights-of-way,
easements, permits, privileges, franchises and rights, for or relating to the
construction, maintenance or operation thereof, through, over, under or upon
any private property or any public streets or highways, within as well as
without the corporate limits of any municipal corporation.

 

9

 

EIGHTH.

OFFICE AND DEPARTMENTAL BUILDINGS.

 

All office and departmental
buildings of the Company, including the real estate on which such structures
stand, acquired by it between August 1, 2005, the date of the Forty-Third
Supplemental Indenture, and the date of this Forty-Fourth Supplemental
Indenture, and owned by it at the latter date, appertaining to, used, occupied
or enjoyed in connection with the rendition of public utility service.

 

NINTH.

TELEPHONE LINES.

 

All telephone lines of the
Company acquired by it between August 1, 2005, the date of the Forty-Third
Supplemental Indenture, and the date of this Forty-Fourth Supplemental
Indenture, and owned by it at the latter date, used or available for use in the
operation of its properties or otherwise.

 

TENTH.

FRANCHISES.

 

All and singular the
franchises, grants, immunities, privileges and rights of the Company granted to
or acquired by it between August 1, 2005, the date of the Forty-Third
Supplemental Indenture, and the date of this Forty-Fourth Supplemental
Indenture, and to which it was entitled at the latter date, including all and
singular the franchises, grants, immunities, privileges and rights of the
Company granted by all municipalities or political subdivisions, and all right,
title and interest therein owned by the Company on the date of the execution of
this Forty-Fourth Supplemental Indenture, and all renewals, extensions and
modifications of said franchises, grants, immunities, privileges and rights, or
any of them, and of all other franchises, grants, immunities, privileges and
rights now subject to the lien of the First Mortgage as amended.

 

ELEVENTH.

OTHER REAL ESTATE AND APPURTENANCES.

 

A.            All other real estate and interests in real estate and
all other physical electric power and light, gas and other property owned by
the Company at the date of execution of this Forty-Fourth Supplemental
Indenture.

 

B.            All other real estate and interests in real estate and
all other physical electric power and light, gas and other property which the
Company may hereafter acquire or construct.

 

C.            All present and future appurtenances of the real estate
and interests in real estate which now are, or hereafter shall be, subject to
the lien of the First Mortgage as amended, and all plants, works, buildings,
structures, fixtures, improvements, betterments and additions now owned, or
hereafter acquired or constructed by the Company, upon any of the real estate
which, 

 

10

 

or
interests in which, now are or hereafter shall be subject to the lien of the
First Mortgage as amended.

 

D.            All corporate rights, privileges, immunities and
franchises, powers, licenses, easements, leases, contracts and other rights and
all renewals and extensions thereof held or acquired for use or used upon, or
in connection with or appertaining to, any of the properties which now are or
hereafter shall be subject to the lien of the First Mortgage as amended, or
which the Company has or may have the right to exercise in respect of any of
said properties.

 

E.             All machinery, tools and equipment now owned or
hereafter acquired by the Company, which now or hereafter belong or appertain
to or are used in connection with the plants, works, transmission lines,
distribution systems, buildings, structures and fixtures which now are or
hereafter shall be subject to the lien of the First Mortgage as amended.

 

Together with all and
singular the tenements, hereditaments and appurtenances belonging or in any way
appertaining to the aforesaid property or any part thereof, with the reversion
and reversions, remainder and remainders, rents, issues, income and profits
thereof, and all the estate, right, title, interest and claim whatsoever at law
or in equity, which the Company now has or which it may hereafter acquire in
and to the aforesaid property and every part and parcel thereof.

 

It is not intended to
include in the lien of the First Mortgage as amended and this grant shall not
be deemed to apply (1) to any revenues, earnings, rents, issues, income or
profits of the mortgaged property, or any cash (except cash deposited with the
Trustee pursuant to any of the provisions of the First Mortgage as heretofore
and hereby amended), or any bills, notes or accounts receivable, contracts or
choses in action, or any materials or supplies or construction equipment, or
any merchandise, equipment or apparatus manufactured or acquired for the
purpose of sale or resale in the usual course of business, except in case of
the happening of a completed default as defined in Section 1 of Article Twelve
of the First Mortgage as heretofore and hereby amended, and following such
completed default, in case the Trustee or a receiver or trustee shall enter
upon and take possession of the mortgaged property, or (2) in any case, to
any cars, trucks or other vehicles of any nature for the transportation of
personnel, materials or equipment by any means which may have been acquired
after the effective date of the amendment to this Clause made by or pursuant to
the provisions of the Eleventh Supplemental Indenture, or to any bonds, notes,
evidences of indebtedness, shares of stock or other securities, except such as
may be specifically subjected to the lien of the First Mortgage as amended.

 

TWELFTH.

PROPERTY HEREAFTER TO BECOME SUBJECT TO THE LIEN OF

THE FIRST MORTGAGE AS AMENDED.

 

A.            Any and all property, real, personal and mixed, including
franchises, grants, immunities, privileges and rights, which the Company may
hereafter acquire or to which it may hereafter become entitled, excepting,
however, the following property which is not intended to be subjected to the
lien of the First Mortgage:  (1) any
revenues, earnings, rents, issues, income or profits of the mortgaged property,
or any cash (except cash deposited with the Trustee pursuant to any of the
provisions of the First Mortgage as heretofore and hereby amended), or 

 

11

 

any
bills, notes or accounts receivable, contracts or choses in action, or any
materials or supplies or construction equipment, or any merchandise, equipment
or apparatus manufactured or acquired for the purpose of sale or resale in the
usual course of business, except in case of the happening of a completed
default as defined in Section 1 of Article Twelve of the First
Mortgage as heretofore and hereby amended, and following such completed
default, in case the Trustee or a receiver or trustee shall enter upon and take
possession of the mortgaged property, or (2) in any case, any cars, trucks
or other vehicles of any nature for the transportation of personnel, materials
or equipment by any means, or any bonds, notes, evidences of indebtedness,
shares of stock or other securities, except such as may be specifically
subjected to the lien of the First Mortgage as amended.

 

B.            Any and all property of every name and nature, including
shares of stock, bonds, other securities or obligations and cars, trucks or
other vehicles for the transportation of personnel, materials or equipment by
any means, which, from time to time after the execution of this Forty-Third
Supplemental Indenture, by delivery or by writing of any kind for the purposes
hereof, shall have been conveyed, mortgaged, pledged, assigned or transferred
by, or by anyone on behalf of, the Company to the Trustee, which is hereby
authorized to receive any property at any and all times, as and for additional
security, and also, when and as provided in the First Mortgage as amended as
and for substituted security, for the payment of the Bonds to be issued under
the First Mortgage as amended, and to hold and apply any and all such property
subject to the terms hereof and of the First Mortgage as amended.

 

TO HAVE AND TO HOLD all such
properties, real, personal and mixed, mortgaged, pledged or conveyed by the
Company as aforesaid, or intended so to be, unto the Trustee and its successors
and assigns forever.

 

SUBJECT, HOWEVER, as to
property hereby conveyed, to liens for taxes, assessments and other charges
levied or to be levied by the State of Ohio and any of the subdivisions thereof
for the years 2005 and 2006 and thereafter and, as to any property hereafter
acquired by the Company and which may become subject to the lien of the First
Mortgage as amended, to any lien or charge thereon existing at the time of the
acquisition thereof by the Company;

 

IN TRUST NEVERTHELESS, upon
and subject to the terms, conditions and stipulations hereinafter and in the
First Mortgage as amended set forth, for the equal and proportionate benefit
and security of the holders from time to time of the Bonds and interest coupons
issued and to be issued under the First Mortgage as amended and this and other
indentures supplemental thereto, without preference, priority or distinction as
to lien or otherwise of any of the Bonds and coupons over any others by reason
of priority in time of issue, sale or negotiation thereof or otherwise
howsoever, and for the uses and purposes and upon and subject to the terms, conditions,
provisions and agreements in the Bonds and hereinafter and in the First
Mortgage as amended expressed and declared.

 

12

 

ARTICLE
ONE.

BONDS OF THE 4.80% POLLUTION CONTROL SERIES 2006 DUE 2036 AND ISSUE THEREOF.

 

SECTION 1.               There shall be a series of Bonds
designated “4.80% Pollution Control Series 2006 Due 2036”, each of which
shall bear the descriptive title First Mortgage Bond.  The aggregate principal amount of New Bonds
which may be outstanding under the First Mortgage as amended and this
Forty-Fourth Supplemental Indenture shall be limited to $100,000,000, except as
provided in Section 9 of Article Two of the First Mortgage as
amended.

 

SECTION 2.               Upon the execution and delivery
of this Forty-Fourth Supplemental Indenture and upon delivery of $100,000,000
aggregate principal amount of the New Bonds, executed by the Company, and upon
compliance by the Company with the provisions of Article Five, Article Six
or Article Seven or any or all of said Articles, as the case may be, of
the First Mortgage as amended, the Trustee shall, without awaiting the filing
or recording of this Forty-Fourth Supplemental Indenture, authenticate the New
Bonds and deliver the New Bonds as provided in said Article Five, Article Six
or Article Seven.

 

SECTION 3.               The New Bonds shall be dated as
provided in Section 3 of Article Two of the First Mortgage as
amended; shall mature on September 1, 2036; and shall bear interest from September 13,
2006 as provided in said Section 3 of Article Two at the rate of four
and eighty hundredths per centum (4.80%) per annum until paid or redeemed as
hereinafter provided, payable on March 1, 2007 and thereafter
semi-annually on each March 1 and September 1, and on the maturity
date, to the Bondholders in whose names such New Bonds are registered at the
close of business on February 15 or August 15, except that if the
Company shall default in the payment of any installment of interest on any New
Bonds, such interest in default shall be paid to the Bondholders in whose names
the New Bonds are registered at the close of business on a date established for
the payment of such defaulted interest by the Company in any lawful
manner.  The New Bonds shall be payable
as to both principal and interest in such coin or currency of the United States
of America as at the time of payment is legal tender for the payment of public
and private debts, at the office or agency of the Company in the Borough of
Manhattan, The City of New York.  The
amount of interest payable for any period will be computed on the basis of a
360-day year consisting of twelve 30-day months.  In the event that any date on which principal
or interest is payable on the New Bonds is not a Business Day (as defined
below), the payment of the principal or interest payable on such date will be
made on the next succeeding day which is a Business Day (and without any
interest or other payment in respect of any such delay), with the same force
and effect as if made on the date the payment was originally payable.  “Business Day” means any day, other than a
Saturday or Sunday, or a day on which banking institutions or trust companies
in The City of New York are generally authorized or required by law, regulation
or executive order to remain closed or a day on which the corporate trust
office of the Trustee is closed for business.

 

13

 

SECTION 4.           The New Bonds shall be issued in denominations of $5,000
and any integral multiple of $5,000.

 

Whenever any New Bond or New Bonds shall be
surrendered at the office or agency of the Company in said Borough of Manhattan
for exchange for a New Bond or New Bonds of other authorized denomination or
denominations, the Company shall execute, and the Trustee shall authenticate
and deliver, upon cancellation of the New Bond or New Bonds so surrendered, a
New Bond or New Bonds of such other authorized denomination or denominations of
like aggregate principal amount as the Bondholder making the exchange shall
have requested and shall be entitled to receive.  On presentation of any New Bond which is to
be redeemed pursuant to the provisions of Section 5 of this Article One
in part only, the Company shall execute, and the Trustee shall authenticate and
deliver, a New Bond or New Bonds in principal amount equal to the unredeemed
portion of the New Bond so presented.

 

The Company shall not be required to (a) register
a transfer of, or exchange, any New Bond during a period of fifteen (15) days
next preceding any selection of New Bonds to be redeemed or (b) register a
transfer of, or exchange, any New Bond which shall have been selected for
redemption in whole or in part.

 

A service charge will not be made for any
registration of transfer or exchange of New Bonds, but the Company may require
payment of a sum sufficient to cover any stamp tax or other governmental charge
payable in connection therewith.

 

Until definitive New Bonds shall be ready for
delivery, the Company may execute and, upon request of the Company, the Trustee
shall authenticate and deliver, in lieu of such definitive New Bonds but
subject to the same provisions, limitations and conditions except as to the
denominations thereof, temporary printed or lithographed New Bonds as provided
in Section 8 of Article One of the First Mortgage as amended.  Such temporary New Bonds shall be
exchangeable for definitive New Bonds, when ready for delivery, in the manner
provided in the First Mortgage as amended, and shall in all other respects be
subject to and entitled to the benefits of the terms and provisions and lien of
this Forty-Fourth Supplemental Indenture, and the terms and provisions and lien
of the First Mortgage as amended as therein provided.

 

SECTION 5.           The New Bonds shall be subject to mandatory redemption by
the Company prior to maturity at any time in whole or in part at a redemption
price of 100% of the principal amount to be redeemed, plus accrued and unpaid
interest to the redemption date, upon receipt by the Trustee of notice from the
Project Bond Trustee to the effect that (a) the Company is required to
deliver moneys to the Project Bond Trustee for the redemption of the Project
Bonds in whole or in part, as the case may be, as provided in Section 6.3
of the Loan Agreement and (b) an equivalent principal amount of the
Project Bonds are being concurrently called for redemption.  Said notice shall specify the redemption date
of such New Bonds (which redemption date shall be the same date as the
redemption date specified in said notice for the Project Bonds being currently redeemed).  Any such redemption shall be made upon the
notice and in the manner provided in this Article One, subject to the provisions
of the First Mortgage as amended.

 

14

 

SECTION 6.           The New Bonds shall be subject to redemption, at the
option of the Company, prior to maturity at any time, in whole or in part, at a
redemption price of 100% of the principal amount to be redeemed, plus accrued
and unpaid interest to the redemption date, upon receipt by the Trustee of an
officers’ certificate to the effect that (a) the Company has given notice
to the Project Bond Trustee that the Company is exercising its option to direct
the redemption of Project Bonds in whole or in part, as provided in Section 6.2
of the Loan Agreement and (b) an equivalent principal amount of New
Project Bonds are being concurrently called for redemption.  Such officers’ certificate shall have
attached to it a copy of said notice to the Project Bond Trustee and shall
specify the redemption date of such New Bonds (which redemption date shall be
not less than 45 days (unless a shorter period shall be acceptable to the
Trustee) after the date of the mailing of such certificate and shall be the
same date as the redemption date specified in said attached notice for the
Project Bonds being concurrently redeemed). 
Any such redemption shall be made upon the notice, which may be
conditional as provided in Section 8 of this Article One, and in the
manner provided in this Article One, subject to the provisions of the
First Mortgage as amended.

 

SECTION 7.           The New Bonds shall also be subject to redemption prior to
maturity, at the option of the Company, in whole or in part, at anytime on or
after September 1, 2016, at a redemption price equal to 100% of the
principal amount thereof, plus accrued and unpaid interest to the redemption
date.

 

Prior to any such
redemption, the Trustee shall have received an officers’ certificate to the
effect that (a) the Company has given notice to the Project Bond Trustee
that the Company is exercising its option to deliver moneys to the Project Bond
Trustee for the redemption of Project Bonds in whole or in part, as the case
may be, as provided in Section 6.1 of the Loan Agreement and (b) an
equivalent principal amount of Project Bonds are being concurrently called for
redemption.  Such officers’ certificate
shall specify the principal amount of the New Bonds to be redeemed, shall have
attached to it a copy of said notice to the Project Bond Trustee and shall
specify the redemption date of such New Bonds (which redemption date shall be
not less than 45 days (unless a shorter period shall be acceptable to the
Trustee) after the date of the mailing of such certificate and shall be the
same date as the redemption date specified in said attached notice for the
Project Bonds being concurrently redeemed). 
Any such redemption shall be made upon the notice, which may be
conditional as provided in Section 8 of this Article One, and in the
manner provided in this Article One, subject to the provisions of the
First Mortgage as amended.

 

SECTION 8.           Subject to the provisions of the First Mortgage as
amended, written notice of redemption of the New Bonds pursuant to any of
Sections 5, 6 or 7 of this Article One shall be given by the Trustee by
mailing, first class postage prepaid, or delivering by hand to the registered
owner of such New Bonds to be redeemed a notice of such redemption at its last
address as it shall appear upon the books of the Company for the registration
and transfer of such New Bonds.  Any
notice of redemption pursuant to said Sections 5, 6 or 7 shall be mailed or
delivered by hand as least 30 days and not earlier than 60 days before the
redemption date; provided, however, that the registered owner or owners of all
New Bonds may consent in writing to a shorter notice period, and

 

15

 

such consent, if filed with the Trustee, shall be binding upon the
Company and such registered owners and their transferees.  In the case of any notice of redemption of
New Bonds pursuant to said Sections 6 or 7, such notice shall state that such
redemption is conditional to the same extent and with the same effect, if any,
as the notice of redemption of the Project Bonds being concurrently redeemed.

 

SECTION 9.           In the event any Project Bonds shall be purchased by the
Company and surrendered by the Company to the Project Bond Trustee for
cancellation or shall be otherwise surrendered to the Project Bond Trustee for
cancellation pursuant to the Project Bonds Indenture (except upon exchange for
other Project Bonds), New Bonds equivalent in principal amount to the Project Bonds
so surrendered shall be deemed to have been paid, but only when and to the
extent that (a) such payment of the principal amount of such New Bonds
shall be noted by an agency of the Company on the schedule of payments on such
New Bonds and (if such agency is not the Trustee) written notice by such agency
of such notation shall have been received by the Trustee or (b) such New
Bonds shall have been surrendered to and cancelled by the Trustee as provided
in Section 11 of this Article One.

 

SECTION 10.         In the event and to the extent the principal of or interest
on any Project Bonds shall be paid, whether at maturity, upon redemption or
otherwise, out of funds held by the Project Bond Trustee or out of any other
funds or shall otherwise be deemed to be paid, an equal amount of principal or
interest, as the case may be, payable with respect to an aggregate principal
amount of New Bonds equal to an aggregate principal amount of such Project
Bonds shall be deemed to have been paid, but, in the case of such payment of
principal of such New Bonds, only when and to the extent that (a) such
payment of the principal amount thereof shall be noted by any agency of the
Company on the schedule of payments on such New Bonds and (if such agency is
not the Trustee) written notice by such agency of such notation shall have been
received by the Trustee or (b) such New Bonds shall have been surrendered
to and cancelled by the Trustee as provided in Section 11 of this Article One.

 

SECTION 11.         When payment of any principal amount of a New Bond is made
as provided in Section 9 or 10 of this Article One, the registered
owner thereof shall surrender it to an agency of the Company for notation and
notification or to the Trustee for cancellation as provided in such
Section.  All New Bonds deemed to have
been paid in full as provided in Section 9 or 10 of this Article One
shall be surrendered to the Trustee for cancellation and the Trustee shall
forthwith cancel the same.  In the event
that part of a New Bond shall be deemed to have been paid as provided in said Section 9
or 10, the registered owner may at its option surrender such New Bond to the
Trustee for cancellation, in which event the Trustee shall cancel such New Bond
and the Company shall execute and the Trustee shall authenticate and deliver,
without charge to the registered owner, New Bonds in such authorized denominations
as shall be specified by the registered owner in an aggregate principal amount
equal to  the unpaid balance of the
principal amount of such surrendered New Bond.

 

SECTION 12.         Except as in this Forty-Fourth Supplemental Indenture
otherwise provided with respect to any matter or question, the provisions of Article Ten
of the First

 

16

 

Mortgage as amended shall be applicable in the case of the redemption
of all or any part of the New Bonds at any time outstanding.  The term “officers’ certificate as used in
this Article One shall mean a certificate signed by the President or a
Vice President and any other Vice President, the Treasurer, Assistant
Treasurer, the Secretary or Assistant Secretary or any other officer of the
Company.

 

SECTION 13.         The New Bonds shall be in fully
registered form only.  The form of the
New Bonds, and of the Trustee’s certificate of authentication thereon, shall be
substantially as set forth in Exhibit A.

 

ARTICLE
TWO.

COVENANTS OF THE COMPANY.

 

SECTION 1.           All covenants and agreements by the Company in the First
Mortgage as heretofore and hereby amended are hereby confirmed.

 

SECTION 2.           Promptly after the execution and delivery of this
Forty-Fourth Supplemental Indenture, the Company will take such action with
respect to the recording, filing, re-recording and refiling of the First
Mortgage as amended and this Forty-Fourth Supplemental Indenture as may be
necessary to make effective the lien intended to be created hereby, and will
furnish to the Trustee an opinion of counsel selected by the Company and
satisfactory to the Trustee (who may be of counsel to the Company) either (a) stating
that in the opinion of such counsel such action has been taken with respect to
the recording, filing, re-recording and refiling of the First Mortgage as
amended and this Forty-Fourth Supplemental Indenture as to make effective the
lien intended to be created thereby, and reciting the details of such action,
or (b) stating that in the opinion of such counsel no such action is
necessary to make such lien effective.

 

ARTICLE
THREE.

MISCELLANEOUS.

 

SECTION 1.           The New Bonds may be authenticated and delivered by the
Trustee and issued by the Company in advance of the recording or filing of this
Forty-Fourth Supplemental Indenture.

 

SECTION 2.           The provisions of this Forty-Fourth Supplemental Indenture
shall become effective immediately upon the execution and delivery hereof.  From and after the initial issue of the New
Bonds, this Forty-Fourth Supplemental Indenture shall form a part of the First
Mortgage and all the terms and conditions herein contained shall be deemed to
be part of the terms of the First Mortgage, as fully and with the same effect
as if all the terms and provisions of this Forty-Fourth Supplemental Indenture,
including the provisions which determine the dates on which the amendments
herein made shall become effective, had been set forth in the First Mortgage as
originally executed.  Except as modified
or amended by this Forty-Fourth Supplemental Indenture, the First Mortgage

 

17

 

as amended shall remain and continue in full force and effect in
accordance with the terms and provisions thereof, and all the covenants,
conditions, terms and provisions of the First Mortgage, as heretofore modified
and amended and as further modified and amended by this Forty-Fourth
Supplemental Indenture, shall be applicable with respect to the New Bonds,
except insofar as such covenants, conditions, terms and provisions are limited
and applicable only to the Bonds of another or other series, or are expressed
to continue only so long as Bonds of another or other series are outstanding,
and all the covenants, conditions, terms and provisions of the First Mortgage
as amended with respect to the Trustee shall remain in full force and effect
and be applicable to the Trustee under this Forty-Fourth Supplemental Indenture
in the same manner as though set out herein at length.  All representations and recitals contained in
this Forty-Fourth Supplemental Indenture and in the New Bonds (save only the
Trustee’s certificates upon said New Bonds) are made by and on behalf of the
Company, and the Trustee is in no way responsible therefor or for any statement
therein contained.

 

SECTION 3.           The terms defined in Article One of the First
Mortgage as heretofore and hereby amended, when used in this Forty-Fourth
Supplemental Indenture, shall, respectively, have the meanings set forth in
said Article One.

 

SECTION 4.           This Forty-Fourth Supplemental Indenture may be
simultaneously executed in several counterparts and each counterpart shall be
an original instrument.

 

18

 

IN WITNESS WHEREOF, THE
DAYTON POWER AND LIGHT COMPANY has caused this instrument to be signed on its
behalf by its President or a Vice President and its corporate seal to be
hereunto affixed and attested by its Secretary or an Assistant Secretary, in
the City of Dayton, Ohio, and THE BANK OF NEW YORK has caused this instrument
to be signed on its behalf by a Vice President or an Assistant Vice President
and its corporate seal to be hereunto affixed and attested by a Vice President,
Assistant Vice President or an Assistant Treasurer, in The City of New York,
New York, as of the day and year first above written.

 

 

	
   

  	
   

  	
  THE
  DAYTON POWER AND LIGHT COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  John
  J. Gillen

  
	
   

  	
   

  	
   

  	
  Senior
  Vice President and Chief Financial Officer

  
	
  [SEAL]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Miggie
  E. Cramblit

  	
   

  	
   

  
	
  Vice
  President, General Counsel

  	
   

  	
   

  
	
  and
  Corporate Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed
  and acknowledged in our presence by

  	
   

  	
   

  
	
  The
  Dayton Power and Light Company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

[Forty-Fourth
Supplemental Indenture, dated as of September 1, 2006, to Indenture dated
as of October 1, 1935, executed by The Dayton Power and Light Company to
Irving Trust Company (now The Bank of New York), as Trustee]

 

 

	
   

  	
   

  	
  THE
  BANK OF NEW YORK,

  
	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Louis
  P. Young

  
	
   

  	
   

  	
   

  	
  Vice
  President

  
	
  [SEAL]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Franca
  Ferrara

  	
   

  	
   

  
	
  Assistant
  Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed
  and acknowledged in our presence by

  	
   

  	
   

  
	
  The
  Bank of New York

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

	
  STATE
  OF OHIO,

  	
  )

  	
  ss.:

  
	
  COUNTY
  OF MONTGOMERY

  	
  )

  	
   

  

 

On this
       day of September, 2006, personally
appeared before me, a Notary Public within and for said County in the State
aforesaid, John J. Gillen, and Miggie E. Cramblit, to me known and known to me
to be, respectively, the Senior Vice President and Chief Financial Officer and
the Vice President, General Counsel and Corporate Secretary of THE DAYTON POWER
AND LIGHT COMPANY, one of the corporations which executed the foregoing
instrument, who severally acknowledged that they did sign and seal said
instrument as such Senior Vice President and Chief Financial Officer and Vice
President, General Counsel and Corporate Secretary for and on behalf of said
corporation and that the same is their free act and deed as such Senior Vice
President and Chief Financial Officer and Vice President, General Counsel and
Corporate Secretary, respectively, and the free and corporate act and deed of
said corporation; and said John J. Gillen, being by me duly sworn, did depose
and say: that he resides in Delaware County, Pennsylvania; that he is the
Senior Vice President and Chief Financial Officer of THE DAYTON POWER AND LIGHT
COMPANY, one of the corporations described in and which executed the above
instrument; that he knows the seal of said corporation; that the seal affixed
to said instrument is such corporate seal; that it was so affixed by order of
the Board of Directors of said corporation; and that he signed his name thereto
by like order.

 

IN WITNESS WHEREOF I have
hereunto set my hand and official seal.

 

[SEAL]

 

	
   

  	
   

  
	
   

  	
  TIMOTHY G. RICE, Attorney at Law

  
	
   

  	
  Notary Public, State of Ohio

  
	
   

  	
  My Commission has no expiration date,

  
	
   

  	
  Section 147.03 O.R.C.

  

 

 

	
  STATE
  OF NEW YORK,

  	
  )

  	
  ss.:

  
	
  COUNTY
  OF NEW YORK

  	
  )

  	
   

  

 

On this 8th day of
September, 2006, personally appeared before me, a Notary Public within and for
said County in the State aforesaid, Louis P. Young and Franca Ferrara, to me
known and known to me to be, respectively, a Vice President and an Assistant
Vice President of THE BANK OF NEW YORK, one of the corporations which executed
the foregoing instrument, who severally acknowledged that they did sign and
seal said instrument as such Vice President and Assistant Vice President for
and on behalf of said corporation and that the same is their free act and deed
as such Vice President and Assistant Vice President, respectively, and the free
and corporate act and deed of said corporation; and said Louis P. Young being
by me duly sworn, did depose and say: that he resides in Plainview, New York;
that he is a Vice President of THE BANK OF NEW YORK, one of the corporations
described in and which executed the above instrument; that he knows the seal of
said corporation; that the seal affixed to said instrument is such corporate
seal; that it was so affixed by order of the Board of Directors of such
corporation; and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF I have
hereunto set my hand and official seal.

 

[SEAL]

 

	
   

  	
   

  
	
   

  	
  Carlos
  R. Luciano

  
	
   

  	
  Notary
  Public, State of New York

  
	
   

  	
  No. 41-4765897

  
	
   

  	
  Qualified
  in Queens County

  
	
   

  	
  Commission
  Expires April 30, 2010

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  This instrument prepared by

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Timothy G. Rice, Esq.

  
	
   

  	
  Attorney at Law

  
	
   

  	
  The Dayton Power and Light Company

  
	
   

  	
  1065 Woodman Drive

  
	
   

  	
  Dayton, Ohio 45432Exhibit
10(f)

 

THE DAYTON POWER AND LIGHT COMPANY

 

SUPPLMENTAL EXECUTIVE RETIREMENT PLAN

 

(As Amended Through February 1, 2000)

 

Section 1.              Establishment
of the Plan

 

1.1          Establishment of the Plan.  The Dayton Power and Light Company
established, effective as of January 1, 1977, a supplemental retirement
plan for Eligible Executives of the Company which plan shall be known as the
Supplemental Executive Retirement Plan (the “Plan”).

 

1.2          Description of the Plan.  This Plan has been established in order to provide
supplemental retirement benefits (and as such the Plan is exempt from the
participation, vesting, funding and fiduciary requirements of Title I of the
Employee Retirement Income Security Act of 1974, as amended), and to prevent
frustration of the purposes of the Plan in the event of a Change of Control as
defined herein.

 

1.3          Purpose of the Plan.  In addition to the
description of the Plan as set forth in subsection 1.2 above, the primary
objectives of the Company in establishing this Plan are as follows:

 

a)             To enhance the ability of
the Company to recruit executives who could not earn adequate benefits under
the Qualified Plan because of short service potential.

 

b)            To enhance the ability to
retain and motivate Eligible Executives in similar situations and eliminate
individual deferred compensation arrangements for the purpose of providing
competitive retirement benefits.

 

c)             To permit earlier than
normal retirement of Eligible Executives when and if desirable. The provisions
of this Plan are applicable to Eligible Executives of the Company who retire or
terminate employment on or after January 1, 1977 and are approved by the
Committee. Any person who retired from or terminated employment with the
Company prior to January 1, 1977 shall not be eligible for any benefits
under this Plan.

 

Section 2.              Definitions

 

2.1          Definition.  Whenever used in the Plan the following terms
shall have the respective meanings set forth below:

 

a)             “Board of Directors” means the
Board of Directors of DPL Inc. in place from time to time prior to a Change of
Control.

 

1

 

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 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 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;
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 may be designated by the Board of
Directors of DPL Inc. from time to time to administer the Plan.

 

2

 

e)             “Company” means The
Dayton Power and Light Company (“DP&L”), DPL Inc. (also referred to as
“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)             “Effective Date” means January 1,
1977.

 

g)            “Eligible Executive” means each
employee who is a participant in “Retirement Income Plan Two of The Dayton
Power and Light Company,” as in effect from time to time, including any
successor plan thereto (the “Qualified Plan”) (i) who has been approved
for participation in the Plan from time to time by the CEO and the Committee or
(ii) who participates in the Company’s Key Employees Deferred Compensation
Plan but who has been selected by the CEO or the Committee to be only entitled
to the benefit provided in Section 4.5 hereof. As memorialized in separate
letter agreements, the participation by certain employees in the Plan was
terminated effective as of January 1, 2000 and the present value, as
determined by the Committee, of each such employee’s accrued benefits under the
Plan was credited to the Standard Deferral Account of such employee under the
Company’s Key Employees Deferred Compensation Plan. These employees are no
longer “Eligible Participants.”

 

h)            “Final
Average Compensation” means the monthly average of any Eligible
Executive’s total earnings paid for services performed for the Company, without
the restrictions or limitations imposed by Sections 415, 401(a)(17), or any
other provision of the Internal Revenue Code of 1986, as amended, including,
without limitation, any extraordinary forms of earnings such as bonuses,
deferred and incentive compensation in the year earned (provided, however, that
in the case of a multiple year incentive compensation program the earnings
attributable to the incentive period, once determined, shall be allocated
equally to each year in the incentive period) and employee deferrals under the
Company’s “Savings Plan” or contributions to the Company’s other benefit plans
in the year the deferral or contribution is made, as follows:

 

1)             For a normal retirement
under subsection 4.1, for the three calendar years, whether or not consecutive,
out of the last ten completed consecutive calendar years during which the
Eligible Executive received compensation (or fewer if the Eligible Executive
has not completed ten calendar years) prior to the year in which the first of
the following occurs (i) his Normal Retirement Date (under the Qualified
Plan); or (ii) his cessation of employment with the Company; or (iii) his
65th birthday; which yield the highest average; or

 

2)             For an early retirement
under subsection 4.2 hereof, for the three calendar years, whether or not
consecutive, out of the last ten consecutive completed calendar years during
which the Eligible Executive received compensation (or fewer if the Eligible
Executive has not completed ten calendar years) prior to the year in which the
first of the following occurs (i) his Early Retirement Date (under the
Qualified Plan) or (ii) his cessation of employment with the Company;
which yield the highest average.

 

i)              “Primary Social Security
Benefit” means the monthly amount as determined by the
Committee (in consultation with an actuary selected by the Committee) which an
Eligible Executive would receive at the earliest possible retirement age upon
timely and proper 

 

3

 

application to the Social
Security Administration and on the assumption that such executive would not
engage in disqualifying employment under the Federal Social Security Act as in
effect on the date of determination. Any nonlegislative change in a method,
factor or index (such as a Consumer Price Index) used to compute Social
Security benefits occurring during the year of determination will not be taken
into account. If a Participant’s Primary Social Security Benefit must be
estimated, it will be based on the assumptions that (a) the Social
Security Act will not be amended after the date of determination; and (b) the
Eligible Executive’s compensation is his Final Average Compensation.

 

j)              “Other Benefit” means, for
each Eligible Executive, the estimated monthly benefit that can be provided as
a life annuity beginning at the date his benefit payments under this Plan
commence, based upon the amount of monthly retirement benefits under the
Qualified Plan, or under any other qualified pension or retirement plan whether
or not sponsored by the Company (“Non-Company Plan”), and inclusive of the
estimated monthly benefit that would have been provided under any Non-Company
Plan had the Eligible Executive not received any prior lump sum payments from
such plan, which is based on service for which the Eligible Executive receives
Service and Benefit Service credit hereunder, but excluding any Non-Company
Plan savings plan similar to the Savings Plan, or the benefit from any
Non-Company Plan to the extent attributable to employee contributions. The
Committee shall determine such Other Benefit in consultation with an actuary
selected by the Committee, using such accepted actuarial tables and reasonable
interest assumptions and actuarial reduction factors, if appropriate, as the
Committee shall determine. The adjustment for Other Benefit as described in
subsections 4.1(b)(2) and 4.3(b)(2) hereof, shall be made not only in
the case of one actually receiving an Other Benefit, but also in the case of
one who would be entitled to receive an Other Benefit but is not actually
receiving it in that he does not make application therefor.

 

k)             “Service” and “Benefit Service” means an
Eligible Executive’s period of service with the Company, as determined by the
Committee, using the rules set forth in the Qualified Plan as in effect
when the Eligible Executive’s service terminated, it is specifically intended
under this Plan to include as Service and Benefit Service any period of
employment with the Company prior to the Eligible Executive’s coverage under
this Plan and also such period of employment as an employee of the Company
prior to becoming an Eligible Executive. The Committee may, in its sole
discretion, approve the inclusion as Service and Benefit Service of any period
of employment with another company prior to an Eligible Executive’s period of
employment by the Company, using the same rules to credit such service as
are used for the crediting of service for employment with the Company.

 

Section 3.              Eligibility
and Participation

 

3.1          Eligibility.  Any employee of the Company
who is an Eligible Executive (as defined herein) shall be eligible to
participate in the Plan.

 

3.2          Participation.  An Eligible Executive who is
eligible for this Plan under subsection 3.1 above shall remain covered
hereunder until the first to occur of (a) or (b) below:

 

4

 

a)             the date the Committee shall
determine that his participation shall cease, provided that such determination
is made prior to the Eligible Executive’s retirement or

 

b)            the later of (i) or (ii) below:

 

(i)            the date upon which his
Service terminates for any reason.

 

(ii)           the date upon which he is no
longer entitled to receive any benefits hereunder.

 

Provided,
however, that under (b) above if an Eligible Executive’s service
terminates on or after he becomes eligible to receive (then or thereafter) a
benefit under this Plan he shall be entitled to such benefit as provided
herein, and if an Eligible Executive’s Service terminates before he becomes
eligible to receive (then or thereafter) a benefit under this Plan, he thereupon
shall cease participation in the Plan unless and until he thereafter becomes
eligible to participate again in accordance with subsections 2.1(g) and
3.1 hereof.

 

Section 4.              Benefits

 

4.1          Normal
Retirement Benefits

 

a)             Eligibility.  An Eligible Executive shall be eligible to
receive a normal retirement benefit under the Plan, in accordance with and
subject to the provisions of the Plan, upon termination of his Service which
occurs on or after his 62nd birthday.

 

b)            Amount.  A retired Eligible Executive
who is eligible to receive a normal retirement benefit pursuant to (a) above,
shall be entitled to a monthly normal retirement benefit equal to the amount
determined in 1) below less the amount determined in 2) and 3) below:

 

1)                      An amount equal to (i) multiplied by (ii) below:

 

(i)            The sum of (A) and (B) below
minus the amount in (C) below:

 

A)                                  87% of his
first $800 of Final Average Compensation;

 

B)                                    57% of his
Final Average Compensation in excess of $800;

 

C)                                    the amount of
his Primary Social Security Benefit.

 

(ii)           a fraction, the
numerator of which is his total months of Benefit Service (not to exceed 240),
and the denominator of which is 240.

 

2)                      His Other Benefit.

 

3)                      The value of any benefit previously received under
this Plan.

 

5

 

c)             Commencement and Duration.  Except as provided in subsection 4.7, monthly
normal retirement benefit payments for an Eligible Executive covered by
subsection 4.1(a) above shall begin as of the first day of the calendar month
next following the date such Eligible Executive’s Service terminates, and shall
be paid as a single life annuity for the Eligible Executive.

 

4.2          Early Retirement Benefits.

 

a)             Eligibility.  An Eligible Executive shall
be eligible to receive an early retirement benefit under the Plan, in
accordance with and subject to the provisions of the Plan, upon termination of
his Service prior to his 62nd birthday but after he has
completed at least 10 years of Service.

 

b)            Amount.  A retired Eligible Executive who is eligible
to receive an early retirement pursuant to subsection 4.2(a) above shall
be entitled to receive a monthly early retirement benefit computed in the same
manner as a normal retirement benefit under subsection 4.1(b) hereof,
based upon his Final Average Compensation as determined under subsection 2.1(h)(2) hereof,
and his Benefit Service as of the date his Service terminates, reduced by 1/4
of 1% for each calendar month by which his first benefit payment precedes the
first of the month next following his 62nd birthday;
provided, however, that such reduction shall in no event exceed twenty-one
percent (21 %) in the aggregate.

 

c)             Commencement and Duration.  Except as provided in subsection 4.7, monthly
early retirement benefit payments for an Eligible Executive covered by
subsection 4.2(a) above shall begin as of the first day of the calendar
month next following the date such Eligible Executive’s Service terminates;
provided however, that payments shall not commence earlier than the calendar
month coincident with or next succeeding the Eligible Executive’s 55th birthday. By election filed by the Eligible
Executive prior to the time of his termination, benefit payments hereunder may
be delayed until the first of any calendar month before the Eligible
Executive’s 65th birthday. In all cases, payments hereunder
shall be paid as a single life annuity for the Eligible Executive.

 

4.3          [Intentionally
left blank.]

 

4.4          Surviving
Spouse/Estate Benefit

 

a)             Pre-Retirement Spousal Benefit.  If an Eligible Executive dies before
commencement of monthly retirement benefit payments under this Plan, and leaves
a surviving spouse (“Spouse”), then such Eligible Executive’s Spouse shall be
entitled to receive a monthly benefit under the Plan. The monthly benefit shall
commence on a date beginning within thirty (30) days after the death of the
Eligible Executive, and shall be equal to the monthly benefit amount to which
the Eligible Executive would have been entitled under subsection 4.1, 4.2 or
4.5 hereunder had he terminated employment on the date of his death and began
to collect payments immediately, with an appropriate discount to present value
in the event that the Eligible Executive had not yet reached his 55th birthday, which benefit shall continue for
that number of months that is equivalent to the Eligible Executive’s remaining
actuarial life expectancy 

 

6

 

determined
as of the date monthly benefits under the Plan began, as determined by the
Committee in consultation with an actuary selected by it.

 

b)            Post-Retirement Benefit.  If an Eligible Executive dies after the
commencement of monthly retirement benefit payments under this Plan, then such
Eligible Executive’s Spouse, or designated beneficiary if there is no such
Spouse, or estate if there is no designated beneficiary shall be entitled to
receive a monthly benefit under this Plan equal to the monthly benefit received
by the Eligible Executive, which benefit shall continue for that number of
months that is equivalent to the Eligible Executive’s remaining actuarial life
expectancy determined as of the date monthly benefits under the Plan began, as
determined by the Committee in consultation with an actuary selected by it.

 

4.5          Benefit
for Persons Participating Only in The Dayton Power and Light Company Key
Employee Deferred Compensation Plan.  Notwithstanding any other provision in this
Plan to the contrary, an employee who participates in The Dayton Power and
Light Company Key Employee Deferred Compensation Plan and who is not an
Eligible Executive pursuant to Section 2.1(g)(i) hereof, will receive
a benefit under this Plan equal (and limited) to:

 

a)                                      The benefit he
would have received under the Qualified Plan if he had not deferred
compensation under The Dayton Power and Light Company Key Employee Deferred
Compensation Plan; less

 

b)                                     The benefit
actually paid under the Qualified Plan; less

 

c)                                      The value of
any benefit previously received under this Plan.

 

The
benefit under this section will be paid in the manner provided in Section 4.1(c),
4.2(c), 4.4 or 4.6, as appropriate, depending on the circumstances affecting
the employee’s termination.

 

4.6          Lump
Sum Amount.

 

a)             Request For Conversion of Benefit
to Lump Sum Amount.  An Eligible Executive may submit a written
request to the Committee within sixty (60) days prior to or after termination
of Service requesting that all of the Eligible Executive’s benefits payable
pursuant to Section 4.1, 4.2, or 4.5 of the Plan be converted into a Lump
Sum Amount (as defined in subsection 4 and that such Lump Sum Amount be paid
either in a single lump sum payment or in annual installments over a period of
up to 20 years, together with earnings on the unpaid balance determined in
accordance with this subsection 4.6(a). The lump sum payment, or the first
installment payment, as the case may be, shall, if approved as provided in
subsection 4.6(b), be made, unless otherwise determined by the Committee in its
discretion, on or prior to the January 31 immediately after approval of
the request (but, subject to subsections 4.6(e) and 4.7, no earlier than
age 55), 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 the “Unpaid Amount” has been paid in full.

 

7

 

If
an Eligible Executive’s benefits under the Plan have been converted into a Lump
Sum Amount in accordance with this Section 4.6 and such Eligible Executive
(an “Electing Executive”) has requested that such Lump Sum Amount be paid in
annual installments, then, for purposes of measuring the amounts which may be
distributed under the Plan, the “Unpaid Amount” of such Electing Executive
shall be deemed invested in such “Eligible Investment Options” as such Electing
Executive may designate from time to time as provided herein. For purposes of
the Plan, the term “Unpaid Amount” means, at any time with respect to any
Electing Executive, such Electing Executive’s Lump Sum Amount (together with
any dividends, interest, distributions or other amounts credited thereto
pursuant to this subsection 4.6(a)) less the aggregate amount of all
installment payments theretofore made to such Electing Executive and the term
“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 notice
to the Electing Executives.

 

Each
Electing Executive shall have the option, ,by delivering to the Secretary of
Company a completed Investment Option Election Form in the form attached
hereto as Exhibit D (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 or, in the case of the first election, on or
prior to the conversion of such Electing Executive’s benefits under the Plan
into a Lump Sum Amount (each of the foregoing dates, an “Election Date”), to
designate or change, in a percentage equal to at least 10%, the portions of his
Unpaid Amount which shall be deemed invested in each Eligible Investment Option
as of each Election Date. Any such designation by an Electing Executive shall
remain in effect until changed in accordance with the preceding sentence. Any
increase in the percentage of an Electing Executive’s Unpaid Amount 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 Electing Executive’s Unpaid Amount 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 Electing Executive with
respect to all or any portion of his Unpaid Amount, such Unpaid Amount (or such
portion) shall be credited with interest on the first day of each month in an
amount equal to 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. 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 Electing Executive’s Unpaid Amount is
deemed invested shall be credited to such Electing Executive’s Unpaid Amount
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 Electing Executives. To the extent that the
Company does, in its discretion, purchase or hold any of the Eligible
Investment Options designated by Electing Executives, the same shall remain the
sole property of the Company, subject to the claims of its general creditors,
and no Electing Executive shall have a property interest therein or claim
thereto.

 

8

 

For
purposes of any distribution with respect to an Electing Executive’s Unpaid
Amount pursuant to this subsection 4.6(a), the amount of such Electing
Executive’s Unpaid Amount 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 Electing
Executive’s Unpaid Amount is deemed to be invested on such date and, in the
case of a partial distribution of such Electing Executive’s Unpaid Amount, the
amount of such distribution shall proportionately reduce the amount which is
deemed invested in each Eligible Investment Option.

 

b)            Conditions to Conversion of
Benefit to Lump Sum Amount.  The Committee, in its sole discretion, may
approve or deny an Eligible Executive’s request made pursuant to subsection 4.6(a) for
conversion of the Eligible Executive’s benefit into a Lump Sum Amount, and
payment thereof as a lump sum, or as a series of installment payments based
thereon, as described in subsection 4.6(a). In addition, the Committee shall,
subject to subsections 4.6(d), (e) and (f) hereof in all cases in
which a lump sum payment or a series of installment payments based thereon is
approved, require that the Eligible Executive enter into a noncompetition
agreement with the Company in substantially the form attached hereto as Exhibit A,
with the Committee to determine, in its sole discretion, the geographic
location of such non-competition agreement. The term of the non-competition
agreement shall be for such period from the date of termination as the
Committee may, in its sole discretion, determine, if the Lump Sum Amount is
paid as a lump sum payment, or for a period equivalent to the period over which
installment payments are made if the Lump Sum Amount is paid in installment
payments.

 

c)             Computation
of Lump Sum Amount.  The conversion of the
Eligible Executive’s benefit into a Lump Sum Amount as described in Section 4.6(a) or
in Section 4.8 shall be equal to the present value of the amount of
monthly benefit the Eligible Executive would be entitled to receive under
Sections 4.1, 4.2, or 4.5, as the case may be, determined as of the date of
distribution, converted into a lump sum (such lump sum is referred to herein as
the “Lump Sum Amount”). The Committee shall determine such conversion using the
interest and mortality assumptions contained in Exhibit B hereto.

 

d)            Death of
Executive.  Notwithstanding
subsection 4.6(b), if an Eligible Executive dies after requesting a lump sum
payment or series of fixed installment payments but prior to receiving approval
of such payment from the Committee, the lump sum payment or installment
payments may be approved notwithstanding the absence of a noncompetition
agreement and determined under subsection 4.6(c) based upon facts existing
on the date the request was made. If such approval is obtained, or if an
Eligible Executive who is receiving the Lump Sum Amount in installment payments
dies prior to receipt of all installments then all future payments hereunder
shall be paid to the beneficiary or beneficiaries designated by the Eligible
Executive, or to the estate of the Eligible Executive on failure to so
designate a beneficiary.

 

e)             Change of
Control.  Notwithstanding any
provision of this Plan (including subsection 4.6(b)), an Eligible Employee
shall be entitled to a lump sum payment (the “Lump Sum Payment”), on
termination of his/her employment with the Company under circumstances in which
payments under paragraph 5.A. [or successor provision] of the Eligible
Executive severance letter agreement with the Company would become due and
payable to the Eligible

 

9

 

Executive (or, if the Eligible Executive is not then a party
to a severance letter agreement, under circumstances in which payments under
paragraph 5.A. [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] would become due and
payable to the Eligible Executive if he were a party thereto). The Lump Sum
Payment shall equal the lump sum payment computed in accordance with subsection
4.6(c) hereof. The Lump Sum Payment shall be paid immediately upon
termination.

 

Notwithstanding any other provision of the Plan, after
a Change of Control, any portion of a distribution to be made to an Electing
Executive with respect to the Unpaid amount of such Electing Executive may, at
the request of such Electing Executive 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 Electing Executive 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 Electing Executive 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 paragraph shall require the Company (or any of the Master
Trusts) to purchase, hold or dispose of any Eligible Investment Options
designated by Electing Executives. 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 no Electing
Executive shall have any property interest therein or claim thereto.

 

(f)            Surviving
Spouse Lump Sum Benefit.  If an Eligible
Executive dies under circumstances in which subsection 4.4(a) hereof would
apply, then the Spouse may submit a written request to the Committee within one
hundred twenty (120) days after the Eligible Executive’s date of death
requesting that the benefits payable pursuant to Section 4.4 be paid in a
single lump sum, computed in accordance with the principles of subsection
4.6(c), to be made as soon as reasonably possible after approval of the
request. Such request may be approved by the Committee, in its sole discretion,
notwithstanding the absence of a non-competition agreement.

 

(g)           Estate
Lump Sum Benefit.  If an Eligible
Executive dies under circumstances in which subsection 4.4(a) would apply
but for the fact that such Eligible Executive does not have a surviving Spouse,
then the Eligible Executive’s designated beneficiary shall be entitled to an
immediate lump-sum payment equal to the amount which would have been received
under subsection 4.6(f) had the Eligible Executive had a surviving Spouse
who had requested and been awarded the single lump-sum provided therein. If an
Eligible Executive has not designated a beneficiary, or if the designated
beneficiary does not survive the Eligible Executive, then such lump-sum amount
will be paid to the Eligible Executive’s estate.

 

4.7          Early Distribution.   Notwithstanding any other provision of the
Plan to the contrary, the Committee may, upon receiving a written request from
the Eligible Executive and determining that a distribution is in the best
interest of the Company and the Eligible Executive

 

10

 

taking into account the financial condition of each,
distribute an annuity purchased pursuant to the Plan or make a lump sum
distribution, crediting such distribution to the Eligible Executive’s account.

 

4.8          Certain Lump Sum Distributions.  Notwithstanding any other provision of the
Plan, in the event that the Company is entitled to make a lump sum distribution
to an Eligible Executive pursuant to Section 4.H. of the Company’s Key
Employees Deferred Compensation Plan of the amounts then credited to such
Eligible Executive’s Standard Deferral Account under such plan (a “Section 4.H.
Distribution”), then, whether or not the Company makes such Section 4.H. Distribution,
the Company may, at its option, (i) convert the benefits payable to such
Eligible Executive pursuant to Section 4.1, 4.2 or 4.5 of the Plan into a
Lump Sum Amount in accordance with Section 4.6(c) and distribute such
Lump Sum Amount to such Eligible Executive in a single lump sum payment or (ii) if
such Eligible Executive’s benefits under Section 4.1, 4.2 or 4.5 of the
Plan have been converted into a Lump Sum Amount in accordance with Section 4.6(a) prior
thereto and such Lump Sum Amount is being paid in installments in accordance
with Section 4.6(a), distribute to such Eligible Executive in a single
lump sum payment the entire Unpaid Amount of such Eligible Executive.

 

Section 5.              Administration

 

5.1          Administration.  The Company shall be responsible for the
general administration of the Plan and the carrying out of the provisions
thereof, and shall have all, rights and powers required in connection
therewith, including the right to establish rules for the administration
of the Plan and the methods to be used to calculate benefits under this Plan.

 

Section 6.              Financing

 

6.1          Financing of Benefits.  No Eligible Executive shall be required to
make any contribution under the Plan. Benefits shall be payable when due, by
the Company, from the general assets of the Company.

 

Section 7.              Master Trusts

 

7.1          Participation 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
Eligible Executives to make the distributions under the Plan and has funded one
or more of the Master Trusts in an aggregate amount of cash as the Company has
determined to be equal to the value of benefits accrued under the Plan, and the
Master Trust(s) to which such cash has been transferred may purchase
annuities for the Eligible Executives’ accounts equal in value to the benefits
accrued under the Plan. Pursuant to one or more of the Master Trusts, each
Eligible Executive 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 which the Company is required to make to the
Master Trusts pursuant to Section 7.2 or 8(c) hereof or otherwise
shall be allocated among the Master Trusts as the Committee may determine from
time to time.

 

11

 

7.2          Successive Transfers.  Within one hundred twenty (120) days after
the end of each calendar year, the Company shall transfer an aggregate amount
of cash as the Committee shall determine to be equal to the value of benefits
accrued by Eligible Executives under the Plan through such calendar year.

 

7.3          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 Eligible Executive or
beneficiary has or will have any property interest in the cash or shares held
in the Master Trusts or any other specific asset of the Company.

 

Section 8.              Change of Control.  In the event of any Change of Control, as
defined herein:

 

a)             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)            (Intentionally
left blank.)

 

c)             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 the value of benefits accrued by
Eligible Employees under the Plan through the date of Change of Control, and
including cash sufficient to make the lump sum payments described in Section 4.6(e) hereof
as if termination of employment occurred on the date of such Change of Control.

 

Section 9.              General Provisions

 

9.1          Non-assignability.  Neither a Participant, nor his beneficiary,
nor any other individual shall have an 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.

 

9.2          Incompetency.  Every person receiving or claiming benefits
under the Plan shall be conclusively presumed to be mentally competent and of
age until the Committee receives written notice, in a form and manner
acceptable to it, that such person is incompetent or a minor, and that a
guardian, conservator, statutory committee under the laws of the State of Ohio,
or other person generally vested with the care of his estate has been
appointed. In the event that the Committee finds that any person to whom a
benefit is payable under the Plan is unable to properly care for his affairs,
or is a minor, then any payment due (unless a prior claim therefor shall have
been made by a duly appointed legal representative) may be paid to the spouse,
a

 

12

 

child, a parent, or brother
or sister, or to any person deemed by the Committee to have incurred expenses
for such person otherwise entitled to payment.

 

In
the event a guardian or conservator or statutory committee of the estate of any
person receiving or claiming benefits under the Plan shall be appointed by a
court of competent jurisdiction, payment shall be made to such guardian or conservator
or statutory committee provided that proper proof of appointment is furnished
in a form and manner suitable to the Committee. Any payment made under the
provisions of this subsection 9.2 shall be a complete discharge of liability
therefor under the Plan.

 

9.3          Employment
Rights.  The
establishment of the Plan shall not be construed as conferring any legal rights
upon any Eligible Executive or any person for a continuation  of employment, nor shall it interfere with
the rights of the Company to discharge any person and/or to treat him in the
same manner as a person not covered by this Plan and without regard to the
effect which such treatment might have upon him as a person covered by this
Plan.

 

9.4          Notices.  Any notice required or permitted to be given
hereunder to an Eligible Executive or spouse will be properly given or
delivered or mailed, postage prepaid, to the Eligible Executive or beneficiary
at the last post office address as shown on the Company’s records. Any notice,
election or any request required or permitted hereunder, which is to be mailed
to 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:

MacGregor
Park

Woodman
Drive

Dayton,
Ohio 45432

Attention:
Corporate Secretary

 

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

 

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

 

9.5          Waiver
of Notice.  Any notice required hereunder may be waived
by the person entitled thereto.

 

9.6          Action
by Company.  Any action required or permitted to be taken
hereunder by the Company or its Board of Directors shall be taken by the Board
of Directors, or by any person or persons or committee authorized by the Board
of Directors.

 

13

 

9.7          Notice
of Address.  Any payment to an Eligible Executive, or in
case of his death to his beneficiary, at the last known post office address of
the distributee on file with the Company, shall constitute a complete
acquittance and discharge to the Company and Director or officer with respect
thereto unless the Company shall have received prior written notice of any
change in the condition or status of the distributee.  Neither the Company nor any Director or
officer shall have the duty or obligation to search for or ascertain the
whereabouts of any Eligible Executive or his spouse.

 

9.8          Records.  The records of the Company with respect to
the Plan shall be conclusive on all Eligible Executives, all beneficiaries, and
all other persons whomsoever.

 

9.9          Forfeiture
of Benefits.  Notwithstanding
the provisions of Section 4, if he Company determines that an Eligible
Executive, while in the employ of the Company or while receiving (or eligible
to receive) payment under the Plan, has

 

a)             committed a
felony,

 

b)            taken part in a
fraud, or

 

c)             been terminated
for cause,

 

the
Eligible Executive, as of the date of such determination shall forfeit, at the
election of the Company and action of the Committee, all entitlement to
payments under this Plan. This subsection 9.9 shall apply, however, for a
period of three years following each Change of Control by substituting for b)
and c) above the following

 

b)            embezzled, or

 

c)             illegally used drugs

 

as
the circumstance under which an Eligible Executive’s benefits under the Plan
may be forfeited.

 

9.10        No Individual Liability.  It is declared to be the express purpose and
intention of the Plan that no liability whatever shall attach to or be incurred
by the shareholders, officers, or Directors of the Company, or any
representatives appointed hereunder by the Company, under or by reason of any
of the terms or conditions of the Plan.

 

9.11        Illegality of Particular
Provision.  If any particular provision of this Plan
shall be found to be illegal or unenforceable, such provision shall not affect
the other provisions thereof, but the Plan shall be construed in all respects
as if such invalid provision were omitted.

 

9.12        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.

 

14

 

Section 10.            Interpretation
and Amendment.  The Plan will be administered by the
Committee. The decision of the Committee with respect to the administration of
the Plan will be final and binding. The Committee reserves the right prior to a
Change of Control, to amend, modify or terminate the Plan; provided, however
that (i) no amendment, modification or termination of the Plan shall
adversely affect any right or benefit earned or accrued under the Plan by any
Eligible Executive prior to any such amendment, modification or termination
without the prior written consent of such Eligible Executive and (ii) following
a Change of Control the Committee’s discretion under this Section 10 will
be exercised as provided in Section 8(a) hereof; provided further
that the Trustees shall have no authority to terminate the Plan.

 

Section 11.            Applicable Laws.  The Plan shall be governed by and construed
according to the laws of the State of Ohio.

 

15

 

EXHIBIT A

 

AGREEMENT NOT TO
COMPETE

 

THIS AGREEMENT is made
                                        ,
2000 between THE DAYTON POWER AND LIGHT COMPANY, an Ohio corporation (the
“Company”) and
                                        
(the “Executive”), under the following circumstances:

 

A.            The Executive has been employed by the Company for a period
of approximately           
years. During the course of his employment, the Executive has held a number of
executive positions within the Company, including his present position as
                                        ,
and has had access to highly sensitive confidential information relating to the
Company and its business.

 

B.            The
Executive is retiring from the Company’s employ effective the date hereof.

 

C.            The
Executive is a participant in the Company’s Supplemental Executive Retirement
Plan (the “Plan”).

 

D.            Pursuant to Section 4.6
of the Plan, the Executive has requested that his benefits under the Plan [be
paid in a lump-sum] or [be converted into a “Lump Sum Amount” and be paid in
annual installments over a period of
           years], rather
than as a monthly annuity as otherwise provided in the Plan.

 

E.             Such payment of
benefits under the Plan is conditioned, among other things, upon the execution
and delivery of this Agreement by the Executive.

 

NOW,
THEREFORE, for and in consideration of good and valuable consideration, the
receipt and adequacy of which consideration are hereby acknowledged, the
parties intending to be legally bound hereby agree as follows:

 

Section 1.              Covenant
Not to Compete.  During the term of this Agreement, the
Executive shall not, without the prior written consent of the Company, either
for his own account or on behalf of any corporation, person, firm, partnership,
association or other entity (whether as an agent, employee, officer, director,
shareholder, investor, owner, consultant, joint venturer, partner, trustee or
in any other capacity) engage or participate in, directly or indirectly, in any
business or enterprise: (i) which is engaged in providing gas and/or
electric services on a retail and/or wholesale basis in the States of
                              
or (ii) which is engaged in any other business being conducted or proposed
to be conducted by the Company and/or its parent, DPL Inc. (and/or any of the
subsidiaries or affiliates of the Company or DPL Inc.) as of the date hereof;
provided, however, that nothing contained in this Section 1 shall prevent
the Executive from purchasing and holding for investment less than 5% of the
shares of any corporation the shares of which are regularly traded either on a
national securities exchange or in the over-the-counter market.

 

Section 2.              Term.  The term of this Agreement shall be for
           years commencing
on the date hereof.

 

 

Section 3.              Remedies.  The Executive acknowledges that any violation of Section 1
of this Agreement may cause irreparable harm to the Company and that damages
alone are not an adequate remedy. The Executive therefore agrees that the
Company shall be entitled to an injunction by any court of competent
jurisdiction enjoining, prohibiting and restraining the Executive from the
continuance of any such violation, in addition to any monetary damages which
might occur by reason of any such violation. The remedies provided in this
Agreement are cumulative and shall not exclude any other remedies to which any
party hereto may be entitled under this Agreement or applicable law and the
exercise of a remedy shall not be deemed an election excluding any other
remedy.

 

Section 4.              Enforceability.  If, for any reason, any provision contained
in this Agreement should be held invalid in part by a court of competent
jurisdiction, then it is the intent of each of the parties hereto that the balance
of this Agreement be enforced to the fullest extent permitted by applicable
law. It is the intent of each of the parties that the covenant not to compete
contained in Section 1 of this Agreement be enforced to the fullest extent
permitted by applicable law. Accordingly, in the event that a court of
competent jurisdiction determines that the scope of the covenant is too broad
to be enforced as written, it is the intent of each of the parties that the
court should reform the covenant to such narrower scope as it determines
enforceable and this Agreement shall be deemed amended to the extent required
to render it valid and enforceable and that such amendment shall apply only
with respect to the operation of this Agreement in the jurisdiction of the
court which has made such adjudication.

 

Section 5.              Non-waiver.  The failure of any party to require
performance of any of the provisions of this Agreement shall not be deemed a
waiver of any such provision and the obligations of the parties hereunder shall
remain in full force and effect.

 

Section 6.              Assignment and Benefit.  This Agreement shall be binding upon, shall
be assignable by and shall inure to the benefit of the Company and its
successors and assigns. This Agreement is personal to the Executive and may not
be assigned by him.

 

Section 7.              Attorneys’ Fees.  In the event of any litigation concerning any
controversy, claim or dispute between the parties arising out of or relating to
this Agreement or any breach hereof, or the interpretation hereof, the prevailing
party shall be entitled to recover from the losing party reasonable expenses,
attorneys’ fees and costs incurred therein. The “prevailing party” means the
party determined by the court to have most nearly prevailed, even if such party
did not prevail in all matters, and not necessarily the party in whose favor a
judgment is rendered. Further, in the event of any default by a party under
this Agreement, such defaulting party shall pay all expenses, attorneys’ fees
and costs incurred by the other party in connection with such default, whether
or not any litigation is commenced.

 

Section 8.              Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which shall constitute one and the same instrument,
but only one of which need be produced.

 

Section 9.              Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning of this Agreement.

 

 

Section 10.            Governing Law.  This Agreement shall be
governed by, and construed and enforced in accordance with, the laws of the
State of Ohio.

 

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

 

	
   

  	
  THE
  DAYTON POWER AND LIGHT COMPANY

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  

 

 

EXHIBIT B

 

The
formula used in computing the lump sum provided for in Section 4.6 shall
use the following interest rate and mortality assumptions.

 

A.            Interest Rate

 

The
average of the monthly Pension Benefit Guaranty Corporation (“PBGC”) interest
rate for immediate annuities, as currently published in Appendix B to part 2619
of the PBGC Regulations (the “PBGC Rate”) for the year end periods 1995 and
1996 was used for the initial period ending December 31, 1998. That
initial interest rate was set at 4.6% (see the calculation attached). The
interest rate was reset for the period January 1, 1999 through December 31,
2000 at 4.35% based upon the average PBGC Rate for the year end periods 1997
and 1998. The interest rate will be reestablished for future two year periods
provided, however, that the rate shall not be adjusted by more than 25 basis
points from the prior two year period and provided further that if the rate
computed herein for future periods becomes plus or minus 200 basis points from
the initial rate, then the Committee shall reevaluate said rate based upon
current conditions and fairness to participants.

 

B.            Mortality

 

The
1983 Individual Annuity Mortality Table shall be used in the computation of the
lump sum provided for in Section 4.6.

 

 

PBGC IMMEDIATE INTEREST RATES

YEAR END

 

	
   

  	
   

  	
  2 YEAR

  AVERAGE

  	
   

  
	
  1995

  	
   

  	
  4.50

  	
  %

  
	
  1996

  	
   

  	
  4.75

  	
  %

  
	
  TOTAL

  	
   

  	
  9.25

  	
  %

  
	
  AVERAGE

  	
   

  	
  4.63

  	
  %

  

 

 

EXHIBIT C

 

THE DAYTON POWER AND LIGHT COMPANY

 

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

BENEFICIARY DESIGNATION

 

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

  

 

This
Beneficiary Designation Form was received by the Secretary of the Company
on
                                        .

 

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Secretary

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