Document:

EX-10.40

 Exhibit 10.40 
 NAMED EXECUTIVE OFFICER COMPENSATION DETERMINATIONS 
 2013 Named Executive
Officer Compensation Determinations 
 The following is a description of certain compensation decisions made in 2013 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 2013 to (i) the
persons below who are named executive officers as identified in the Summary Compensation Table in PHI’s proxy statement for its 2012 Annual Meeting of Stockholders (each, a “Named Executive Officer”), as well as (ii) two
executive officers who joined PHI during 2012 and who have not previously been identified as named executive officers by PHI (the “Covered Executive Officers”). 
 As to each Named Executive Officer listed in the table below, the compensation decisions consisted of (i) the establishment of annual base salary for 2013; (ii) the establishment of the Named
Executive Officer’s 2013 annual cash incentive award opportunities under the Amended and Restated Executive Incentive Compensation Plan (the “EICP”); and (iii) the grant of long-term equity and incentive awards under the Pepco
Holdings, Inc. 2012 Long-Term Incentive Plan (the “LTIP”). In addition, with respect to Joseph M. Rigby, PHI’s Chairman, President and Chief Executive Officer, the performance goals with respect to his 2013 performance-based
retention award under the terms of that certain Employment Agreement, dated December 20, 2011, were established in February 2013, as discussed below. 
  

																											
	 Named Executive Officer
	  	 Title
	  	2013
Annual
Base
Salary	 	  	Target
2013
Annual Cash
Incentive Award
Opportunity as a
Percentage of
Annual Base
Salary (1) 	 	 	 	 	  	 	 	  	 	 	  	 	 
	  	  	  	 	LTIP Awards (2)	 
	  	  	  	 	Performance-Based RSU Awards
(# of
RSUs) (3)	 	  	Time-Based
RSU Award
(# of RSUs)
(4)	 
	  	  	  	 	Threshold	 	  	Target	 	  	Maximum	 	  
								
	 Joseph M. Rigby (5)
	  	 Chairman, President and

Chief Executive Officer
	  	$	1,015,000	  	  	 	100	% 	 	 	21,947	  	  	 	87,788	  	  	 	175,576	  	  	 	43,894	  
								
	 David M. Velazquez
	  	Executive Vice President	  	$	518,000	  	  	 	60	% 	 	 	5,600	  	  	 	22,401	  	  	 	44,802	  	  	 	11,200	  
								
	 Kirk J. Emge (6)
	  	Senior Vice President and Special Counsel to the Chief Executive Officer	  	$	400,000	  	  	 	—  	  	 	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  

  

	(1)	An 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 Executive Incentive Compensation Plan” below for a discussion of 2013 performance goals. 

	(2)	The shares of PHI common stock, $.01 par value per share (“Common Stock”), underlying performance-based and time-based restricted stock unit 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 2013 annual base salary: 250% for Mr. Rigby and 125% for Mr. Velazquez. 

	(3)	See “2013 LTIP Awards — Performance-Based Restricted Stock Unit Awards” below for a description of the performance-based restricted stock unit awards
granted under the LTIP. Under the terms of his Retirement Agreement, Mr. Emge is not eligible to participate in the LTIP in 2013. 

	(4)	See “2013 LTIP Awards — Time-Based Restricted Stock Unit Awards” below for a description of the time-based restricted stock unit awards granted under the
LTIP. 

	(5)	In addition to the awards listed in the table above, pursuant to the terms of his employment agreement, Mr. Rigby received in 2013 a performance-based retention
award of 36,945 restricted stock units, which has a performance period beginning on January 1, 2013 and ending on December 31, 2013 and which shall vest (i) if Mr. Rigby remains continuously employed by PHI during the performance
period and (ii) to the extent that performance goals (described below) with respect to such performance period are met. 

	(6)	Mr. Emge has announced that he will retire from PHI effective April 1, 2013. Under the terms of his Retirement Agreement, dated September 6, 2012,
(i) Mr. Emge’s annual base salary remained at $400,000 and is payable through the date of retirement; (ii) he was ineligible to receive an award opportunity under the EICP for 2013; and (iii) he was ineligible to receive
grants of awards under the LTIP in 2013. The Retirement Agreement also provides Mr. Emge with other payments and benefits that were previously disclosed in PHI’s Current Report on Form 8-K, dated September 7, 2012.

 As to each Covered Executive Officer listed in the table below, the compensation decisions
consisted of (i) the establishment of annual base salary for 2013; (ii) the establishment of the Covered Executive Officer’s 2013 annual cash incentive award opportunities under the Amended and Restated Executive Incentive
Compensation Plan (the “EICP”); and (iii) the grant of long-term equity and incentive awards under the LTIP. In addition, with respect to Kevin C. Fitzgerald, PHI’s Executive Vice President and General Counsel, the performance
goals with respect to his 2013 performance-based retention award under the terms of that certain Employment Agreement, effective as of September 17, 2012, were established in January 2013, as discussed below. 

 

																											
	 Covered Executive Officer
	  	 Title
	  	2013
Annual
Base
Salary	 	  	Target
2013
Annual Cash
Incentive Award
Opportunity as a
Percentage of
Base Salary (1)	 	 	LTIP Awards (2)	 
	  	  	  	 	Performance-Based RSU Award
(# of RSUs) (3)	 	  	Time-Based
RSU 
Award
(# of RSUs)
(4)	 
	  	  	  	 	Threshold	 	  	Target	 	  	Maximum	 	  
								
	 Frederick J. Boyle
	  	Senior Vice President and Chief Financial Officer	  	$	470,000	  	  	 	60	% 	 	 	10,163	  	  	 	20,325	  	  	 	40,650	  	  	 	10,163	  
								
	 Kevin C. Fitzgerald (5)
	  	Executive Vice President and General Counsel	  	$	550,000	  	  	 	60	% 	 	 	11,893	  	  	 	23,785	  	  	 	47,570	  	  	 	11,892	  

  

	(1)	An executive can 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 Executive Incentive Compensation Plan” below for 2013 performance goals. 

	(2)	The shares of Common Stock underlying performance-based and time-based awards of restricted stock units in the aggregate had a market value on the date of grant equal
to 125% of each Covered Executive Officer’s 2013 annual base salary. 

	(3)	See “2013 LTIP Awards — Performance-Based Restricted Stock Unit Awards” below for a description of the performance-based restricted stock unit awards
issued under the LTIP. 

	(4)	See “2013 LTIP Awards — Time-Based Restricted Stock Unit Awards” below for a description of the time-based restricted stock unit awards issued under the
LTIP. 

	(5)	In addition to the awards listed in the table above, pursuant to the terms of his employment agreement, Mr. Fitzgerald is eligible to receive a series of three
performance-based awards of restricted stock units, each of which shall have a performance period of one year and shall vest provided that (i) Mr. Fitzgerald remains continuously employed by PHI during such year and (ii) certain performance
goals with respect to such annual performance period are met, which goals shall be established by the Committee. 

 Amended and
Restated Executive Incentive Compensation Plan 
 Each of the Named Executive Officers (with the exception of Mr. Emge)
and the Covered Executive Officers listed in the tables above is a participant in the EICP. On February 28, 2013, the Committee established the following performance goals to be used for the determination of 2013 EICP awards for each of the
executives named below: 
  

	 	•	 	 Messrs. Rigby, Boyle and Fitzgerald: (1) net earnings relative to net budgeted earnings (which would exclude the impact of potential earnings
adjustments related to PHI’s cross-border energy lease portfolio and the unwinding of any of those leases), (2) electric system reliability, (3) customer satisfaction, (4) diversity, and (5) safety.

  

	 	•	 	 Mr. Velazquez: (1) Power Delivery net earnings relative to net budgeted earnings (which would exclude the impact of potential earnings
adjustments related to PHI’s cross-border energy lease portfolio and the unwinding of any of those leases), (2) core capital expenditures (excluding certain items), (3) operation and maintenance spending, (4) regulatory results;
(5) compliance results, (6) electric system reliability, (7) customer satisfaction, (8) diversity, and (9) safety. 

 2013 LTIP Awards 
 The Committee has granted awards of performance-based restricted stock units and time-based restricted stock units under the LTIP with respect to the 2013 to 2015 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 Named Executive Officers (with the
exception of Mr. Emge) and Covered Executive Officers listed in the tables above. 
 Performance-Based Restricted Stock
Unit Awards 
 A performance-based restricted stock unit award accounts for two-thirds of an executive’s aggregate 2013
equity award under the LTIP. Depending on the extent to which the pre-established performance goal, which is based on PHI’s total shareholder return relative to a group of peer companies over a three-year period beginning on January 1,
2013 and ending on December 31, 2015, has been met, an amount of each award ranging from 25% to 200% of the target number of restricted stock units (including additional dividend equivalents credited in the form of restricted stock units)
subject to the award may vest in the form of shares of Common Stock, with one share of Common Stock to be issued for each restricted stock unit that vests. 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 total shareholder return 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. 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 performance-based award of restricted stock units for each listed executive (except for Mr. Emge), are shown in the tables
above. 
 Subject to certain exceptions provided for in the LTIP and/or in the award agreement (or, with respect to Messrs.
Rigby and Fitzgerald, their employment agreements), performance-based awards are subject to forfeiture if (i) the employment of the executive terminates before the end of the three-year performance period or (ii) the performance goal has
not been achieved as of the end of the three-year performance period. When a dividend is paid on the Common Stock, the executive’s restricted stock unit balance is credited with additional restricted stock units equal to the number of shares
that could be purchased with the cash amount of the dividend at the then current market price. Additional restricted stock units credited as dividend equivalents will vest only to the extent the underlying restricted stock units vest. 

Time-Based Restricted Stock Unit Awards 
 Each Named Executive Officer (except for Mr. Emge) and each Covered Executive Officer has received a grant of time-based restricted stock units, which accounts for one-third of the executive’s
aggregate 2013 equity award under the LTIP. Subject to certain exceptions provided for in the LTIP or in the award agreement (or, with respect to Messrs. Rigby and Fitzgerald, their employment agreements), time-based restricted stock units are
subject to forfeiture if the employment of the executive terminates before January 24, 2016. Each restricted stock unit that has not been forfeited will be settled by the delivery of one share of Common Stock. When a dividend is paid on the
Common Stock, the executive’s restricted stock unit balance is credited with additional restricted stock units equal to the number of shares that could be purchased with the cash amount of the dividend at the then current market price.
Additional restricted stock units credited as dividend equivalents will vest only to the extent the underlying restricted stock units vest. 

Performance-Based Retention Awards 
 Mr. Rigby’s Performance-Based Retention Award 
 Pursuant to the
terms of his employment agreement with the Company, Mr. Rigby is entitled to receive a series of three annual performance-based retention awards of 36,945 RSUs, each granted under the LTIP, over the three-year term of his employment agreement.
Each award will have a performance period that begins on January 1 and ends on December 31. Each award will vest if Mr. Rigby remains continuously employed with PHI during the related performance period and to the extent that the
Committee determines that the performance goals established for that performance period have been met. The performance goals for each award are established on or as soon as practicable after the beginning of each performance period, but no later
than 90 days after such date. 

 The performance goals established by the Committee in February 2013 with respect to
Mr. Rigby’s 2013 performance-based retention award are as follows: 
  

	 	•	 	 Reliability of electric service to customers (20% weight); 

 

	 	•	 	 Residential customer satisfaction (20% weight); 

  

	 	•	 	 Execution of regulatory plan (25% weight); 

  

	 	•	 	 Complete strategic review of Pepco Energy Services and assessment of new revenue opportunities (15% weight); and 

 

	 	•	 	 Talent assessment/planning (20% weight). 

 Mr. Fitzgerald’s Performance-Based Retention Award 
 Pursuant to
the terms of his employment agreement with the Company, Mr. Fitzgerald is entitled to receive a series of three annual performance-based retention awards, each granted under the LTIP, over the three-year term of his employment agreement. Each
award will have a performance period that begins on January 1 and ends on December 31. The awards will consist of a number of restricted stock units to be determined by dividing $166,666.67 by the closing price of a share of Common Stock
on the last trading day immediately preceding the first day of the performance period. These awards will vest if Mr. Fitzgerald remains continuously employed with PHI during each annual performance period and to the extent that the Committee
determines that the performance goals established for the performance period covered by the award have been met. The performance goals for each award are established on or as soon as practicable after the beginning of each performance period, but no
later than 90 days after such date. 
 The performance goals established by the Committee in January 2013 with respect to
Mr. Fitzgerald’s 2013 performance-based retention award are as follows: 
  

	 	•	 	 Reduction of outside legal fees (20% weight) 

  

	 	•	 	 Development and execution of external stakeholder enrollment and operations development plans (30% weight) 

 

	 	•	 	 Development of initiatives on grid resiliency (20% weight) 

 

	 	•	 	 Development of strategic revenue growth opportunities (including “smart grid” products and services, solar development opportunities,
expansion of Pepco Energy Services’ underground high voltage transmission cable business, and combined heat and power projects) (10% weight); and 

  

	 	•	 	 Development of plan focused on operational, strategic and other executive-level management efforts (20% weight).EX-10.50

 Exhibit 10.50 
 PEPCO HOLDINGS, INC. 
 RESTRICTED STOCK UNIT AGREEMENT 

(Time-Vested) 
 THIS RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”) is effective this
                    day of             , 2013 (the “Date
of Grant”), by and between Pepco Holdings, Inc. (the “Company”), and                     , an employee of the Company (the
“Participant”). 
 WHEREAS, the Company has adopted the Pepco Holdings, Inc. 2012 Long-Term Incentive Plan, as
it may be amended, amended and restated and/or restated from time to time (the “Plan”). 
 WHEREAS, on
            , 2013, the Committee granted to the Participant a Service-Based Award of
            Restricted Stock Units under the Plan (the “RSU Award”). 
 WHEREAS, the Company desires to enter into an agreement with the Participant evidencing the grant to the Participant of the RSU Award approved by the Committee on the terms and conditions set forth
herein. 
 NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable
consideration, the Company and the Participant agree as follows: 
 1. Restricted Stock Unit Award. The RSU Award is a
Service-Based Award under the Plan consisting of             Restricted Stock Units. The Restricted Stock Units are notional units of measurement denominated in shares of
Stock (i.e., one Restricted Stock Unit is equivalent in value to one share of Stock, subject to the terms hereof). The Restricted Stock Units represent an unfunded, unsecured contractual right. 

2. Vesting. This RSU Award shall vest, as follows: 

(a) On             , 2016 (the “Vesting
Date”), this RSU Award shall vest in full, provided that the Participant remains continuously employed by the Company or a Subsidiary beginning on the Date of Grant and ending on the Vesting Date. Except as otherwise provided by
Section 2(b), 2(c) or 3 hereof, if the employment of the Participant by the Company or any Subsidiary terminates prior to the Vesting Date, this RSU Award shall be immediately forfeited in its entirety. The period beginning on the Date of Grant
and ending on the Vesting Date shall be referred to herein as the “Restriction Period.” 
 (b) Upon
(i) the Termination of the Participant’s employment without Cause, or (ii) the death or Disability of the Participant during the Restriction Period and prior to any termination of the Participant’s employment with the Company or
any Subsidiary, a portion of the RSU Award shall vest, which portion shall equal the number of Restricted Stock Units covered by this Agreement multiplied by a fraction, the numerator of which shall be the number of days in the Restriction Period
during which the Participant was continuously employed by the Company or a Subsidiary, and the denominator of which shall be the total number of days in the Restriction Period. The remaining portion of this RSU Award shall immediately be forfeited.

 (c) The Committee may, in its sole discretion, provide that, upon the
retirement of the Participant (as determined by the Committee in its sole discretion), all or part of the Restricted Stock Units covered by this RSU Award shall vest. Any such action by the Committee must be made in writing prior to the effective
date of the Participant’s retirement. 
 Any Restricted Stock Units associated with this RSU Award as to which the vesting requirement of
this Section 2 has been satisfied shall be payable in accordance with Section 5 hereof. 
 3. Accelerated
Vesting. Notwithstanding the foregoing (but subject to compliance with the provisions of Section 17 hereof), if the Participant is terminated by the Company or a Subsidiary as an employee or if the Participant terminates such employment for
Good Reason, in each case within 12 months following a Change in Control and within the Restriction Period, all of the Restricted Stock Units represented hereby shall vest upon such termination and be payable in accordance with Section 5
hereof. 
 4. Dividend Equivalents. Dividend Equivalents under the Plan have been granted in conjunction with this RSU
Award, such that any dividend paid in cash on shares of Stock will be credited to the Participant as Dividend Equivalents as if the Restricted Stock Units represented hereby were outstanding shares of Stock. Such credit shall be made in the form of
additional whole and/or fractional Restricted Stock Units, based on the Fair Market Value of the Stock on the trading day immediately prior to the date of payment of any such dividend. All such additional Restricted Stock Units shall be subject to
the same vesting and forfeiture provisions applicable to the Restricted Stock Units in respect of which they were credited and shall be paid in accordance with Section 5 hereof. 

5. Payment of Award. Payment of vested Restricted Stock Units (which shall include Restricted Stock Units credited pursuant
to Dividend Equivalents described in Section 4) shall be made within thirty (30) days following the earlier of (i) the Vesting Date; or (ii) the vesting of this RSU Award in whole or in part pursuant to Sections 2(b), 2(c) or 3
hereof, but subject in each case, as applicable, to any delay that may be required under Section 16 hereof. The vested Restricted Stock Units shall be paid in the form of one share of Stock for each Restricted Stock Unit, minus deductions for
applicable minimum statutory withholding taxes as set forth in Section 11 of this Agreement. 
 6.
Nontransferability of Award. None of the Restricted Stock Units covered hereby (including any Dividend Equivalents described in Section 4) may be assigned or alienated, and shall not be subject to attachment or other legal process except
(i) to the extent specifically mandated and directed by applicable state or Federal statute; or (ii) as provided in Section 11 this Agreement with respect to withholding of applicable taxes. Any attempted disposition of this RSU Award
or the Restricted Stock Units (or any interest herein) in violation of this Section 6 shall be null and void. 
 7.
Terms and Conditions. The terms and conditions included in the Plan are incorporated herein by reference, and to the extent that any conflict or ambiguity may exist between the terms and conditions included in this Agreement and the terms and
conditions included in the Plan, the terms and conditions included in the Plan shall control. By execution of this Agreement, the Participant acknowledges receipt of a copy of the Plan and further agrees to be bound thereby and by the actions of the
Committee and/or the Board pursuant to the Plan. 

  
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 8. No Rights as a Stockholder. The Restricted Stock Units granted pursuant to this
RSU Award, whether or not vested, will not confer any voting rights or any other rights of a stockholder of the Company upon the Participant, and the Participant will not acquire any voting rights or any other rights of a stockholder of the Company
unless and until such Restricted Stock Units have vested and shares of Stock underlying such Restricted Stock Units have been issued and delivered to the Participant. The Company shall not be required to issue or transfer any certificates
representing shares of Stock upon vesting of the RSU Award until all applicable requirements of any law, rule or regulation have been compiled with, and any required government agency approvals have been obtained. Further, no issue or transfer of
such certificates shall occur until such shares of Stock have been duly listed on any securities exchange on which the Stock may then be listed. 
 9. Stock Issuable Upon Vesting. Upon vesting of the RSU Award and payment of Stock pursuant to Section 5 hereof, the Participant shall be provided with the certificate(s) or certificate
number(s) evidencing ownership of the shares of such Stock, subject to the implementation of an arrangement with the Participant to effectuate all necessary tax withholding. If the shares of Stock evidenced by such certificate(s) were not offered
and sold to the Participant in a transaction registered under the Securities Act of 1933, as amended (the “Securities Act”), the certificate(s) may include a legend noting that the Stock may not be sold or transferred by the Participant
unless such Stock is registered for resale or unless the Participant meets an exemption from registration under the Securities Act. The Company shall follow all requisite procedures to deliver such certificates to the Participant; provided, however,
that such delivery may be postponed to enable the Company to comply with any applicable procedures, regulations or listing requirements of any government agency, stock exchange, transfer agent or regulatory agency. 

10. No Employment Right; Tenure. This Agreement shall not constitute a contract of employment between the Company or any
Subsidiary and the Participant. The Participant’s right, if any, to serve the Company as a director, officer, employee or otherwise shall not be enlarged or otherwise affected by this Agreement or his or her designation as a participant under
the Plan. 
 11. Tax Withholding. The Participant acknowledges this RSU Award may give rise to a tax liability and a
withholding obligation associated therewith, and that no shares of Stock shall be issuable to the Participant hereunder until such withholding obligation is satisfied in full. In accordance with Section 19.C. of the Plan, the Company or a
Subsidiary may withhold up to, but no more than, the minimum applicable statutory federal, state and/or local taxes (collectively, “Tax Withholding Requirements”) at such time and upon such terms and conditions as required by law or
determined by the Company or a Subsidiary. Subject to compliance with any requirements of applicable law, the Participant shall have all or any portion of any Tax Withholding Requirements that may be payable in respect of the RSU Award satisfied
when due through the payment by the Participant of cash to the Company or a Subsidiary, funded by the disposition on the Participant’s behalf or for the Participant’s account of shares of Stock which would otherwise be delivered to the
Participant having an aggregate fair market value equal to the aggregate amount of such Tax Withholding Requirements. 

  
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 12. Securities Law Compliance. The Company currently has an effective registration
statement on file with the Securities and Exchange Commission with respect to the shares of Stock subject to the RSU Award. The Company intends to maintain the effectiveness of this registration statement but has no obligation to the Participant to
do so. If the registration statement ceases to be effective, the Participant will not be able to transfer or sell shares of Stock, which were issued to the Participant pursuant to the RSU Award at a time that such registration statement was not
effective, unless exemptions from registration under applicable securities laws are available. Such exemptions from registration are very limited and might not be available. The Participant agrees that any resale of shares of Stock issued pursuant
to the RSU Award shall comply in all respects with the requirements of all applicable securities laws, rules and regulations (including, without limitation, the provisions of the Securities Act and the Securities Exchange Act of 1934, and the
respective rules and regulations promulgated thereunder) and any other law, rule or regulation applicable thereto, as such laws, rules, and regulations may be amended from time to time. The Company shall not be obligated to either issue shares of
Stock or permit the resale of any such shares if such issuance or resale would violate any such requirements. 
 13. Other
Plans and Agreements. Any gain realized by the Participant pursuant to this Agreement shall not be taken into account as compensation in the determination of the Participant’s benefits under any pension, savings, group insurance, or other
benefit plan maintained by the Company or a Subsidiary, except as determined by the board of directors of such company or as expressly provided under the terms of such other plan. The Participant acknowledges that receipt of this Agreement or any
prior agreement under the Plan shall not entitle the Participant to any other benefits under the Plan or any plans maintained by the Company or a Subsidiary. 
 14. Committee Authority. The Committee shall have complete discretion in the exercise of its rights, powers, and duties under this Agreement and the Plan. Any interpretation or construction of any
provision of, and the determination of any question arising under, this Agreement shall be made by the Committee in its sole discretion and shall be final, conclusive, and binding. The Committee may designate any individual or individuals to perform
any of its functions hereunder. 
 15. Changes in Capitalization. The Restricted Stock Units under this RSU Award shall
be subject to the provisions of Section 19.H. of the Plan relating to adjustments for changes to the Company’s capitalization. The RSU Award shall not affect the right of the Company or any Subsidiary to reclassify, recapitalize or
otherwise change its capital or debt structure or to merge, consolidate, convey any or all of its assets, dissolve, liquidate, windup or otherwise reorganize. 
 16. Section 409A. This Agreement shall be interpreted to ensure, to the fullest extent possible, that the payments contemplated hereby comply with Section 409A of the Internal Revenue
Code of 1986, as amended, including the Treasury Regulations promulgated thereunder (“Section 409A”). However, if the RSU Award is determined to be subject to Section 409A and any payment is triggered by a separation from service, the
payment will, if the Participant is a specified employee (as determined under Section 409A) and to the extent required by Section 409A, be delayed until the date that is one day after the six month anniversary of such separation from
service. 

  
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 17. Clawback Rules. If the Participant is subject to the provisions of
(i) Section 304 of the Sarbanes-Oxley Act of 2002; (ii) any policies adopted by the Company in accordance with rules that may be promulgated by the Securities and Exchange Commission pursuant to Section 10D of the Securities
Exchange Act of 1934, as amended; and (iii) any other existing or future applicable law, rule, regulation, stock exchange rule, or policy of the Board providing for the forfeiture or recoupment of equity-based compensation granted by the
Company (individually or collectively, the “Clawback Rules”), this Award and the Restricted Stock Units described herein, as well as any shares of Common Stock issued hereunder (and any proceeds from the sale or disposition thereof), are
subject to potential forfeiture or “clawback” to the fullest extent called for by the Clawback Rules. By accepting this Award, the Participant agrees to return to the Company the full amount required by the Clawback Rules. 

18. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Delaware, without
giving effect to the choice of law principles thereof. 
 19. Binding Effect. This Agreement shall inure to the benefit
of, and be binding on, the Company and its successors and assigns, and the Participant and his or her heirs, administrators, executors, other legal representatives and permitted assigns, whether so expressed or not. 

20. No Waiver. No waiver of any provision of this Agreement will be valid unless in writing and signed by the person against whom
such waiver is sought to be enforced, nor will failure to enforce any right under this Agreement constitute a continuing waiver of the same or a waiver of any other right hereunder. 

21. Further Assurances. The Participant hereby agrees to take whatever additional action and execute and deliver all agreements,
instruments and other documents the Company may deem necessary or advisable to carry out or effect any of the obligations or restrictions imposed on the Participant or the RSU Award pursuant to the express provisions of the Agreement and/or the
Plan. 
 22. Definition of Terms. Capitalized terms used herein but not otherwise defined in this Agreement shall have
the meanings ascribed to them under the Plan. 
 23. Entire Agreement. This Agreement and the Plan constitute the entire
understanding and agreement between the parties hereto with regard to the subject matter hereof, and they supersede all other negotiations, understandings and representations (if any) made by and between such parties. 

[signatures appear on the following page] 

  
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 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and the Participant has hereunder set his hand, all as of this             day of             , 2013.

  

											
	ATTEST:	 		 	PEPCO HOLDINGS, INC.
					
	By:	 	 	 		 	By:	 	 
	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	
				
		 		 		 	PARTICIPANT:
				
		 		 		 	 
					
		 		 		 	Printed Name:	 	 

  
 -6-

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