Document:

Non-Competition and Confidentiality Agreement--William F. Fields

  
 Exhibit 10.7 
  
 EMPLOYEE NON-COMPETITION AND 
 CONFIDENTIALITY AGREEMENT 
  
 THIS EMPLOYEE NON-COMPETITION AND CONFIDENTIALITY AGREEMENT (this “Agreement”) is made as of this 17th day of August, 2000 by and between DQE
FINANCIAL CORP., its successors and assigns (“Company”) and WILLIAM F. FIELDS (“Employee”). 
  
 WHEREAS, Employee currently serves as President of Company; and 
  

WHEREAS, as of the date hereof, Employee is being granted stock options pursuant to the DQE Long-Term Incentive Plan (the “Grant”).

  
 NOW, THEREFORE, in consideration of the Grant and the enhanced
severance benefits as set forth below, and intending to be legally bound, Employee agrees to the following terms and conditions: 
  
 1. Severance Benefits. (a) In the event the Company terminates Employee’s employment without Cause (as defined below), Employee shall be
entitled to salary continuance for twelve (12) months and benefits then enjoyed by Employee if and to the extent permitted by law until Employee gains employment at which time Employee shall have the obligation to notify the Company and such
benefits (but not salary continuance) shall cease. Under no circumstances will Employee be entitled to more than one (1) year of severance benefits. For purposes of this Agreement, “Cause” shall mean any of the following that is
demonstrably and materially injurious to the interest, property, operations, business or reputation of the Company or any of its affiliates: (i) Employee’s breach of (A) the Guidelines for Ethical Conduct of DQE and its Family of Companies; or
(B) the Rules of Conduct set forth in Section Six of the DQE Policy Manual, each as in effect from time to time; (ii) Employee’s theft or embezzlement, or attempted theft or embezzlement, of money or property of the Company or its affiliates;
Employee’s perpetration or attempted perpetration of fraud, or his participation in fraud or attempted fraud, on Company or its affiliates; or Employee’s unauthorized appropriation of, or his intentional attempt to misappropriate, any
tangible or intangible assets or property of Company or its affiliates; or (iii) any act or acts of disloyalty, misconduct, or moral turpitude by Employee or Employee’s conviction of a crime. 
  
 (b) Notwithstanding any provision herein to the contrary,
Company shall not have any obligation to pay any amount or provide any benefit, as the case may be, under this Agreement, unless and until Employee executes (i) a release of Company, its affiliates and related parties, in such form as Company may
reasonably request, of all claims against Company, its affiliates and related parties relating to Employee’s employment and termination thereof and (ii) an agreement to continue to comply with, and be bound by, Sections 2, 3, 4, 5, 6 and 7 of
this Agreement. 
  

 2. Non-Disclosure Of Confidential Information. Employee acknowledges that all Confidential
Information shall at all times remain the property of the Company and its affiliates (i.e., another company the majority interest of which is owned by the Company or by a parent or subsidiary of the Company). “Confidential
Information” means all information disclosed to Employee or known by Employee as a consequence of or through Employee’s employment, which is not generally known in the industry in which the Company and/or an affiliate is or may become
engaged, about the Company’s or an affiliates’ business, products, processes, and services, including but not limited to information relating to research, development, inventions, computer program designs, flow charts, source and object
codes, products and services under development, pricing and pricing strategies, marketing and selling strategies, power generating, servicing, purchasing, accounting, engineering, costs and costing strategies, sources of supply, customer lists,
customer requirements, business methods or practices, training and training programs, and the documentation thereof. It includes, but is not limited to, proprietary information and trade secrets of the Company and its affiliates. It will be presumed
that information supplied to the Company and its affiliates from outside sources is Confidential Information unless and until it is designated otherwise. 
  
 Employee will safeguard and maintain on the premises of the Company, to the extent possible in the performance of Employee’s work for the Company,
all documents and things that contain or embody Confidential Information. Except as required as part of Employee’s duties to the Company, Employee will not, during his employment by the Company, or thereafter, directly or indirectly use,
divulge, disseminate, disclose, lecture upon, or publish any Confidential Information without having first obtained written permission from the Company to do so. 
  
 3. Inventions. All Inventions made or conceived by Employee, either solely or jointly with others, (i) during
Employee’s employment by the Company and (ii) within one (1) year after termination of such employment, whether or not such Inventions are made or conceived during the hours of Employee’s employment or with the use of the Company’s
facilities, materials, or personnel, will be the property of the Company or its nominees. “Invention” means discoveries, concepts, and ideas, whether patentable or not, including, but not limited to apparatus, processes, methods,
techniques, and formulae, as well as improvements thereof or know-how related thereto, relating to any present or prospective activities of the Company and its affiliates. 
  
 Employee will, without royalty or any other additional consideration: 
  
 (a) inform the Company promptly and fully of such Inventions
by written reports, setting forth in detail a description, the operation and the results achieved; 
  
 (b) assign to the Company all Employee’s right, title, and interest in and to such Inventions, any applications for United States and
foreign Letters Patent, any continuations, divisions, continuations-in-part, reissues, extensions or additions thereof filed for upon such Inventions and any United States and foreign Letters Patent; 
  
 (c) assist the Company or its nominees, at the expense of
the Company, to obtain, maintain and enforce such United States and foreign Letters Patent for such Inventions as the Company may elect; and 
  

 -2- 

 (d) execute, acknowledge, and deliver to the Company at its expense such written
documents and instruments, and do such other acts, such as giving testimony in support of Employee’s inventorship and invention, as may be necessary in the opinion of the Company to obtain, maintain or enforce the United States and foreign
Letters Patent upon such Inventions and to vest the entire right and title thereto in the Company and to confirm the complete ownership by the Company of such Inventions. 
  
 4. Works. All Works created by Employee during his employment by the Company will be and remain exclusively the
property of the Company. “Works” means all material and information created by Employee in the course of or as a result of Employee’s employment by the Company which is fixed in a tangible medium of expression, including, but not
limited to, notes, drawings, memoranda, correspondence, documents, records, notebooks, flow charts, computer programs and source and object codes, regardless of the medium in which they are fixed. 
  
 Each such Work is a “work for hire” and the Company may file
applications to register copyright as author thereof. Employee will take whatever steps and do whatever acts the Company requests, including, but not limited to, placement of the Company’s proper copyright notice on such Works to secure or aid
in securing copyright protection and will assist the Company or its nominees in filing applications to register claims of copyright in such works. Employee will not reproduce, distribute, display publicly, or perform publicly, alone or in
combination with any data processing or network system, any Works of the Company without the written permission from the Company. 
  
 5. Restrictions on Competition. Employee covenants and agrees that during the period of Employee’s employment hereunder and for a period of
one (1) year following the termination of Employee’s employment for any reason, including, without limitation, termination by Company for cause or without cause, Employee shall not engage, directly or indirectly, whether as principal or as
agent, officer, director, employee, consultant, shareholder, or otherwise, alone or in association with any other person, corporation or other entity, in any business in the United States of America which is a “Competing Business”;
provided, however, that Employee shall have the right to accept employment with a Competing Business whose business is diversified, if the employment is with a part of that business which is not a Competing Business and if, prior to accepting such
employment, Employee furnishes written assurances reasonably satisfactory to the Company from such Competing Business and from Employee that Employee will not render services directly or indirectly in connection with any “Competing
Product.” For purposes of this Agreement, the term Competing Business shall mean any person, corporation, or other entity which sells or attempts to sell any services which are the same or similar to the services offered by the Company at any
time and from time to time during the last two (2) years prior to the termination of Employee’s employment from the Company. “Competing Product” means any product, process, or service of any person or organization other than the
Company, which competes with a product, process or service of the Company or its subsidiaries, upon or with which Employee works during the term of Employee’s employment by the Company, or about which Employee acquires Confidential Information
during the term of Employee’s 

  

 -3- 

 
employment. Employee recognizes that the Company conducts or intends to conduct business within the geographic area set forth herein, and therefore, Employee
agrees that this restriction is reasonable and necessary to protect Company’s business. 
  
 6. Nonsolicitation Of Customers And Suppliers. Employee agrees that for a period of two (2) years following the termination of Employee’s employment with the Company for any reason, whether terminated for
cause or without cause, Employee shall not, directly or indirectly, solicit the business of, or do business with, any customer, supplier, or prospective customer or supplier of the Company or an affiliate of the Company with whom Employee had direct
or indirect contact or about whom Employee may have acquired any knowledge while employed by the Company. 
  
 7. Solicitation Of Employees. Employee agrees that, during Employee’s employment with the Company and for a period of two (2) years following
termination of the Employee’s employment with the Company, whether terminated with cause or without cause, Employee shall not, directly or indirectly, solicit or induce, or attempt to solicit or induce, any employee of the Company or an
affiliate of the Company to leave the Company or an affiliate for any reason whatsoever, or hire or solicit the services of any employee of the Company or an affiliate. 
  
 8. Enforcement. Employee understands and agrees that any violation of this Agreement shall be deemed material to
continuing employment and could result in disciplinary action up to and including termination. Employee acknowledges that the legal remedy available to the Company and its affiliates for any breach of covenants on the part of Employee will be
inadequate, and, therefore, in the event of any threatened or actual breach of this Agreement, the Company or an affiliate shall be entitled to specific enforcement of this Agreement through injunctive or other equitable relief in a court with
appropriate jurisdiction. The existence of any claim or cause of action by Employee or another against the Company or an affiliate, whether predicated on this Agreement or otherwise, shall not constitute a defense to enforcement by the Company or an
affiliate of this Agreement. 
  
 9. Obligations Survive
Termination Of Employment. Termination of Employee’s employment, whether voluntary or involuntary, whether for cause or without cause, shall not impair or relieve Employee of any of Employee’s obligations hereunder. Upon termination of
Employee’s employment, for whatever reason, or upon request by the Company, Employee will deliver to the Company the originals and all copies of notes, sketches, drawings, specifications, memoranda, correspondence, documents, records,
notebooks, computer disks and computer tapes and other repositories of Confidential Information and Inventions then in Employee’s possession or under Employee’s control, whether prepared by Employee or by others. Upon termination of
Employee’s employment, for whatever reason, or upon request by the Company, Employee will deliver to the Company the originals and all copies of Works then in Employee’s possession or under Employee’s control. 
  
 10. At-Will Employment. Employee shall be employed at the pleasure of
Company, for no definite term, unless otherwise provided by a separate writing authorized by 

  

 -4- 

 
Employee and the Company. This means that either party may terminate the employment relationship at any time for any or no reason. 
  
 11. Binding Effect. This Agreement shall bind Employee,
Employee’s heirs, and Employee’s assigns, and may be assigned by the Company with transfer of assets of the Company’s business to which it relates. The substantive law of the Commonwealth of Pennsylvania shall apply in matters
relating to this Agreement. 
  
 12. Authorization to Modify
Restrictions. It is an intention of the parties that the provisions of this Agreement shall be enforceable to the fullest extent permissible by law, and that the unenforceability of any provision, in whole or in part, shall not render
unenforceable, or impair, the remaining parts and provisions of this Agreement. If any provision of this Agreement shall be deemed unenforceable, in whole or in part, this Agreement shall be deemed amended to delete or modify the offending part and
to alter the Agreement to render it valid and enforceable. 
  
 13.
Employee Acknowledgments. Employee acknowledges that Employee has read and understands the provisions of this Agreement, that Employee has been given an opportunity for Employee’s legal counsel to review this Agreement and that the
provisions of this Agreement are reasonable and that Employee has received a copy of this Agreement. 
  
 IN WITNESS WHEREOF, this parties have executed this Agreement as of the date first above written. 
  

									
	 WITNESS:
	 	 	 	 
			
	 /s/ Patricia D. Joyce
	 	 	 	 /s/ William F. Fields

	 	 	 	 	 	 	 WILLIAM F. FIELDS

			
	 WITNESS:
	 	 	 	 DQE FINANCIAL CORP.

				
	 /s/ John R. Schmitt
	 	 	 	 By:
	 	 /s/ John F. Fulgoney

	 	 	 	 	 	 	 Title:
	 	 VP-Legal

  

 -5-Form of Stock Option Agreement for Officers (with change of control)

  
 Exhibit 10.11 
  

					
	 	 	 411 Seventh Avenue
	  	 412-393-4150

	 	 	 Pittsburgh, PA 15219
	  	 412-393-6185 (Fax)

	 	 	 	  	 mhogel@dqe.com

	 MAUREEN L. HOGEL
 Senior Vice President - Human Resources
and Administration
	 	 	  	 

  
 [date] 
  

	Re:	Grant of Nonstatutory Stock Options — Officer 

  
 [Name of optionee] 
  
 It is my pleasure to notify you that effective [date], the Compensation Committee of the Board of Directors (the “Committee”) of DQE granted you a stock option to purchase
                     shares of Common Stock, no par value, of DQE (“DQE Common Stock”), as set forth on your Option
Acceptance Form (enclosed) at an exercise price of $             per share. Your stock option is granted under, and subject to the terms and conditions of, the DQE Long-Term
Incentive Plan, as it may be amended from time to time (the “Plan”), and to the further conditions set forth in this letter agreement. 
  
 The stock option granted to you is a nonstatutory stock option as that term is defined in Section 4 of the Plan. Even though the stock option has been granted to
you, the stock option cannot be exercised (i.e., you cannot buy the DQE Common Stock that is subject to the stock option) unless and until the stock option is vested, as described below. 
  
 The Plan is incorporated by reference and made a part of your stock option as if it were set
forth in full in this letter agreement. This letter agreement is the stock option agreement referred to in Section 5(I) of the Plan. If there is any conflict between the Plan and this letter agreement, the provisions of the Plan will control, except
as expressly set forth in the next two paragraphs. Any dispute or disagreement which may arise under or in any way relate to the interpretation or construction of the Plan or this letter agreement will be resolved by the Committee in its sole and
absolute discretion and the decision will be final, binding and conclusive for all purposes. 
  

 Notwithstanding any provision of this letter agreement or the Plan to the contrary, Section 7 of the Plan
shall not apply to this letter agreement and the stock option granted hereunder. Instead, the provisions of this paragraph regarding Change in Control shall apply. Upon the occurrence of a Change in Control, the original option grant shall be
exercisable in full (whether or not so exercisable on the date of the occurrence of such Change in Control) for one year after the date of such Change in Control (but not later than the expiration date of the original option). “Change in
Control” means, and shall be deemed to have occurred upon, the first to occur of any of the following events: 
  
 (a) The acquisition by any individual, entity, or group (a “Person”), including a “person” within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), 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 DQE (the “Outstanding Common Stock”); or (ii) the combined voting power of the then outstanding securities of DQE entitled to vote generally in the election of directors
(the “Outstanding Voting Securities”); excluding, however the following: (A) any acquisition directly from DQE (excluding an acquisition resulting from the exercise of an exercise, conversion, or exchange privilege unless the
security being so exercised, converted or exchanged was acquired directly from DQE); (B) any acquisition by DQE, (C) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by DQE or any corporation controlled by DQE;
or (D) any acquisition by any corporation pursuant to a transaction which complies with subclauses (i), (ii), and (iii) of clause (c) below; 
  
 (b) During any twenty-four (24) consecutive month period, the individuals who, at the beginning of such period, constitute the Board (the
“Incumbent Directors”) cease for any reason other than death to constitute at least a majority thereof, provided, however, that a director who was not a director at the beginning of such twenty-four (24) month period shall be deemed
to have satisfied such twenty-four (24) month requirement (and be an Incumbent Director) if such director was elected by, or on the recommendation of or with the approval of, at least two-thirds (2/3) of the directors who then qualified as Incumbent
Directors either actually (because they were directors at the beginning of such period) or by prior operation of the provisions of this clause (b); 
  
 (c) The consummation of a reorganization, merger or consolidation of DQE or sale or other disposition of all or substantially all of the
assets of DQE (a “Corporate Transaction”); excluding, however, a Corporate Transaction pursuant to which: (i) all or substantially all of the individuals or entities who are the beneficial owners, respectively, of the Outstanding
Common Stock and the Outstanding Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than sixty percent (60%) of, respectively, the outstanding shares of common stock, and the
combined voting power of the outstanding securities of such corporation entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a
corporation, which as a result of such transaction owns DQE or all or substantially all of DQE’s assets either directly or indirectly) in substantially the same proportions relative to each other as their ownership, immediately prior to such
Corporate Transaction, of the Outstanding Common Stock and the Outstanding Voting Securities, as the case may be; (ii) no Person (other than: DQE; any employee benefit plan (or related trust) sponsored or maintained by DQE or any corporation
controlled by DQE; the corporation resulting from such Corporate Transaction; and any Person which beneficially owned, immediately prior to such Corporate Transaction, directly or indirectly, twenty-five percent (25%) or more of the Outstanding
Common Stock or the Outstanding Voting Securities, as the case may be) will beneficially own, directly or indirectly, twenty-five percent (25%) or more of, respectively, the outstanding shares of common stock of the corporation resulting 

  

 2 

 
from such Corporate Transaction or the combined voting power of the outstanding securities of such corporation entitled to vote generally in the election of
directors; and (iii) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or 
  
 (d) The consummation of a plan of complete liquidation or
dissolution of DQE. 
  
 Notwithstanding the foregoing, a Change in Control will
not be deemed to have occurred by reason of a distribution of the voting securities of any of DQE’s subsidiaries to the stockholders of DQE, or by means of an initial public offering of such securities. 
  
 Notwithstanding any provision hereof to the contrary, if you are a party to an employment
agreement, change in control, severance, or similar plan, policy or agreement that provides for accelerated vesting and/or other modifications of the terms and/or conditions of your stock options or other stock-based awards upon the happening of
certain events (including, but not by way of limitation, changes in control and/or terminations of employment), the provisions of such other plan, policy or agreement, as the case may be, shall supercede the provisions contained in this letter
agreement to the extent such other provisions would provide benefits to you greater than those provided in this letter agreement. 
  
 Subject to your timely execution and return of the enclosed Option Acceptance Form, your stock option will be exercisable to the extent it is vested, and vesting will be
based on the price of the DQE Common Stock. At such time as the average closing price per share of the DQE Common Stock for any period of 30 consecutive trading days exceeds
$             per share (the “First Stock Price Hurdle”), 50% of the stock option shall be vested. At such time as the average closing price per share of the DQE
Common Stock for any period of 30 consecutive trading days exceeds $             per share (the “Second Stock Price Hurdle”), the remaining 50% of the stock option
shall be vested. The First Stock Price Hurdle and/or the Second Stock Price Hurdle shall be adjusted as determined by the Committee, in its sole discretion, to reflect any changes resulting from the occurrence of certain events such as a stock
split, stock dividend, reorganization, reclassification, recapitalization, combination of shares, merger or consolidation. Notwithstanding anything to the contrary in this paragraph, no portion of the stock option shall be vested prior to the date
                     months after the date hereof, and if the First Stock Price Hurdle or both the First Stock Price Hurdle and the Second
Stock Price Hurdle are met prior to such date, the applicable portion of your stock option will be vested as of the end of such
                     month period. 
  
 The Committee shall have the sole and absolute discretion to determine the extent to which the First Stock Price Hurdle and the Second Stock Price Hurdle have been met
and the extent to which your stock option has vested. The portion, if any, of your stock option that has been vested will be communicated to you in writing. Upon such notification, you will be entitled to exercise all or any part of the vested
portion of your stock option. Any portion of the stock option that is not determined by the Committee to be vested prior to the third anniversary of the date hereof will be considered forfeited.  
  

 3 

 The exercise of your stock option also is subject to the provisions of the Plan. The exercisable portion of your stock
option may be exercised in whole or in part but any exercise must be made as to at least ten shares covered by your stock option (or, if less, all of the shares then remaining subject to the stock option). Your stock option award will expire at the
close of business on                      (the “Expiration Date”), or earlier as described in the immediately preceding
paragraph or in the following paragraphs of this letter agreement regarding the effect of changes in your employment status on your stock options. 
  
 Notwithstanding Section 5(H) of the Plan, except as otherwise provided below, if your employment by DQE or an affiliate of DQE terminates, all outstanding stock options
held by you at the time of such termination will automatically terminate: 
  
 (a) Retirement. If you retire under a retirement plan of DQE or an affiliate of DQE, the then unvested portion of your stock option will be forfeited, and the then vested portion of your stock option will be
exercisable at any time prior to the earlier of (i) the Expiration Date, or (ii) the date three years after the date of retirement. 
  
 (b) Disability. If your employment by DQE or an affiliate is terminated due to disability (as defined in the Plan), your stock
option will be exercisable in full (whether or not so exercisable on the date of termination of employment) at any time prior to the earlier of (i) the Expiration Date, or (ii) the date three years after the date of termination of employment.

  
 (c) Death. In the event of your death
during employment by DQE or an affiliate, your stock option will be exercisable in full (whether or not so exercisable on the date of the your death) by the person entitled to do so under your will or, if you fail to make testamentary disposition of
the stock option or die intestate, by your legal representative, in either case at any time prior to the earlier of (i) the Expiration Date, or (ii) one year after the date of death. In the event of death after termination of employment but during a
period when a stock option remains exercisable by you, any then-outstanding stock option that was exercisable on the date of your death will be exercisable by the person entitled to do so under your will or, if you fail to make testamentary
disposition of the stock option or die intestate, by your legal representative, in either case at any time prior to the earlier of (i) the Expiration Date, or (ii) one year after the date of death. 
  
 (d) Resignation. If you resign from your employment
by DQE or an affiliate, the then unvested portion of your stock option will be forfeited, and the then vested portion of your stock option will be exercisable at any time prior to the earlier of (i) the Expiration Date, or (ii) the date three months
after the date of termination of employment. 
  
 (e) Discharge Without Cause. If you are discharged from your employment with DQE or an affiliate other than for cause, the then unvested portion of your stock option will be forfeited, and the then vested portion of your stock option
will be exercisable at any time prior to the earlier of (i) the Expiration Date, or (ii) the date three months after the date of termination of employment. 
  

 4 

 (f) Discharge for Cause. If you are discharged from your employment with DQE or an
affiliate for cause, your stock option will terminate in full on the date of termination. 
  
 The determination of whether a termination of employment is with or without “cause” will be made by the Committee in its sole and absolute discretion. If your employment status changes but you remain an
employee of DQE or one of its affiliates, your stock option will continue in accordance with its terms. 
  
 Enclosed is one copy of your Option Acceptance Form. IF YOU DESIRE TO ACCEPT THE STOCK OPTION, YOU SHOULD SIGN THE OPTION ACCEPTANCE FORM IN DUPLICATE AND RETURN ONE COPY TO MAUREEN L. HOGEL. YOUR STOCK OPTION WILL
BE DEEMED TO BE CANCELLED AND VOID IF THE SIGNED OPTION ACCEPTANCE FORM IS NOT RETURNED TO DQE BY                     . 

 
 Information Statement 
  
 You previously received or will be receiving an Information Statement which describes the
Plan. You should read the Information Statement, together with the Plan and this letter agreement for a full understanding of the stock option granted to you. As long as your stock option remains unexercised, you will continue to receive
notification if there is a material amendment to the Plan or a change in the law which impacts your rights under the Plan. 
  
 Payment of Option Price in Cash or Shares 
  
 The option price upon exercise of your stock option may be paid in full in United States dollars in cash (including check, bank draft or money order), in shares of
already-owned DQE Common Stock at the fair market value of such shares on the date of exercise or in any combination of cash and shares, except that any portion of the option price representing a fraction of a share must be paid in cash. Shares of
DQE Common Stock, which have been held less than six months, may not be delivered in payment of the option price. Further information regarding the payment of the option price appears in the Information Statement under the caption “Stock
Options—Time and Manner of Payment of Exercise Price.” 
  
 Officers and Affiliates - Restrictions 
  
 There are
certain legal restrictions under the federal securities laws upon officers and affiliates who receive grants of stock options and/or sell shares acquired under the Plan. If you are an officer or affiliate of DQE, you must consult the Corporate
Secretary before exercising stock options or selling shares under the Plan. Such exercises and sales may be restricted in order to ensure compliance with the federal securities laws. You may also consult the Corporate Secretary if you have any
questions concerning your status as an “affiliate” of DQE as defined in the Plan. 
  

 5 

 Federal Income Tax Consequences 
  
 Information with respect to the Federal income tax consequences of the exercise of your nonstatutory stock option, and the subsequent
disposition of any shares of DQE Common Stock acquired under the Plan, appears in the Information Statement under the caption “Federal Income Tax Consequences.” The Federal income tax consequences are complex. Accordingly, you are
encouraged to carefully read the material which was provided and to consult your personal tax adviser with specific reference to your own tax situation. 
  
 Withholding of Taxes 
  
 DQE will advise you as to the amount of any Federal income, employment or excise taxes required to be withheld as a result of the cash part of your award and the exercise
of stock option, and that state or local income or employment taxes may also be required to be withheld. You will be required to pay any such taxes directly to DQE in cash within ten days after DQE’s notification, and such payment will be made
before distribution of stock certificates or cash to you. In lieu of payment of cash, however, you may satisfy your withholding obligation by one, or any combination, of the following: (i) delivering previously acquired shares of DQE Common Stock
(valued at their fair market value on the date of delivery) and (ii) having shares of DQE Common Stock withheld from any shares otherwise issuable to you upon exercise of your stock option (valued at their fair market value on the date of such
withholding). 
  
 If you do not pay any taxes required to be withheld, DQE may
withhold such taxes from any other compensation to which you are entitled from DQE. You agree to hold DQE harmless in acting to satisfy the withholding obligation in this manner if it becomes necessary to do so. Further information regarding
withholding of taxes appears in the Information Statement under the caption, “Federal Income Tax Consequences - Withholding.” 
  
 Investment Representation 
  
 You shall deliver to the Committee, upon demand by the Committee, at the time shares of DQE Common Stock are to be issued to you pursuant to your stock option, a written
representation that the shares to be acquired are to be acquired for investment and not for resale or with a view to the distribution thereof. Upon such demand, delivery of such representation prior to delivery of any shares of DQE Common Stock
shall be a condition precedent to your right to receive any shares. 
  
 No
Rights as Shareholder 
  
 You shall have no rights as a shareholder of
DQE with respect to the shares of DQE Common Stock subject to the stock option evidenced hereby unless and until a certificate for shares of DQE Common Stock is issued to you. 
  

 6 

 Option Grant Not a Bar to Corporate Event 
  
 The existence of the stock option granted hereunder shall not affect in any way the right or the power of DQE or its shareholders to make or
authorize any or all adjustments, recapitalizations, reorganizations or other changes in DQE’s capital structure or its business, or any merger or consolidation of DQE, or any issue of bonds, debentures, preferred or prior preference stocks
ahead of or affecting the DQE Common Stock or the rights thereof, or the dissolution or liquidation of DQE, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of similar character
or otherwise. 
  
 Exercise Procedures 
  
 Your stock option may be exercised only by execution and delivery by you to DQE of an
exercise form(s) prescribed by the Committee. Copies of the exercise forms may be obtained from Mr. Thomas E. Ross, Manager, Shareholder Relations, 411 Seventh Avenue, Pittsburgh, PA 15219 or by telephone at (412) 393-6204. Each exercise form must
set forth the number of whole shares of DQE Common Stock as to which your stock option is exercised, must be dated and signed by you (or the person exercising the stock option), and must be accompanied by cash in United States dollars (including
check, bank draft or money order), shares of already-owned DQE Common Stock (see “Payment of Option Price in Cash or Shares” above) at the fair market value of such share on the date of exercise, or any combination of cash and such shares,
in the amount of the full purchase price for the number of shares of DQE Common Stock as to which the option is exercised. 
  
 DQE will advise any person exercising the stock option in whole or in part with shares of already-owned DQE Common Stock as to the amount of any cash required to be paid
to DQE representing a fraction of a share. Such person will be required to (i) pay any such cash directly to DQE before any distribution of certificates representing shares of DQE Common Stock will be made and (ii) deliver an executed Assignment
Separate from Certificate with respect to each stock certificate delivered in payment of the option price as necessary. The signature on all Assignments Separate from Certificate must be guaranteed by a commercial bank or trust company or by a firm
having membership in the New York Stock Exchange, Inc., the American Stock Exchange, Inc., or the National Association of Securities Dealers, Inc. 
  
 If a person other than you (such as the executor of your estate) exercises the option, the exercise material must include proof satisfactory to DQE of the right of such
person to exercise the option. 
  
 The date of exercise is the date on which the
exercise form or forms, proof of right to exercise (if required) and payment of the option price in cash or shares of already-owned DQE Common Stock are received by DQE at the address set forth in this section. 
  

 7 

 Issuance of Stock Certificates 
  
 Subject to the second paragraph under “Exercise Procedures” above, DQE will issue a certificate(s) representing the number
of shares of DQE Common Stock to which the person exercising the stock option is entitled, if any, as soon as practicable after the date of exercise. Unless the person exercising the stock option otherwise directs DQE in writing, the certificate(s)
will be registered in the name of the person exercising the stock option and will be delivered to such person. If the stock option is exercised and the option price is paid in whole or in part with shares of already-owned DQE Common Stock, DQE will
issue at the same time (and return to the person exercising the stock option) a certificate representing the number of any excess shares included in any certificate(s) delivered to DQE at the time of exercise. 
  
 General Restriction 
  
 To the extent this stock option is denominated in DQE Common Stock under this letter
agreement, it shall be subject to the requirement that if at any time the Committee shall determine that any listing or registration of the shares of DQE Common Stock or any consent or approval of any governmental body or any other agreement or
consent is necessary or desirable as a condition of the issuance of shares of DQE Common Stock or cash in satisfaction thereof, such issuance of shares of DQE Common Stock may not be consummated unless such requirement is satisfied in a manner
acceptable to the Committee. DQE shall in no event be obligated to register any securities pursuant to the Securities Act of 1933 (as the same shall be in effect from time to time) or to take any other affirmative action to cause the issuance of
shares pursuant to this stock options to comply with any law or regulation of any governmental authority. 
  
 Determinations of Committee 
  
 The actions taken and determinations of the Committee made pursuant to this letter agreement and of the Committee pursuant to the Plan shall be final, conclusive and
binding upon DQE and upon you. No member of the Committee shall be liable for any action taken or determination made relating to this letter agreement or the Plan if made in good faith. 
  
 Miscellaneous 
  
 Your stock option may not be transferred otherwise than by will or by the law of decent and distribution, and your stock option will be exercisable during your lifetime
only by you or by your guardian or legal representative. No assignment or transfer of your stock option or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise (except by will or the laws of descent
and distribution), shall vest in the assignee or transferee any interest or right herein whatsoever, and immediately upon such purported assignment or transfer, the stock option shall terminate and become of no further effect. 
  
 This letter agreement does not confer any right on you to continue in the employ of DQE or
its affiliates, or interfere in any way with the rights of DQE or its affiliates to terminate your employment. 
  

 8 

 Whenever the word “you” is used in any provision of this letter agreement under circumstances where the
provision should logically be construed to apply to your executors, administrators, or the person or persons to whom your stock option may be transferred by will or by the laws of descent and distribution, the word “you” shall be deemed to
include such person or persons. 
  
 The Plan, or any part thereof, may be
terminated or may, from time to time be amended, in accordance with the Plan; provided, however, the termination or amendment of the Plan shall not, without your consent, affect your rights under this letter agreement. 
  
 This letter agreement shall be binding upon the successors and assigns of DQE and upon your
legal representatives, heirs and legatees. This letter agreement, along with the Plan and the Information Statement, constitutes the entire agreement between you and DQE with respect to the stock option granted to you and supersedes all prior
agreements and understandings, oral or written, between you and DQE with respect to the subject matter of this letter agreement. This letter agreement may be amended only by a written instrument signed by you and DQE and will be governed by, and
construed and enforced in accordance with, the laws of the Commonwealth of Pennsylvania. 
  
 Between the date of this letter agreement and the date your stock option is exercised, you will receive copies of all reports, proxy statements and other communications distributed generally to the shareholders of
DQE. 
  
 It is recommended that you establish a file for this letter agreement and
enclosures as well as any other material you receive regarding the Plan, including the Information Statement. 
  
 If you have any questions with respect to the exercise of your stock option, please direct your inquiry to Thomas E. Ross. 
  
 Very truly yours, 
  

	
	
	

	Maureen L. Hogel

  
 Enclosures 
  

 9 

 OPTION ACCEPTANCE FORM 
  
 I, the undersigned optionee, accept the grant of the nonstatutory stock option confirmed by the attached letter agreement
dated [date], for the number of shares set forth below. Also, I understand that the number of shares set forth below represents my grant, and that the extent to which those options are vested will be determined based on the price of the DQE Common
Stock. I agree to be bound by the terms and provisions of the Plan, as the Plan may be amended from time to time, and the attached letter agreement; provided, however, that no alteration, amendment, revocation or termination of the Plan shall,
without my written consent, adversely affect my rights with respect to this stock option. 
  
 IN WITNESS WHEREOF, I have executed this Option Acceptance Form as of                     , the date on which
the stock option was granted to me, subject to the terms and conditions set forth in the Plan and in the attached letter agreement. 
  
 Number of Shares of DQE 
 Common Stock for which 
 Nonstatutory Stock Option 
 is Granted -
                         
  
 [name of optionee] 
 [address of optionee] 
  

					
			
	  	 	 	 	  
	Optionee’s Signature	 	 	 	Date

  
 For your grant to be effective, one

 signed copy of this form must be 
 returned by
                     to: 
  
 Maureen L. Hogel 
 Senior Vice President – Human Resources and
Administration 
 Duquesne Light Company 
 411 Seventh Avenue

 16th Floor (16-3)

 Pittsburgh, PA 15219

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]