Document:

EX-10.43

 Exhibit 10.43 

Pepco Holdings, Inc. 

2016 NON-MANAGEMENT DIRECTOR COMPENSATION ELECTION AGREEMENT 

I understand that I am permitted to elect, with respect to the compensation due me for my services as a director of Pepco Holdings, Inc. (the
“Company”), either (i) to receive my cash compensation currently in the form of cash or (ii) to defer the receipt of my cash compensation under the terms of the Company’s Second Revised and Restated Executive and Director
Deferred Compensation Plan (the “Deferred Compensation Plan”). In addition, I understand that I am permitted to elect to receive my stock-based compensation granted pursuant to the terms of the 2012 Long-Term Incentive Plan (the “2012
LTIP”), or to defer the settlement of such stock-based compensation as permitted by the 2012 LTIP pursuant to a deferral program approved by the Board of Directors. If I choose to defer the receipt of my cash compensation, I must also complete
and return to the Company the attached Cash Retainer Deferral Allocation Form directing how the deferred funds are to be credited. 
 I
understand that, upon the completion of the proposed merger of a wholly owned subsidiary of Exelon Corporation with and into the Company, with the Company being the surviving corporation (the “Merger”), each share of Company common stock
and each share underlying stock-based awards of the Company will be converted in the right to receive $27.25 in cash, without interest (the “Cash Consideration”). I acknowledge that, if the Merger is consummated, each outstanding
restricted stock unit (“RSU”) award (whether vested or unvested) will be automatically converted into the right to receive the Cash Consideration with respect to the number of shares underlying such RSU award in accordance with the terms
and conditions of that certain Amended and Restated Agreement and Plan of Merger dated July 18, 2014 (the “Merger Agreement”). I understand that, if the Merger is completed, I will be entitled to receive the Cash Consideration with
respect to shares underlying any RSU award I may receive in 2016, as well as all outstanding RSU awards, the settlement of which previously has been deferred by me (a “Deferred Award”). I will receive the Cash Consideration upon the
closing of the Merger, or, if I made a prior irrevocable deferral election made with respect to a Deferred Award, at the time I specified in such deferral election. 

As a result, with respect to any deferral elections to be made with respect to 2016, I understand that I am being afforded the opportunity
hereby to: (i) provide for a contingent and alternate deferral election to the Company phantom shares account of the Deferred Compensation Plan if the Merger is completed during 2016; and (ii) elect to defer the payment of Cash
Consideration with respect to Deferred Awards into the Deferred Compensation Plan (other than the Company phantom shares account), which amounts would then become subject to, and distributed to me in accordance with, all of the applicable terms and
conditions of the Deferred Compensation Plan. 
 I am making the following elections with the understanding that the elections (i) will
apply to all of the compensation paid to me for service as a director in 2016 (and, if the Merger is completed in 2016, with respect to my (A) prior deferrals of annual retainers and meeting fees that have been credited to my Company phantom
shares account under the Deferred Compensation Plan and (B) Cash Consideration that will be deferred in accordance with election(s) I made in prior years with respect to Deferred Award(s)), (ii) once made, cannot be altered or revoked, and
(iii) apply to any such compensation paid to me in subsequent years for services as a director of the Company, unless I notify the Company of any changes, either in writing or by execution of a new election form prior to January 1 of the
year for which the changes are to take effect. 

	1.	Current Receipt or Deferral Election. 

 I hereby elect to receive my compensation for
services as a director of the Company as follows (the percentages for each type of compensation must total 100%): 
 a. Annual Cash
Retainer 
  

			
	                                      
  %	  	Cash (by check or direct deposit).
		
	                                      
  %	  	Credit to my account under the Deferred Compensation Plan, to be paid in cash at the time I elect in Item 2 below.

 b. Retainer Paid in Form of Restricted Stock Units (“RSUs”) 

I will receive an annual stock-based retainer award in the form of RSUs (and any associated dividend equivalents) under the 2012 LTIP, to be
settled in Common Stock as indicated below: 
  

			
	                                      
  %	  	Common Stock (registered as indicated herein) to be received upon settlement of the RSUs (and any associated dividend equivalents), shall be issued to me upon vesting of the RSUs as provided in the award agreement.
		
	                                      
  %	  	Common Stock (registered as indicated herein) to be received upon settlement of the RSUs (and any associated dividend equivalents), shall be deferred under the 2012 LTIP and paid in Common Stock at the time I elect in Item 3
below.

 c. Meeting Fees 
  

			
	                                      
  %	  	Cash (by check or direct deposit).
		
	                                      
  %	  	Credit to my account under the Deferred Compensation Plan, to be paid in cash at the time I elect in Item 2 below.

 d. Committee Chairman Retainer (please complete whether or not you currently are a committee chairman):

  

			
	                                      
  %	  	Cash (by check or direct deposit).
		
	                                      
  %	  	Credit to my account under the Deferred Compensation Plan, to be paid in cash at the time I elect in Item 2 below.

  

	2.	Cash Deferral Instructions. 

 If you have elected to have all or any portion of your cash
retainer(s) or meeting fees credited to your account under the Deferred Compensation Plan, please complete the following: 
 a. Payment
Instructions Related to Cash Amounts Deferred 
 I hereby elect to have the cash amounts I have deferred under the Deferred Compensation
Plan (and accruals thereon) paid to me beginning on the date selected below (check one): 
  

			
	                                      
    	  	On the first day of the month immediately following the month in which I cease to be a director.
		
	                                      
    	  	On January 31 of the year immediately following the month in which I cease to be a director.
		
	                                      
    	  	On January 31 of the year following the calendar year in which (i) I cease to be a director or (ii) I attain the age             , whichever is
later.
		
	                                      
    	  	On January 31 of              [insert year] or, if later, January 31 of the second calendar year following the calendar year which includes the first day
of the Plan year for which the election is made.
		  	

  
 2 

	b.	Manner of Payment 

 I hereby elect to have the cash amounts I have deferred under the
Deferred Compensation Plan (and accruals thereon) paid to me in the following manner (check one): 
  

			
	                                    	  	In a lump sum on the date of payment selected above.
		
	                                    	  	In equal annual installments over              consecutive years [insert a number of years between 2 and 15]
		  	beginning on the date selected above, with subsequent installments to be paid on each succeeding January 31.
		
	                                    	  	In equal monthly installments over              consecutive months [insert a number of months between 24 and 180] beginning on the date selected above.
			

 YOU MUST COMPLETE THE ATTACHED CASH RETAINER DEFERRAL ALLOCATION FORM TO INDICATE HOW YOU WISH TO HAVE
PREVIOUS DEFERRALS OF CASH CREDITED UNDER THE DEFERRED COMPENSATION PLAN, IF THE MERGER IS COMPLETED IN 2016, AND: 
  

	 	•	 	YOU ARE ELECTING TO DEFER CASH YOU WILL RECEIVE IN 2016 INTO THE PHANTOM SHARE ACCOUNT, OR 

  

	 	•	 	YOU HAVE DEFERRED CASH PAYMENTS IN PRIOR YEARS INTO THE PHANTOM SHARE ACCOUNT. 

IF YOU DO NOT COMPLETE THIS FORM AND YOU ARE DEFERRING OR HAVE DEFERRED CASH INTO THE PHANTOM SHARE ACCOUNT, IF THE MERGER IS COMPLETED IN
2016, SUCH DEFERRALS WILL NO LONGER BE CREDITED TO THE PHANTOM SHARE ACCOUNT AND WILL, BY DEFAULT, BE CREDITED TO THE PRIME RATE ACCOUNT. 
  

	3.	Stock-Based Award Deferral Instructions 

 If I have elected to defer the settlement of my
RSU award (and any associated dividend equivalents) under Item 1.b. above, I hereby elect payment to me (or, if applicable, my beneficiary) in a lump sum solely in shares of Common Stock on one of the dates I designate below (but only to the
extent that such award has vested): 
  

			
	                                    	  	On the first day of the month immediately following the month in which I cease to be a director.
		
	                                    	  	On January 31 of the year immediately following the month in which I cease to be a director.
		
	                                    	  	On January 31 of the year following the calendar year in which (i) I cease to be a director or (ii) I attain age             , whichever is
later.
		
	                                    	  	On January 31 of             [insert year] or, if later, January 31 of the second calendar year following the calendar year which includes the first day of
the Plan year for which the election is made.
		  	

  
 3 

 More information on the deferral of Stock-Based Awards under the 2012 LTIP is provided in
Item 6 below. 
 If I have elected under Item 1.b. above to defer the settlement of any RSU award that may be payable to me in
2015, or if I have a prior Deferred Award: 
  

	 	•	 	I understand that if the Merger is consummated in 2016, the payment of shares of Common Stock under such RSU awards will be automatically converted into my right (or, if applicable, the right of my beneficiary) to defer
the payment of the Cash Consideration per share with respect to such RSU award (and accruals thereon) under the Deferred Compensation Plan; 

  

	 	•	 	I elect to have such Cash Consideration (and accruals thereon) paid to me beginning on the date selected above with respect to any 2016 Deferred Award; and 

 

	 	•	 	With respect to any prior Deferred Award, the Cash Consideration payable with respect to such award upon completion of the Merger will be deferred under the Deferred Compensation Plan until the date I previously
selected with respect to that award. 

 YOU MUST COMPLETE THE ATTACHED LTIP RSU CONVERSION DEFERRAL ALLOCATION FORM TO
INDICATE HOW YOU WISH TO HAVE CASH CONSIDERATION CREDITED TO AN ACCOUNT FOR YOUR BENEFIT UNDER THE DEFERRED COMPENSATION PLAN IF: 
  

	 	•	 	YOU ELECTED TO DEFER, TO A DATE LATER THAN THE COMPLETION OF THE MERGER, THE RECEIPT OF COMMON STOCK WITH RESPECT TO ANY RSU AWARD YOU MAY RECEIVE IN 2016, OR 

 

	 	•	 	YOU HAVE AN RSU AWARD FROM PRIOR YEARS THAT HAS BEEN DEFERRED TO A DATE LATER THAN THE COMPLETION OF THE MERGER. 

IF YOU DO NOT COMPLETE THIS FORM AND YOU HAVE A DEFERRED AWARD, THE CASH CONSIDERATION WILL BE DEFERRED UNDER THE DEFERRED COMPENSATION
PLAN AND CREDITED BY DEFAULT TO THE PRIME RATE ACCOUNT. 
 More information on the deferral of Stock-Based Awards under the 2012
Long-Term Incentive Plan is provided in Item 6 below. 
  

	4.	Registration of Stock Certificates. 

 With respect to any shares of Common Stock that may
be issued upon settlement of an RSU (and any associated dividend equivalents) granted to me under the 2012 LTIP, whether or not deferred under Item 1.b above, please register the stock certificates for those shares in the name set forth below,
and provide a mailing or street address for such person: 
  

					
		  	 	  	
			
		  	 	  	
			
		  	 	  	
			
		  	 	  	

  
 4 

	5.	Beneficiary Designation. 

 I designate the following Beneficiary (or Beneficiaries) to
receive any benefits due under the Deferred Compensation Plan and/or the 2012 LTIP in the event of my death (specify full name, relationship and address): 
  

					
			
	 Primary:
	  	 	  	
			
		  	 	  	
			
		  	 	  	
			
		  	 	  	
			
	 Contingent:
	  	 	  	
			
		  	 	  	
			
		  	 	  	
			
		  	 	  	

  

	6.	Material Terms Related to My Deferral of an Annual Stock-Based Retainer Award. 

 If I
have elected in Item 1.b. above to defer settlement of my annual stock-based retainer award (and any associated dividend equivalents), I hereby acknowledge and agree that such deferral shall be subject to the following material terms, which
have been approved by the Board of Directors: 
  

	 	a.	This deferral election applies only to Common Stock underlying RSUs and/or performance shares or units granted under the 2012 LTIP. 

  

	 	b.	Such award will be settled, to the extent vested, in accordance with my irrevocable deferral election set forth herein. 

  

	 	c.	Subject to item i. below, to the extent vested, such retainer will be paid in a lump sum and solely in shares of Common Stock, and will not be credited to any of the options set forth on the Cash Retainer Deferral
Allocation Form provided herewith. 

  

	 	d.	If a dividend equivalent award has been granted with a deferred RSU or performance share or unit award, such dividend equivalent award shall also be deferred under the terms provided herein. Such dividends shall
continue to be credited, when and as declared and paid by the Board of Directors, in additional shares or units of the same type and tenor as the stock-based award, based on the Fair Market Value (as defined in the 2012 LTIP) on the business day
prior to the payment date of such dividend. 

  

	 	e.	Upon payment of deferred awards, fractional shares shall be eliminated without compensation. Any fractional shares shall be rounded up to the next whole share if greater than or equal to a half-share, and rounded down
to the next whole share if less than a half-share. 

  

	 	f.	The award and deferral is subject to the other terms and conditions of the 2012 LTIP, as well as vesting, forfeiture, tax withholding and other legal requirements and conditions with respect to such award and deferral.

  

	 	g.	The Board of Directors retains full discretion over the terms of this deferral arrangement and may amend, suspend or terminate such arrangement at any time or from time to time, or impose additional or different
restrictions, conditions or limitations on such deferral at any time as permitted or not prohibited by the terms of 2012 LTIP. 

  

	 	h.	The terms of my deferral election are intended to comply, and should be interpreted consistently with, Section 409A of the Internal Revenue Code of 1986, as amended. 

  
 5 

	 	i.	If the Merger is consummated during 2016, the cash consideration payable under the Merger Agreement with respect to RSUs which are the subject of my 2016 deferral election, as well as under any previously deferred RSU
awards, will automatically be (1) deferred pursuant to the terms of the Deferred Compensation Plan and (2) credited to the accounts specified by me on the LTIP RSU Conversion Deferral Allocation Form, or if no such accounts have been
specified, the prime rate account described therein. 

 [Signatures appear on following page] 

  
 6 

 IN WITNESS WHEREOF, the undersigned has executed this Agreement effective for all purposes
as of the          day of                     , 2015. 

 

	
	   

	Signature
	
	   

	Name (Please Print)

 Acknowledged and confirmed this          day of
                    , 2015 
  

	
	Pepco Holdings, Inc.
	
	   

	Signature
	
	   

	Name (Please Print)

  
 7 

 Pepco Holdings, Inc. 

CASH RETAINER DEFERRAL ALLOCATION FORM 

Name:
                                         
                                         
                                         
                              (the “Participant”) 

                          
          Last
                                    First
                                    Middle Initial 

Social Security Number:
            -            -             

I request that the Company credit my election of my 2016 cash deferred amounts in the Second Revised and Restated Executive and Director Deferred Compensation
Plan to the options indicated below: 
 (Minimum per fund – 10%) (Please be sure your percentages total = 100%) 

 

							
	         %
	  	Money Market	 	         %
	  	High Yield Bond
				
	         %
	  	Equity	 	         %
	  	Diversified Bond
				
	         %
	  	Government Income	 	         %
	  	Stock Index
				
	         %
	  	Value	 	         %
	  	Natural Resources
				
	         %
	  	Conserv. Balanced	 	         %
	  	Flexible Managed
				
	         %
	  	Global	 	         %
	  	Prudential Jennison
				
	         %
	  	Small Cap Stock	 	         %
	  	Prime Rate
				
	         %
	  	Am Cent. Value Fund	 	         %
	  	Janus Aspen Growth
				
	         %
	  	MFS Emerg. Growth	 	         %
	  	TRP Int’l Stock
				
	         %
	  	Pepco Holdings Phantom Shares	 		  	

 NOTE: If you have selected the Pepco Holdings Phantom Shares option above for 2016 or prior years,
you must also indicate below an alternative election in the event that the Merger is completed during 2016. The alternative election must include at least one of the options indicated below. 

  
 8 

 Alternative Election for 2016 and Prior Year Deferrals to the Pepco Holdings Phantom Shares
Account: 
 Please indicate below alternative allocation option(s) and percentage(s) for the total amount of amounts credited to the Pepco Holdings
Phantom Shares option (including accruals thereon) for 2016 and prior years, which will take effect if and when the Merger is completed during 2016. The total percentages must total to 100%. 

 

							
	         %
	  	Money Market	 	         %
	  	High Yield Bond
				
	         %
	  	Equity	 	         %
	  	Diversified Bond
				
	         %
	  	Government Income	 	         %
	  	Stock Index
				
	         %
	  	Value	 	         %
	  	Natural Resources
				
	         %
	  	Conserv. Balanced	 	         %
	  	Flexible Managed
				
	         %
	  	Global	 	         %
	  	Prudential Jennison
				
	         %
	  	Small Cap Stock	 	         %
	  	Prime Rate
				
	         %
	  	Am Cent. Value Fund	 	         %
	  	Janus Aspen Growth
				
	         %
	  	MFS Emerg. Growth	 	         %
	  	TRP Int’l Stock

  

	
	Participant
	   

	Signature
	   

	Date

  
 9 

 Pepco Holdings, Inc. 

LTIP RSU CONVERSION DEFERRAL ALLOCATION FORM 

Name:
                                         
                                         
                                         
                              (the “Participant”) 

                          
          Last
                                    First
                                    Middle Initial 

Social Security Number:
            -            -             

I wish to defer the receipt of common stock in connection with a 2016 RSU annual retainer award under the 2012 LTIP that I may receive as part of my annual
retainer. I understand that my deferral election shall apply to the Cash Consideration payable, upon the completion of the Merger, with respect to such RSU award, which Cash Consideration shall be automatically deferred into the Deferred
Compensation Plan. I request that the Company credit my election of such deferred amounts to the options indicated below: 
 I understand that, if the
Merger is completed in 2016, these elections will also apply to Cash Consideration to be received in connection with any of my prior Deferred Awards. 

(Minimum per fund – 10%) (Please be sure your percentages total = 100%) 
  

							
	         %
	  	Money Market	 	         %
	  	High Yield Bond
				
	         %
	  	Equity	 	         %
	  	Diversified Bond
				
	         %
	  	Government Income	 	         %
	  	Stock Index
				
	         %
	  	Value	 	         %
	  	Natural Resources
				
	         %
	  	Conserv. Balanced	 	         %
	  	Flexible Managed
				
	         %
	  	Global	 	         %
	  	Prudential Jennison
				
	         %
	  	Small Cap Stock	 	         %
	  	Prime Rate
				
	         %
	  	Am Cent. Value Fund	 	         %
	  	Janus Aspen Growth
				
	         %
	  	MFS Emerg. Growth	 	         %
	  	TRP Int’l Stock

 NOTE: If you have elected to defer the settlement of your annual cash retainer and/or meeting fees, you do not
need to complete this Form unless you are also deferring in whole or in part any 2016 RSU annual retainer award under the 2012 LTIP that you may receive, or you have a prior Deferred Award. However, you MUST complete the Cash Retainer
Deferral Allocation Form on the previous page. 
  

	
	Participant
	   

	Signature
	   

	Date

  
 10EX-10.50

 Exhibit 10.50 

2016 Named Executive Officer Compensation Determinations and Other Compensation Information 

The following is a description of certain compensation decisions made in 2016 by the Pepco Holdings, Inc. (PHI) Board of Directors (the Board)
and/or the Compensation/Human Resources Committee of the Board (the Committee) with respect to compensation to be earned or payable in 2016 to persons set forth in the table below who are identified as named executive officers (each, a Named
Executive Officer) in the Summary Compensation Table in PHI’s proxy statement for its 2015 Annual Meeting of Stockholders (the 2015 Proxy Statement). 

2016 Annual Compensation Determinations 

As to each Named Executive Officer, the compensation decisions consisted of (i) the establishment of annual base salary for 2016;
(ii) the establishment of the Named Executive Officer’s 2016 annual cash incentive award opportunities under the Amended and Restated Annual Executive Incentive Compensation Plan (the EICP); and (iii) the grant of long-term restricted
stock unit (RSU) awards under the Pepco Holdings, Inc. 2012 Long-Term Incentive Plan (the LTIP). 
  

																																							
	 	 	 	 	 	 	 	 	 	 	LTIP Awards (2)	 
	 Named Executive Officer
	 	 Title
	 	2016
Annual
Base
Salary	 	 	Target 2016
Annual Cash
EICP Award
Opportunity as a
Percentage of
Annual Base
Salary (1)	 	 	TSR Performance-Based
RSU Awards
(# of RSUs) (3)	 	 	ROIC Performance-Based
RSU Awards
(# of RSUs) (4)	 	 	Time-Based
RSU Award
(# of RSUs)(5)	 
	 	 	 	 	Threshold	 	 	Target	 	 	Maximum	 	 	Threshold	 	 	Target	 	 	Maximum	 	 
	 Joseph M. Rigby
	 	 Chairman of the Board, President and Chief Executive Officer
	 	$	1,015,000	  	 	 	100	% 	 	 	8,129	  	 	 	32,519	  	 	 	65,038	  	 	 	16,259	  	 	 	32,519	  	 	 	65,038	  	 	 	32,519	  
	 David M. Velazquez
	 	 Executive Vice President
	 	$	563,000	  	 	 	60	% 	 	 	2,254	  	 	 	9,018	  	 	 	18,036	  	 	 	4,509	  	 	 	9,018	  	 	 	18,036	  	 	 	9,018	  
	 Frederick J. Boyle
	 	 Senior Vice President and Chief Financial Officer
	 	$	528,000	  	 	 	60	% 	 	 	2,114	  	 	 	8,458	  	 	 	16,916	  	 	 	4,229	  	 	 	8,458	  	 	 	16,916	  	 	 	8,458	  
	 Kevin C. Fitzgerald
	 	 Executive Vice President and General Counsel
	 	$	563,000	  	 	 	60	% 	 	 	2,254	  	 	 	9,018	  	 	 	18,036	  	 	 	4,509	  	 	 	9,018	  	 	 	18,036	  	 	 	9,018	  
	 John U. Huffman
	 	 President, Pepco Energy Services
	 	$	406,000	  	 	 	60	% 	 	 	1,300	  	 	 	5,203	  	 	 	10,406	  	 	 	2,601	  	 	 	5,203	  	 	 	10,406	  	 	 	5,203	  

  

	(1)	Each executive may earn a cash incentive award of up to 180% of his target award opportunity under the EICP as determined by the Committee, depending on the extent to which the pre-established performance goals are
achieved. See “Amended and Restated Annual Executive Incentive Compensation Plan” below for a discussion of 2016 performance goals. 

	(2)	The shares of PHI common stock, $.01 par value per share (Common Stock), underlying performance-based and time-based RSU awards in the aggregate had a fair market value on the date of grant equal to the following
percentage of the Named Executive Officer’s 2016 annual base salary: 250% for Mr. Rigby, 125% for each of Messrs. Velazquez, Boyle and Fitzgerald, and 100% for Mr. Huffman. 

	(3)	See “2016 LTIP Awards — Performance-Based RSU Awards – TSR-Based Awards” below for a description of the annual performance-based RSU awards granted under the LTIP. 

	(4)	See “2016 LTIP Awards — Performance-Based RSU Awards – ROIC-Based Awards” below for a description of the annual performance-based RSU awards granted under the LTIP. 

	(5)	See “2016 LTIP Awards — Time-Based RSU Awards” below for a description of the annual time-based RSU awards granted under the LTIP. 

Amended and Restated Annual Executive Incentive Compensation Plan 

Each of the executives listed in the table above is a participant in the EICP. The EICP is a cash-based incentive program designed to align
executive compensation with the performance of PHI and its subsidiaries. Participants in the EICP for any calendar year may include any executive or employee of the Company or any subsidiary selected by the administrator, upon the recommendation of
the Company’s chief executive officer, to participate in the EICP. On February 3, 2016, the Committee established the following performance goals to be used for the determination of 2016 EICP awards for each of the executives named below:

  

	 	•	 	Messrs. Rigby, Boyle and Fitzgerald: (1) adjusted net earnings per share, (2) electric system reliability, (3) customer satisfaction, (4) diversity, and (5) safety. 

 

	 	•	 	Mr. Velazquez: (1) Power Delivery adjusted earnings per share, (2) core capital expenditures, compared to budget (excluding certain items), (3) operation and maintenance spending, compared to budget,
(4) compliance results, (5) electric system reliability, (6) customer satisfaction, (7) diversity, and (8) safety. 

  

	 	•	 	Mr. Huffman: (1) Pepco Energy Services’ adjusted net income (excluding power plants and retail energy), (2) performance of Pepco Energy Services’ energy savings performance contracting business,
(3) performance of Pepco Energy Services’ undergrounding transmission and distribution business, (4) diversity, and (5) safety. 

The payment of awards under the EICP to each of these PHI executives is also conditioned upon the achievement of specified threshold earnings requirements in
order for an EICP award to be paid to the executive, regardless of the extent to which the other performance goals may be achieved. 
 2016 LTIP Awards

 The Committee has granted awards of performance-based RSUs and time-based RSUs under the LTIP with respect to the 2016 to 2018
performance/retention cycle. Participants in the LTIP are key employees and officers of PHI and its subsidiaries selected by the Chairman of the Board of PHI and approved by the Committee, as well as non-management directors of PHI, including each
of the persons listed in the tables above. Subject to the terms and conditions of each RSU award, each RSU represents a contractual right to receive one share of PHI common stock, $0.01 par value per share (“Common Stock”), at the end of
the restriction or performance period. When a dividend is paid on the Common Stock, the award is credited with additional RSUs equal to the number of RSUs subject to such award multiplied by the per share cash dividend, divided by the then current
market price of a share of Common Stock. Additional RSUs credited as dividend equivalents will vest only to the extent the underlying RSUs vest. 

 Performance-Based RSU Awards 

Two performance-based RSU awards each account for one-third of an executive’s aggregate 2016 equity award under the LTIP. As described in
detail below, the first performance-based RSU award utilizes PHI’s total shareholder return (TSR) relative to a PHI-selected group of peer companies (the 2016 Utility Peer Group) over a three-year period beginning on January 1, 2016 and
ending on December 31, 2018, and the second performance-based RSU award utilizes return on invested capital (ROIC). If during the course of the three-year performance period, a significant event occurs, as determined in the discretion of the
Committee, which the Committee expects to have a substantial effect on TSR or ROIC, as applicable, during the period, the Committee may revise such measures, other than with respect to awards to “covered employees” subject to
Section 162(m) under the Internal Revenue Code. No adjustment shall be made that causes an award to fail to comply with Section 162(m) of the Code. 

TSR-Based Awards 
 For
awards based on TSR, depending on the extent to which the pre-established TSR performance goal has been met, an amount of each award ranging from 25% to 200% of the target number of RSUs (including dividend equivalents credited in the form of
additional RSUs) subject to the award may vest. Vesting amounts related to threshold (representing 25% of the target award opportunity), target and maximum (representing 200% of the target award opportunity), with respect to each TSR
performance-based award of RSUs for each executive, is shown in the table above. 
 ROIC-Based Awards 

For awards based on ROIC, depending on the extent to which the pre-established ROIC performance goal has been met, an amount of each award
ranging from 50% to 200% of the target number of RSUs (including dividend equivalents credited in the form of additional RSUs) subject to the award may vest. Vesting amounts related to threshold (representing 50% of the target award opportunity),
target and maximum (representing 200% of the target award opportunity), with respect to each ROIC performance-based award of RSUs for each executive, is shown in the table above. 

Time-Based RSU Awards 

Each executive listed above has received a grant of time-based RSUs, which accounts for one-third of the executive’s aggregate 2016 equity
award under the LTIP. Subject to certain exceptions provided for in the LTIP or in the award agreement (or, with respect to Mr. Rigby, his employment agreement), time-based RSUs are subject to forfeiture if the employment of the executive
terminates prior to the third anniversary of the date of grant. 
 Performance Goals for 2015 RSU Awards Pursuant to Employment Agreement 

In February 2015, the Compensation Committee will determine the satisfaction of performance goals associated with Mr. Fitzgerald’s
2015 performance-based RSU award under his employment agreement and set forth below. 
  

					
	 Mr. Fitzgerald’s Performance Criteria
	  	Weight (%)	 
	 Achievement of state-mandated reliability standards
	  	 	40	  
	 Residential utility customer satisfaction
	  	 	40	  
	 Achievement of all key regulatory dates related to the 2015 project plan in connection with the Company’s DC Power Line
Undergrounding Initiative
	  	 	20

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