Document:

ALLIANT ENERGY KEY EMPLOYEE DEFERRED COMPENSATION PLAN

               (As Amended and Restated Effective January 1, 2000)

                                                                   November 2000

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                                Table of Contents
                                -----------------
                                                                            Page
                                                                            ----

Article 1 BACKGROUND..........................................................1

Article 2 DEFINITIONS.........................................................1
        2.1      Account......................................................1
        2.2      Affiliate....................................................1
        2.3      Beneficiary..................................................1
        2.4      Code.........................................................2
        2.5      Company......................................................2
        2.6      Company Stock................................................2
        2.7      Compensation.................................................2
        2.8      Deferred Compensation........................................2
        2.9      Disability...................................................2
        2.10     Effective Date...............................................2
        2.11     Eligible Employee............................................2
        2.12     Employer.....................................................2
        2.13     ERISA........................................................2
        2.14     Participant..................................................2
        2.15     Plan.........................................................2
        2.16     Plan Year....................................................2
        2.17     Plan Administrator...........................................2
        2.18     Retirement...................................................2
        2.19     Savings Plan.................................................3
        2.20     Share Value..................................................3
        2.21     Termination of Employment....................................3
        2.22     Unforeseeable Emergency......................................3

Article 3 ADMINISTRATION......................................................3
        3.1      Powers and Duties............................................3
        3.2      Delegation...................................................3

Article 4 DEFERRED COMPENSATION...............................................4
        4.1      Participant Deferrals........................................4
        4.2      Employer Contributions.......................................4
        4.3      Deferred Compensation Accounts...............................5

Article 5 PAYMENT OF DEFERRED COMPENSATION....................................7
        5.1      Payment of Deferred Compensation.............................7
        5.2      Commencement of Payments.....................................7
        5.3      Method of Payment............................................8
        5.4      Amount of Payments...........................................8
        5.5      Form of Payments.............................................8

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        5.6      Participant Elections........................................8
        5.7      Emergency Payments...........................................9
        5.8      Tax Payments.................................................9
        5.9      Facility of Payment..........................................9
        5.10     Restrictions on Payments.....................................9

Article 6 CLAIMS PROCEDURE...................................................10
        6.1      Decisions on Claims.........................................10
        6.2      Review of Denied Claims.....................................10

Article 7 FUNDING............................................................10

Article 8 AMENDMENT AND TERMINATION..........................................11

Article 9 GENERAL PROVISIONS.................................................11
        9.1      Status of Participants......................................11
        9.2      No Guaranty of Employment...................................11
        9.3      Delegation of Authority.....................................11
        9.4      Legal Actions...............................................11
        9.5      Applicable Law..............................................11
        9.6      Rules of Construction.......................................11
        9.7      Expenses of Administration..................................12
        9.8      Indemnification.............................................12

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                                    ARTICLE 1

                                    BACKGROUND
                                    ----------

Alliant Energy Corporate Services, Inc. (the "Company") has heretofore adopted
the Alliant Energy Corporate Services, Inc. Key Employee Deferred Compensation
Plan (the "Plan") to allow certain of its key employees to defer payment of part
or all of their current compensation. The Plan Administrator of the Plan now
wishes to revise the Plan in certain respects and, having reserved to itself the
power to amend the Plan pursuant to Section 8 thereof, it hereby amends and
restates the Plan as follows and renames it the Alliant Energy Key Employee
Deferred Compensation Plan.

                                    ARTICLE 2

                                   DEFINITIONS
                                   -----------

When the following words or phrases are used herein, they shall have the
meanings set forth below unless otherwise specifically provided:

     2.1 Account. An account which has been established for a Participant
pursuant to Section 4.3. Each such account shall include one or more of the
following sub-accounts:

          (a) Company Stock Account. The account established to record the
     deferred compensation and the Employer Contribution which the Participant
     has elected to allocate to a Company Stock Account pursuant to Section
     4.3(c).

          (b) Interest Account. The account established to record the deferred
     compensation and the Employer Contribution which the Participant has
     elected to allocate to an Interest Account pursuant to Section 4.3(c).

Separate Accounts (and sub-accounts) shall be maintained for the portion of a
Participant's Deferred Compensation (if any) that is distributable in a lump
sum, and for the portion of a Participant's Deferred Compensation (if any) that
is distributable in installments. Separate Accounts (and sub-accounts) shall
also be maintained for each portion of a Participant's Deferred Compensation
that is distributable at a different time.

     2.2 Affiliate. A business organization that is under common control with
the Company, as determined under Section 414(c) of the Code. In addition, except
for purposes of the definition of "Employer," Affiliate shall also include
Nuclear Management Company LLC but only for the period of time in which the
Company or any other Affiliate has an equity ownership interest in such entity.

     2.3 Beneficiary. The person or persons (including a trustee or trustees)
designated as a Participant's Beneficiary in the last written instrument signed
by the Participant for the purposes of this Plan and received by the Plan
Administrator prior to the Participant's death. If no such person has been
designated, the Participant's Beneficiary shall be the person or persons who
constitute the Participant's beneficiary for the purposes of the Savings Plan.

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     2.4 Code. The Internal Revenue Code of 1986, as from time to time amended.

     2.5 Company. Alliant Energy Corporate Services, Inc., and any successor or
successors thereto.

     2.6 Company Stock. The Common Stock, $.01 par value, of Alliant Energy
Corporation, as such stock may be reclassified, converted, or exchanged by
reorganization, merger, or otherwise.

     2.7 Compensation. A Participant's base salary and any incentive
compensation earned by a Participant under a plan adopted by the Participant's
Employer on or after the Plan's original Effective Date.

     2.8 Deferred Compensation. The balance from time to time credited to a
Participant's Accounts.

     2.9 Disability. A Participant's eligibility for immediate benefits under
his or her Employer's long-term disability plan.

     2.10 Effective Date. The Plan's original Effective Date was the later of
January 1, 1998 or the effective date of the Company's incorporation. The
provisions of this amended and restated Plan are effective as of January 1,
2000.

     2.11 Eligible Employee. An employee of an Employer who is a member of a
select group of management or highly compensated employees within the meaning of
Section 201(2) of ERISA, and who has been designated by the Chief Executive
Officer of the Company as being eligible to participate in the Plan.

     2.12 Employer. The Company, and each Affiliate of the Company whose
employees have been designated as being eligible to participate in the Plan.

     2.13 ERISA. The Employee Retirement Income Security Act of 1974, as from
time to time amended.

     2.14 Participant. An Eligible Employee for whom an Account has been
established pursuant to Section 4.3.

     2.15 Plan. The Alliant Energy Key Employee Deferred Compensation Plan, as
set forth herein, and as from time to time amended.

     2.16 Plan Year. The 12 consecutive month period ending on each December 31.

     2.17 Plan Administrator. The Compensation and Personnel Committee of the
Board of Directors of Alliant Energy Corporation.

     2.18 Retirement. Termination of Employment at or after age 55 or by reason
of Disability.

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     2.19 Savings Plan. The Alliant Energy Corporate Services, Inc. Retirement
Savings 401(k) Plan.

     2.20 Share Value. The price at which a share of Company Stock is deemed to
have been purchased for a Participant's Account pursuant to Section 4.3(d). If
shares of Company Stock are actually purchased on any date for the purposes of
the Plan, and if such purchases are made in the open market or in privately
negotiated transactions, the Share Value on such date will be the average
weighted price of all of the shares that are purchased for the Plan on such
date. In all other cases, Share Value will be the average (computed to four
decimal points) of the high and low sales prices of shares of Company Stock as
reported for the applicable date on the New York Stock Exchange Composite
Transaction Tape.

     2.21 Termination of Employment. Severance of a Participant's employment
relationship with all of the Employers and their Affiliates. A transfer of
employment among Employers or their Affiliates will not constitute a Termination
of Employment.

     2.22 Unforeseeable Emergency. A severe financial hardship to a Participant
resulting from a sudden and unexpected illness or accident of the Participant or
a dependent (as defined in Section 152(a) of the Code) of the Participant, loss
of the Participant's property due to casualty, or a similar extraordinary and
unforeseeable circumstance arising as a result of events beyond the control of
the Participant.

                                   ARTICLE 3

                                 ADMINISTRATION
                                 --------------

     3.1 Powers and Duties. Full power and authority to construe, interpret, and
administer this Plan is vested in the Plan Administrator. In particular, the
Plan Administrator shall make each determination provided for in this Plan and
may adopt such rules, regulations, and procedures, as it deems necessary or
desirable to the efficient administration of the Plan. The Plan Administrator's
determinations need not be uniform, and may be made by it selectively among
persons who may be eligible to participate in the Plan. The Plan Administrator
shall have sole and exclusive discretion in the exercise of its powers and
duties hereunder, and all determinations made by the Plan Administrator shall be
final, conclusive, and binding unless they are found by a court of competent
jurisdiction to have been arbitrary and capricious.

     3.2 Delegation. The Plan Administrator may delegate part or all of its
duties to any person or persons, and may from time to time revoke such authority
and delegate it to another person or persons. Each such delegation to a person
who is not an employee of the Company or an Affiliate will be in writing, and a
copy will be furnished to the person to whom the duty is delegated, who will
file a written acceptance with the Plan Administrator. Any delegate's duty will
terminate upon revocation of such authority by the Plan Administrator, upon
withdrawal of such person's acceptance or, in the case of a delegate who is an
employee of the Company or an Affiliate, upon the termination of such
employment. Any person to whom

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administrative duties are delegated may, unless the delegation provides
otherwise, similarly delegate part or all of such duties to another person.

                                   ARTICLE 4

                              DEFERRED COMPENSATION
                              ---------------------

     4.1 Participant Deferrals. An Eligible Employee may elect to defer up to
100% of his or her Compensation for any Plan Year. An election to defer
Compensation shall be made in writing prior to the first day of the Plan Year to
which it will apply or, if later, within 30 days after the Eligible Employee is
first notified by the Plan Administrator of his or her eligibility to
participate in the Plan, and it shall be subject to the following requirements:

          (a) The election may defer a percentage of the Participant's base
     salary, and/or a percentage of the Participant's incentive compensation.
     Amounts deferred from a Participant's base salary shall reduce the
     Participant's base salary in equal installments for each pay period during
     the Plan Year (or portion thereof) to which the election applies. Amounts
     deferred from a Participant's incentive compensation shall reduce the
     Participant's incentive compensation that is earned during the Plan Year on
     the date such incentive compensation would otherwise be paid to the
     Participant.

          (b) The election shall be irrevocable with respect to all Compensation
     payable for services performed by the Participant during the Plan Year
     following the date on which the election is received by the Plan
     Administrator, except that a Participant may terminate an election to defer
     Compensation if the Plan Administrator determines that the termination is
     necessary as a result of an Unforeseeable Emergency.

     4.2 Employer Contributions. Each Employer shall credit to the Account of
each Participant who is employed by that Employer an "Employer Contribution" in
an amount equal to 50% of (a) minus (b), where:

          (a) is the lesser of:

               (i) the sum of the amounts (if any) contributed by the
          Participant to the Savings Plan during a Plan Year which were eligible
          for matching contributions under the Savings Plan, plus the amounts
          deferred by the Participant during the Plan Year pursuant to Section
          4.1; or

               (ii) 6% of the Participant's base salary for the Plan Year; and

          (b) is the amount of any matching contributions that were made to the
     Savings Plan on behalf of the Participant for the Plan Year.

     Notwithstanding the foregoing, a Participant shall not receive an Employer
Contribution for any Plan Year unless (i) the Participant makes the maximum
permitted deferrals to the Savings Plan for such Plan Year, (ii) the Participant
defers some Compensation for the Plan Year

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pursuant to Section 4.1, and (iii) (A) the Participant is employed by an
Employer or an Affiliate on the last day of the Plan Year; or (B) the
Participant's employment terminated during the Plan Year by reason of the
Participant's Retirement or death.

     4.3 Deferred Compensation Accounts. The Plan Administrator shall establish
one or more Accounts in the name of each Participant to record the Deferred
Compensation payable to the Participant. Such Accounts shall be for bookkeeping
purposes only, and shall not be deemed to create a fund or trust for the benefit
of the Participant. Each Participant's Accounts shall be established,
maintained, and periodically adjusted as follows:

          (a) Credits. The Plan Administrator shall credit the following amounts
     to a Participant's Account:

               (i) Amounts deferred by a Participant pursuant to Section 4.1
          shall be credited to the Participant's Account as of the dates on
          which they are applied to reduce the Participant's Compensation.

               (ii) Amounts contributed on behalf of a Participant by the
          Participant's Employer pursuant to Section 4.2 shall be credited to
          the Participant's Account no later than January 31 following the end
          of the applicable Plan Year but such contribution shall be adjusted to
          reflect the value as if the match had been made as of July 1 of the
          Plan Year for which such amounts are contributed and invested in the
          Company Stock Account and/or Interest Account, as applicable.

          (b) Charges. The Plan Administrator shall charge to the Participant's
     Account the amount of any payments made to or on behalf of the Participant,
     and the amount of any penalties imposed on the Participant pursuant to
     Section 5.6(b), as of the dates on which such payments are made or such
     penalties are imposed.

          (c) Participant Elections. When a Participant elects to defer
     Compensation pursuant to Section 4.1, the Participant may elect to have the
     deferred Compensation credited to a Company Stock Account or to an Interest
     Account, in such proportions as the Participant shall elect. Each such
     election shall be due by the due date for the election under Section 4.1,
     and it shall apply to all deferred Compensation and Employer Contributions
     for the Plan Year to which the election under Section 4.1 applies;
     provided, that a Participant's election for the Plan Year beginning on
     January 1, 2000 may also be applied to incentive compensation that was
     earned in the Plan Year ending on December 31, 1999 but is payable in the
     Plan Year beginning on January 1, 2000. If a Participant fails to make an
     election for any Plan Year, the election that was in effect for the
     previous Plan Year shall remain in effect for the current Plan Year. If no
     election was in effect for the previous Plan Year, the Participant's
     deferred Compensation and Employer Contributions will be allocated to the
     Interest Account. A Participant's elections pursuant to this paragraph
     shall be irrevocable until Retirement. Except as provided herein, Deferred
     Compensation that has been allocated to a Company Stock Account may not
     thereafter be transferred to an

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     Interest Account, and Deferred Compensation that has been allocated to an
     Interest Account may not thereafter be transferred to a Company Stock
     Account. The sole exception is that upon Retirement, a Participant
     receiving installment payments with respect to an Account may elect, by
     advance notice to the Plan Administrator, to transfer the Account's
     interest in the Company Stock Account to the Interest Account upon
     Retirement or as of any subsequent December 31.

          (d) Company Stock Account. A Participant's Company Stock Account shall
     be maintained and adjusted as follows:

               (i) Deferred Compensation and Employer Contributions that are
          allocated to a Participant's Company Stock Account shall be deemed to
          have been invested in whole and fractional shares of Company Stock on
          a date selected by the Plan Administrator, which date shall be no
          later than 25 business days following the date on which the deferred
          Compensation or Employer Contributions are credited to the
          Participant's Account, at a price equal to the Share Value on such
          date.

               (ii) A Participant's Company Stock Account shall be credited with
          the amount of any dividends that would have been paid to the
          Participant if the Participant had owned the shares of Company Stock
          that are credited to his or her Account when the dividends are paid.
          Amounts so credited shall be deemed to have been invested in
          additional shares of Company Stock on a date selected by the Plan
          Administrator, which date shall be no later than ten business days
          following the date on which the dividends are credited to the
          Participant's Account, at a price equal to the Share Value on such
          date.

               (iii) A Participant's Company Stock Account shall be equitably
          adjusted to reflect any change in the outstanding Company Stock by
          reason of any stock dividend, stock split, recapitalization, merger,
          consolidation, combination or exchange of shares, or any similar
          corporate change.

               (iv) The balance credited to a Participant's Company Stock
          Account as of any date shall be the number of whole and fractional
          shares of Company Stock that are deemed to be held by the
          Participant's Account on such date.

          (e) Interest Account. On the last day of each Plan Year, the average
     of the balances credited to the Participant's Interest Account on the last
     day of each month during the Plan Year (with each such month's balance
     being reduced prior to the calculation of such average to reflect any
     distribution and partial year interest accrual credited during the Plan
     Year), shall be credited with interest at a rate which is equal to the
     greater of:

               (i) the "Prime Rate" as reported in The Wall Street Journal on
          the first business day of the Plan Year; or

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               (ii) the A-Utility Bond Rate Yield (as reported in the Federal
          Reserve statistical release H.15) using the average of the rates
          reported for the last Friday of each month for the applicable Plan
          Year;

provided, that in no event shall the rate of interest credited for any Plan Year
be greater than 12% or less than 6%. In the event that a payment is made from
the Interest Account at any time during a Plan Year, a partial year interest
accrual shall be made to the Interest Account as of the date of such payment. If
such payment is made during January or February of a Plan Year, the interest
rate for the partial year interest accrual shall be the rate credited for the
preceding Plan Year, adjusted for the number of days during the year prior to
the date of payment. If such payment is made from March through December, the
interest rate for the partial year interest accrual shall be calculated in the
same fashion as the rate for the current Plan Year, with the exceptions that
only the A-Utility Bond Rate yields for the completed months during the Plan
Year shall be considered and the rate shall be adjusted for the number of days
during the year prior to the date of payment. The balance credited to a
Participant's Interest Account as of any date shall be the accumulated deferred
Compensation, Employer Contributions, and interest that are credited to such
Account as of such date. The balance credited to a Participant's Interest
Account as of any date shall be the accumulated deferred Compensation, Employer
Contributions, and interest that are credited to such Account as of such date.

                                   ARTICLE 5

                        PAYMENT OF DEFERRED COMPENSATION
                        --------------------------------

     5.1 Payment of Deferred Compensation. In the event of a payment for a
reason other than the Participant's death, the applicable benefit shall be paid
to the Participant. In the event of a Participant's death, the applicable
benefit shall be paid to the Participant's Beneficiary.

     5.2 Commencement of Payments. Payment of a Participant's Deferred
Compensation shall commence as follows:

          (a) Retirement. In the case of a Participant's Retirement, payment
     shall commence within 60 days after the date of the Participant's
     Termination of Employment or within 60 days after the last day of the Plan
     Year in which the Participant retires, as elected by the Participant
     pursuant to Section 5.6 for the applicable Accounts.

          (b) Death. In the case of a Participant' death prior to the
     commencement of installment payments, payment shall commence within 60 days
     after the date the Participant's Beneficiary has been identified.

          (c) Other Termination of Employment. In the case of a Participant's
     Termination of Employment for reasons other than the Participant's death or

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     Retirement, payment shall commence within 60 days after the date of the
     Participant's Termination of Employment.

     5.3 Method of Payment. Payments due by reason of a Participant's death or
Retirement shall be made in a lump sum or in up to ten annual installments, as
elected by the Participant pursuant to Section 5.6. Payments due by reason of a
Participant's Termination of Employment for reasons other than a Participant's
death or Retirement shall be made in a lump sum.

     5.4 Amount of Payments. The amount of a lump sum payment shall be equal to
the balance credited to the Participant's Account as of the date of the payment,
adjusted for any partial year interest accrual credited pursuant to Section
4.3(e) for the portion of such payment from the Participant's Interest Account.
The amount of an installment payment shall be equal to the balance credited to
the Participant's Account as of the date of the payment, divided by the number
of installments (including the current installment) remaining to be paid, plus
any partial year interest accrual credited pursuant to Section 4.3(e) for the
portion of such payment from the Participant's Interest Account. The first
annual installment will be paid on the date as of which payment of the
Participant's Deferred Compensation is scheduled to commence. Each annual
installment after the first shall be paid within 31 days after the last day of
the calendar year in which the previous installment was paid.

     5.5 Form of Payments. Payments that are due from a Participant's Company
Stock Account shall be made in whole shares of Company Stock, plus cash in an
amount equal to the Share Value of any fractional shares. Payments that are due
from a Participant's Interest Account shall be made in cash.

     5.6 Participant Elections.

          (a) When a Participant elects to defer Compensation pursuant to
     Section 4.1, the Participant may also make an election as to the time at
     which payment of such Deferred Compensation will commence following the
     Participant's Retirement, and the method (lump sum or installments) in
     which such Deferred Compensation will be paid following the Participant's
     death or Retirement. Each such election shall be due by the due date for
     the election under Section 4.1, and it shall apply to all Deferred
     Compensation that is attributable to the Plan Year to which the election
     under Section 4.1 applies. If a Participant fails to make an election for
     any Plan Year, the election that was in effect for the previous Plan Year
     shall remain in effect for the current Plan Year. If no election was in
     effect for the previous Plan Year, Deferred Compensation that is
     attributable to the current Plan Year will be distributed in a lump sum
     within 60 days after the date of the Participant's Termination of
     Employment.

          (b) A Participant may change an election as to the time and/or method
     of payment of the Deferred Compensation credited to any of the
     Participant's Accounts at any time by giving prior written notice to the
     Plan Administrator. Any change in a Participant's elections shall result in
     a penalty in the amount of 10% of the Deferred Compensation credited to the
     affected Accounts as of the date on which notice of the

                                      -8-
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     change is received by the Plan Administrator, which amount shall be
     forfeited to the Participant's Employer.

     5.7 Emergency Payments. In the event of an Unforeseeable Emergency, the
Plan Administrator may direct a Participant's Employer to pay any part or all of
a Participant's Deferred Compensation to the Participant prior to the time
provided in Section 5.2, to the extent necessary to prevent severe financial
hardship. Such action shall be taken only if the Participant submits a written
application describing the circumstances which are deemed to justify the payment
and the amount necessary to prevent severe financial hardship, together with
such supporting evidence as the Plan Administrator may reasonably require.
Payments shall not be made under this section to the extent the Participant's
hardship is or may be relieved:

          (a) through reimbursement or compensation by insurance or otherwise;

          (b) by liquidation of the Participant's assets, to the extent this
     would not in itself cause severe financial hardship; or

          (c) by the termination of the Participant's election to defer
     Compensation.

     5.8 Tax Payments. If there is a final determination that a Participant or
Beneficiary should be subject to income tax on part or all of the Participant's
Deferred Compensation before it is actually paid, the Participant's Employer
shall pay to the Participant or Beneficiary the portion of the Participant's
Deferred Compensation that has been determined to be currently taxable. For the
purposes of this section, a "final determination" means a determination by the
Internal Revenue Service or a court of competent jurisdiction from which no
further appeal may be taken, either because there is no further appeal available
or because the time to take such appeal has expired.

     5.9 Facility of Payment. An Employer may make payments due to a legally
incompetent person in such of the following ways as the Plan Administrator shall
determine:

          (a) directly to such person;

          (b) to the legal representative of such person; or

          (c) to a near relative of such person to be used for the person's
     benefit.

Any payment made in accordance with the provisions of this section shall be a
complete discharge of the Employer's liability for the making of such payment.

     5.10 Restrictions on Payments. Notwithstanding anything herein to the
contrary, the Plan Administrator may postpone the issuance and delivery of
shares of Company Stock to a Participant until the requirements of any
securities exchange or system on which shares of Company Stock have been listed
have been complied with, until any required registration or other qualification
of such shares under applicable provisions of any State or Federal securities
laws, rules or regulations has been completed, or until the requirements of any
exemption

                                      -9-
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from registration or other qualification have been satisfied. The Plan
Administrator may restrict the transferability of any shares of Company Stock
that are distributed pursuant to the Plan, legend any certificate evidencing any
such shares, and place a stop transfer order in respect of such shares, to the
extent it reasonably determines that such action is necessary to ensure
compliance with any applicable securities or exchange law, regulation, or other
requirement.

                                   ARTICLE 6

                                CLAIMS PROCEDURE
                                ----------------

     6.1 Decisions on Claims. If a claim for benefits is denied, the Plan
Administrator shall furnish to the claimant within 90 days after its receipt of
the claim (or within 180 days after such receipt if special circumstances
require an extension of time) a written notice which:

          (a) specifies the reasons for the denial;

          (b) refers to the pertinent provisions of the Plan on which the denial
     is based;

          (c) describes any additional material or information necessary for the
     perfection of the claim and explains why such material or information is
     necessary; and

          (d) explains the claim review procedures.

     6.2 Review of Denied Claims. Upon the written request of the claimant
submitted within 60 days after his or her receipt of such written notice, the
Plan Administrator shall afford the claimant a full and fair review of the
decision denying the claim and, if so requested, permit the claimant to review
any documents which are pertinent to the claim, permit the claimant to submit
issues and comments in writing, and afford the claimant an opportunity to meet
with appropriate representatives of the Plan Administrator as a part of the
review procedure. Within 60 days after its receipt of a request for review (or
within 120 days after such receipt if special circumstances, such as the need to
hold a hearing, require an extension of time) the Plan Administrator shall
notify the claimant in writing of its decision and the reasons for its decision
and shall refer the claimant to the provisions of the Plan which form the basis
for its decision.

                                    ARTICLE 7

                                     FUNDING
                                     -------

This Plan is intended to be "unfunded" for the purposes of the Code and Title I
of ERISA; however, nothing herein shall prevent an Employer, in its sole
discretion, from establishing a trust of the type commonly known as a "rabbi
trust" to assist it in meeting its obligations under the Plan.

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                                   ARTICLE 8

                            AMENDMENT AND TERMINATION
                            -------------------------

The Plan Administrator may amend or terminate this Plan at any time and for any
reason; provided, that no amendment or termination of the Plan shall alter a
Participant's right to receive payment of amounts previously credited to the
Participant's Account.

                                   ARTICLE 9

                               GENERAL PROVISIONS
                               ------------------

     9.1 Status of Participants. Each Participant and Beneficiary shall be a
general unsecured creditor of his or her Employer with respect to amounts
payable hereunder, this Plan constituting a mere promise by the Employers to
make benefit payments in the future. A Participant's or Beneficiary's right to
receive payments under the Plan are not subject in any manner to anticipation,
alienation, sale, assignment, pledge, encumbrance, attachment, or garnishment by
the creditors of the Participant or the Participant's Beneficiaries.

     9.2 No Guaranty of Employment. The establishment of this Plan shall not
give a Participant any legal or equitable right to be continued in the employ of
an Employer, nor shall it interfere with an Employer's right to terminate the
employment of any of its employees, with or without cause.

     9.3 Delegation of Authority. Whenever, under the terms of this Plan, an
Employer is permitted or required to do or perform any act, it shall be done or
performed by the Board of Directors of the Employer, by any duly authorized
committee thereof, or by any officer of the Employer duly authorized by the
articles of incorporation, bylaws, or Board of Directors of the Employer.

     9.4 Legal Actions. No Participant, Beneficiary, or other person having or
claiming to have an interest in this Plan shall be a necessary party to any
action or proceeding involving the Plan, and no such person shall be entitled to
any notice or process, except to the extent required by applicable law. Any
final judgment which is not appealed or appealable that may be entered in any
such action or proceeding shall be binding and conclusive on all persons having
or claiming to have any interest in this Plan.

     9.5 Applicable Law. This Plan shall be construed and interpreted in
accordance with the laws of the State of Wisconsin, except to the extent the
same are preempted by ERISA or other federal law.

     9.6 Rules of Construction. Wherever any words are used herein in the
masculine gender, they shall be construed as though they were also used in the
feminine gender in all cases where they would so apply, and wherever any words
are used herein in the singular form they shall be construed as though they were
also used in the plural form in all cases where they would so apply. Headings of
sections and subsections of this Plan are inserted for convenience of reference,
are not a part of this Plan, and are not to be considered in the

                                      -11-
<PAGE>

construction hereof. The words "hereof," "herein," "hereunder," and other
similar compounds of the word "here" shall mean and refer to the entire Plan,
and not to any particular provision or section.

     9.7 Expenses of Administration. All expenses and costs incurred in
connection with the administration or operation of the Plan shall be paid by the
Employers and/or any trust of the type described in Article 7.

     9.8 Indemnification. Each Employer shall, to the extent permitted by its
articles of incorporation and bylaws, and by the laws of the state in which it
is incorporated, indemnify any employee or director of an Employer or an
Affiliate providing services to the Plan against any and all liabilities arising
by reason of any act or omission, made in good faith pursuant to the provisions
of the Plan, including expenses reasonably incurred in the defense of any claim
relating thereto.

To record the adoption of the Plan as set forth above, the undersigned has
executed this document this ___ day of ________________, _________, for and on
behalf of the Company.

                                     ALLIANT ENERGY CORPORATE SERVICES, INC.

                                     By
                                       -----------------------------------------

                                     As its
                                           -------------------------------------

ATTEST:
       -------------------------------------

As its
       -------------------------------------

                                      -12-ALLIANT ENERGY CORPORATION GRANTOR TRUST

                      FOR DEFERRED COMPENSATION AGREEMENTS
                      ------------------------------------

         THIS AGREEMENT, made this ______ day of __________________, 2000, by
and between ALLIANT ENERGY CORPORATION (the "Company") and MARSHALL & ILSLEY
TRUST COMPANY (the "Trustee");

                              W I T N E S S E T H:

         WHEREAS, the Company has adopted or entered into the nonqualified
deferred compensation plans and agreements (the "Plans") listed in Appendix A;

         WHEREAS, the Company has incurred or expects to incur liability under
the terms of such Plans with respect to the individuals participating in such
Plans;

         WHEREAS, the Company wishes to establish a trust (the "Trust") and to
contribute to the Trust assets that shall be held therein, subject to the claims
of the Company's creditors in the event of the Company's Insolvency, as herein
defined, until paid to Plan participants and their beneficiaries in such manner
and at such times as specified in the Plans;

         WHEREAS, it is the intention of the parties that this Trust shall
constitute an unfunded arrangement and shall not affect the status of the Plans
as unfunded plans; and

         WHEREAS, it is the intention of the Company to make contributions to
the Trust to provide itself with a source of funds to assist it in the meeting
of its liabilities under the Plans;

         NOW, THEREFORE, the parties do hereby establish the Trust and agree
that the Trust shall be comprised, held and disposed of as follows:

                                   SECTION 1

                             ESTABLISHMENT OF TRUST
                             ----------------------

         1.1 The Company hereby deposits with the Trustee, in trust, the sum of
$1,000, which shall become the principal of the Trust to be held, administered
and disposed of by the Trustee as provided in this Trust Agreement.

         1.2 The Trust hereby established shall be irrevocable.

         1.3 The Trust is intended to be a grantor trust, of which the Company
is the grantor, within the meaning of subpart E, part I, subchapter J, chapter
1, subtitle A of the Internal Revenue Code of 1986, as amended, and shall be
construed accordingly.

         1.4 The principal of the Trust, and any earnings thereon, shall be held
separate and apart from other funds of the Company and shall be used exclusively
for the uses and purposes

<PAGE>

of Plan participants and general creditors as herein set forth. Plan
participants and their beneficiaries shall have no preferred claim on, or any
beneficial ownership interest in, any assets of the Trust. Any rights created
under the Plans and this Trust Agreement shall be mere unsecured contractual
rights of Plan participants and their beneficiaries against the Company. Any
assets held by the Trust will be subject to the claims of the Company's general
creditors under federal and state law in the event of Insolvency, as defined in
Section 3.1 herein.

         1.5 Within ten business days following a Change in Control, the Company
shall make an irrevocable contribution to the Trust so that the Trust assets are
at least the sum of the participants' and beneficiaries' account balances
established pursuant to the terms of the Plans as of the date of the Change in
Control.

         1.6 As of each December 31 following a Change in Control ("Valuation
Date"), the Company shall determine the amount of the contribution which would
have been required pursuant to Section 1.5 if the Change in Control had occurred
on such Valuation Date and, within ten business days following such Valuation
Date, make an irrevocable contribution to the Trust of such amount, if any.

         1.7 Within ten business days following a Potential Change in Control,
the Company shall make a contribution to the Trust in the amount that would have
been required to be contributed pursuant to Section 1.5 if the Potential Change
in Control had been a Change in Control. In the event that a Change in Control
shall not have occurred within the time specified in the following sentence, the
contribution to the Trust as a result of the preceding sentence, plus investment
gains thereon or minus investment losses thereon, shall be released and
delivered to the Company. The specified time for the preceding sentence is
twelve (12) months after the occurrence of a Potential Change in Control unless
proceedings are then pending to obtain necessary regulatory approvals to permit
a Change in Control, in which case the specified time is three (3) months after
such proceedings have concluded.

         1.8 The Company, in its sole discretion, may at any time, or from time
to time, make additional deposits of cash or other property in trust with the
Trustee to augment the principal to be held, administered and disposed of by the
Trustee as provided in this Trust Agreement. The Plan participants and their
beneficiaries shall have no right to compel any such discretionary deposits.

         1.9 The Trustee shall have no obligation to compel any deposits that
are required pursuant to this Agreement.

                                   SECTION 2

              PAYMENTS TO PLAN PARTICIPANTS AND THEIR BENEFICIARIES
              -----------------------------------------------------

         2.1 The Company shall deliver to the Trustee a schedule (the "Payment
Schedule") that indicates the amounts payable in respect of each Plan
participant (and his or her beneficiaries), or that provides a formula or other
instructions acceptable to the Trustee for

                                      -2-
<PAGE>

determining the amounts so payable, the form in which such amounts are to be
paid (as provided for or available under the Plans), and the time of
commencement for payment of such amounts. Except as otherwise provided herein,
the Trustee shall make payments to the Plan participants and their beneficiaries
in accordance with the most recent Payment Schedule received by the Trustee.
Based exclusively upon direction from the Company as to time and amounts, the
Trustee shall make provision for the reporting and withholding of any federal,
state or local taxes that may be required to be withheld with respect to the
payment of benefits pursuant to the terms of the Plans and, based exclusively
upon direction from the Company, shall pay amounts withheld to taxing
authorities. The Trustee acts solely as the Company's agent for purposes of
reporting and withholding on payments from the Trust, and the Company shall be
solely responsible for determining that such amounts have been reported,
withheld and paid to appropriate taxing authorities in a timely manner.

         2.2 The entitlement of a Plan participant or his or her beneficiaries
to benefits under the Plans shall be determined by the Company or such party as
it shall designate under the Plans, and any claim for such benefits shall be
considered and reviewed under the procedures set out in the Plans.

         2.3 The Company may make payment of benefits directly to Plan
participants or their beneficiaries as they become due under the terms of the
Plans. The Company shall notify the Trustee of its decision to make payment of
benefits directly prior to the time amounts are payable to participants or their
beneficiaries. In addition, if the principal of the Trust, and any earnings
thereon, are not sufficient to make payments of benefits in accordance with the
terms of the Plans, the Company shall make the balance of each such payment as
it falls due. The Trustee shall notify the Company where principal and earnings
are not sufficient.

                                   SECTION 3

                    TRUSTEE RESPONSIBILITY REGARDING PAYMENTS
                 TO TRUST BENEFICIARY WHEN COMPANY IS INSOLVENT
                 ----------------------------------------------

         3.1 The Trustee shall cease payment of benefits to Plan participants
and their beneficiaries if the Company is Insolvent. The Company shall be
considered "Insolvent" for purposes of this Trust Agreement if it is unable to
pay its debts as they become due, or if it is subject to a pending proceeding as
a debtor under the United States Bankruptcy Code.

         3.2 At all times during the continuance of this Trust, as provided in
Section 1.4 hereof, the principal and income of the Trust shall be subject to
claims of general creditors of the Company under federal and state law as set
forth below.

         3.3 The Board of Directors and the Chief Executive Officer of the
Company shall have the duty to inform the Trustee in writing of the Company's
Insolvency. If a person claiming to be a creditor of the Company alleges in
writing to the Trustee that the Company has become Insolvent, the Trustee shall
determine whether the Company is Insolvent and, pending such determination, the
Trustee shall discontinue payment of benefits to Plan participants or their
beneficiaries.

                                      -3-
<PAGE>

         3.4 Unless the Trustee has actual knowledge of the Company's
Insolvency, or has received notice from the Company or a person claiming to be a
creditor alleging that the Company is Insolvent, the Trustee shall have no duty
to inquire whether the Company is Insolvent. The Trustee may in all events rely
on such evidence concerning the Company's solvency as may be furnished to the
Trustee and that provides the Trustee with a reasonable basis for making a
determination concerning the Company's solvency.

                  (a) If at any time the Trustee has determined that the Company
         is Insolvent, the Trustee shall discontinue payments to Plan
         participants or their beneficiaries and shall hold the assets of the
         Trust for the benefit of the Company's general creditors. Nothing in
         this Trust Agreement shall in any way diminish any rights of Plan
         participants or their beneficiaries to pursue their rights as general
         creditors of the Company with respect to benefits due under the Plans
         or otherwise.

                  (b) The Trustee shall resume the payment of benefits to Plan
         participants or their beneficiaries in accordance with Section 2 of
         this Trust Agreement only after the Trustee has determined that the
         Company is not Insolvent (or is no longer Insolvent).

         3.5 Provided that there are sufficient assets, if the Trustee
discontinues the payment of benefits from the Trust pursuant to Section 3.2
hereof and subsequently resumes such payments, the first payment following such
discontinuance shall include the aggregate amount of all payments due to Plan
participants or their beneficiaries under the terms of the Plans for the period
of such discontinuance, less the aggregate amount of any payments made to Plan
participants or their beneficiaries by the Company in lieu of the payments
provided for hereunder during any such period of discontinuance.

                                   SECTION 4

                               PAYMENTS TO COMPANY
                               -------------------

         Except as provided in Sections 1.7 and 3 hereof, the Company shall have
no right or power to direct the Trustee to return to the Company or to divert to
others any of the Trust assets before all payment of benefits have been made to
Plan participants and their beneficiaries pursuant to the terms of the Plans.

                                   SECTION 5

                              INVESTMENT AUTHORITY
                              --------------------

         5.1 The Trustee shall have the following powers and duties with respect
to the investment of the assets of the Trust:

                  (a) Except as otherwise specifically provided herein, and
         subject to such investment guidelines as may be adopted by the Company
         and delivered to the Trustee, the Trustee may invest, reinvest, and
         hold the assets of the Trust in whatever form of investment the Trustee
         may see fit (including, but not limited to, contracts or policies of
         insurance), and in making or holding such investments, the Trustee
         shall not be

                                      -4-
<PAGE>

         restricted to those investments which are authorized by the laws of any
         state for the investment of trust funds.

                  (b) In addition to the general investment powers set forth
         above in this Section 5.1, the following provisions shall apply:

                           (i) Investment Guidelines and Directives. Prior to
                  the occurrence of a Change in Control, and subject to the
                  Company's authority to appoint an investment manager, the
                  Trustee shall manage, acquire, or dispose of the assets of the
                  Trust in accordance with this Agreement and the directions of
                  the Company or its designee. To the extent permitted by law,
                  the Trustee shall not be liable for any investment made
                  pursuant to the Company's or its designee's direction.

                           (ii) Trustee Powers. The Trustee shall have the
                  following powers, rights and duties subject to Section 8 and
                  the other provisions of this Trust Agreement. The Trustee
                  shall exercise such powers only upon the direction of an
                  investment manager, where such powers relate to an investment
                  manager Account, upon the direction of the Company or its
                  designee prior to a Change in Control, and in its sole
                  discretion otherwise:

                                    (A) To receive and hold all contributions
                           paid to it by the Company; provided, however, that
                           the Trustee shall have no duty to require any
                           contributions to be made to it;

                                    (B) To effectuate the written investment
                           instructions given by the Company or its designee
                           without regard to any law now or hereafter in force
                           limiting investments of fiduciaries;

                                    (C) To retain in the Trust for investment,
                           any property deposited with the Trustee hereunder;

                                    (D) To have the authority to invest and
                           reinvest assets of the Trust in shares of common or
                           preferred stock, bonds, notes, debentures, short-term
                           securities, mutual funds (including any such fund
                           from which the Trustee or any affiliate thereof
                           receives an investment management fee or any other
                           fee), common Trust funds, and other property, real or
                           personal, of any kind; to purchase and sell "put" or
                           "call" options on publicly traded securities; and to
                           acquire, hold, manage, operate, sell, contract to
                           sell, grant options with respect to, convey,
                           exchange, transfer, abandon, lease, manage, and
                           otherwise deal with respect to assets of the Trust;

                                    (E) To acquire, hold or dispose of insurance
                           or annuity contracts as directed by the Company or
                           its designee;

                                      -5-
<PAGE>

                                    (F) To borrow from anyone such amount or
                           amounts of money necessary to carry out the purpose
                           of this Trust and for that purpose to mortgage or
                           pledge all or any part of the Trust;

                                    (G) To retain in the Trust for investment or
                           pending distributions, any portion of the Trust in
                           cash deemed appropriate by the Trustee;

                                    (H) To establish accounts in any affiliate
                           of the Trustee and in such other banks and financial
                           institutions as the Trustee deems appropriate to
                           carry out the purposes of the Trust;

                                    (I) To deposit securities with a clearing
                           corporation as defined in Article Eight of the
                           Uniform Commercial Code; to hold the certificates
                           representing securities, including those in bearer
                           form, in bulk form with and to merge such
                           certificates into certificates of the same class of
                           the same issuer which constitutes assets of other
                           accounts or owners, without certification as to the
                           ownership attached; and to utilize a book-entry
                           system for the transfer or pledge of securities held
                           by the Trustee or by a clearing corporation, provided
                           that the records of the Trustee shall indicate the
                           actual ownership of the securities and other property
                           of the Trust Fund;

                                    (J) To participate in and use the Federal
                           book-entry Account system, a service provided by the
                           Federal Reserve Bank for its member banks for deposit
                           of Treasury securities; and

                                    (K) To hold securities or property in the
                           name of the Trustee or its nominee or nominees or in
                           such other form as it deems best with or without
                           disclosing the Trust relationship, providing the
                           records of the Trust shall indicate the actual
                           ownership of such securities or other property.

         5.2 Prior to the occurrence of a Change in Control, the Company may at
any time, and from time to time, appoint one or more investment managers to
manage and control all or any part of the Trust's assets. Any such investment
manager shall be a registered investment adviser under the Investment Advisers
Act of 1940; a bank, as defined in that Act; or an insurance company that is
qualified to manage, acquire or dispose of the Plans' assets under the laws of
more than one state. The Company shall notify the Trustee of any appointment of
an investment manager by delivery to the Trustee of a copy of the document under
which the investment manager was appointed to act as such hereunder and shall
specify to the Trustee that portion of the Trust Fund which shall be an
"Investment Manager Account." Upon receipt of written notice of the appointment
of an investment manager, the Trustee shall segregate the portion of the assets
of the Trust to be managed by the investment manager into a separate Investment
Manager Account. During the term of such appointment, the investment manager
with respect to its Investment Manager Account shall have the sole
responsibility for

                                      -6-
<PAGE>

the investment and reinvestment of the Investment Manager Account subject to its
investment management, and shall certify in writing to the Trustee the identity
of the person or persons authorized to give instructions or directions on its
behalf. The Trustee shall follow such directions and shall be under no duty to
review any investment to be acquired, held or disposed of pursuant to such
directions nor to make any recommendation with respect to the disposition or
continued retention of any such investment. The Trustee shall have no liability
for acting without question on the direction of, or failing to act in the
absence of any direction from an investment manager. The Trustee and any
investment manager appointed hereunder shall each exercise their respective
fiduciary responsibilities with respect to the assets of the Plan, including
(without limitation) any responsibility of diversification, as if the portion of
the Trust Fund under its management constituted the entirety of the assets of
the Plan. The Company, or some other fiduciary named by it, shall be responsible
for the overall diversification of the entire Trust Fund.

         Notwithstanding the foregoing, any appointment by the Company of an
investment manager shall terminate upon the occurrence of a Change in Control,
and neither the Company, nor any successor to the Company, shall thereafter have
any power to appoint an investment manager with respect to any portion of the
assets of the Trust.

         In the event that an investment manager appointed hereunder should
resign or be removed, or upon the termination of the appointment of an
investment manager due to the occurrence of a Change in Control, the Trustee
shall, upon receiving written notice thereof, manage the investment of that
portion of the Trust Fund which was an Investment Manager Account under the
management of such investment manager at the time of such resignation, removal
or termination, unless and until the Trustee shall be notified of the
appointment of another investment manager.

         5.3 The Trustee may invest in shares of the Common Stock, $.01 par
value, of the Company ("Company Stock"). All rights associated with shares of
Company Stock that are held by the Trust shall be exercised by the Trustee, and
shall in no event be exercisable by or rest with Plan participants.

         5.4 The Company shall have the right at any time, and from time to time
in its sole discretion, to substitute assets of equal fair market value for any
asset held by the Trust. This right is exercisable by the Company in a
nonfiduciary capacity without the approval or consent of any person in a
fiduciary capacity.

                                   SECTION 6

                              DISPOSITION OF INCOME
                              ---------------------

         During the term of this Trust, all income received by the Trust, net of
expenses and taxes, shall be accumulated and reinvested.

                                      -7-
<PAGE>

                                   SECTION 7

                              ACCOUNTING BY TRUSTEE
                              ---------------------

         The Trustee shall keep accurate and detailed records of all
investments, receipts, disbursements, and all other transactions required to be
made, including such specific records as shall be agreed upon in writing between
the Company and the Trustee. Within 60 days following the close of each calendar
year, and within 60 days after the removal or resignation of the Trustee, the
Trustee shall deliver to the Company a written account of its administration of
the Trust during such year or during the period from the close of the last
preceding year to the date of such removal or resignation, setting forth all
investments, receipts, disbursements and other transactions effected by it,
including a description of all securities and investments purchased and sold
with the cost or net proceeds of such purchases or sales (accrued interest paid
or receivable being shown separately), and showing all cash, securities and
other property held in the Trust at the end of such year or as of the date of
such removal or resignation, as the case may be.

                                   SECTION 8

                            RESPONSIBILITY OF TRUSTEE
                            -------------------------

         8.1 The Trustee shall act with the care, skill, prudence and diligence
under the circumstances then prevailing that a prudent person acting in like
capacity and familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims; provided, however, that the
Trustee shall incur no liability to any person for any action taken pursuant to
a direction, request or approval given by the Company or an investment manager
which is contemplated by, and in conformity with, the terms of the Plans or this
Trust and is given in writing by the Company or such investment manager. In the
event of a dispute between the Company and a party, the Trustee may apply to a
court of competent jurisdiction to resolve the dispute.

         8.2 If the Trustee undertakes or defends any litigation arising in
connection with this Trust, the Company agrees to indemnify the Trustee against
the Trustee's costs, expenses and liabilities (including, without limitation,
attorneys' fees and expenses) relating thereto and to be primarily liable for
such payments. If the Company does not pay such costs, expenses and liabilities
in a reasonably timely manner, the Trustee may obtain payment from the Trust.

         8.3 The Trustee may consult with legal counsel (who may also be counsel
for the Company generally) with respect to any of its duties or obligations
hereunder.

         8.4 The Trustee may hire agents, accountants, actuaries, investment
advisors, financial consultants or other professionals to assist it in
performing any of its duties or obligations hereunder, and may reasonably
compensate them out of the Trust assets.

         8.5 The Trustee shall have, without exclusion, all powers conferred on
trustees by applicable law, unless expressly provided otherwise herein;
provided, however, that if an

                                      -8-
<PAGE>

insurance policy is held as an asset of the Trust, the Trustee shall have no
power to name a beneficiary of the policy other than the Trust, to assign the
policy (as distinct from conversion of the policy to a different form) other
than to a successor Trustee, or to loan to any person the proceeds of any
borrowing against such policy.

         8.6 Notwithstanding any powers granted to the Trustee pursuant to this
Trust Agreement or to applicable law, the Trustee shall not have any power that
could give this Trust the objective of carrying on a business and dividing the
gains therefrom, within the meaning of section 301.7700-2 of the Procedure and
Administrative Regulations promulgated pursuant to the Internal Revenue Code.

         8.7 If the Trustee is at any time acting as a successor trustee or
succeeds to responsibilities hereunder for management of part or all of the
assets constituting the Trust Fund, the Company hereby agrees to hold the
Trustee harmless from and against all claims, expenses (including reasonable
counsel fees), liabilities, damages, actions, or other charges incurred or
assessed against it as successor trustee, as a direct or indirect result of any
act or omission of a predecessor trustee or any other person charged under any
agreement affecting the assets of the Trust for investment responsibility with
respect to such assets.

         8.8 The Company recognizes that a burden of litigation may be imposed
on the Trustee, as a result of some act or transaction for which it has no
responsibility or over which it has no control under this Agreement.
Accordingly, and in consideration of the Trustee's agreement to act as trustee
hereunder, the Company hereby agrees to indemnify and hold the Trustee and its
affiliates, directors, officers, and employees harmless from and against all
claims, expenses (including reasonable counsel fees), liabilities, damages,
actions, or other charges incurred by or assessed against the Trustee, as a
direct or indirect result of anything done or omitted by Trustee in reliance
upon the directions (or absence of directions) of the Company or any investment
manager.

                                   SECTION 9

                      COMPENSATION AND EXPENSES OF TRUSTEE
                      ------------------------------------

         The Company shall pay all administrative and the Trustee's fees and
expenses. If not so paid, the fees and expenses shall be paid from the Trust.

                                   SECTION 10

                        RESIGNATION OR REMOVAL OF TRUSTEE
                        ---------------------------------

         10.1 The Trustee may resign at any time by written notice to the
Company, which shall be effective 30 days after receipt of such notice unless
the Company and the Trustee agree otherwise.

         10.2 Prior to a Change in Control, the Trustee may be removed by the
Company on 30 days notice or upon shorter notice accepted by the Trustee.
Following a Change in Control, the Trustee may not be removed by the Company
unless 65% of all employees or

                                      -9-
<PAGE>

former employees of the Company who are or may become entitled to the payment of
benefits pursuant to the Plans consent in writing to such removal.

         10.3 Upon resignation or removal of the Trustee and appointment of a
successor Trustee, all assets shall subsequently be transferred to the successor
Trustee. The transfer shall be completed within 30 days after receipt of notice
of resignation, removal or transfer, unless the Company extends the time limit.

         10.4 If the Trustee resigns or is removed, a successor shall be
appointed, in accordance with Section 11 hereof, by the effective date of
resignation or removal under Section 10.1 or 10.2 of this section. If no such
appointment has been made, the Trustee may appoint a successor Trustee or it may
apply to a court of competent jurisdiction for appointment of a successor or for
instructions. All expenses of the Trustee in connection with the proceeding
shall be allowed as administrative expenses of the Trust.

                                   SECTION 11

                            APPOINTMENT OF SUCCESSOR
                            ------------------------

         11.1 If the Trustee resigns or is removed in accordance with Section
10.1 or 10.2 hereof, the Company, or if a Change in Control shall previously
have occurred the Company and at least 65% of all employees or former employees
of the Company who are or may become entitled to the payment of benefits
pursuant to the Plans, may appoint any third party, such as a bank trust
department or other party that may be granted corporate trustee powers under
state law, as a successor to replace the Trustee upon resignation or removal.
The appointment shall be effective when accepted in writing by the new Trustee,
who shall have all of the rights and powers of the former Trustee, including
ownership rights in the Trust assets. The former Trustee shall execute any
instrument necessary or reasonably requested by the Company or the successor
Trustee to evidence the transfer.

         11.2 The successor Trustee need not examine the records and acts of any
prior Trustee and may retain or dispose of existing Trust assets, subject to
Sections 7 and 8 hereof. The successor Trustee shall not be responsible for and
the Company shall indemnify and defend the successor Trustee from any claim or
liability resulting from any action or inaction of any prior Trustee or from any
other past event or any condition existing at the time it becomes a successor
Trustee.

                                   SECTION 12

                            AMENDMENT OR TERMINATION
                            ------------------------

         12.1 This Trust Agreement may be amended by a written instrument
executed by the Trustee and the Company. Notwithstanding the foregoing, no such
amendment shall conflict with the terms of the Plans or shall make the Trust
revocable after it has become irrevocable in accordance with Section 1.2 hereof.

                                      -10-
<PAGE>

         12.2 The Trust shall not terminate until the date on which Plan
participants and their beneficiaries are no longer entitled to benefits pursuant
to the terms of the Plans. Upon termination of the Trust any assets remaining in
the Trust shall be returned to the Company.

         12.3 Notwithstanding the foregoing:

                  (a) This Trust Agreement may not be amended by the Company
         prior to a Change in Control without the written approval of any Plan
         participant or beneficiary whose rights or protections under a Plan or
         this Agreement may be reduced, impaired, or otherwise adversely
         affected by the amendment.

                  (b) This Trust Agreement may not be amended by the Company
         following a Change in Control without the written approval of all
         employees or former employees of the Company who are, or may become,
         entitled to the payment of benefits pursuant to the Plans.

                  (c) The Company may terminate this Trust prior to the date
         specified in Section 12.2 upon the written approval of all employees or
         former employees of the Company who are or may become entitled to the
         payment of benefits pursuant to the Plans.

                                   SECTION 13

                                  MISCELLANEOUS
                                  -------------

         13.1 Any provision of this Trust Agreement prohibited by law shall be
ineffective to the extent of any such prohibition, without invalidating the
remaining provisions hereof.

         13.2 Benefits payable to Plan participants and their beneficiaries
under this Trust Agreement may not be anticipated, assigned (either at law or in
equity), alienated, pledged, encumbered or subjected to attachment, garnishment,
levy, execution or other legal or equitable process.

         13.3 This Trust Agreement shall be governed by and construed in
accordance with the laws of the State of Wisconsin, except to the extent the
same are preempted by federal law.

         13.4 This Trust Agreement shall be binding upon, and shall inure to the
benefit of, any successor (whether direct or indirect, by purchase, merger,
consolidation, or otherwise) to all or substantially all of the business or
assets of the Company. The Company (and any successor to the Company) may not
otherwise assign its obligations under this Trust Agreement without the prior
written approval of all employees or former employees of the Company who are, or
may become, entitled to the payment of benefits pursuant to the Plans.

         13.5 For the purposes of this Trust Agreement:

                  (a) "Change in Control" means the occurrence of any one of the
         events set forth in the following paragraphs:

                                      -11-
<PAGE>

                           (i) any Person (other than (A) the Company or any
                  Subsidiary, (B) a trustee or other fiduciary holding
                  securities under any employee benefit plan of the Company or
                  any Subsidiary, (C) an underwriter temporarily holding
                  securities pursuant to an offering of such securities or (D) a
                  corporation owned, directly or indirectly, by the shareowners
                  of the Company in substantially the same proportions as their
                  ownership of stock in the Company ("Excluded Persons")) is or
                  becomes the Beneficial Owner, directly or indirectly, of
                  securities of the Company (not including in the securities
                  beneficially owned by such Person any securities acquired
                  directly from the Company or its affiliates after January 20,
                  1999, pursuant to express authorization by the Board that
                  refers to this exception) representing 20% or more of either
                  the then outstanding Shares or the combined voting power of
                  the Company's then outstanding voting securities; or

                           (ii) the following individuals cease for any reason
                  to constitute a majority of the number of Directors of the
                  Company then serving: (A) individuals who, on January 20,
                  1999, constituted the Board and (B) any new Director (other
                  than a Director whose initial assumption of office is in
                  connection with an actual or threatened election contest,
                  including but not limited to a consent solicitation, relating
                  to the election of Directors of the Company, as such terms are
                  used in Rule 14a-11 of Regulation 14A under the Exchange Act)
                  whose appointment or election by the Board or nomination for
                  election by the Company's shareowners was approved by a vote
                  of at least two-thirds of the Directors then still in office
                  who either were Directors on January 20, 1999, or whose
                  appointment, election or nomination for election was
                  previously so approved (collectively the "Continuing
                  Directors"); provided, however, that individuals who are
                  appointed to the Board pursuant to or in accordance with the
                  terms of an agreement relating to a merger, consolidation, or
                  share exchange involving the Company (or any Subsidiary) shall
                  not be Continuing Directors for purposes of the Plan until
                  after such individuals are first nominated for election by a
                  vote of at least two-thirds of the then Continuing Directors
                  and are thereafter elected as Directors by the shareowners of
                  the Company at a meeting of shareowners held following
                  consummation of such merger, consolidation or share exchange;
                  and, provided further, that in the event the failure of any
                  such Persons appointed to the Board to be Continuing Directors
                  results in a Change in Control, the subsequent qualification
                  of such Persons as Continuing Directors shall not alter the
                  fact that a Change in Control occurred; or

                           (iii) the Company after January 20, 1999 consummates
                  a merger, consolidation or share exchange with any other
                  corporation or issues voting securities in connection with a
                  merger, consolidation or share exchange involving the Company
                  (or any Subsidiary), other than (A) a merger, consolidation or
                  share exchange which results in the voting securities of the
                  Company outstanding immediately prior to such merger,
                  consolidation or share exchange continuing to represent
                  (either by remaining outstanding or by being

                                      -12-
<PAGE>

                  converted into voting securities of the surviving entity or
                  any parent thereof) at least 50% of the combined voting power
                  of the voting securities of the Company or such surviving
                  entity or any parent thereof outstanding immediately after
                  such merger, consolidation or share exchange, or (B) a merger,
                  consolidation or share exchange effected to implement a
                  recapitalization of the Company (or similar transaction) in
                  which no Person (other than an Excluded Person) is or becomes
                  the Beneficial Owner, directly or indirectly, of securities of
                  the Company (not including in the securities beneficially
                  owned by such Person any securities acquired directly from the
                  Company or its affiliates after January 20, 1999, pursuant to
                  express authorization by the Board that refers to this
                  exception) representing 20% or more of either the then
                  outstanding Shares or the combined voting power of the
                  Company's then outstanding voting securities; or

                           (iv) the shareowners of the Company approve a plan of
                  complete liquidation or dissolution of the Company or the
                  Company effects a sale or disposition of all or substantially
                  all of its assets (in one transaction or a series of related
                  transactions within any period of 24 consecutive months),
                  other than a sale or disposition by the Company of all or
                  substantially all of the Company's assets to an entity at
                  least 75% of the combined voting power of the voting
                  securities of which are owned by Persons in substantially the
                  same proportions as their ownership of the Company immediately
                  prior to such sale.

         Notwithstanding the foregoing, no "Change in Control" shall be deemed
         to have occurred if there is consummated any transaction or series of
         integrated transactions immediately following which the record holders
         of the Shares immediately prior to such transaction or series of
         transactions continue to own, directly or indirectly, in the same
         proportions as their ownership in the Company, an entity that owns all
         or substantially all of the assets or voting securities of the Company
         immediately following such transaction or series of transactions.

                  (b) "Beneficial Owner" shall have the meaning ascribed to such
         term in Rule 13d-3 of the General Rules and Regulations under the
         Exchange Act; provided, however, that a Person shall not be deemed the
         Beneficial Owner of, or to beneficially own, any security as a result
         of an agreement, arrangement or understanding to vote such security if
         the agreement, arrangement or understanding: (i) arises solely from a
         revocable proxy or consent given to such Person in response to a public
         proxy or consent solicitation made pursuant to, and in accordance with,
         the applicable rules and regulations under the Exchange Act and (ii) is
         not also then reportable on Schedule 13D under the Exchange Act (or any
         comparable or successor report).

                  (c) "Board" or "Board of Directors" means the Board of
         Directors of the Company.

                  (d) "Director" means any individual who is a member of the
         Board of Directors of the Company.

                                      -13-
<PAGE>

                  (e) "Exchange Act" means the Securities Exchange Act of 1934,
         as amended from time to time, or any successor Act thereto.

                  (f) "Person" shall have the meaning ascribed to such term in
         Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and
         14(d) thereof, including a "group" as defined in Section 13(d).

                  (g) "Potential Change in Control" means any action by the
         shareholders of the Company, the Public Service Commission of
         Wisconsin, the Iowa Utilities Board, the Federal Energy Regulatory
         Commission, or the Securities and Exchange Commission approving a
         transaction which, when accomplished, would result in a Change in
         Control.

                  (h) "Shares" means the shares of common stock of the Company.

                  (i) "Subsidiary" means any corporation, partnership, venture,
         or other entity in which the Company, directly or indirectly, has at
         least an 80% ownership interest.

                                      -14-
<PAGE>

                                   SECTION 14

                                 EFFECTIVE DATE
                                 --------------

         The effective date of this Trust Agreement shall be date first above
written.

         IN WITNESS WHEREOF, this instrument has been executed as of the date
first above written.

                                       ALLIANT ENERGY CORPORATION

                                       By:_______________________________

                                       As its:_____________________________

                                       MARSHALL & ILSLEY TRUST COMPANY

                                       By:_______________________________

                                       As its:_____________________________

                                       By:_______________________________

                                       As its:_____________________________

                                      -15-
<PAGE>

                                   APPENDIX A

                                      PLANS
                                      -----

The following plans and agreements shall be funded through the Trust:

1.   Alliant Energy Corporation Deferred Compensation Plan for Directors

                                      -16-

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