Document:

Directors Deferred Compensation Plan

 Exhibit 10.13 
  
 ALLEGHENY ENERGY, INC. 
  
 STOCK UNIT PLAN 
  
 1. Purpose And Effective Date. The purpose of the Stock Unit Plan (the “Plan”) is to aid Allegheny Energy, Inc. (the
“Company”) in attracting and retaining employees who are essential for the growth and profitability of the Company through the issuance of stock units (“Units”). This Plan shall become effective upon its approval by
the Board of Directors of the Company (the “Board”). Upon such approval, and the consent of each of the Executive Officers specified on Exhibit A attached hereto, the 3,414,048 Units, previously granted to such Executive
Officers (the “Outstanding Units”) shall become subject to the terms and conditions of the Plan. 
  
 2. Administration. Subject to all applicable legal requirements, including without limitation, compliance with securities, tax or other laws, or
rules, regulations or regulatory interpretations thereof, applicable to the Plan, or the requirements of the exchanges, and any requirements of other governmental or regulatory authorities, the Plan shall be administered by the Board, which shall
have the sole authority to construe and interpret the terms and provisions of the Plan. The Board shall have the authority to determine the individuals to whom Units shall be granted (the “Participants”), the conditions under which
such Units may become vested and or forfeited, and such other terms and conditions as the Board may establish with respect to such Units. Each Participant shall enter into an agreement with the Company evidencing the terms and conditions of the
Company’s award to such Participant of Units pursuant to this Plan (a “Stock Unit Agreement”). Each Stock Unit Agreement shall provide that, upon vesting, each Participant shall be entitled to receive one share of the
Company’s common stock, $1.25 par value (“Common Stock”), with respect to each Unit and shall be subject to the terms and conditions of this Plan. Each such share of Common Stock shall be registered under the Securities
Exchange Act of 1933, as amended. In addition, a Stock Unit Agreement may grant a Participant rights with respect to dividends paid by the Company during the period such Unit was held, as well as a right to defer payments with respect to vested
Units. The Board shall maintain records and disburse payments hereunder. The Board may adopt, amend and rescind such rules and regulations as it deems necessary, desirable or appropriate in administering the Plan, and the Board may act at a meeting,
in a written action without meeting or by having actions otherwise taken by a member of the Board pursuant to a delegation of duties from the Board. The determination of the Board as to any calculations or disputed questions arising under the Plan,
including questions of construction and interpretation, shall be final, binding and conclusive upon all persons. 

 3. Units. 
  
 3.1 Subject to adjustment as provided in Section 3.2, the number of Units authorized under the Plan is 4,500,000, inclusive
of the Outstanding Units. If any award pursuant to this Plan is forfeited or otherwise terminates or is canceled prior to the vesting of any Units, then the Units covered by such award, to the extent of such forfeiture, termination or cancellation,
shall again be available under the Plan. 
  
 3.2 In the event that
(A) the Board determines that any distribution, recapitalization, split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of shares of Common Stock or other securities of the Company,
issuance of warrants or other rights to purchase shares of Common Stock or other securities of the Company, or other similar transaction or event affects the Units such that an adjustment is appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan, then the Board shall, in such manner as it may deem equitable, adjust (i) the number of Units with respect to which awards may be granted and (ii) the number of Units
subject to outstanding awards; provided, that the number of Units subject to any award shall always be a whole number. 
  
 3.3 No Units may be awarded under this Plan unless such award is made pursuant to a transaction which qualifies for one of the exemptions from stockholder
approval set forth in Rule 303A.08 of the rules of the New York Stock Exchange and the Company has complied with all applicable stock exchange rules and obtained any required regulatory approvals. 
  
 3.4 Participants shall not be deemed for any purpose to be, or have any
rights as, stockholders of the Company with respect to any Units awarded under this Plan except if, as and when the Company issues payment in respect of any vested Units in the form of shares of Common Stock and then only from the date of the
certificates therefor. 
  

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 4. Amendment And Discontinuance. 
  
 4.1 The Board may amend this Plan or condition or modify Units issued under this Plan (a) to conform this Plan to securities
or other laws, or rules, regulations or regulatory interpretations thereof, applicable to this Plan, or (b) to comply with stock exchange rules or requirements. 
  

4.2 The Board may suspend or discontinue this Plan in whole or in part, but any such suspension or discontinuance shall not affect the rights of any
Participants with respect to Units granted under this Plan prior thereto. 
  
 4.3 Notwithstanding anything to the contrary in this Section 4, any amendment to this Plan must comply with all applicable legal requirements including without limitation, compliance with securities, tax, or other
laws, or rules, regulations or regulatory interpretations thereof, applicable to this Plan. 
  
 5. Compliance With Applicable Legal Requirements. No payments in respect of any vested Units shall be made unless the Company has complied with all applicable legal requirements including without limitation,
compliance with the provisions of the Securities Act of 1933, as amended, the Public Utilities Holding Company Act of 1935, as amended, the requirements of the exchanges on which the Company’s securities are listed, and any requirements of
other governmental or regulatory authorities. 
  
 6. Term of
the Plan. The Plan shall be effective on the date of its approval by the Board and shall continue until the date terminated by the Board or until Units are no longer available for grants of awards under the Plan, whichever occurs first. However,
unless otherwise expressly provided in the Plan or in an applicable Stock Unit Agreement granted prior to such termination, any award granted prior to such termination shall extend beyond such termination date. 
  
 7. Source of Payments. Any right of a Participant to receive payment
pursuant to this Plan shall be an unfunded entitlement and shall be an unsecured claim against the general assets of the Company. Each Participant shall have only the status of a general unsecured creditor hereunder, and this Plan shall constitute
only a promise by the Company to pay the value of any awards granted on any required payment date. 
  

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 8. Withholding. The Company may withhold from any amounts payable pursuant to this Plan such
Federal, state and local taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
  
 9. No Right to Employment. Nothing in this Plan shall confer upon a Participant the right to remain employed by the Company. 
  
 10. Governing Law. This Plan will be governed by and construed in
accordance with the laws of the State of New York, without regard to its conflict of law principles. 
  

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 EXHIBIT A 
  

			
	 Executive Officers

	 	 Outstanding Units

	 Paul J. Evanson
	 	2,049,439
	 Jeffrey D. Serkes
	 	714,795
	 David B. Hertzog
	 	389,888
	 Joseph H. Richardson
	 	109,926
	 Philip L. Goulding
	 	150,000
	 Total
	 	3,414,048Form of Stock Unit Agreement

 Exhibit 10.14 
  
 

 
  
 STOCK UNIT AGREEMENT

  
 AGREEMENT, dated as of <DATE>, by and between
Allegheny Energy, Inc., a Maryland corporation (“the Company”), and <NAME> (the “Employee”). 
  
 WHEREAS, the Company has issued an Offer Letter to the Employee, dated as of <DATE> (the “Offer Letter”), and the Employee has
acknowledged his acceptance thereof; 
  
 WHEREAS, the Company has
granted the Employee <###> stock units in accordance with the Offer Letter (the “Stock Units”); 
  
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the Employee and the Company agree as
follows: 
  
 1. The Stock Unit Account. The Company shall
credit to a bookkeeping account (the “Account”) maintained by the Company for the Employee’s benefit the <###> Stock Units, each of which shall be deemed to be the equivalent of one common share of the Company (the
“Stock”). One-fifth of the Stock Units will vest on each of the first, second, third, fourth and fifth anniversary of the Start Date (as such term is defined in the Offer Letter ); provided that the Employee is still employed by any
of Allegheny Energy Service Corporation (“AESC”), the Company, the affiliates and subsidiaries of AESC and the Company, and any successors or assigns of any of the foregoing (the “AE Companies”) on the applicable vesting date.
Notwithstanding the preceding sentence, the Employee shall be fully vested in all of the Stock Units upon the occurrence of a Change in Control (as such term is defined in the Change in Control Agreement annexed to the Offer Letter) or upon the
termination of his employment as a result of his death or disability. 
  
 The Company agrees that whenever any cash dividends are declared on the Stock, on the date such dividend is paid, the Company will credit to the Account of the Employee a number of additional Stock Units (the “Additional Stock
Units”) equal to the result of dividing (i) the product of the total number of Stock Units and Additional Stock Units credited to the Employee’s Account on the record date for such dividend and the per share amount of such dividend by (ii)
the per share closing price of the Stock on the date on which the relevant dividend is paid by the Company to the holders of Stock as quoted in the NYSE Composite Transaction Listing in The Wall Street Journal. Additional Stock Units shall be
or become vested and payable to the same extent as the Stock Units which resulted in the crediting of such Additional Stock Units. If, at any time, there occurs an event resulting in an adjustment pursuant to Section 9.08 of the Company’s 1998
Long-Term Incentive Plan, a corresponding adjustment shall be made to the number of Stock Units and Additional Stock Units then credited to the Account. 
  
 2. Payment of the Account. Except as otherwise provided in this Agreement, on each date that any Stock Unit shall vest hereunder (each, a
“Payment Date”), the Company shall make a payment to the Employee in Stock as provided in Section 3 hereof with respect to the number of vested Stock Units and vested Additional Stock Units then credited to his Account. 
  
 3. Form of Payment. Payments pursuant to Section 2 shall be made in
registered Stock equal to the number of vested Stock Units and vested Additional Stock Units in the Employee’s Account on the Payment Date. Such payment shall be made as soon as practicable after the Payment Date, but in no case more than ten
(10) business days after the Payment Date. The Employee may elect to defer any Payment Date to any later date specified in an election notice delivered by the Employee to the Company as specified in Section 4 hereof. 

 

 
  
 4. Deferral Election. The
Employee may elect to defer any Payment Date to a later date or dates specified by the Employee by delivering to the Company a Deferral Election Notice in the form of Exhibit A hereto. In order to be effective, such Deferral Election Notice must be
received by the Company at least one year in advance of the scheduled Payment Date to which such Deferral Election Notice relates; provided, however, that a Deferral Election Notice received by the Company within thirty (30) days of
the date hereof shall be effective for purposes of deferring the first scheduled Payment Date hereunder. If the Employee elects to defer any Payment Date in accordance with this Section 4, all payments in Stock scheduled to be made on such Payment
Date with respect to any Stock Units or Additional Stock Units shall instead be made in accordance with the Deferral Election Notice. Notwithstanding any other provisions of this Agreement to the contrary, the Employee’s election to defer any
Payment Date shall not affect the vesting date of any of the Stock Units as set forth in Section 1 hereof. 
  
 Each Deferral Election Notice shall specify the Payment Date that the Employee wishes to defer, the percentage of the Employee’s Stock Units and
Additional Stock Units vesting on such Payment Date that the Employee wishes to defer, and the date or dates to which the Employee wishes to defer payment with respect to such Stock Units and Additional Stock Units. A Deferral Notice shall be
irrevocable and, once made, it may not be amended or revoked. Upon the termination of the Employee’s employment with the AE Companies for any reason, the Payment Date with respect to all vested deferred amounts shall be accelerated to the date
of such termination of employment. Notwithstanding the preceding sentence, the Employee may specify in his Deferral Election Notice that, in the event of the termination of his employment for any reason, the Payment Date shall instead be accelerated
to January 2 of the year following the year of such termination of employment. Notwithstanding any Deferral Election Notice, all Stock Units and Additional Stock Units shall become immediately payable upon the occurrence of a Change in Control.

  
 Dividends shall continue to be credited to the Employee’s
Account as Additional Stock Units, as specified in the second paragraph of Section 1 with respect to any Stock Units and Additional Stock Units that are the subject of a Deferral Election Notice under this Section 4, until the deferred Payment Date
with respect to such Stock Units and Additional Stock Units. 
  
 5. Beneficiary. In the event of the Employee’s death prior to the payment with respect to all of the Stock Units and Additional Stock Units credited to his Account, the remaining payments shall be made to the last beneficiary
designated in writing which is received by the Company prior to the Employee’s death or, if no designated beneficiary survives the Employee, such payments shall be made in a lump sum to the Employee’s estate. 
  
 6. Source of Payments. The Employee’s right to receive payment
under this Agreement shall be an unfunded entitlement and shall be an unsecured claim against the general assets of the Company. The Employee has only the status of a general unsecured creditor hereunder, and this Agreement constitutes only a
promise by the Company to pay the value of the Account on any required payment date. The Company may withhold from any amounts payable under this Agreement such Federal, state and local taxes as shall be required to be withheld pursuant to any
applicable law or regulation. 
  
 7. Nontransferability.
This Agreement shall not be assignable or transferable by the Employee (otherwise than by will or the laws of descent and distribution) or by the Company (other than to successors of the Company), and no amounts deferred under this Agreement, or any
rights therein, shall be subject in any manner to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, levy, lien, attachment, garnishment, debt or other charge or disposition of any kind. 
  

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 8. No Right to Employment.
Nothing in this Agreement shall confer upon the Employee the right to remain in employment with the Company. 
  
 9. Entire Agreement. This Agreement and the Offer Letter contain all the understandings between the parties hereto pertaining to the matters
referred to herein, and supersede all undertakings and agreements, whether oral or in writing, previously entered into by them with respect thereto. 
  
 10. Amendment or Modification; Waiver. No provision of this Agreement may be amended, modified or waived unless such amendment or modification is
agreed to in writing, signed by the Employee and by a duly authorized officer of the Company, and such waiver is set forth in writing and signed by the party to be charged. No waiver by any party hereto of any breach by another party hereto of any
condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar condition or provision at the same time, any prior time or any subsequent time. 
  
 11. Notices. Any notice to be given hereunder shall be in writing and
shall be deemed given when delivered personally, sent by courier or telecopy or registered or certified mail, postage prepaid, return receipt requested, addressed to the party concerned at the address indicated below or to such other address as such
party may subsequently give notice of hereunder in writing: 
  
 If to the Employee: 
  
 The last known address

 on file with the records of the Company 
  
 If to the Company: 
  
 Allegheny Energy, Inc. 
 800 Cabin Hill Drive

 Greensburg, PA 15601 
 Attn:
General Counsel 
  
 Any notice delivered personally or by courier
under this Section 11 shall be deemed given on the date delivered and any notice sent by telecopy or registered or certified mail, postage prepaid, return receipt requested, shall be deemed given on the date telecopied or mailed. 
  
 12. Severability. If any provision of this Agreement or the
application of any such provision to any party or circumstances shall be determined by any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement or the application of such provision to such
person or circumstances, other than those to which it is so determined to be invalid and unenforceable, shall not be affected thereby, and each provision hereof shall be validated and shall be enforced to the fullest extent permitted by law.

  

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 13. Successors. This
Agreement shall inure to the benefit of and be binding upon each successor of the Company, and upon the Employee’s beneficiaries, legal representatives or estate, as the case may be. 
  
 14. Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of
this Agreement to the extent necessary to the intended preservation of such rights and obligations. 
  
 15. Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of Pennsylvania, without regard to its
conflict of law principles. 
  
 16. Headings. All
descriptive headings of sections and paragraphs in this Agreement are intended for convenience of reference only, and they form no part of this Agreement and shall not affect its interpretation. 
  
 17. Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

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

			
	 ALLEGHENY ENERGY, INC.

		
	 By:
	 	  

		
	 	 	  

	 	 	 <NAME>

  

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