Document:

WEC 12.31.2012 Ex 10.18

Exhibit 10.18

CONSULTING AGREEMENT 

THIS AGREEMENT is made as of this 7th day of January, 2013, between WISCONSIN ENERGY CORPORATION, on behalf of itself and its subsidiaries (collectively, the "Company"), and Frederick D. Kuester (the "Consultant").

The Consultant is voluntarily retiring from the employment of the Company as of the close of business on January 4, 2013 (the "Final Retirement Date"). The Consultant has significant experience in the utility industry and considerable knowledge of the Company's generating system, including the construction of major generating facilities. As a result, the Company wishes to obtain the benefits of a consulting agreement ("Agreement") with the Consultant and the Consultant is willing to enter into this Agreement and provide consulting services in accordance with the terms below:

NOW, THEREFORE, in consideration of the terms set forth below, the parties agree as follows:

		
	1.
	Consulting Services. After the Final Retirement Date, the Consultant agrees to consult with the Company on major construction projects ("Services"). With respect to such Services, the parties agree as follows:

		
	(a)
	The initial term of this Agreement shall commence on January 7, 2013, and shall remain in effect for twelve (12) months thereafter, unless terminated by either party pursuant to Paragraph 1(i), below. After the twelve month initial term, this Agreement shall automatically renew on a month to month basis until it is terminated by either party pursuant to Paragraph 1(i), below.

		
	(b)
	The Consultant will be solely responsible for determining the means, manner and method by which he will perform the Services, the times at which those Services will be performed and the sequence of performance of such Services.

		
	(c)
	The Company will pay the Consultant for the consulting services a monthly fee of $9500.00 dollars for the Services ("Consulting Fee"). The fees specified in this Paragraph 1(c) shall be the sole remuneration paid by the Company to Consultant in exchange for the Services provided by Consultant under this Agreement.  Consultant will maintain records for all time spent on the Services. Payment for the Services will be due at the end of each month, upon the Consultant's production of an invoice for the Services. All invoices are to be directed to the Company, to the attention of the Chairman, as follows: Mr. Gale E. Klappa, Chairman, Wisconsin Energy Corporation, Suite P440, 231 West Michigan Street, Milwaukee, Wisconsin 53203.

		
	(d)
	Consultant will present periodic oral progress reports to the Company on request.

		
	(e)
	The Company will reimburse the Consultant reasonable travel expenses. Consultant shall provide such equipment as shall be necessary to provide the Services. 

		
	(f)
	The Consultant is free to perform services for any other person or business during the term of this Agreement provided Consultant does not render services, without the prior written approval of the Chairman of the Company, to any other utility, and further provided that such other services do not preclude or conflict with his performance of the Services.

		
	(g)
	The Consultant acknowledges that he will not be an employee of the Company or any of its affiliates during the term of this Agreement and that he will not be treated as an employee for federal or state tax purposes, but as an independent contractor.  In acknowledging that Consultant is an independent contractor, Consultant agrees that Consultant shall not be entitled to participate in any insurance or other fringe benefits provided by the Company to its active employees and that the Company shall not be required hereunder to withhold nor shall the Company withhold any income, social security, unemployment or other tax or similar payments from the amounts payable to Consultant under this Agreement, it being agreed by Consultant that Consultant shall file all necessary tax returns and pay all necessary taxes consistent with Consultant's status as an independent contractor, and Consultant is liable for any applicable taxes on the amounts earned by Consultant under this Agreement.

		
	(h)
	Services performed under this Agreement will be at the direction of Gale E. Klappa, Chairman, President, and CEO of the Company. The parties agree that Gale E. Klappa  has the sole and absolute discretion to determine the scope of the Services. Consultant will not be subject to the direct supervision of the Company. Consultant shall perform all duties that may be required of and from him pursuant to the terms of this Agreement to the reasonable satisfaction of the Company.

		
	(i)
	Either the Company or the Consultant shall have the right at any time and for any reason whatsoever, upon thirty (30) days written notice to the other, to terminate the Agreement.  In the event of termination of the Agreement, the Consultant shall be paid for any outstanding Services performed and reasonable travel expenses actually incurred prior to and including the date of termination.

		
	2.
	Ownership of Documents. All plans, designs, drawings, specifications, calculations, data, information and reports prepared, obtained, developed or furnished to or for the Company in the performance of the Services shall become the sole property of the Company and may not be released, disclosed or published in whole or in part to others without the written permission of the Company.

		
	3.
	Confidentiality.  In order that the Consultant may effectively provide fulfillment of this Agreement to the Company, it may be necessary or desirable for the Company to disclose confidential and proprietary information pertaining to the Company's past, present and future activities.  Consultant shall not disclose Confidential Information of the Company to any third party.  The foregoing obligation shall not apply to any information that (i) is at the time of disclosure, or thereafter becomes, part of the public domain through no wrongful act or omission of the Consultant, (ii) is subsequently received from a third party having no obligation of confidentiality to the Company, or (iii) is required to be disclosed by lawful order of a court or regulatory body having jurisdiction.  For purposes of this Agreement, “Confidential Information” shall mean any confidential or proprietary information of the Company.  The confidentiality provisions of this Agreement shall remain in full force and effect after the termination of this Agreement.

		
	4.
	Limited Liability.  Consultant will not be liable to the Company for any acts or omissions in the performance of the Services unless such acts or omissions constitute or result from gross negligence or willful misconduct by the Consultant.  The Company will indemnify and hold Consultant harmless from any obligations, losses, costs, claims, judgments, damages, and expenses (including reasonable attorneys' fees) arising out of, resulting from, or in any way connected with the Services, unless Consultant is found by a court of competent jurisdiction to have been grossly negligent or to have engaged in willful misconduct.  The Company may, at its option and at its own expense, assume the defense as to any such claim.

		
	5.
	Entire Agreement; Amendments. This Agreement contains the entire understanding and agreement between the parties with respect to the matters covered and supersedes all other

prior agreements and understandings (excepting solely the December 30, 2008 Amended and Restated Senior Officer Employment and Non-Compete Agreement executed between Wisconsin Energy Corporation and Consultant (the "Employment Agreement"), written or oral, between the parties with respect thereto. This Agreement may not be amended except by a written instrument signed by the parties. Nothing contained in this Agreement shall be construed to modify the Employment Agreement or eliminate any obligations under the Employment Agreement.

		
	6.
	Notices. Except as otherwise provided above, all communications concerning this Agreement shall be in writing and shall be deemed to have been duly given when delivered or five business days after having been mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed to the Company to the attention of Susan H. Martin, General Counsel, Wisconsin Energy Corporation, 231 West Michigan Street, Milwaukee, Wisconsin 53203 (telephone 414-221-2712; fax 414-221-2185) and to the Consultant, to the attention of Frederick D. Kuester, [            ]), or to such other address as any party may have furnished to the other in writing in accordance herewith, except that notices of a change of address shall be effective only upon receipt.

		
	7.
	Waiver.  A waiver by the Company of the breach of any of the provisions of this Agreement shall not be deemed to be a waiver by the Company of any subsequent breach. No provision of this Agreement may be waived other than in writing signed by both parties.

		
	8.
	Invalidity.  The obligations imposed by this Agreement are severable and should be construed independently of each other. The invalidity of one provision shall not affect the validity of any other provision. The parties agree that, should any portion of this Agreement be deemed unreasonable and/or unenforceable, the Agreement shall be construed, and may be modified, to make its terms reasonable, enforceable and applicable to the fullest extent possible consistent with the law.

		
	9.
	Severability.  Whenever possible, each provision of the Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of the Agreement should be prohibited or invalid, in whole or in part, under applicable law, such provisions shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of the Agreement.

IN WITNESS WHEREOF, the parties have signed this Agreement on the date first written above.

WISCONSIN ENERGY CORPORATION

	
				
	By:
	  /s/ Gale E. Klappa
	 
	  /s/ Frederick D. Kuester

	 
	Gale E. Klappa
	 
	Frederick D. Kuester

	 
	Chairman, President and CEOWEC 12.31.2012 Ex 10.20

Exhibit 10.20

December 20, 2010

Mr. Patrick Keyes
[            ]
[            ]

Dear Pat:

On behalf of Wisconsin Energy Corporation, I am pleased to confirm the offer of employment I have extended to you for the position of Vice President and Treasurer of Wisconsin Energy Corporation reporting to Mr. Allen Leverett, Executive Vice President and Chief Financial Officer.  Your start date will be mutually agreed to at a later date but is expected to be no later than April 30, 2011.

The annual base salary offered for this position is $265,000, payable in accordance with the Company's regular payroll practices.  Other compensation and benefits associated with this offer are outlined below.

Special Signing Bonus
You will receive a special signing bonus of $100,000 payable promptly after reporting for work.  This amount is subject to all applicable taxes.  

Annual Incentive Plan
In addition to your base salary, you will participate in the Short-Term Performance Plan.  Under this plan, your target award level is 40 percent of base salary.  Payment is earned when you and the Company meet pre-established performance targets based on WEC financial performance and results against certain operational targets.  Since the plan has an upside potential of 200% of the target award, payments may range from 0% to 80% of your base salary based on the degree to which the performance goals are met.  Participation in this plan is reviewed annually.

Long-Term Incentive Awards
You will participate in the long-term incentive plan with a target compensation level of 69 percent of base salary. Awards may be in the form of stock options, restricted stock, performance units or such other form as approved by the Compensation Committee.  The current practice is to award 80% of the target compensation level in the form of performance units, 10% in stock options, and 10% in restricted stock.  These weightings and the forms of awards are subject to annual review.

401(k)
You will be eligible to participate in the company's 401(k) plan.  The company matches 100% of the first 1 percent of participant contributions and 50% of the next 6 percent of participant contributions, resulting in a 4% match on participant contributions of 7%.

Deferred Compensation
You will be eligible to participate in the Executive Deferred Compensation Plan, which allows deferral of a portion of base salary and incentive awards into a nonqualified account.  You will have the opportunity to select among a variety of investment alternatives for any amounts you elect to defer.  The company matches amounts deferred to the plan consistent with the matching formula applied to the 401(k).

Pension Benefit
The company offers a cash balance type defined benefit pension plan with a minimum annual contribution of 5% of base salary and annual incentive.  Interest on this account is credited annually.  Pension benefits are provided through both a tax-qualified and nonqualified plan to ensure that IRS limits on compensation recognized by the qualified plan do not impact the overall pension benefit.

Supplemental Pension Benefit 
The company will establish a notional account to provide supplemental pension benefits.  The account will be credited with $100,000 at the time you commence employment and will vest upon attainment of age 60 or completion of 10 years of service, whichever comes first.  The account will be credited with interest annually at the same rate applied to balances in the qualified pension plan.

Medical and Dental Benefits
You will be eligible to participate in the medical and dental benefit plans available to other management employees of the company.  

Life Insurance
You will be eligible for group term life insurance at two times your base salary at no cost.  You will also be eligible to purchase voluntary life insurance for up to an additional three times your base salary.

In addition, you will participate in a Death Benefit Only Plan, which provides a benefit of three times your then current base salary to your beneficiary if you should die while employed with the company.  

Long-term disability 
After six months of employment, you will be eligible for long-term disability benefits, which would begin on the 181st day after you become disabled.  The company provides 60% base salary replacement at no cost to you.  You will have the option to increase the benefit to 65% or 70% of salary, with the premium being paid by you.

Vacation
You will be eligible for 20 days of vacation annually.  Vacation eligibility for 2011 will be pro-rated based on your date of hire.  You will continue to have 20 days of vacation until the year in which the next increment of vacation is allocated under company policy.  Currently, the policy would provide an additional week of vacation to you at each 7 year service anniversary, up to a maximum of 6 weeks.  In addition, the company currently provides 10 paid holidays.

Financial Planning
You will be credited with an annual financial planning benefit of $9,000.  You will have discretion to choose the provider.

Annual Physical Benefit
You will be eligible to receive an executive physical annually at no cost to you. 

All benefits described above which are further defined in plan documents are subject to all of the terms in those documents which supersede any other description.  Management reserves the right in its discretion to change or terminate all current benefit plans or practices and other policies and procedures.  

This offer is contingent upon the successful outcome of a criminal background investigation and a pre-employment drug screen.  The pre-employment drug screen timing will be communicated to you at a later date and you will be expected to comply with the screening requirement within 24 hours of notification. In addition, your employment would be considered at-will; that is, you could be discharged for any reason or no reason at all, at any time and without notice, and likewise, you may resign at any time and without notice.  

This offer supersedes but hopefully confirms all prior discussions and will remain open until 
January 14, 2011.  Please acknowledge the details of this offer and your acceptance on the line below and return it to me.  An additional copy of this offer is enclosed for your records.  If you have any questions regarding the details of this offer, please feel free to contact me or Allen Leverett directly.

Sincerely,

/s/ Gale E. Klappa

Gale E. Klappa
Chairman, President and Chief Executive Officer

 
I have reviewed and accept this offer of employment.  

	
		
	Signature:  /s/ James Patrick Keyes
	Date January 4, 2011

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