Document:

EXHIBIT 10.32

                               VECTREN CORPORATION

                     NONQUALIFIED DEFERRED COMPENSATION PLAN

               (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2001)

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                                TABLE OF CONTENTS

                                                                          Page

Purpose....................................................................1

ARTICLE 1 Definitions......................................................1
ARTICLE 2 Selection, Enrollment, Eligibility..............................10
   2.1    Selection.......................................................10
   2.2    Enrollment Requirements.........................................10
   2.3    Eligibility; Commencement of Participation......................10
   2.4    Termination of Participation and/or Deferrals...................10
ARTICLE 3 Deferral Commitments/Company Matching/Crediting
            /Taxes/Annual Contributions...................................11
   3.1    Minimum Deferrals...............................................11
   3.2    Maximum Deferral................................................11
   3.3    Elections.......................................................11
   3.4    Withholding of Annual Deferral Amounts..........................12
   3.5    Annual Company Matching Amount..................................12
   3.6    Annual Rollover Amount..........................................13
   3.7    (a) Restricted Stock Amount.....................................13
             (b) Stock Options............................................13
   3.8    Investment of Trust Assets......................................13
   3.9    Crediting/Debiting of Account Balances..........................13
   3.10   FICA and Other Taxes............................................16

   3.11   Vesting.........................................................17
   3.12   Distributions...................................................17
   3.13   Annual Company Contribution Amount..............................17
ARTICLE 4 Short-Term Payout; Unforeseeable Financial
            Emergencies; Withdrawal Election..............................17
   4.1    Short-Term Payout...............................................17
   4.2    Other Benefits Take Precedence Over Short-Term..................18
   4.3    Withdrawal Payout/Suspensions for Unforeseeable
            Financial Emergencies.........................................18
   4.4    Withdrawal Election.............................................18
ARTICLE 5 Retirement Benefit..............................................18
   5.1    Retirement Benefit..............................................18
   5.2    Payment of Retirement Benefit...................................19
   5.3    Death Prior to Completion of Retirement Benefit.................19
ARTICLE 6 Pre-Retirement Survivor Benefit.................................19
   6.1    Pre-Retirement Survivor Benefit.................................19
   6.2    Payment of Pre-Retirement Survivor Benefit......................19
ARTICLE 7 Termination Benefit.............................................20
   7.1    Termination Benefit.............................................20
   7.2    Payment of Termination Benefit..................................20
ARTICLE 8 Beneficiary Designation.........................................20
   8.1    Beneficiary.....................................................20
   8.2    Beneficiary Designation; Change.................................20
   8.3    Acknowledgment..................................................20
   8.4    No Beneficiary Designation......................................20
   8.5    Doubt as to Beneficiary.........................................21
   8.6    Discharge of Obligations........................................21
ARTICLE 9 Leave of Absence................................................21
   9.1    Paid Leave of Absence...........................................21
   9.2    Unpaid Leave of Absence.........................................21
ARTICLE 10 Termination, Amendment or Modification.........................21
   10.1   Termination.....................................................21
   10.2   Amendment.......................................................22
   10.3   Plan Agreement..................................................22
   10.4   Effect of Payment...............................................22
ARTICLE 11 Administration.................................................23
   11.1   Committee Duties................................................23
   11.2   Administration Upon Change In Control...........................23
   11.3   Agents..........................................................23
   11.4   Binding Effect of Decisions.....................................23
   11.5   Indemnity of Committee..........................................24
   11.6   Employer Information............................................24
ARTICLE 12 Other Benefits and Agreements..................................24
   12.1   Coordination with Other Benefits................................24
ARTICLE 13 Claims Procedures..............................................24
   13.1   Presentation of Claim...........................................24
   13.2   Notification of Decision........................................24
   13.3   Review of a Denied Claim........................................25
   13.4   Decision on Review..............................................25
   13.5   Legal Action....................................................25
ARTICLE 14 Trust..........................................................25
   14.1   Establishment of the Trust......................................25
   14.2   Interrelationship of the Plan and the Trust.....................26
   14.3   Distributions From the Trust....................................26
ARTICLE 15 Miscellaneous..................................................26
   15.1   Status of Plan..................................................26
   15.2   Unsecured General Creditor......................................26
   15.3   Employer's Liability............................................26
   15.4   Nonassignability................................................26
   15.5   Not a Contract of Employment....................................27
   15.6   Furnishing Information..........................................27
   15.7   Terms...........................................................27
   15.8   Captions........................................................27
   15.9   Governing Law...................................................27
   15.10  Notice..........................................................27
   15.11  Successors......................................................28
   15.12  Validity........................................................28
   15.13  Incompetent.....................................................28
   15.14  Court Order.....................................................28
   15.15  Distribution in the Event of Taxation...........................28
   15.16  Insurance.......................................................29
   15.17  Legal Fees To Enforce Rights After Change
           in Control.....................................................29
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                               VECTREN CORPORATION

                     NONQUALIFIED DEFERRED COMPENSATION PLAN

               (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2001)

         Pursuant to rights reserved under Section 10.2 of the Indiana Energy,
Inc. Nonqualified Deferred Compensation Plan (the "Plan"), Vectren Corporation
renames the Plan and amends and completely restates the Plan, effective as of
January 1, 2001, as follows:

                                     Purpose
         The purpose of this Plan (as defined below) is to provide specified
benefits to a select group of Employees (as defined below) and Directors (as
defined below) who contribute materially to the continued growth, development
and future business success of Vectren Corporation, an Indiana corporation, and
its subsidiaries, if any, that sponsor this Plan. This Plan shall be unfunded
for tax purposes and for purposes of Title I of ERISA (as defined below).

                                    ARTICLE 1
                                   Definitions

         For purposes of this Plan, unless otherwise clearly apparent from the
context, the following phrases or terms shall have the following indicated
meanings:

1.1  "Account Balance" shall mean, with respect to a Participant, a credit on
     the records of the Employer equal to the sum of (i) the Deferral Account
     balance, (ii) vested Company Restoration Account balance, (iii) the vested
     Rollover Account balance, (iv) the Restricted Stock Account balance and (v)
     the Stock Option Gain Account balance. The Account Balance, and each other
     specified account balance, shall be a bookkeeping entry only and shall be
     utilized solely as a device for the measurement and determination of the
     amounts to be paid to a Participant, or his or her designated Beneficiary,
     pursuant to this Plan.

1.2  "Annual Bonus" shall mean any compensation, in addition to Base Annual
     Salary relating to services performed during any calendar year, whether or
     not paid in such calendar year or included on the Federal Income Tax Form
     W-2 for such calendar year, payable to a Participant as an Employee under
     any Employer's annual bonus and cash incentive plans, excluding stock
     options and restricted stock.

1.3  "Annual Company Contribution Amount" for any one Plan Year shall mean the
     amount determined in accordance with Section 3.13.

1.4  "Annual Company Matching Amount" for any one Plan Year shall mean the
     amount determined in accordance with Section 3.5.

1.5  "Annual Deferral Amount" shall mean that portion of a Participant's Base
     Annual Salary, Annual Bonus and/or Directors Fees that a Participant elects
     to have, and is deferred, in accordance with Article 3, for any one Plan
     Year. In the event of a Participant's Retirement, death or Termination of
     Employment prior to the end of a Plan Year, such year's Annual Deferral
     Amount shall be the actual amount withheld prior to such event.

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1.6  "Annual Installment Method" shall mean an annual installment payment over
     the number of years selected by the Participant in accordance with this
     Plan, calculated in the following manner: The Account Balance of the
     Participant shall be calculated as of the close of business on the last
     business day of the year. The annual installment shall be calculated by
     multiplying this balance by a fraction, the numerator of which is one, and
     the denominator of which is the remaining number of annual payments due the
     Participant. By way of example, if the Participant elects a 10 year Annual
     Installment Method, the first payment shall be 1/10 of the Account Balance,
     calculated as described in this definition. The following year, the payment
     shall be 1/9 of the Account Balance, calculated as described in this
     definition. Each annual installment shall be paid on or as soon as
     practicable after the last business day of the applicable year.

1.7  "Annual Restricted Stock Amount" shall mean, with respect to a Participant
     for any one Plan Year, the value of unvested restricted stock under any
     Company stock incentive plan, deferred in accordance with Section 3.7 of
     this Plan.

1.8  "Annual Rollover Amount" shall mean, with respect to any one Participant
     for any one Plan Year, the amount determined in accordance with Section 3.6
     of this Plan.

1.9  "At-Risk Bonus" shall mean any bonus under the Vectren At-Risk Plan payable
     to a Participant as an Employee under the Vectren At-Risk Plan annual bonus
     and cash incentive plans, excluding stock options and restricted stock.

1.10 "At-Risk Bonus Deferral Amount" shall mean the value of any long term
     incentive payment (other than Restricted Stock, incentive stock options or
     Stock Options) earned under the Vectren At-Risk Plan or other Vectren plans
     and deferred in accordance with Section 3.7 of this Plan.

1.11 "Base Annual Salary" shall mean the annual cash compensation relating to
     services performed during any calendar year, whether or not paid in such
     calendar year or included on the Federal Income Tax Form W-2 for such
     calendar year, excluding bonuses, commissions, overtime, fringe benefits,
     stock options, restricted stock, incentive payments, non-monetary awards,
     directors fees and other fees and allowances paid to a Participant for
     employment services rendered (whether or not such allowances are included
     in the Employee's gross income); provided, however, that for all purposes
     other than determining the amount of a Participant's Annual Company
     Matching Amount under Section 3.5, Base Annual Salary shall also include
     compensation due to a Participant resulting from a Change in Control (which
     occurs after the Plan Year during which the deferral election for such
     compensation is due under Section 3.3(b) and which Change in Control
     compensation shall include termination or severance benefits and special
     relocation allowances or payments). Base Annual Salary shall be calculated
     before reduction for compensation voluntarily deferred or contributed by
     the Participant pursuant to all qualified or non-qualified plans of any
     Employer and shall be calculated to include amounts not otherwise included
     in the Participant's gross income under Code Sections 125, 402(e)(3) or
     402(h), pursuant to plans established by any Employer; provided, however,

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     that all such amounts will be included in compensation only to the extent
     that, had there been no such plan, the amount would have been payable in
     cash to the Employee.

1.12 "Beneficiary" shall mean one or more persons, trusts, estates or other
     entities, designated in accordance with Article 8, that are entitled to
     receive benefits under this Plan upon the death of a Participant.

1.13 "Beneficiary Designation Form" shall mean the form established from time to
     time by the Committee that a Participant completes, signs and returns to
     the Committee to designate one or more Beneficiaries.

1.14 "Board" shall mean the Board of Directors of the Company.

1.15 "Change in Control" shall mean:

     (a)  The acquisition by any individual, entity or group (within the meaning
          of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
          1934, as amended (the "Exchange Act")) (a "Person") of beneficial
          ownership (within the meaning of Rule 13d-3 promulgated under the
          Exchange Act) of twenty percent (20%) or more of either (i) the then
          outstanding shares of common stock of the Company (the "Outstanding
          Company Common Stock") or (ii) the combined voting power of the then
          outstanding voting securities of the Company entitled to vote
          generally in the election of directors (the "Outstanding Company
          Voting Securities"); provided, however, that the following
          acquisitions shall not constitute an acquisition of control: (iii) any
          acquisition directly from the Company (excluding an acquisition by
          virtue of the exercise of a conversion privilege), (iv) any
          acquisition by the Company, (v) any acquisition by any employee
          benefit plan (or related trust) sponsored or maintained by the Company
          or any corporation controlled by the Company or (vi) any acquisition
          by any corporation pursuant to a reorganization, merger or
          consolidation, if, following such reorganization, merger or
          consolidation, the conditions described in clauses (i), (ii) and (iii)
          of subsection (c) of this paragraph are satisfied;

     (b)  Individuals who, as of January 1, 2001, constitute the Board of
          Directors of the Company (the "Incumbent Board") cease for any reason
          to constitute at least a majority of the Board; provided, however,
          that any individual becoming a director subsequent to the date hereof
          whose election, or nomination for election by the Company's
          shareholders, was approved by a vote of at least a majority of the
          directors then comprising the Incumbent Board shall be considered as
          though such individual were a member of the Incumbent Board, but
          excluding, for this purpose, any such individual whose initial
          assumption of office occurs as a result of either an actual or
          threatened election contest (as such terms are used in Rule 14a-11 of
          Regulation 14A promulgated under the Exchange Act) or other actual or
          threatened solicitation of proxies or consents by or on behalf of a
          Person other than the Board;

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     (c)  Consummation of a reorganization, merger or consolidation, in each
          case, unless, following such reorganization, merger or consolidation,
          (i) more than sixty percent (60%) of, respectively, the then
          outstanding shares of common stock of the corporation resulting from
          such reorganization, merger or consolidation and the combined voting
          power of the then outstanding voting securities of such corporation
          entitled to vote generally in the election of directors is then
          beneficially owned, directly or indirectly, by all or substantially
          all of the individuals and entities who were the beneficial owners,
          respectively, of the Outstanding Company Common Stock and Outstanding
          Company Voting Securities immediately prior to such reorganization,
          merger or consolidation in substantially the same proportions as their
          ownership, immediately prior to such reorganization, merger or
          consolidation, of the Outstanding Company Stock and Outstanding
          Company Voting Securities, as the case may be, (ii) no Person
          (excluding the Company, any employee benefit plan or related trust of
          the Company, any Company subsidiary or such corporation resulting from
          such reorganization, merger or consolidation and any Person
          beneficially owning, immediately prior to such reorganization, merger
          or consolidation, directly or indirectly, twenty percent (20%) or more
          of the Outstanding Company Common Stock or Outstanding Voting
          Securities, as the case may be) beneficially owns, directly or
          indirectly, twenty percent (20%) or more of, respectively, the then
          outstanding shares of common stock of the corporation resulting from
          such reorganization, merger or consolidation or the combined voting
          power of the then outstanding voting securities of such corporation
          entitled to vote generally in the election of directors and (iii) at
          least a majority of the members of the board of directors of the
          corporation resulting from such reorganization, merger or
          consolidation were members of the Incumbent Board at the time of the
          execution of the initial agreement providing for such reorganization,
          merger or consolidation;

     (d)  Consummation of (i) a complete liquidation or dissolution of the
          Company or (ii) the sale or other disposition of all or substantially
          all of the assets of the Company, other than to a corporation, with
          respect to which following such sale or other disposition (1) more
          than sixty percent (60%) of, respectively, the then outstanding shares
          of common stock of such corporation and the combined voting power of
          the then outstanding voting securities of such corporation entitled to
          vote generally in the election of directors is then beneficially
          owned, directly or indirectly, by all or substantially all of the
          individuals and entities who were the beneficial owners, respectively,
          of the Outstanding Company Common Stock and Outstanding Company Voting
          Securities immediately prior to such sale or other disposition in
          substantially the same proportion as their ownership, immediately
          prior to such sale or other disposition, of the Outstanding Company
          Common Stock and Outstanding Company Voting Securities, as the case
          may be, (2) no Person (excluding the Company and any employee benefit
          plan or related trust of the Company, any Company subsidiary or such
          corporation and any Person beneficially owning, immediately prior to
          such sale or other disposition, directly or indirectly, twenty percent
          (20%) or more of the Outstanding Company Common Stock or Outstanding
          Company Voting Securities, as the case may be) beneficially owns,
          directly or indirectly, twenty percent (20%) or more of, respectively,

<PAGE>

          the then outstanding shares of common stock of such corporation and
          the combined voting power of the then outstanding voting securities of
          such corporation entitled to vote generally in the election of
          directors and (3) at least a majority of the members of the board of
          directors of such corporation were members of the Incumbent Board at
          the time of the execution of the initial agreement or action of the
          Board providing for such sale or other disposition of assets of the
          Company; or

     (e)  The closing, as defined in the documents relating to, or as evidenced
          by a certificate of any state or federal governmental authority in
          connection with, a transaction approval of which by the shareholders
          of the Company would constitute an "Change in Control" under
          subsection (c) or (d) of this Section.

         Notwithstanding anything contained in this Plan to the contrary, if a
         Participant's employment is terminated before a "Change in Control" as
         defined in this Section and the Participant reasonably demonstrates
         that such termination (i) was at the request of a third party who has
         indicated an intention or taken steps reasonably calculated to effect a
         "Change in Control" and who effectuates a "Change in Control" (a "Third
         Party") or (ii) otherwise occurred in connection with, or in
         anticipation of, a "Change in Control" which actually occurs, then for
         all purposes of this Plan, the date of a "Change in Control" with
         respect to the Participant shall mean the date immediately prior to the
         date of such termination of the Participant's employment. Also,
         notwithstanding anything contained in this Plan to the contrary,
         consummation of the Agreement and Plan of Merger, dated as of June 11,
         1999 and among the Company, SIGCORP, Inc. and Vectren Corporation shall
         not be deemed a Change in Control for purposes of Section 11.2 of this
         Plan.

1.16 "Claimant" shall have the meaning set forth in Section 13.1.

1.17 "Code" shall mean the Internal Revenue Code of 1986, as it may be amended
     from time to time.

1.18 "Committee" shall mean the committee described in Article 11.

1.19 "Company" shall mean Vectren Corporation, an Indiana corporation, and any
     successor to all or substantially all of the Company's assets or business.

1.20 "Company Restoration Account" shall mean (i) the sum of all of a
     Participant's Annual Company Matching Amounts and Annual Company
     Contribution Amounts, plus (ii) amounts credited or debited in accordance
     with all the applicable crediting/debiting provisions of this Plan that
     relate to the Participant's Company Restoration Account, less (iii) all
     distributions made to the Participant or his or her Beneficiary pursuant to
     this Plan that relate to the Participant's Company Restoration Account.

1.21 "Deduction Limitation" shall mean the following described limitation on a
     benefit that may otherwise be distributable pursuant to the provisions of
     this Plan. Except as otherwise provided, this limitation shall be applied
     to all distributions that are "subject to the Deduction Limitation" under
     this Plan. If an Employer determines in good faith prior to a Change in
     Control that there is a reasonable likelihood that any compensation paid to

<PAGE>

     a Participant for a taxable year of the Employer would not be deductible by
     the Employer solely by reason of the limitation under Code Section 162(m),
     then to the extent deemed necessary by the Employer to ensure that the
     entire amount of any distribution to the Participant pursuant to this Plan
     prior to the Change in Control is deductible, the Employer may defer all or
     any portion of a distribution under this Plan. Any amounts deferred
     pursuant to this limitation shall continue to be credited/debited with
     additional amounts in accordance with Section 3.10 below, even if such
     amount is being paid out in installments. The amounts so deferred and
     amounts credited thereon shall be distributed to the Participant or his or
     her Beneficiary (in the event of the Participant's death) at the earliest
     possible date, as determined by the Employer in good faith, on which the
     deductibility of compensation paid or payable to the Participant for the
     taxable year of the Employer during which the distribution is made will not
     be limited by Code Section 162(m), or if earlier, the effective date of a
     Change in Control. Notwithstanding anything to the contrary in this Plan,
     the Deduction Limitation shall not apply to any distributions made after a
     Change in Control.

1.22 "Deferral Account" shall mean (i) the sum of all of a Participant's Annual
     Deferral Amounts and At-Risk Bonus Deferral Amounts, plus (ii) amounts
     credited or debited in accordance with all the applicable
     crediting/debiting provisions of this Plan that relate to the Participant's
     Deferral Account, less (iii) all distributions made to the Participant or
     his or her Beneficiary pursuant to this Plan that relate to the
     Participant's Deferral Account.

1.23 "Director" shall mean any member of the Board of Directors of any Employer.

1.24 "Directors Fees" shall mean the annual fees paid by any Employer, including
     retainer fees and meetings fees, as compensation for serving on the Board.

1.25 "Election Form" shall mean the form established from time to time by the
     Committee that a Participant completes, signs and returns to the Committee
     to make an election under the Plan.

1.26 "Employee" shall mean a person who is an employee of any Employer, and may
     include, where the context requires, a Director.

1.27 "Employer(s)" shall mean the Company and/or any of its subsidiaries (now in
     existence or hereafter formed or acquired) that have been selected by the
     Board to participate in the Plan and have adopted the Plan as a sponsor.

1.28 "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
     it may be amended from time to time.

1.29 "First Plan Year" shall mean the period beginning January 1, 1999 and
     ending December 31, 1999.

1.30 "401(k) Plan" shall be the Vectren Corporation Retirement Savings Plan, as
     now in effect and as amended from time to time.

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1.31 "401(k) Plan Compensation" shall mean an amount equal to the total salary
     inclusive of bonuses, inclusive of incentive pay and inclusive of elective
     deferrals by such Participant to the 401(k) Plan and to any non-qualified
     deferred compensation plan maintained by the Employers and inclusive of
     salary reductions elected by such Participant to a plan maintained by the
     Employers under Section 125 of the Code but exclusive of awards made under
     the Restricted Stock Plans and exclusive of distributions under the 401(k)
     Plan and this Plan; provided, however, that a Participant's 401(k) Plan
     Compensation shall be determined without regard to limits imposed by Code
     Section 401(a)(17) or any other applicable Code provision limiting
     compensation.

1.32 "Participant" shall mean any Employee or Director (i) who is selected to
     participate in the Plan by the Committee or by the Chief Executive Officer
     of the Company, (ii) who elects to participate in the Plan, (iii) who signs
     a Plan Agreement, an Election Form and a Beneficiary Designation Form, (iv)
     who commences participation in the Plan, and (v) whose Plan Agreement has
     not terminated. A spouse or former spouse of a Participant shall not be
     treated as a Participant in the Plan or have an Account Balance under the
     Plan, even if he or she has an interest in the Participant's benefits under
     the Plan as a result of applicable law or property settlements resulting
     from legal separation or divorce.

1.33 "Plan" shall mean this Vectren Corporation Nonqualified Deferred
     Compensation Plan, which shall be evidenced by this instrument and by each
     Plan Agreement, as they may be amended from time to time.

1.34 "Plan Agreement" shall mean a written agreement, as may be amended from
     time to time, which is entered into by and between an Employer and a
     Participant. Each Plan Agreement executed by a Participant and the
     Participant's Employer shall provide for the entire benefit to which such
     Participant is entitled under the Plan; should there be more than one Plan
     Agreement, the Plan Agreement bearing the latest date of acceptance by the
     Employer shall supersede all previous Plan Agreements in their entirety and
     shall govern such entitlement. The terms of any Plan Agreement may be
     different for any Participant, and any Plan Agreement may provide
     additional benefits not set forth in the Plan or limit the benefits
     otherwise provided under the Plan; provided, however, that any such
     additional benefits or benefit limitations must be agreed to by both the
     Employer and the Participant.

1.35 "Plan Year" shall, except for the First Plan Year, mean a period beginning
     on January 1 of each calendar year and continuing through December 31 of
     such calendar year.

1.36 "Pre-Retirement Survivor Benefit" shall mean the benefit set forth in
     Article 6.

1.37 "Prior Plans" shall mean Indiana Energy, Inc. Directors Compensation
     Deferral Plan and Indiana Energy, Inc. Executive Compensation Deferral
     Plan, which plans were in effect on December 31, 1998 and which plans were
     merged into this Plan on January 1, 1999; provided, however, that the
     distribution and investment options elected by a Participant in the Prior
     Plans shall carry forward into this Plan unless the Participant elects to
     opt into the applicable provisions of this Plan; provided, further, that
     the provisions of the Prior Plans are hereby incorporated herein by
     reference.

<PAGE>

1.38 "Restricted Stock" shall mean unvested shares of restricted stock awarded
     to the Participant under the Restricted Stock Plans.

1.39 "Restricted Stock Account" shall mean (i) the sum of the Participant's
     Annual Restricted Stock Amounts, plus (ii) amounts credited or debited in
     accordance with all the applicable crediting/debiting provisions of this
     Plan that relate to the Participant's Restricted Stock Account, less (iii)
     all distributions made to the Participant or his or her Beneficiary
     pursuant to this Plan that relate to the Participant's Restricted Stock
     Account.

1.40 "Restricted Stock Amount" shall mean, for any grant of Restricted Stock,
     the amount of such Restricted Stock deferred in accordance with Section 3.7
     of this Plan, calculated using the closing price of Stock as of the end of
     the trading day coinciding or closest after the date such Restricted Stock
     would otherwise vest, but for the election to defer.

1.41 "Restricted Stock Plans" shall mean the Vectren Corporation Executive
     Restricted Stock Plan, Vectren Corporation Directors Restricted Stock Plan
     and Vectren At-Risk Plan.

1.42 "Retirement", "Retire(s)" or "Retired" shall mean, with respect to an
     Employee, severance from employment from all Employers for any reason other
     than a leave of absence or death on or after reaching at least age
     fifty-five (55) and completing at least ten (10) years of service (as
     determined under the Company's tax qualified defined benefit plan);
     provided, however, that Retirement, as defined in this Section, shall not
     include cessation of employment prior to the age of 65 due or related to
     the Agreement and Plan of Merger, dated as of June 11, 1999, among Company,
     SIGCORP, Inc. and Vectren Corporation (the "Vectren Transaction"), for
     purposes of Annual Deferral Amounts to be deferred in or subsequent to
     January, 2000; provided, further, that an Employee whose employment is
     terminated within the eighteen (18) month period following a Change in
     Control shall be deemed to have Retired under this Plan notwithstanding the
     Employee's age or years of service with the Employers. The above terms
     shall mean with respect to a Director who is not an Employee, severance of
     all of his or her directorships with all Employers, which may occur at any
     time or may be determined to have occurred in the sole discretion of the
     Committee. If a Participant is both an Employee and a Director, Retirement
     shall not occur until he or she Retires as both an Employee and a Director,
     which Retirement shall be deemed to be a Retirement as a Director;
     provided, however, that such a Participant may elect, at least three years
     prior to Retirement and in accordance with the policies and procedures
     established by the Committee, to Retire for purposes of this Plan at the
     time he or she Retires as an Employee, which Retirement shall be deemed to
     be a Retirement as an Employee.

1.43 "Retirement Benefit" shall mean the benefit set forth in Article 5.

1.44 "Rollover Account" shall mean (i) the sum of the Participant's Annual
     Rollover Stock Amounts, plus (ii) amounts credited or debited in accordance
     with all the applicable crediting/debiting provisions of this Plan that
     relate to the Participant's Rollover Account, less (iii) all distributions
     made to the Participant or his or her Beneficiary pursuant to this Plan
     that relate to the Participant's Rollover Account.

<PAGE>

1.45 "Rollover Amount" shall mean an amount transferred to a Participant's
     Account Balance from another nonqualified plan of the Company (including
     the Prior Plans), as permitted in the sole discretion of the Committee, as
     provided in Section 3.6. Except for transfers from the Prior Plans, any
     elections made by the Participant with regard to his or her benefit under
     any other plan shall be null and void.

1.46 "Short-Term Payout" shall mean the payout set forth in Section 4.1.

1.47 "Stock" shall mean Company common stock, without par value, or any other
     equity securities of the Company designated by the Committee.

1.48 "Stock Option" shall mean any non-qualified stock option granted to a
     Participant under the Vectren At-Risk Plan.

1.49 "Stock Option Gain Account" shall mean (i) a bookkeeping account consisting
     of a number of shares of Stock resulting from the exercise of Stock
     Options, the value of which is deferred under this Plan in accordance with
     Section 3.3(d), plus (ii) amounts credited or debited in accordance with
     all the applicable crediting/debiting provisions of this Plan that relate
     to the Participant's Stock Option Gain Account, less (iii) all
     distributions made to the Participant or his or her Beneficiary pursuant to
     this Plan that relate to the Participant's Stock Option Gain Account. No
     actual shares of Stock shall be held as part of a Participant's Stock
     Option Gain Account.

1.50 "Termination Benefit" shall mean the benefit set forth in Article 7.

1.51 "Termination of Employment" shall mean the severing of employment with all
     Employers, or service as a Director of all Employers, voluntarily or
     involuntarily, for any reason other than Retirement, death or an authorized
     leave of absence. If a Participant is both an Employee and a Director, a
     Termination of Employment shall occur only upon the termination of the last
     position held; provided, however, that such a Participant may elect, at
     least three years before Termination of Employment and in accordance with
     the policies and procedures established by the Committee, to be treated for
     purposes of this Plan as having experienced a Termination of Employment at
     the time he or she ceases employment with an Employer as an Employee.

1.52 "Trust" shall mean one or more trusts which may be established as a grantor
     trust under the Code which may function as a source of payments hereunder
     unless the Employer becomes insolvent.

1.53 "Unforeseeable Financial Emergency" shall mean an unanticipated emergency
     that is caused by an event beyond the control of the Participant that would
     result in severe financial hardship to the Participant resulting from (i)
     the sudden and unexpected disability of the Participant or a dependent of
     the Participant, (ii) a loss of the Participant's property due to casualty,
     or (iii) such other extraordinary and unforeseeable circumstances arising
     as a result of events beyond the control of the Participant, all as
     determined in the sole discretion of the Committee.

<PAGE>

1.54 "Vectren At-Risk Plan" shall mean the Vectren Corporation At-Risk
     Compensation Plan as now in effect or as amended from time to time.

                                    ARTICLE 2
                       Selection, Enrollment, Eligibility

2.1  Selection. Participation in the Plan shall be limited to a select group of
     management and highly compensated Employees and Directors of the Employers,
     as determined by the Committee or by the Chief Executive Officer of the
     Company.

2.2  Enrollment Requirements. As a condition to participation, each selected
     Employee or Director shall complete, execute and return to the Committee a
     Plan Agreement, an Election Form and a Beneficiary Designation Form, all
     within 30 days or such shorter time period established by the Committee,
     after he or she is selected to participate in the Plan. In addition, the
     Committee shall establish from time to time such other enrollment
     requirements as it determines in its sole discretion are necessary.

2.3  Eligibility; Commencement of Participation. Provided an Employee or
     Director selected to participate in the Plan has met all enrollment
     requirements set forth in this Plan and required by the Committee,
     including returning all required documents to the Committee within the
     specified time period, that Employee or Director shall commence
     participation in the Plan on the first day of the month following the month
     in which the Employee or Director completes all enrollment requirements. If
     an Employee or a Director fails to meet all such requirements within the
     period required, in accordance with Section 2.2, that Employee or Director
     shall not be eligible to participate in the Plan until the first day of the
     Plan Year following the delivery to and acceptance by the Committee of the
     required documents. Notwithstanding anything contained herein to the
     contrary, a Participant shall be automatically eligible for the allocations
     of Annual Company Contributions Amounts under Section 3.13.

2.4  Termination of Participation and/or Deferrals. If the Committee determines
     in good faith that a Participant no longer qualifies as a member of a
     select group of management or highly compensated employees, as membership
     in such group is determined in accordance with Sections 201(2), 301(a)(3)
     and 401(a)(1) of ERISA, the Committee shall have the right, in its sole
     discretion, to (i) terminate any deferral election the Participant has made
     for the remainder of the Plan Year in which the Participant's membership
     status changes, (ii) prevent the Participant from making future deferral
     elections and/or (iii) immediately distribute the Participant's then
     Account Balance as a Termination Benefit and terminate the Participant's
     participation in the Plan.

<PAGE>
                                    ARTICLE 3
   Deferral Commitments/Company Matching/Crediting/Taxes/Annual Contributions

3.1  Minimum Deferrals.

     (a)  Base Annual Salary, Annual Bonus, At-Risk Bonus and Directors Fees.
          For each Plan Year, a Participant may elect to defer, as his or her
          Annual Deferral Amount, Base Annual Salary, Annual Bonus or At-Risk
          Bonus in the minimum combined amount of $5,000. If an election is made
          for less than the stated minimum combined amount, or if no election is
          made, the amount deferred shall be zero. There is no minimum amount of
          deferrals for Directors Fees.

     (b)  Short Plan Year for Base Annual Salary and Annual Bonus.
          Notwithstanding the foregoing, if a Participant first becomes a
          Participant after the first day of a Plan Year, or in the case of the
          first Plan Year of the Plan itself, the minimum combined amount of
          Base Annual Salary and Annual Bonus deferred shall be an amount equal
          to the minimum set forth above, multiplied by a fraction, the
          numerator of which is the number of complete months remaining in the
          Plan Year and the denominator of which is 12.

     (c)  Stock Amount. There is no minimum amount of deferral for Restricted
          Stock or Stock Option.

3.2  Maximum Deferral.

     (a)  Base Annual Salary, Annual Bonus, At-Risk Bonus and Directors Fees.
          For each Plan Year, a Participant may elect to defer, as his or her
          Annual Deferral Amount, Base Annual Salary, Annual Bonus, At-Risk
          Bonus and/or Directors Fees up to one hundred percent (100%) for each
          deferral elected.

     (b)  Short Plan Year. Notwithstanding the foregoing, if a Participant first
          becomes a Participant after the first day of a Plan Year, or in the
          case of the first Plan Year of the Plan itself, the maximum Annual
          Deferral Amount, with respect to Base Annual Salary, Annual Bonus and
          Directors Fees shall be limited to the amount of compensation not yet
          earned by the Participant as of the date the Participant submits a
          Plan Agreement and Election Form to the Committee for acceptance.

     (c)  Stock Amounts. A Participant may elect to defer up to one hundred
          percent (100%) of his or her Restricted Stock or Stock Option gains;
          provided, however, that deferrals of a Participant's Restricted Stock
          or Stock Option gains shall only be permitted to the extent the
          applicable Restricted Stock Plan permits such a deferral.

3.3  Elections.

     (a)  First Plan Year. In connection with a Participant's commencement of
          participation in the Plan, the Participant shall make an irrevocable
          deferral election for the Plan Year in which the Participant commences

<PAGE>

          participation in the Plan, along with such other elections as the
          Committee deems necessary or desirable under the Plan. For these
          elections to be valid, the Election Form must be completed and signed
          by the Participant, timely delivered to the Committee (in accordance
          with Section 2.2 above) and accepted by the Committee.

     (b)  Subsequent Plan Years. For each succeeding Plan Year, an irrevocable
          deferral election for that Plan Year, and such other elections as the
          Committee deems necessary or desirable under the Plan, shall be made
          by timely delivering to the Committee, in accordance with its rules
          and procedures, before the end of the Plan Year preceding the Plan
          Year for which the election is made, a new Election Form. If no such
          Election Form is timely delivered for a Plan Year, each of the Annual
          Deferral Amount, At-Risk Bonus Deferral Amount, Annual Company
          Matching Amount and Annual Rollover Amount shall be zero for that Plan
          Year. The Committee shall have complete and full discretion as to
          manner in which the election is made and as to the design of the
          Election Form.

     (c)  Restricted Stock. For an election to defer Restricted Stock Amounts to
          be valid: (i) a separate irrevocable Election Form must be completed
          and signed by the Participant, with respect to such Restricted Stock;
          and, (ii) except for the first Plan Year, such Election Form must be
          timely delivered to the Committee and accepted by the Committee before
          the last calendar day of the Plan Year immediately preceding the Plan
          Year during which the Restricted Stock vests.

     (d)  Stock Options. For an election to defer Stock Options to be valid: (i)
          a separate Election Form must be completed and signed by the
          Participant with respect to such Stock Option and such election shall
          be irrevocable until the first Plan Year beginning at least six (6)
          calendar months after the date on which the deferral election is made;
          (ii) the Participant must deliver to the Committee shares of Stock by
          physical delivery or attestation which have been held by the
          Participant for at least six (6) months with a fair market value (as
          determined in accordance with the applicable Restricted Stock Plan)
          equal to the exercise price of the Stock Option; and (iii) such
          Election Form must be timely delivered to the Committee at least six
          (6) calendar months prior to the date on which the Stock Option is
          exercised or, if earlier, the last day of the calendar year completed
          prior to the date on which the Stock Option is exercised.

3.4  Withholding of Annual Deferral Amounts. For each Plan Year, the Base Annual
     Salary portion of the Annual Deferral Amount shall be withheld from each
     regularly scheduled Base Annual Salary payroll in equal amounts, as
     adjusted from time to time for increases and decreases in Base Annual
     Salary. The Annual Bonus and/or Directors Fees portion of the Annual
     Deferral Amount shall be withheld at the time the Annual Bonus or Directors
     Fees are or otherwise would be paid to the Participant, whether or not this
     occurs during the Plan Year itself.

3.5  Annual Company Matching Amount. A Participant's Annual Company Matching
     Amount for any Plan Year shall be equal to three percent (3%) of the
     Participant's 401(k) Plan Compensation for such Plan Year, reduced by the
     amount of any matching contributions made to the 401(k) Plan on his or her

<PAGE>

     behalf for the Plan Year of the 401(k) Plan that corresponds to the Plan
     Year; provided, however, that effective for Plan Years beginning after
     December 31, 2001, a Participant shall only be entitled to Annual Company
     Matching Amounts in a Plan Year if his or her aggregate salary reductions
     under the 401(k) Plan and his or her Annual Deferral Amounts equal six
     percent (6%) of his 401(k) Plan Compensation. If a Participant is not
     employed by an Employer, or is no longer providing services as a Director,
     as of the last business day of a Plan Year other than by reason of his or
     her Retirement or death, the Annual Company Matching Amount for such Plan
     Year shall be zero. In the event of Retirement or death, a Participant
     shall be credited with the Annual Company Matching Amount for the Plan Year
     in which he or she Retires or dies.

3.6  Annual Rollover Amount. Subject to any terms and conditions imposed by the
     Committee, for any Plan Year, a Participant may elect to roll over an
     amount from any nonqualified plan of the Company, including from any
     predecessor nonqualified plan to the Plan, as permitted in the sole
     discretion of the Committee (each such amount, an "Annual Rollover
     Amount"). Distribution and crediting and debiting of the Annual Rollover
     Amount shall be governed by the terms and conditions of the Plan, and any
     elections made by the Participant with regard to his or her benefit under
     any other plan shall be null and void. Notwithstanding anything contained
     herein to the contrary, amounts transferred from the Prior Plans shall be
     subject to the distribution and investment provisions set forth in the
     Prior Plans unless the Participant elects for the provisions of this Plan
     to apply.

3.7  (a)  Restricted Stock Amount. Subject to any terms and conditions imposed
          by the Committee, a Participant may elect to defer, under the Plan, a
          Restricted Stock Amount. A Restricted Stock Amount shall be credited
          (or debited) to the Participant on the books of the Employer in
          connection with such an election at the time the Restricted Stock
          would otherwise vest under the terms of the applicable Restricted
          Stock Plan, but for the election to defer. An Annual Restricted Stock
          Amount shall consist of all Restricted Stock Amounts deferred pursuant
          to this Section 3.7 in any one Plan Year.

     (b)  Stock Options. Subject to any terms and conditions imposed by the
          Committee, a Participant may elect to defer, under the Plan, an amount
          equal to the shares resulting from exercise of a Stock Option with
          mature shares of Stock. The Participant's Stock Option Gain Account
          shall be credited to the Participant on the books of the Employer in
          connection with such an election at the time the related Stock Option
          is exercised.

3.8  Investment of Trust Assets. If a Trust is established, the Trustee of the
     Trust shall be authorized, upon written instructions received from the
     Committee or investment manager appointed by the Committee, to invest and
     reinvest the assets of the Trust in accordance with the applicable Trust
     Agreement, including the disposition of Stock and reinvestment of the
     proceeds in one or more investment vehicles designated by the Committee.

3.9  Crediting/Debiting of Account Balances. In accordance with, and subject to,
     the rules and procedures that are established from time to time by the
<PAGE>

     Committee, in its sole discretion, amounts shall be credited or debited to
     a Participant's Account Balance in accordance with the following rules:

     (a)  Election of Measurement Funds. Except as otherwise provided below and
          in Section 3.9(f) below, a Participant, in connection with his or her
          initial deferral election in accordance with Section 3.3(a) above,
          shall elect, on the Election Form, one or more Measurement Fund(s) (as
          described in Section 3.9(c) below) to be used to determine the
          additional amounts to be credited to his or her Account Balance for
          each day in which the Participant commences participation in the Plan
          and continuing thereafter for each subsequent day in which the
          Participant participates in the Plan, unless changed in accordance
          with the next sentence. Commencing with the first day that follows the
          Participant's commencement of participation in the Plan and continuing
          thereafter for each subsequent day in which the Participant
          participates in the Plan, the Participant may (but is not required to)
          elect, by submitting an Election Form to the Committee that is
          accepted by the Committee, to add or delete one or more Measurement
          Fund(s) to be used to determine the additional amounts to be credited
          to his or her Account Balance, or to change the portion of his or her
          Account Balance allocated to each previously or newly elected
          Measurement Fund. If an election is made in accordance with the
          previous sentence, it shall apply to the next day and continue
          thereafter for each subsequent day in which the Participant
          participates in the Plan, unless changed in accordance with the
          previous sentence. Notwithstanding anything contained herein to the
          contrary, a Participant's Stock Option Gain Account shall at all times
          be credited to the Stock Measurement Fund at any time a Stock
          Measurement Fund is made available by the Committee.

     (b)  Proportionate Allocation. In making any election described in Section
          3.9(a) above, the Participant shall specify on the Election Form, in
          increments of five percentage points (5%), the percentage of his or
          her Account Balance to be allocated to a Measurement Fund (as if the
          Participant was making an investment in that Measurement Fund with
          that portion of his or her Account Balance).

     (c)  Measurement Funds. The Committee shall select one or more measurement
          funds ("Measurement Funds") which can be selected by the Participants
          for purposes of determining adjustments to their Account Balance, both
          positive and negative. The Measurement Funds made available shall be
          communicated to the Participants by the Committee.

          As necessary, the Committee may, in its sole discretion, discontinue,
          substitute, add or limit access to a Measurement Fund. Each such
          action will take effect within thirty (30) days of the day upon which
          the Committee gives Participants advance written notice of such
          change.

     (d)  Crediting or Debiting Method. The performance of each elected
          Measurement Fund (either positive or negative) will be determined by
          the Committee, in its reasonable discretion, based on the performance
          of the Measurement Funds themselves. A Participant's Account Balance
          shall be credited or debited on a daily basis based on the performance
          of each Measurement Fund selected by the Participant, as determined by

<PAGE>

          the Committee in its sole discretion, as though (i) a Participant's
          Account Balance were invested in the Measurement Fund(s) selected by
          the Participant, in the percentages applicable to such day, at the
          closing price on such day or, if not available, the most recently
          available closing price; (ii) the portion of the Annual Deferral
          Amount that was actually was invested in the Measurement Fund(s)
          selected by the Participant, no later than the close of business on
          the third business day after the day on which such amounts are
          actually deferred from the Participant's Base Annual Salary through
          reductions in his or her payroll or Directors Fees payments, as the
          case may be, at the closing price on such date; and (iii) any
          distribution made to a Participant that decreases such Participant's
          Account Balance ceased being invested in the Measurement Fund(s), no
          earlier than three business days prior to the distribution, at the
          closing price and in the percentages applicable on such date. The
          Participant's Annual Company Matching Amount shall be credited to his
          or her Company Restoration Account for purposes of this Section 3.9(d)
          as of the close of business on the first business day in February of
          the Plan Year following the Plan Year to which it relates. The
          Participant's Rollover Amount(s) shall be credited to his or her
          Rollover Account for purposes of this Section 3.9(d) no later than the
          close of business on the third business day after the day on which the
          Rollover Amount(s) were credited to the Participant's Rollover
          Account. The Participant's Annual Restricted Stock Amount(s) shall be
          credited to his or her Restricted Stock Account for purposes of this
          Section 3.9(d) no later than the close of business on the third
          business day after the day on which the Restricted Stock became vested
          or otherwise disposed of. The Participant's Stock Option Gain Account
          shall be credited for purposes of this Section 3.9(d) no later than
          the close of business on the third business day after the day on which
          the Stock Option to which the credit relates was exercised.

     (e)  No Actual Investment. Notwithstanding any other provision of this Plan
          that may be interpreted to the contrary, the Measurement Funds are to
          be used for measurement purposes only, and a Participant's election of
          any such Measurement Fund, the allocation to his or her Account
          Balance thereto, the calculation of additional amounts and the
          crediting or debiting of such amounts to a Participant's Account
          Balance shall not be considered or construed in any manner as an
          actual investment of his or her Account Balance in any such
          Measurement Fund. In the event that the Company or the Trustee (as
          that term is defined in the Trust), in its own discretion, decides to
          invest funds in any or all of the Measurement Funds, no Participant
          shall have any rights in or to such investments themselves. Without
          limiting the foregoing, a Participant's Account Balance shall at all
          times be a bookkeeping entry only and shall not represent any
          investment made on his or her behalf by the Company or the Trust; the
          Participant shall at all times remain an unsecured creditor of the
          Company.

     (f)  Special Rules for Company Stock. If one of the Measurement Funds
          selected by the Committee is a Company Stock fund, a Participant whose
          Account Balance includes amounts credited to the Company Stock
          Measurement Fund shall be provided the opportunity to elect to receive
          the amount, less applicable withholding, that he would have received

<PAGE>

          in dividends had the Participant held shares of Company Stock equal to
          his proportionate share of the Company Stock Measurement Fund. In
          order to receive this cash option, a Participant shall be required to
          make an irrevocable election prior to the beginning of the Plan Year
          during which the cash dividend would have been paid had the
          Participant held shares of Company Stock equal to the amount of shares
          credited for bookkeeping purposes under the Company Stock Measurement
          Fund.

3.10 FICA and Other Taxes.

     (a)  Annual Deferral Amounts. For each Plan Year in which an Annual
          Deferral Amount is being withheld from a Participant, the
          Participant's Employer(s) shall withhold from that portion of the
          Participant's Base Annual Salary, Annual Bonus and/or Directors Fees,
          and Restricted Stock that is not being deferred, in a manner
          determined by the Employer(s), the Participant's share of FICA and
          other employment or, if applicable, income taxes on such Annual
          Deferral Amount. If necessary, the Committee may reduce the Annual
          Deferral Amount in order to comply with this Section 3.10.

     (b)  Company Contribution Amounts. When a Participant becomes vested in a
          portion of his or her Company Restoration Account, the Participant's
          Employer(s) shall withhold from the Participant's Base Annual Salary,
          Annual Bonus, At-Risk Bonus Deferral Amounts and/or Directors Fees and
          Restricted Stock that is not deferred, in a manner determined by the
          Employer(s), the Participant's share of FICA and other employment
          taxes. If necessary, the Committee may reduce the vested portion of
          the Participant's Company Restoration Account in order to comply with
          this Section 3.10.

     (c)  Rollover Amounts. When a Participant becomes vested in a portion of
          his or her Rollover Account, the Participant's Employer(s) shall
          withhold from the Participant's Base Annual Salary, Annual Bonus,
          and/or Directors Fees, and Restricted Stock that is not deferred, in a
          manner determined by the Employer(s), the Participant's share of FICA
          and other employment taxes. If necessary, the Committee may reduce the
          vested portion of the Participant's Rollover Account in order to
          comply with this Section 3.10.

     (d)  Annual Restricted Stock and Stock Option Amounts. For each Plan Year
          in which Annual Restricted Stock or amounts relating to Stock Option
          gains deferred under this Plan is being first deferred by a
          Participant, the Participant's Employer(s) shall withhold from that
          portion of the Participant's Base Annual Salary, Annual Bonus, and/or
          Directors Fees, and Rollover Amounts and Restricted Stock that is not
          being deferred, in a manner determined by the Employer(s), the
          Participant's share of FICA and other employment or, if applicable,
          income taxes on such Annual Restricted Stock Amount or Stock Option
          gain, whichever is applicable. If necessary, the Committee may reduce
          the Annual Restricted Stock Amount or Stock Option Gain Account,
          whichever is applicable, in order to comply with this Section 3.10.

<PAGE>

3.11 Vesting. A Participant shall be vested in his or her Deferral Account,
     Restricted Stock Amounts, and Stock Option Gain Account balance at all
     times. A Participant shall at all times be vested in his or her Company
     Restoration Account to the same extent he or she is vested in the employer
     match provided under the 401(k) Plan. A Participant shall at all times be
     vested in his or her Rollover Account to the extent he or she is or would
     be vested in the accounts under the terms of the plans from which such
     Rollover Amounts are derived.

3.12 Distributions. The Participant's Employer(s), or the trustee of the Trust,
     shall withhold from any payments made to a Participant under this Plan all
     federal, state and local income, employment and other taxes required to be
     withheld by the Employer(s), or the trustee of the Trust, in connection
     with such payments, in amounts and in a manner to be determined in the sole
     discretion of the Employer(s) and the trustee of the Trust.

3.13 Annual Company Contribution Amount. A Participant's Annual Company
     Contribution Amount shall be an amount equal to three percent (3%) of a
     Participant's 401(k) Plan Compensation, reduced by the amount of annual
     Company contributions, other than matching contributions, made on his
     behalf to the 401(k) Plan; provided, however, that a Participant who is a
     Transitional SIGECo Member or Transitional VEDO Member under the Company
     tax-qualified defined benefit plan shall not be eligible for the Annual
     Company Contribution Amount. Notwithstanding anything contained in this
     Plan to the contrary, an additional Annual Company Contribution shall be
     made on behalf of Thomas J. Zabor and Ronald G. Jochum in an amount equal
     to five percent (5%) for Zabor and six and one-half percent (6.5%) for
     Jochum of Zabor's and Jochum's respective 401(k) Plan Compensation during
     their period of Plan participation; provided, however, that this special
     contribution shall be made retroactively for the 2000 Plan Year with
     interest accruing at the rate of eight percent (8%) from December 31, 2000
     through the date on which the amount is allocated to their Company
     Restoration Contribution Accounts. The Annual Company Contribution Amount
     of a Participant who does not have in effect an investment election under
     Section 3.9(a) shall be invested in the Company Stock Fund, if there is
     such a fund, and, if there is not such a fund, in a default fund determined
     by the Committee.

                                    ARTICLE 4
   Short-Term Payout; Unforeseeable Financial Emergencies;Withdrawal Election

4.1  Short-Term Payout. In connection with each election to defer an Annual
     Deferral Amount, a Participant may irrevocably elect to receive a future
     "Short-Term Payout" from the Plan with respect to such Annual Deferral
     Amount, plus earnings (or less losses) thereon. Subject to the Deduction
     Limitation, the Short-Term Payout shall be a lump sum payment in an amount
     that is equal to the Annual Deferral Amount, plus amounts credited or
     debited in the manner provided in Section 3.9 above on that amount,
     determined at the time that the Short-Term Payout becomes payable (rather
     than the date of a Termination of Employment). Subject to the Deduction
     Limitation and the other terms and conditions of this Plan, each Short-Term
     Payout elected shall be paid out during a 60 day period commencing
     immediately after the last day of any Plan Year designated by the
     Participant that is at least three Plan Years after the Plan Year in which
     the Annual Deferral Amount is actually deferred. By way of example, if a

<PAGE>

     three year Short-Term Payout is elected for Annual Deferral Amounts that
     are deferred in the Plan Year commencing January 1, 1999, the three year
     Short-Term Payout would become payable during a 60 day period commencing
     January 1, 2003.

4.2  Other Benefits Take Precedence Over Short-Term. Should an event occur that
     triggers a benefit under Article 5, 6, or 7, any Annual Deferral Amount,
     plus amounts credited or debited thereon, that is subject to a Short-Term
     Payout election under Section 4.1 shall not be paid in accordance with
     Section 4.1 but shall be paid in accordance with the other applicable
     Article.

4.3  Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies. If
     the Participant experiences an Unforeseeable Financial Emergency, the
     Participant may petition the Committee to (i) suspend any deferrals
     required to be made by a Participant and/or (ii) receive a partial or full
     payout from the Plan. The payout shall not exceed the lesser of the
     Participant's Account Balance, calculated as if such Participant were
     receiving a Termination Benefit, or the amount reasonably needed to satisfy
     the Unforeseeable Financial Emergency. If, subject to the sole discretion
     of the Committee, the petition for a suspension and/or payout is approved,
     suspension shall take effect upon the date of approval and any payout shall
     be made within 60 days of the date of approval. The payment of any amount
     under this Section 4.3 shall not be subject to the Deduction Limitation.

4.4  Withdrawal Election. A Participant (or, after a Participant's death, his or
     her Beneficiary) may elect, at any time, to withdraw all of his or her
     Account Balance, calculated as if there had occurred a Termination of
     Employment as of the day of the election, less a withdrawal penalty equal
     to ten percent (10%) of such amount (the net amount shall be referred to as
     the "Withdrawal Amount"). This election can be made at any time, before or
     after Retirement, death or Termination of Employment, and whether or not
     the Participant (or Beneficiary) is in the process of being paid pursuant
     to an installment payment schedule. If made before Retirement, or death, a
     Participant's Withdrawal Amount shall be his or her Account Balance
     calculated as if there had occurred a Termination of Employment as of the
     day of the election. No partial withdrawals of the Withdrawal Amount shall
     be allowed. The Participant (or his or her Beneficiary) shall make this
     election by giving the Committee advance written notice of the election in
     a form determined from time to time by the Committee. The Participant (or
     his or her Beneficiary) shall be paid the Withdrawal Amount within 60 days
     of his or her election. Once the Withdrawal Amount is paid, the
     Participant's participation in the Plan shall terminate and the Participant
     shall not be eligible to participate in the Plan for the remainder of that
     Plan Year and the next two full Plan Years. The payment of this Withdrawal
     Amount shall not be subject to the Deduction Limitation.

                                    ARTICLE 5
                               Retirement Benefit

5.1  Retirement Benefit. Subject to the Deduction Limitation, a Participant who
     Retires shall receive, as a Retirement Benefit, his or her Account Balance.

5.2  Payment of Retirement Benefit. A Participant, in connection with his or her
     commencement of participation in the Plan, shall elect on an Election Form

<PAGE>

     to receive the Retirement Benefit in a lump sum or, if he or she so elects,
     pursuant to an Annual Installment Method of 5, 10 or 15 years. The
     Participant may annually change his or her election to an allowable
     alternative payout period by submitting a new Election Form to the
     Committee, provided that any such Election Form is submitted at least 3
     years prior to the Participant's Retirement and is accepted by the
     Committee in its sole discretion. The Election Form most recently accepted
     by the Committee shall govern the payout of the Retirement Benefit. If a
     Participant does not make any election with respect to the payment of the
     Retirement Benefit, then such benefit shall be payable in a lump sum. The
     lump sum payment shall be made, or installment payments shall commence, no
     later than 60 days after the last day of the Plan Year which the
     Participant Retires. Notwithstanding anything contained in this Plan to the
     contrary, the Participant may make a separate election as to the manner in
     which his or her Retirement Benefit shall be paid following a Change in
     Control.

5.3  Death Prior to Completion of Retirement Benefit. If a Participant dies
     after Retirement but before the Retirement Benefit is paid in full, the
     Participant's unpaid Retirement Benefit payments shall continue and shall
     be paid to the Participant's Beneficiary (a) over the remaining number of
     years and in the same amounts as that benefit would have been paid to the
     Participant had the Participant survived, or (b) in a lump sum, if
     requested by the Beneficiary and allowed in the sole discretion of the
     Committee, that is equal to the Participant's unpaid remaining Account
     Balance. Notwithstanding the foregoing, if the Participant's Account
     Balance at the time of his or her death after his or her Retirement is
     $35,000 or less, then the Committee may pay the proceeds to the
     Participant's Beneficiary in a lump sum.

                                    ARTICLE 6
                        Pre-Retirement Survivor Benefit

6.1  Pre-Retirement Survivor Benefit. Subject to the Deduction Limitation, the
     Participant's Beneficiary shall receive a Pre-Retirement Survivor Benefit
     equal to the Participant's Account Balance if the Participant dies before
     he or she Retires or experiences a Termination of Employment.

6.2  Payment of Pre-Retirement Survivor Benefit. A Participant, in connection
     with his or her commencement of participation in the Plan, shall elect on
     an Election Form whether the Pre-Retirement Survivor Benefit shall be
     received by his or her Beneficiary in a lump sum or pursuant to an Annual
     Installment Method of 5, 10 or 15 years. The Participant may annually
     change this election to an allowable alternative payout period by
     submitting a new Election Form to the Committee, which form must be
     accepted by the Committee in its sole discretion. The Election Form most
     recently accepted by the Committee prior to the Participant's death shall
     govern the payout of the Participant's Pre-Retirement Survivor Benefit. If
     a Participant does not make any election with respect to the payment of the
     Pre-Retirement Survivor Benefit, then such benefit shall be paid in a lump
     sum. Despite the foregoing, if the Participant's Account Balance at the
     time of his or her death is less than $35,000, payment of the
     Pre-Retirement Survivor Benefit may be made, in the sole discretion of the
     Committee, in a lump sum. Any payment made shall be subject to the
     Deduction Limitation.

<PAGE>

                                    ARTICLE 7
                              Termination Benefit

7.1  Termination Benefit. Subject to the Deduction Limitation, the Participant
     shall receive a Termination Benefit, which shall be equal to the
     Participant's Account Balance if a Participant experiences a Termination of
     Employment prior to his or her Retirement or death.

7.2  Payment of Termination Benefit. Payment of his or her Termination Benefit
     shall be paid in a lump sum as soon as practicable after the Participant's
     Termination of Employment; provided, however, that if the Participant's
     Termination of Employment occurs prior to a Change in Control, the
     Committee, in its complete and sole discretion, may elect to pay the
     Termination Benefit pursuant to an Annual Installment Method of 5, 10 or 15
     years rather than in a lump sum. Any payment made shall be subject to the
     Deduction Limitation. Notwithstanding anything contained in this Plan to
     the contrary, the Participant may make a separate election as to the manner
     in which his or her Termination Benefit shall be paid following a Change in
     Control.

                                    ARTICLE 8
                            Beneficiary Designation

8.1  Beneficiary. Each Participant shall have the right, at any time, to
     designate his or her Beneficiary(ies) (both primary as well as contingent)
     to receive any benefits payable under the Plan to a beneficiary upon the
     death of a Participant. The Beneficiary designated under this Plan may be
     the same as or different from the Beneficiary designation under any other
     plan of an Employer in which the Participant participates.

8.2  Beneficiary Designation; Change. A Participant shall designate his or her
     Beneficiary by completing and signing the Beneficiary Designation Form, and
     returning it to the Committee or its designated agent. A Participant shall
     have the right to change a Beneficiary by completing, signing and otherwise
     complying with the terms of the Beneficiary Designation Form and the
     Committee's rules and procedures, as in effect from time to time. Upon the
     acceptance by the Committee of a new Beneficiary Designation Form, all
     Beneficiary designations previously filed shall be canceled. The Committee
     shall be entitled to rely on the last Beneficiary Designation Form filed by
     the Participant and accepted by the Committee prior to his or her death.

8.3  Acknowledgment. No designation or change in designation of a Beneficiary
     shall be effective until received and acknowledged in writing by the
     Committee or its designated agent.

8.4  No Beneficiary Designation. If a Participant fails to designate a
     Beneficiary as provided in Sections 8.1, 8.2 and 8.3 above or, if all
     designated Beneficiaries predecease the Participant or die prior to
     complete distribution of the Participant's benefits, then the Participant's
     designated Beneficiary shall be deemed to be his or her surviving spouse.
     If the Participant has no surviving spouse, the benefits remaining under
     the Plan to be paid to a Beneficiary shall be payable to the executor or
     personal representative of the Participant's estate.

<PAGE>

8.5  Doubt as to Beneficiary. If the Committee has any doubt as to the proper
     Beneficiary to receive payments pursuant to this Plan, the Committee shall
     have the right, exercisable in its discretion, to cause the Participant's
     Employer to withhold such payments until this matter is resolved to the
     Committee's satisfaction.

8.6  Discharge of Obligations. The payment of benefits under the Plan to a
     Beneficiary shall fully and completely discharge all Employers and the
     Committee from all further obligations under this Plan with respect to the
     Participant, and that Participant's Plan Agreement shall terminate upon
     such full payment of benefits.

                                    ARTICLE 9
                                Leave of Absence

9.1  Paid Leave of Absence. If a Participant is authorized by the Participant's
     Employer for any reason to take a paid leave of absence from the employment
     of the Employer, the Participant shall continue to be considered employed
     by the Employer and the Annual Deferral Amount shall continue to be
     withheld during such paid leave of absence in accordance with Section 3.3.

9.2  Unpaid Leave of Absence. If a Participant is authorized by the
     Participant's Employer for any reason to take an unpaid leave of absence
     from the employment of the Employer, including during any period of the
     Participant's disability, the Participant shall continue to be considered
     employed by the Employer and the Participant shall be excused from making
     deferrals until the earlier of the date the leave of absence expires or the
     Participant returns to a paid employment status. Upon such expiration or
     return, deferrals shall resume for the remaining portion of the Plan Year
     in which the expiration or return occurs, based on the deferral election,
     if any, made for that Plan Year. If no election was made for that Plan
     Year, no deferral shall be withheld.

                                   ARTICLE 10
                     Termination, Amendment or Modification

10.1 Termination. Although each Employer anticipates that it will continue the
     Plan for an indefinite period of time, there is no guarantee that any
     Employer will continue the Plan or will not terminate the Plan at any time
     in the future. Accordingly, each Employer reserves the right to discontinue
     its sponsorship of the Plan and/or to terminate the Plan at any time with
     respect to any or all of its participating Employees and Directors, by
     action of its board of directors. Upon the termination of the Plan with
     respect to any Employer, the Plan Agreements of the affected Participants
     who are employed by that Employer, or in the service of that Employer as
     Directors, shall terminate and their Account Balances, determined as if
     they had experienced a Termination of Employment on the date of Plan
     termination or, if Plan termination occurs after the date upon which a
     Participant was eligible to Retire, then with respect to that Participant
     as if he or she had Retired on the date of Plan termination, shall be paid
     to the Participants as follows: Prior to a Change in Control, if the Plan
     is terminated with respect to all of its Participants, an Employer shall
     have the right, in its sole discretion, and notwithstanding any elections
     made by the Participant, to pay such benefits in a lump sum or pursuant to
     an Annual Installment Method of up to 15 years, with amounts credited and
     debited during the installment period as provided herein. If the Plan is
     terminated with respect to less than all of its Participants, an Employer
     shall be required to pay such benefits in a lump sum. After a Change in

<PAGE>

     Control, the Employer shall be required to pay such benefits in a lump sum.
     The termination of the Plan shall not adversely affect any Participant or
     Beneficiary who has become entitled to the payment of any benefits under
     the Plan as of the date of termination; provided however, that the Employer
     shall have the right to accelerate installment payments without a premium
     or prepayment penalty by paying the Account Balance in a lump sum or
     pursuant to an Annual Installment Method using fewer years (provided that
     the present value of all payments that will have been received by a
     Participant at any given point of time under the different payment schedule
     shall equal or exceed the present value of all payments that would have
     been received at that point in time under the original payment schedule).

10.2 Amendment. Any Employer may, at any time, amend or modify the Plan in whole
     or in part with respect to that Employer by the action of its board of
     directors; provided, however, that: (i) no amendment or modification shall
     be effective to decrease or restrict the value of a Participant's Account
     Balance in existence at the time the amendment or modification is made,
     calculated as if the Participant had experienced a Termination of
     Employment as of the effective date of the amendment or modification or, if
     the amendment or modification occurs after the date upon which the
     Participant was eligible to Retire, the Participant had Retired as of the
     effective date of the amendment or modification, and (ii) no amendment or
     modification of this Section 10.2 or Section 11.2 of the Plan shall be
     effective. The amendment or modification of the Plan shall not affect any
     Participant or Beneficiary who has become entitled to the payment of
     benefits under the Plan as of the date of the amendment or modification;
     provided, however, that the Employer shall have the right to accelerate
     installment payments by paying the Account Balance in a lump sum or
     pursuant to an Annual Installment Method using fewer years (provided that
     the present value of all payments that will have been received by a
     Participant at any given point of time under the different payment schedule
     shall equal or exceed the present value of all payments that would have
     been received at that point in time under the original payment schedule).

10.3 Plan Agreement. Despite the provisions of Sections 10.1 and 10.2 above, if
     a Participant's Plan Agreement contains benefits or limitations that are
     not in this Plan document, the Employer may only amend or terminate such
     provisions with the consent of the Participant.

10.4 Effect of Payment. The full payment of the applicable benefit under
     Articles 4, 5, 6, or 7 of the Plan shall completely discharge all
     obligations to a Participant and his or her designated Beneficiaries under
     this Plan and the Participant's Plan Agreement shall terminate.

<PAGE>

                                   ARTICLE 11
                                 Administration

11.1 Committee Duties. Except as otherwise provided in this Article 11, this
     Plan shall be administered by the Compensation Committee of the Board.
     Members of the Committee may be Participants under this Plan. The Committee
     shall also have the discretion and authority to (i) make, amend, interpret,
     and enforce all appropriate rules and regulations for the administration of
     this Plan and (ii) decide or resolve any and all questions including
     interpretations of this Plan, as may arise in connection with the Plan. Any
     individual serving on the Committee who is a Participant shall not vote or
     act on any matter relating solely to himself or herself. When making a
     determination or calculation, the Committee shall be entitled to rely on
     information furnished by a Participant or the Company.

11.2 Administration Upon Change In Control. For purposes of this Plan, the
     Committee shall be the "Administrator" at all times prior to the occurrence
     of a Change in Control. Upon and after the occurrence of a Change in
     Control, the "Administrator" shall be an independent third party selected
     and approved by the individual who, immediately prior to such event, was
     the Company's Chief Executive Officer or, if not so identified, the
     Company's highest ranking officer (the "Ex-CEO"). The Administrator shall
     have the discretionary power to determine all questions arising in
     connection with the administration of the Plan and the interpretation of
     the Plan including, but not limited to benefit entitlement determinations;
     provided, however, upon and after the occurrence of a Change in Control,
     the Administrator shall have no power to direct the investment of Plan
     assets or select any investment manager or custodial firm for the Plan.
     Upon and after the occurrence of a Change in Control, the Company must: (1)
     pay all reasonable administrative expenses and fees of the Administrator;
     (2) indemnify the Administrator against any costs, expenses and liabilities
     including, without limitation, attorney's fees and expenses arising in
     connection with the performance of the Administrator hereunder, except with
     respect to matters resulting from the gross negligence or willful
     misconduct of the Administrator or its employees or agents; and (3) supply
     full and timely information to the Administrator or all matters relating to
     the Plan, the Participants and their Beneficiaries, the Account Balances of
     the Participants, the date of circumstances of the Retirement, death or
     Termination of Employment of the Participants, and such other pertinent
     information as the Administrator may reasonably require. Upon and after a
     Change in Control, the Administrator may be terminated (and a replacement
     appointed) by the Ex-CEO. Upon and after a Change in Control, the
     Administrator may not be terminated by the Company.

11.3 Agents. In the administration of this Plan, the Committee may, from time to
     time, employ agents and delegate to them such administrative duties as it
     sees fit (including acting through a duly appointed representative) and may
     from time to time consult with counsel who may be counsel to any Employer.

11.4 Binding Effect of Decisions. The decision or action of the Administrator
     with respect to any question arising out of or in connection with the
     administration, interpretation and application of the Plan and the rules
     and regulations promulgated hereunder shall be final and conclusive and
     binding upon all persons having any interest in the Plan.

<PAGE>

11.5 Indemnity of Committee. All Employers shall indemnify and hold harmless the
     members of the Committee, and any Employee to whom the duties of the
     Committee may be delegated, and the Administrator against any and all
     claims, losses, damages, expenses or liabilities arising from any action or
     failure to act with respect to this Plan, except in the case of willful
     misconduct by the Committee, any of its members, any such Employee or the
     Administrator.

11.6 Employer Information. To enable the Committee and/or Administrator to
     perform its functions, the Company and each Employer shall supply full and
     timely information to the Committee and/or Administrator, as the case may
     be, on all matters relating to the compensation of its Participants, the
     date and circumstances of the Retirement, death or Termination of
     Employment of its Participants, and such other pertinent information as the
     Committee or Administrator may reasonably require.

                                   ARTICLE 12
                         Other Benefits and Agreements

12.1 Coordination with Other Benefits. The benefits provided for a Participant
     and Participant's Beneficiary under the Plan are in addition to any other
     benefits available to such Participant under any other plan or program for
     employees of the Participant's Employer. The Plan shall supplement and
     shall not supersede, modify or amend any other such plan or program except
     as may otherwise be expressly provided.

                                   ARTICLE 13
                               Claims Procedures

13.1 Presentation of Claim. Any Participant or Beneficiary of a deceased
     Participant (such Participant or Beneficiary being referred to below as a
     "Claimant") may deliver to the Committee a written claim for a
     determination with respect to the amounts distributable to such Claimant
     from the Plan. If such a claim relates to the contents of a notice received
     by the Claimant, the claim must be made within 60 days after such notice
     was received by the Claimant. All other claims must be made within 180 days
     of the date on which the event that caused the claim to arise occurred. The
     claim must state with particularity the determination desired by the
     Claimant.

13.2 Notification of Decision. The Committee shall consider a Claimant's claim
     within a reasonable time, and shall notify the Claimant in writing:

     (a)  that the Claimant's requested determination has been made, and that
          the claim has been allowed in full; or

     (b)  that the Committee has reached a conclusion contrary, in whole or in
          part, to the Claimant's requested determination, and such notice must
          set forth in a manner calculated to be understood by the Claimant:

          (i)  the specific reason(s) for the denial of the claim, or any part
               of it;

          (ii) specific reference(s) to pertinent provisions of the Plan upon
               which such denial was based;

<PAGE>

          (iii) a description of any additional material or information
               necessary for the Claimant to perfect the claim, and an
               explanation of why such material or information is necessary; and

          (iv) an explanation of the claim review procedure set forth in Section
               13.3 below.

13.3 Review of a Denied Claim. Within 60 days after receiving a notice from the
     Committee that a claim has been denied, in whole or in part, a Claimant (or
     the Claimant's duly authorized representative) may file with the Committee
     a written request for a review of the denial of the claim. Thereafter, but
     not later than 30 days after the review procedure began, the Claimant (or
     the Claimant's duly authorized representative):

     (a)  may review pertinent documents;

     (b)  may submit written comments or other documents; and/or

     (c)  may request a hearing, which the Committee, in its sole discretion,
          may grant.

13.4 Decision on Review. The Committee shall render its decision on review
     promptly, and not later than 60 days after the filing of a written request
     for review of the denial, unless a hearing is held or other special
     circumstances require additional time, in which case the Committee's
     decision must be rendered within 120 days after such date. Such decision
     must be written in a manner calculated to be understood by the Claimant,
     and it must contain:

     (a)  specific reasons for the decision;

     (b)  specific reference(s) to the pertinent Plan provisions upon which the
          decision was based; and

     (c)  such other matters as the Committee deems relevant.

13.5 Legal Action. A Claimant's compliance with the foregoing provisions of this
     Article 13 is a mandatory prerequisite to a Claimant's right to commence
     any legal action with respect to any claim for benefits under this Plan.

                                   ARTICLE 14
                                      Trust

14.1 Establishment of the Trust. The Company may, but is not required to,
     establish a Trust, and, if established, each Employer shall at least
     annually transfer over to the Trust such assets as the Employer determines,
     in its sole discretion, are necessary to provide, on a present value basis,
     for its respective future liabilities created with respect to the Annual
     Deferral Amounts, Annual Company Matching Amounts, Annual Rollover Amounts
     and Annual Restricted Stock Amounts for such Employer's Participants for
     all periods prior to the transfer, as well as any debits and credits to the
     Participants' Account Balances for all periods prior to the transfer,

<PAGE>

     taking into consideration the value of the assets in the trust at the time
     of the transfer.

14.2 Interrelationship of the Plan and the Trust. The provisions of the Plan and
     the Plan Agreement shall govern the rights of a Participant to receive
     distributions pursuant to the Plan. If established, the provisions of the
     Trust shall govern the rights of the Employers, Participants and the
     creditors of the Employers to the assets transferred to the Trust. Each
     Employer shall at all times remain liable to carry out its obligations
     under the Plan.

14.3 Distributions From the Trust. If established, each Employer's obligations
     under the Plan may be satisfied with Trust assets distributed pursuant to
     the terms of the Trust, and any such distribution shall reduce the
     Employer's obligations under this Plan.

                                   ARTICLE 15
                                 Miscellaneous

15.1 Status of Plan. The Plan is intended to be a plan that is not qualified
     within the meaning of Code Section 401(a) and that "is unfunded and is
     maintained by an employer primarily for the purpose of providing deferred
     compensation for a select group of management or highly compensated
     employee" within the meaning of ERISA Sections 201(2), 301(a)(3) and
     401(a)(1). The Plan shall be administered and interpreted to the extent
     possible in a manner consistent with that intent.

15.2 Unsecured General Creditor. Participants and their Beneficiaries, heirs,
     successors and assigns shall have no legal or equitable rights, interests
     or claims in any property or assets of an Employer. For purposes of the
     payment of benefits under this Plan, any and all of an Employer's assets
     shall be, and remain, the general, unpledged unrestricted assets of the
     Employer. An Employer's obligation under the Plan shall be merely that of
     an unfunded and unsecured promise to pay money in the future.

15.3 Employer's Liability. An Employer's liability for the payment of benefits
     shall be defined only by the Plan and the Plan Agreement, as entered into
     between the Employer and a Participant. An Employer shall have no
     obligation to a Participant under the Plan except as expressly provided in
     the Plan and his or her Plan Agreement.

15.4 Nonassignability. Neither a Participant nor any other person shall have any
     right to commute, sell, assign, transfer, pledge, anticipate, mortgage or
     otherwise encumber, transfer, hypothecate, alienate or convey in advance of
     actual receipt, the amounts, if any, payable hereunder, or any part
     thereof, which are, and all rights to which are expressly declared to be,
     unassignable and non-transferable. No part of the amounts payable shall,
     prior to actual payment, be subject to seizure, attachment, garnishment or
     sequestration for the payment of any debts, judgments, alimony or separate
     maintenance owed by a Participant or any other person, be transferable by
     operation of law in the event of a Participant's or any other person's
     bankruptcy or insolvency or be transferable to a spouse as a result of a
     property settlement or otherwise.

15.5 Not a Contract of Employment. The terms and conditions of this Plan shall
     not be deemed to constitute a contract of employment between any Employer
     and the Participant. Such employment is hereby acknowledged to be an "at

<PAGE>

     will" employment relationship that can be terminated at any time for any
     reason, or no reason, with or without cause, and with or without notice,
     unless expressly provided in a written employment agreement. Nothing in
     this Plan shall be deemed to give a Participant the right to be retained in
     the service of any Employer, either as an Employee or a Director, or to
     interfere with the right of any Employer to discipline or discharge the
     Participant at any time.

15.6 Furnishing Information. A Participant or his or her Beneficiary will
     cooperate with the Committee by furnishing any and all information
     requested by the Committee and take such other actions as may be requested
     in order to facilitate the administration of the Plan and the payments of
     benefits hereunder, including but not limited to taking such physical
     examinations as the Committee may deem necessary.

15.7 Terms. Whenever any words are used herein in the masculine, they shall be
     construed as though they were in the feminine in all cases where they would
     so apply; and whenever any words are used herein in the singular or in the
     plural, they shall be construed as though they were used in the plural or
     the singular, as the case may be, in all cases where they would so apply.

15.8 Captions. The captions of the articles, sections and paragraphs of this
     Plan are for convenience only and shall not control or affect the meaning
     or construction of any of its provisions.

15.9 Governing Law. Subject to ERISA, the provisions of this Plan shall be
     construed and interpreted according to the internal laws of the State of
     Indiana without regard to its conflicts of laws principles.

15.10 Notice. Any notice or filing required or permitted to be given to the
     Committee under this Plan shall be sufficient if in writing and
     hand-delivered, or sent by registered or certified mail, to the address
     below:

          Vectren Corporation
          20 N.W. Fourth Street
          Evansville, Indiana 47708
          Attn: Senior Vice President, Human Resources
          cc: Secretary of Vectren Corporation

     Such notice shall be deemed given as of the date of delivery or, if
     delivery is made by mail, as of the date shown on the postmark on the
     receipt for registration or certification.

     Any notice or filing required or permitted to be given to a Participant
     under this Plan shall be sufficient if in writing and hand-delivered, or
     sent by mail, to the last known address of the Participant.

15.11 Successors. The provisions of this Plan shall bind and inure to the
     benefit of the Participant's Employer and its successors and assigns and
     the Participant and the Participant's designated Beneficiaries.

<PAGE>

15.12 Validity. In case any provision of this Plan shall be illegal or invalid
     for any reason, said illegality or invalidity shall not affect the
     remaining parts hereof, but this Plan shall be construed and enforced as if
     such illegal or invalid provision had never been inserted herein.

15.13 Incompetent. If the Committee determines in its discretion that a benefit
     under this Plan is to be paid to a minor, a person declared incompetent or
     to a person incapable of handling the disposition of that person's
     property, the Committee may direct payment of such benefit to the guardian,
     legal representative or person having the care and custody of such minor,
     incompetent or incapable person. The Committee may require proof of
     minority, incompetence, incapacity or guardianship, as it may deem
     appropriate prior to distribution of the benefit. Any payment of a benefit
     shall be a payment for the account of the Participant and the Participant's
     Beneficiary, as the case may be, and shall be a complete discharge of any
     liability under the Plan for such payment amount.

15.14 Court Order. The Committee is authorized to make any payments directed by
     court order in any action in which the Plan or the Committee has been named
     as a party. In addition, if a court determines that a spouse or former
     spouse of a Participant has an interest in the Participant's benefits under
     the Plan in connection with a property settlement or otherwise, the
     Committee, in its sole discretion, shall have the right, notwithstanding
     any election made by a Participant, to immediately distribute the spouse's
     or former spouse's interest in the Participant's benefits under the Plan to
     that spouse or former spouse.

15.15 Distribution in the Event of Taxation.

     (a)  In General. If, for any reason, all or any portion of a Participant's
          benefits under this Plan becomes taxable to the Participant prior to
          receipt, a Participant may petition the Committee before a Change in
          Control, or the trustee of the Trust after a Change in Control, for a
          distribution of that portion of his or her benefit that has become
          taxable. Upon the grant of such a petition, which grant shall not be
          unreasonably withheld (and, after a Change in Control, shall be
          granted), a Participant's Employer shall distribute to the Participant
          immediately available funds in an amount equal to the taxable portion
          of his or her benefit (which amount shall not exceed a Participant's
          unpaid Account Balance under the Plan). If the petition is granted,
          the tax liability distribution shall be made within 90 days of the
          date when the Participant's petition is granted. Such a distribution
          shall affect and reduce the benefits to be paid under this Plan.

     (b)  Trust. If a Trust is established and the Trust terminates in
          accordance with Section 3.6(e) of the Trust and benefits are
          distributed from the Trust to a Participant in accordance with that
          Section, the Participant's benefits under this Plan shall be reduced
          to the extent of such distributions.

15.16 Insurance. The Employers, on their own behalf or, if applicable, on behalf
     of the trustee of the Trust, and, in their sole discretion, may apply for
     and procure insurance on the life of the Participant, in such amounts and
     in such forms as the Trust may choose. The Employers or the trustee of the
     Trust, as the case may be, shall be the sole owner and beneficiary of any

<PAGE>

     such insurance. The Participant shall have no interest whatsoever in any
     such policy or policies, and at the request of the Employers shall submit
     to medical examinations and supply such information and execute such
     documents as may be required by the insurance company or companies to whom
     the Employers have applied for insurance.

15.17 Legal Fees To Enforce Rights After Change in Control. The Company and each
     Employer is aware that upon the occurrence of a Change in Control, the
     Board or the board of directors of a Participant's Employer (which might
     then be composed of new members) or a shareholder of the Company or the
     Participant's Employer, or of any successor corporation might then cause or
     attempt to cause the Company, the Participant's Employer or such successor
     to refuse to comply with its obligations under the Plan and might cause or
     attempt to cause the Company or the Participant's Employer to institute, or
     may institute, litigation seeking to deny Participants the benefits
     intended under the Plan. In these circumstances, the purpose of the Plan
     could be frustrated. Accordingly, if, following a Change in Control, it
     should appear to any Participant that the Company, the Participant's
     Employer or any successor corporation has failed to comply with any of its
     obligations under the Plan or any agreement thereunder or, if the Company,
     such Employer or any other person takes any action to declare the Plan void
     or unenforceable or institutes any litigation or other legal action
     designed to deny, diminish or to recover from any Participant the benefits
     intended to be provided, then the Company and the Participant's Employer
     irrevocably authorize such Participant to retain counsel of his or her
     choice at the expense of the Company and the Participant's Employer (who
     shall be jointly and severally liable) to represent such Participant in
     connection with the initiation or defense of any litigation or other legal
     action, whether by or against the Company, the Participant's Employer or
     any director, officer, shareholder or other person affiliated with the
     Company, the Participant's Employer or any successor thereto in any
     jurisdiction.

     IN WITNESS WHEREOF, the Company has signed this amended and restated Plan
document as of October 26, 2001.

                                    "Company"

                                    VECTREN CORPORATION

                                    By:  /s/ Robert L. Koch, II
                                    ----------------------------------------
                                         Robert L. Koch, II
                                         Title:   Chairman of the Compensation
                                                  Committee of the Board
                                                  of DirectorRETIREMENT AGREEMENT

         This Retirement Agreement (this "Agreement") is entered into on this
31st day of May, 2001 between Timothy M. Hewitt ("Executive") and Vectren
Corporation ("Vectren").

         WHEREAS, Executive and Vectren are parties to an Employment Agreement
dated as of March 31, 2000 (the "Employment Agreement");

         WHEREAS, Executive and Vectren desire that Executive retire from
employment with Vectren prior to the expiration of the Employment Agreement; and

         WHEREAS, Executive and Vectren have negotiated the following terms and
conditions for Executive's retirement.

         NOW THEREFORE, in consideration of the foregoing premises and the
agreement contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows.

         1. Retirement. Executive hereby tenders Executive's voluntarily
retirement from Vectren effective 11:59 p.m. Central Standard Time May 31, 2001
(the "Retirement Date"). Until that time, Executive will continue to be employed
by Vectren pursuant to the terms of the Employment Agreement. The Employment
Agreement will terminate as of the Retirement Date and Executive acknowledges
and agrees that as of the Retirement Date, Vectren shall have no further
obligations to Executive under the Employment Agreement.

         2. Severance. Vectren agrees to pay Executive a post-retirement
severance payment in the gross sum of $1,234,530.00, less all applicable payroll
withholdings, including all state, local, and federal taxes (the "Retirement
Payment"). The Retirement Payment shall be reported by Vectren on the
appropriate W-2 form and shall be made as follows:

         (a)      $333,350.00 in one lump sum; and

         (b)      $901,180.00 shall be payable on January 1, 2002.

         No Retirement Payment shall be made until after the effective date of
this Agreement (as determined pursuant to Section 8). All payment shall be
mailed to Executive's address listed in Vectren's records within 30 days
following the payment due date.

<PAGE>

          3. Welfare Benefits. During the Term (as defined in Section 12),
Executive shall continue to be eligible to participate in the health insurance
plan, the dental insurance plan, the vision insurance plan, the accidental death
and disability plan (in the amount of Executive's most recent base salary) and
the executive long term disability plan (collectively the "Welfare Benefit
Plans") of Vectren. Such participation by Executive during the Term shall be
governed by the terms and conditions of the respective Welfare Benefit Plan, as
such terms and conditions are amended, restated, canceled or replaced from time
to time. During the Term, Vectren and Executive shall continue to pay their
respective portions of the premium payments under such Welfare Benefit Plans in
accordance with the terms of the respective Welfare Benefit Plan, and Executive
shall be billed quarterly for Executive's portion of such premium. After the
Term until Executive is age 65, Executive's ability to continue to participate
in Vectren's health insurance plan shall be governed by the terms of such health
insurance plan as in effect at that time and thereafter. After age 65 and until
the death of Executive, during such time as Executive is covered by Medicare,
Vectren will reimburse Executive for Executive's cost of Medicare Part B up to a
maximum amount of $109.80 per calendar quarter and Executive will be eligible to
participate in Vectren's Medicare supplement plan. After the Term, Executive's
ability to continue to participate in Vectren's executive long term disability
plan shall be governed by the terms of such executive long term disability plan
as in effect at that time and thereafter. If Executive elects to continue the
executive long term disability plan, then (i) Executive shall provide Vectren
with written notice of such election on or before the end of the Term, (ii)
Executive shall become responsible for all premium payments under the long term
disability plan on and after the end of the Term, and (iii) Executive shall be
responsible for and pay all taxes associated with the election to continue the
long term disability plan by Executive. Nothing in this Agreement shall in any
way limit Vectren's ability to amend, restate, cancel or replace any such
Welfare Benefit Plan and the Medicare supplement plan in Vectren's sole
discretion.

         4. Split Dollar Life Insurance. During the Term, the split dollar life
insurance policy covering Executive shall remain in effect. During the Term,
Vectren and Executive shall continue to pay their respective portions of the
premium payments under such split dollar life insurance policy in accordance
with the terms of the policy and the parties past practice, and Executive shall
be billed quarterly for Executive's portion of such premium. Upon expiration or
earlier termination of the Term, Executive shall have the option to assume the
split dollar life insurance policy. If Executive elects to assume the split
dollar life policy then (i) Executive shall provide Vectren with written notice
of such assumption on or before the end of the Term, (ii) Executive shall become
responsible for all premium payments under the split dollar life insurance
policy on and after the end of the Term, (iii) Executive shall be responsible
for and pay any and all taxes associated with the assumption of such split
dollar life insurance policy by Executive, and (iv) Executive shall transfer to
Vectren the portion of the cash value required to be repaid up to, but not in
excess of, Vectren's unreimbursed premium toward the split dollar life
insurance. If the split dollar life policy is not assumed by Executive and is
terminated, Vectren shall be entitled to and shall be paid by Executive or his
heirs or estate, if not already paid to Vectren or offset by Vectren from
amounts due to Executive, the cash value of the split dollar life insurance
policy.

<PAGE>

         5. Acknowledgment of Retirement Status. Executive shall be deemed
"retired" pursuant to the terms of the Vectren Corporation Executive Restricted
Stock Plan ("Restricted Stock Plan"). Vectren acknowledges that the Chief
Executive Officer (the "CEO") has consented to the early retirement of Executive
under the Restricted Stock Plan. Executive acknowledges and agrees that as a
result of Executive's retirement and the receipt of consent of such early
retirement from the CEO, Executive is entitled to 1,644 restricted shares from
the grant of restricted shares made to Executive as of October 1, 2000 under the
Restricted Stock Plan and the balance of the restricted shares granted as of
such date are forfeited. Executive further acknowledges and agrees that the
restricted shares to which Executive is entitled remain subject to the terms and
conditions of the Restricted Stock Plan including, but not limited to, the
restrictions and forfeiture provisions contained in the Restricted Stock Plan.
Notwithstanding anything contained herein to the contrary, Executive's rights
under the Vectren Corporation Nonqualified Deferred Compensation Plan (the
"Deferred Compensation Plan") shall be governed by the provisions set forth in
the Deferred Compensation Plan and not this Agreement.

         6.       General Release and Waiver.

               (a)  Executive  hereby  agrees  that  in  order  to  receive  the
          considerations  set forth in this  Agreement,  and for other  good and
          valuable  consideration  including the Retirement Payment, the receipt
          and adequacy of which is hereby  acknowledged,  Executive was required
          to  sign  this  Agreement  and  that  Executive,   for  Executive  and
          Executive's  heirs,  representatives,  successors and assigns,  hereby
          WAIVES, RELEASES and FOREVER DISCHARGES Vectren, Vectren's current and
          former  affiliates  and their  predecessors  and  successors and their
          respective officers, directors,  shareholders,  employees, and agents,
          both  individually and in their official  capacities,  from any claim,
          demand,  action,  cause of action, or right,  known or unknown,  which
          arose at any time  from the  beginning  of time to the date  Executive
          executes  this  Agreement  relating to,  arising out of, or in any way
          connected  with   Executive's   employment,   the  cessation  of  that
          employment, or the compensation or benefits payable in connection with
          that employment or the cessation of that employment including, but not
          limited to, any claim, demand,  action, cause of action or right based
          on but not limited to: (i) the Age Discrimination in Employment Act of
          1967,  as amended,  29 U.S.C.  * 621, et seq.  and the Older  Workers'
          Benefit  Protection  Act;  (ii)  Title VII of the Civil  Rights Act of
          1964, as amended,  42 U.S.C. * 2000(e),  et seq.;  (iii) the Americans
          With Disabilities Act of 1990, as amended, 42 U.S.C. * 12101, et seq.;
          (iv) the  Family & Medical  Leave Act of 1993,  29 U.S.C.  * 2601,  et
          seq.;  (v) the Indiana Civil Rights Law,  IND.  CODE 22-9-1,  et seq.;
          (vi) the Fair Labor Standards Act, 29 U.S.C. * 201, et seq.; (vii) any
          existing or potential entitlement or benefit under any Vectren program
          or plan; (viii) any agreement,  contract,  or representation,  whether
          oral or  written,  express  or  implied;  and (ix) any other  federal,
          state,  or local  law,  whether  emanating  or arising  from  statute,
          constitution, executive order, regulation, common law, or other source
          including,  but  not  limited  to,  any  action  sounding  in  tort or
          contract, any action relating to age, sex, disability, racial or other
          discrimination or any action for wrongful discharge.

                  (b) Executive does not hereby waive or release (i) any right
         or claim that may arise after the date of this Agreement or (ii) any
         non-forfeitable rights or benefits the Executive has accrued under any
         tax qualified retirement plan.

<PAGE>

                  (c) Executive is specifically agreeing that Executive is
         WAIVING, RELEASING and FOREVER DISCHARGING any claim, demand, action,
         cause of action or right arising out of or relating to the termination
         of Executive's employment, recognizing that the decision to terminate
         employment is being made now, even though actual termination of
         employment is taking effect later, and that the termination will take
         place as provided in this Agreement without any further action on the
         part of either Executive or Vectren.

         7.       Confidentiality and Non-Competition.

                  (a) Confidentiality Executive agrees to hold in a fiduciary
         capacity for the benefit of Vectren all secret or confidential
         information, knowledge or data relating to Vectren or any of its
         affiliated companies, and their respective businesses, which shall have
         been obtained by Executive during Executive's employment by Vectren or
         any of its affiliated companies and which shall not be or become public
         knowledge (other than by acts by Executive or representatives of
         Executive in violation of this Agreement). After the Retirement Date,
         Executive shall not, without the prior written consent of Vectren or as
         may otherwise be required by law or legal process (provided Vectren has
         been given notice of and opportunity to challenge or limit the scope of
         disclosure purportedly so required), communicate or divulge any such
         information, knowledge or data to anyone other than Vectren and those
         designated by it. In addition, Executive shall not solicit employees of
         Vectren for the period beginning on the Retirement Date and ending on
         the date one (1) year after the Term (as hereinafter defined).

                  (b) Non-Compete. From the Retirement Date until the end of the
         second year following the end of the Term, Executive will not directly
         or indirectly, own, manage, operate, control or participate in the
         ownership, management, operation or control of, or be connected as an
         officer, employee, partner, director or otherwise with, or have any
         financial interest in, any business which competes, or that is planning
         to compete, with the utility business of Vectren or any of its
         affiliates or any other business in which Vectren or any of its
         affiliates are engaged immediately prior to the Retirement Date or
         during the Term in: (i) Indiana; (ii) Ohio, (iii) Michigan, (iv)
         Illinois; (v) Kentucky; and (vi) the United States. The parties
         expressly agree that the terms of this limited non-competition
         provision under this section are reasonable, enforceable, and necessary
         to protect Vectren's interests, and are valid and enforceable. In the
         unlikely event, however, that a court of competent jurisdiction were to
         determine that any portion of this limited non-competition provision is
         unenforceable, then the parties agree that the remainder of the limited
         non-competition provision shall remain valid and enforceable to the
         maximum extent possible.

<PAGE>

                  (c) Damages; Specific Enforcement/Injunctive Relief. Executive
         agrees that it would be difficult to measure damages to Vectren from
         any breach of the covenants contained in subsections (a) and (b) above,
         but that such damages from any breach would be great, incalculable and
         irremediable, and that damages would be an inadequate remedy.
         Accordingly, Executive agrees that upon a breach of any of the
         covenants contained in subsections (a) and (b) above (i) Vectren may
         have specific performance of the terms of this Agreement in any court
         permitted by this Agreement and (ii) Executive shall immediately return
         any payment paid pursuant to this Agreement including, but not limited
         to, the Retirement Payment and waive any future payment pursuant to
         this Agreement including, but not limited to, the Retirement Payment.
         The parties agree, however, that specific performance, the return and
         waiver of payments and the other remedies described herein shall not be
         the exclusive remedies, and Vectren may enforce any other remedy or
         remedies available to it either in law or in equity including, but not
         limited to, temporary, preliminary, and/or permanent injunctive relief.

         8. Return of Property. Except as otherwise provided in Section 12(d),
immediately upon the request of Vectren, Executive agrees to return to the
custody of Vectren all Vectren property and proprietary information, as well as
all copies thereof, that are in Executive's possession, custody or control. This
includes all tangible personal property (such as keys, credit cards, computers,
hand held devices, cell phones, etc.) and all writings, contracts, records,
files, tape recordings, correspondence, communications, summaries, data, notes,
memoranda, diskettes, or any other source containing information which relates
to or references Vectren and which was provided by Vectren or obtained as a
result of Executive's employment with Vectren.

         9. Covenant Not to Sue. Executive agrees that Executive will not
commence any legal action or lawsuit, or otherwise assert any legal claim, in
violation of the waiver and release contained in this Agreement or on any claim
released in this Agreement, except to the extent such right to bring a legal
action may not be waived by law. Executive agrees that if Executive violates
this covenant not to sue or this Agreement (a) that Executive's lawsuit is null
and void, and must be summarily withdrawn and/or dismissed; (b) that Executive
shall pay all costs, expenses, and damages incurred by Vectren in defending
against and as a result of Executive's lawsuit, including reasonable attorneys'
fees; (c) that Executive shall pay all costs and expenses incurred by Vectren in
seeking enforcement of this Agreement; and (d) that Executive shall immediately
return any payment paid pursuant to this Agreement including, but not limited
to, the Retirement Payment and waive any future payment pursuant to this
Agreement including, but not limited to, the Retirement Payment.

         10. Knowledge and Understanding. Executive acknowledges that before
Executive signed this Agreement: (a) Executive was advised to consult with an
attorney prior to executing this Agreement, (b) Executive had a period of
twenty-one (21) days within which to consider this Agreement; and (c) Executive
is fully aware of Executive's rights, and has carefully read and fully
understands all provisions of this Agreement. Executive further acknowledges
that this Agreement has been signed freely, knowingly, and voluntarily and that
Executive has not been threatened or coerced into signing this Agreement.
Executive further acknowledges that to the extent Executive has signed this
Agreement less than twenty-one (21) days after it was furnished to Executive,
Executive does so for Executive's own personal reasons and with an understanding
that Executive could have taken the full twenty-one (21) days to consider this
Agreement.

<PAGE>

         11. Revocation and Effective Date. For a period of seven (7) days
following Executive's execution of this Agreement, Executive may revoke this
Agreement by submitting a written revocation to Vectren. Executive may revoke
this Agreement during the revocation period for any reason or no reason at all.
This Agreement shall not become effective or enforceable, and the payments and
benefits stated above shall not become payable or due, until this Agreement has
been signed by both parties and the revocation period has expired without this
Agreement being revoked by either party. If this Agreement is not timely revoked
by either party, it shall become effective and enforceable on the eighth (8th)
day after it is executed by both parties.

         12.      Consulting Agreement.

                  (a) Commencement of Consulting Services. As of the Retirement
         Date, Vectren hereby appoints and engages Executive after the
         Retirement Date as an independent contractor and not as an employee,
         and Executive hereby accepts appointment and engagement as a consultant
         to Vectren, upon the terms and conditions contained in this Section.

                  (b) Term. Executive shall provide the services described in
         this Section beginning on the Retirement Date and ending three years
         after the Retirement Date, unless, prior to such date, Executive or
         Vectren terminates, with or without cause, Executive's services (the
         "Term").

                  (c) Activities of Executive. During the Term, Executive shall
         undertake for and on behalf of, and to the extent requested by, Vectren
         subject to the limitations set forth herein, to advise Vectren: (i)
         with respect to the business of Vectren as it exists on the Retirement
         Date or (ii) with respect to other matters relating to the business of
         Vectren and within the knowledge of Executive for which consultation
         shall reasonably be requested by Vectren from time to time. In
         performing the consulting work for Vectren, Executive shall (i) be
         available to advise Vectren by telephone, electronically, in writing or
         in person during the first year of the Term, (ii) be available to
         advise Vectren by telephone during the second and third years of the
         Term, (iii) have no formal schedule of duties or assignments, (iv) be
         required to perform services for Vectren a minimum of 20 hours per
         month, (v) be subject to control and supervision of Vectren, and (vi)
         be required to comply with any detailed orders and instructions given
         by Vectren from time to time.

                  (d) Time and Place for the Performance of Executive's Duties.
         In performing consulting work for Vectren, Executive shall (i) work at
         such times as either Executive may elect or as Vectren may reasonably
         request, and (ii) shall perform consulting work at such locations as
         Vectren may reasonably require. Vectren shall provide Executive with
         office space, furniture and supplies (including a computer, cell phone,
         telephone, access to copy machine and access to fax machine) to be used
         by Executive solely for performing the services required hereunder and
         shall reimburse Executive for his reasonable out of pocket expenses
         incurred solely in connection with performing the services required
         hereunder, all as Vectren shall reasonably determine from time to time
         until the earlier of (i) the expiration or earlier termination of the
         Term, (ii) Vectren's cessation of doing regular business at the
         building located at 1630 North Meridian Street, Indianapolis, Indiana,
         or (iii) the date Executive begins employment with a third party.

<PAGE>

                  (e) Non-Performance Payment. If Executive fails to perform the
         services required under this Agreement for the full three year period,
         then Executive shall immediately pay to Vectren, or at Vectren's option
         permit Vectren to offset from any amount payable to Executive, $50,000
         for each year and portion thereof that Executive did not perform the
         services required; provided, however, such payments or offset shall not
         be effected unless Vectren provides Executive with written notice of
         Executive's failure to perform the services required and Executive
         fails to cure such failure to the satisfaction of Vectren within five
         calendar days after receipt of such notice.

                  (f) Applicability of Provisions and Extension of Time Periods.
         Executive acknowledges and agrees that the confidentiality and
         non-competition provisions contained in Section 4 of this Agreement
         shall be applicable during the Term (provided the provision of
         consulting services provided pursuant to this Section shall be
         permitted) and shall be applicable after the Term for the period
         provided in Section 4 as if the Retirement Date was the end of the
         Term.

                  (g) Tax Treatment. The parties agree that payments hereunder
         (i) constitute ordinary income to Executive, (ii) are deductible by
         Vectren, (iii) do not constitute wages for purposes of Federal Income
         Contributions Act ("FICA") but constitute earnings from self-employment
         for purposes of FICA and are therefore the responsibility of Executive.
         The parties agree to file tax returns and pay taxes consistent with
         this subsection, to resist (and cooperate with each other in resisting)
         any assertion to the contrary by any governmental agency and to
         indemnify each other from and against any loss or expense by reason of
         a breach of the foregoing.

                  13.      Miscellaneous.

                  (a) This Agreement shall apply to Executive, as well as to
         Executive's heirs, executors, and administrators. This Agreement also
         shall apply to, and inure to the benefit of, Vectren, the predecessors,
         successors, and assigns of Vectren and each of their respective past,
         present, or future employees, agents, representatives, trustees,
         officers, or directors.

                  (b) The parties agree that the provisions of this Agreement
         are both reasonable and enforceable. However, if any provision of this
         Agreement were determined to be unenforceable or invalid, the parties
         agree that such provision shall be enforced to the maximum extent
         permitted by law and that the remaining provisions shall remain in full
         force and effect.

                  (c) This Agreement shall not be considered to create an escrow
         account, trust fund or other funding arrangement of any kind or a
         fiduciary relationship between Executive and Vectren.

<PAGE>

                  (d) Executive shall not have any right to anticipate, pledge,
         alienate or assign any rights under this Agreement and any effort to do
         so shall be null and void. The amounts payable under this Agreement
         shall be exempt from the claims of creditors or other claimants and
         from all orders, decrees, levies and executions and any other legal
         process to the fullest extent that may be permitted by law.

                  (e) The parties acknowledge and agree that this Agreement
         shall be governed, interpreted, and enforced under the laws of the
         State of Indiana, without regard to conflicts of law principles.

                  (f) This Agreement sets forth the complete agreement between
         the parties relating to the subject matter herein. Executive
         acknowledges and agrees that, in executing this Agreement, Executive
         does not rely and has not relied upon any representations or statements
         not set forth herein made by Vectren with regard to the subject matter,
         basis, or effect of this Agreement or otherwise.

                  (g) Any prior agreement between Executive and Vectren and/or
         Vectren's predecessors or their past and present affiliates relating to
         Executive's employment, including, but not limited to, the Employment
         Agreement (the "Prior Agreements") are terminated as of the Retirement
         Date without any remaining obligations of either party thereunder and
         are as of the Retirement Date superseded by this Agreement. All
         payments made under this Agreement are in full satisfaction of all
         amounts due Executive under the Prior Agreements.

                 (h) This Agreement may not be amended or modified other than
         by a written agreement executed by the parties hereto.

                  (i) All notices and other communications hereunder shall be in
         writing and shall he given by hand delivery to the other party or by
         registered or certified mail, return receipt requested, postage
         prepaid, addressed as follows:

         If to Executive:                            If to Vectren:
         ---------------                             -------------

         Timothy M. Hewitt                           Vectren Corporation
         1992 Inverness                              20 N.W. Fourth Street
         Greenwood, IN  46143                        Evansville, Indiana  47708
                                                     Attn: Ronald E. Christian,
                                                     General Counsel

         or to such other address as either party shall have furnished to the
         other in writing in accordance herewith. Notice and communications
         shall be effective when actually received by the addressee.

<PAGE>

                  (j) This Agreement may be executed in counterparts and when
         executed shall constitute one agreement.

                     [signature page immediately following]

<PAGE>

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

                                    "Vectren"

                                            Vectren Corporation

                                            By:  /s/Richard G. Lynch
                                            -------------------------
                                            Printed: Richard G. Lynch
                                            Title: Sr. Vice President

                                   "Executive"

                                            /s/Timothy M. Hewitt
                                            --------------------------------
                                            Printed: Timothy M. Hewitt

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