Document:

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                                                                   Exhibit 10.15

                  NON-COMPETITION AND CONFIDENTIALITY AGREEMENT

          This Non-Competition and Confidentiality Agreement ("Agreement") is
entered into as of the 21st day of October, 1996 by and among DQE, Inc.
(hereinafter called "DQE"), a Pennsylvania corporation, Duquesne Light Company
(hereinafter called the "Company" and together with DQE sometimes hereinafter
called the "Employers"), a Pennsylvania corporation and a wholly-owned
subsidiary of DQE, and Victor A. Roque, an individual residing in Allegheny
County, Pennsylvania and Vice President and General Counsel of DQE and the
Company (hereinafter called the "Executive");

                              W I T N E S S E T H:

          WHEREAS, during the course of the Executive's employment with the
Employers, the Employers will undertake to train and continue to train the
Executive and to impart to the Executive proprietary and/or confidential
information and/or trade secrets of the Employers and their affiliates; and

WHEREAS, in consideration of the issuance to the Executive of 200 restricted
shares of DQE Common Stock and the provision for special severance benefits for
the Executive on the terms and conditions hereinafter described, the Executive
hereby agrees to the covenants and restrictions set forth herein;

          NOW THEREFORE, for valuable consideration, receipt of which is hereby
acknowledged, and intending to be legally bound hereby, the parties agree as
follows:

          1. Covenants of the Executive. In order to induce DQE and the Company
             --------------------------
to enter into this Agreement, and for other good and valuable consideration the
receipt of which is hereby acknowledged by the Executive, the Executive hereby
agrees as follows:

               (a) Non-Disclosure Of Confidential Information. The Executive
                   ------------------------------------------
     acknowledges that all Confidential Information shall at all times remain
     the property of the Employers and their affiliates (i.e., each other
     company the majority interest of which is owned by the either of the
     Employers or by a parent or subsidiary of either of the Employers) (the
     Employers and such affiliates are hereinafter collectively called the
     "Affiliated Companies"). "Confidential Information" means all information
     disclosed to the Executive or known by the Executive as a consequence of or
     through the Executive's employment, which is not generally known in the
     industry in which the Affiliated Companies are or may become engaged, about
     the business, products, processes, and services of the Affiliated
     Companies, 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
<PAGE>

     documentation thereof. It includes, but is not limited to, proprietary
     information and trade secrets of the Affiliated Companies. It will be
     presumed that information supplied to the Affiliated Companies from outside
     sources is Confidential Information unless and until it is designated
     otherwise.

               The Executive will safeguard and maintain on the premises of the
     Employers, to the extent possible in the performance of the Executive's
     work for the Employers, all documents and things that contain or embody
     Confidential Information. Except as required as part of the Executive's
     duties to the Employers, the Executive will not, during his employment by
     the Employers, or thereafter, directly or indirectly use, divulge,
     disseminate, disclose, lecture upon, or publish any Confidential
     Information without having first obtained written permission from the
     Employers to do so.

               (b) Inventions. Inventions made or conceived by the Executive,
                   ----------
     either solely or jointly with others, (i) during the Executive's employment
     by the Employers and (ii) within one (1) year after termination of such
     employment, whether or not such Inventions are made or conceived during the
     hours of the Executive's employment or with the use of the Employers'
     facilities, materials, or personnel, will be the property of the Employers
     or their 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 Affiliated Companies.

               The Executive will, without royalty or any other additional
     consideration:

                    (i) inform the Employers promptly and fully of such
     Inventions by written reports, setting forth in detail a description, the
     operation and the results achieved;

                    (ii) assign to the Employers all the Executive'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;

                    (iii) assist the E0mployers or their nominees, at the
     expense of the Employers, to obtain, maintain and enforce such United
     States and foreign Letters Patent for such Inventions as the Employers may
     elect; and

                    (iv) execute, acknowledge, and deliver to the Employers
     at their expense such written documents and instruments, and do such
     other acts, such as giving testimony in support of the Executive's
     inventorship and invention, as may be necessary in the opinion of the
     Employers to obtain, maintain or enforce the United States and foreign
     Letters Patent upon such Inventions and to vest the entire right and by the
     title thereto in the Employers and to confirm the complete ownership
     Employers of such Inventions.

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               (c) Works. All Works created by the Executive during his
                   -----
     employment by the Employers will be and remain exclusively the property of
     the Employers. "Works" means all material and information created by the
     Executive in the course of or as a result of the Executive's employment by
     the Employers 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 Employers may file
     applications to register copyright as author thereof. The Executive will
     take whatever steps and do whatever acts the Employers request, including,
     but not limited to, placement of the Employers' proper copyright notice on
     such Works to secure or aid in securing copyright protection and will
     assist the Employers or their nominees in filing applications to register
     claims of copyright in such works. The Executive will not reproduce,
     distribute, display publicly, or perform publicly, alone or in combination
     with any data processing or network system, any Works of the Employers
     without the written permission from the Employers.

               (d) Restrictions on Competition. The Executive covenants and
                   ---------------------------
     agrees that during the period of the Executive's employment hereunder and
     for a period of one (1) year following the termination of the Executive's
     employment for any reason, including without limitation termination by the
     Employers for cause or without cause, the Executive 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
     Competing Business located within a 150 mile radius of the principal places
     of business of the Employers located in Pittsburgh, Pennsylvania or in the
     states of Ohio or West Virginia. For purposes of this Agreement, the term
     "Competing Business" shall mean any person, corporation or other entity
     which develops, produces, markets, sells or services (1) any energy product
     or service, including but not limited to gas or electric products or
     services, and/or (2) any product or service which is the same as or similar
     to products or services which the Affiliated Companies developed, produced,
     marketed, or sold, including but not limited to energy products and
     services, within the last year prior to termination of the Executive's
     employment hereunder. The Executive recognizes that the Affiliated
     Companies conduct or intend to conduct business within the geographic area
     set forth herein, and therefore, the Executive agrees that this restriction
     is reasonable and necessary to protect the Affiliated Companies' business.

               (e) Nonsolicitation Of Customers And Suppliers. The Executive
                   ------------------------------------------
     agrees that for a period of two (2) years following the termination of the
     Executive's employment with the Employers for any reason, whether
     terminated for cause or without cause, the Executive shall not, directly or
     indirectly, solicit the business of, or do business with, any customer,
     supplier, or prospective customer or supplier of the Affiliated Companies
     with whom the Executive had direct or indirect contact or about whom the
     Executive may have acquired any knowledge while employed by the Employers.

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               (f) Solicitation Of Executives. The Executive agrees that, during
                   --------------------------
     the Executive's employment with the Employers and for a period of two (2)
     years following termination of the Executive's employment with the
     Employers, whether terminated with cause or without cause, the Executive
     shall not, directly or indirectly, solicit or induce, or attempt to solicit
     or induce, any employee of the Affiliated Companies to leave the Affiliated
     Companies for any reason whatsoever, or hire or solicit the services of any
     employee of the Affiliated Companies.

               (g) Enforcement. The Executive 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. The Executive acknowledges that the legal remedy available to
     the Affiliated Companies for any breach of covenants on the part of the
     Executive will be inadequate, and, therefore, in the event of any
     threatened or actual breach of this Agreement, the Affiliated Companies
     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 the
     Executive or another against the Affiliated Companies, whether predicated
     on this Agreement or otherwise, shall not constitute a defense to
     enforcement by the Affiliated Companies of this Agreement.

               (h) Obligations Survive Termination Of Employment. Termination of
                   ---------------------------------------------
     the Executive's employment, whether voluntary or involuntary, whether for
     cause or without cause, shall not impair or relieve the Executive of any of
     the Executive's obligations hereunder. Upon termination of the Executive's
     employment, for whatever reason, or upon request by the Employers, the
     Executive will deliver to the Employers 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 the
     Executive's possession or under the Executive's control, whether prepared
     by the Executive or by others. Upon termination of the Executive's
     employment, for whatever reason, or upon request by the Employers, the
     Executive will deliver to the Employers the originals and all copies of
     Works, then in the Executive's possession or under the Executive's control.

          2. Issuance of Restricted Shares. As consideration for agreeing to the
             -----------------------------
foregoing covenants and restrictions, promptly following the Executive's
execution and delivery of this Agreement, there shall be registered in the
Executive's name on the books of DQE 200 shares of DQE Common Stock (the
"Shares"), subject to the terms and conditions hereinafter set forth.

               (a) The Shares will be subject to the transferability restriction
     described in subsection (c) below. The stock certificate representing the
     Shares will be delivered to the Executive as soon as practicable following
     the date of issuance and will bear the following legend:

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               The transferability of this certificate and the shares of stock
               represented hereby is subject to the terms and conditions of an
               Agreement entered into by and among the registered owner and DQE,
               Inc. and Duquesne Light Company. Copies of such Agreement are on
               file at 411 Seventh Avenue, P. 0. Box 1930, Pittsburgh,
               Pennsylvania 15230-1930.

               (b) As soon as practicable after the expiration of the
     transferability restriction set forth in subsection (c) below, the
     Employers will deliver to the Executive one or more stock certificates for
     the appropriate number of shares of DQE Common Stock, free of all such
     restrictions, except for any restrictions that may be imposed by law.

               (c) Prior to the first anniversary of the date of this Agreement,
     none of the Shares may be assigned, transferred (other than by will or the
     laws of descent and distribution), pledged, sold or otherwise disposed of
     by the Executive. Any attempt to dispose of Shares or any interest in the
     Shares in violation of this restriction will be null, void and ineffective.

               (d) As promptly as practicable after the date hereof, the
     Employers shall make a cash payment to the Executive in an amount
     sufficient such that, after the application of all federal, state and local
     taxes to such payment, the Executive shall retain a sufficient amount to
     pay the Executive's entire federal, state and local taxes on the Shares.
     The Employers shall be entitled to withhold from such cash payment the
     amount of all withholding or other taxes required by law to be withheld or
     paid by the Employers with respect to the income recognized by the
     Executive hereunder.

          3. Severance Benefits. As additional consideration for entering into
             ------------------
this Agreement, the Executive shall be entitled to severance benefits from the
Employers which shall equal one and a half (11/2) times the severance benefits,
if any, to which Executive is otherwise entitled; provided, however, that, the
aggregate benefits to which the Executive may be entitled under this sentence
shall include a minimum of six (6) months of severance benefits and a maximum of
one (1) year of severance benefits. (By way of example, if the Executive prior
to executing this Agreement was entitled to six (6) months of severance
benefits, the Executive would be entitled to nine (9) months benefits --six (6)
months times 11/2 --upon executing this Agreement). Except as expressly provided
in the last sentence of this Paragraph 3, under no circumstances will the
Executive be entitled to more than one (1) year of severance benefits. All other
terms and conditions of the Executive's entitlement to severance benefits shall
remain in full force and effect and shall not otherwise be modified by this
Agreement. Notwithstanding the foregoing, if the Executive shall be entitled,
under an employment agreement, offer letter or other written undertaking of the
Employers directed specifically to the Executive, to severance benefits more
favorable to the Executive than those set forth in this Paragraph 3, then the
Executive shall receive such other severance benefits in lieu of the benefits
set forth in this Paragraph 3.

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          4. Binding Effect. This Agreement shall bind the Executive, the
             --------------
Executive's heirs, and the Executive's assigns, and may be assigned by the
Employers with transfer of assets of the Employers' business to which it
relates. The substantive law of the Commonwealth of Pennsylvania shall apply in
matters relating to this Agreement.

          5. 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.

          6. Executive Acknowledgments. The Executive acknowledges that he or
             -------------------------
she has read and understands the provisions of this Agreement, that he or she
has been given an opportunity for his or her legal counsel to review this
Agreement and that the provisions of this Agreement are reasonable and that he
or she has received a copy of this Agreement.

          7. Headings. The headings of paragraphs herein are included solely for
             --------
convenience of reference and shall not control the meanings or interpretation of
any provisions of this Agreement.

          8. Counterparts. This Agreement may be executed in two or more
             ------------
counterparts each of which shall be deemed to be an original, but all of which
together shall be deemed to be one and the same instrument.

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

Attest:                             DQE, INC.

/s/ Diane S. Eismont                By /s/ David D. Marshall
------------------------------         -----------------------------------------
Diane S. Eismont, Secretary

                                    Title: President & Chief Executive Officer
                                          --------------------------------------

Attest:                             DUQUESNE LIGHT COMPANY

/s/ Diane S. Eismont                By /s/ David D. Marshall
------------------------------         -----------------------------------------
Diane S. Eismont, Secretary

                                    Title: President & Chief Executive Officer
                                           -------------------------------------

                                    VICTOR A. ROQUE

                                    /s/ Victor A. Roque
                                    --------------------------------------------

                                        7<PAGE>

                                                                   Exhibit 10.16

                  NON-COMPETITION AND CONFIDENTIALITY AGREEMENT
                  ---------------------------------------------

                                  May 27, 1999

          The parties to this Agreement are DQE Energy Services, Inc. (the
"Company"), a subsidiary of DQE, Inc., and Alexis Tsaggaris, a key management
employee of the Company (the "Employee"). The Company has established the DQE
Energy Services, Inc. Equity Participation Plan (the "EPP"), effective January
1, 1999, under which designated participants are provided a financial interest
in further growth and profitability of the Company and a financial interest to
achieve pre-established minimum individual and Company performance goals. The
Employee has been designated as a participant of the EPP. This Agreement is the
"Non-Compete and Confidentiality Agreement" required under Article IV of the EPP
as a condition of participation.

          Accordingly, in consideration of the foregoing, and intending to be
legally bound, the parties to this Agreement agree as follows:

          1. Acknowledgments. The Employee acknowledges that: (a) the Company is
             ---------------
presently engaged in the following businesses: The ownership, operation and
maintenance of energy facilities and independent power projects and the sale and
distribution of outputs from such facilities to customers under long-term
agreements; and construction or operation of facilities for the production of
E-Fuel(R)or similar technologies or the commercialization, distribution or sale
of such products (collectively, the "Present Business of the Company"); (b) as a
key employee of the Company, the Employee has been and will continue to be in a
position of trust and confidence in which the Employee will learn of, have
access to, and develop proprietary, confidential, and trade secret information
related to the business and operation of the Company; (c) the Company would be
seriously and irreparably injured by unauthorized or inappropriate disclosure of
any such information; (d) the documents and information regarding the Company's
customers, suppliers, services, products, techniques, methods of operation,
business plans and forecasts, sales, pricing, and costs are highly confidential
and constitute trade secrets; (e) the Employee has developed and will further
develop relationships of special trust

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and confidence with the Company's customers and its employees, and such
relationships of trust and confidence are of great value and importance to the
Company and are for the Company's exclusive benefit; (f) in exchange for the
covenants and other promises made by the Employee in this Agreement the Employee
has received valuable rights; (g) the Employee has read and understands the
provisions of this Agreement and the Employee has been given an opportunity for
the Employee's legal counsel to review this Agreement; and (h) the provisions of
this Agreement are reasonable.

          2. Disclosure of Confidential Information. Confidential Information
             --------------------------------------
(as defined below) shall at all times remain the property of the Company. The
Employee will safeguard and maintain on the premises of the Company, to the
extent possible in the performance of the Employee's work for the Company, all
documents and things that contain or embody Confidential Information. Except as
required as part of the Employee's duties to the Company, the 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. Upon termination of employment, or upon request by the Company, the
Employee will deliver to the Company all materials containing Confidential
Information then in the Employee's possession or under the Employee's control.

          "Confidential Information" shall mean all information disclosed to the
Employee or known by the Employee as a consequence of or through the Employee's
employment by the Company, which is not generally known in the industry in which
the Company and/or an affiliate (i.e., another company the majority interest of
which is owned by the Company or by a direct or indirect parent or subsidiary of
the Company) 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 related

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documentation. 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.

          3. Restrictions on Competition. The Employee covenants and agrees that
             ---------------------------
while employed by the Company and for a period of one (1) year following the
termination of the Employee's employment for any reason, the Employee shall not
engage, directly or indirectly, whether as principal or as agent, officer,
director, employee, consultant, shareholder, independent contractor, or
otherwise, alone or in association with any other domestic or foreign person,
corporation or other entity, in a Competing Business (as defined below) within
the continental United States of America; provided, however, that the Employee
shall have the right to accept employment with a Competing Business whose
business is diversified (the "Diversified Business"), if the employment is with
a part of the Diversified Business which is not a Competing Business and if,
prior to accepting such employment, the Employee furnishes written assurances
reasonably satisfactory to the Company from the Diversified Business and from
the Employee that the Employee will not render services directly or indirectly
in connection with any Competing Business. The term "Competing Business" shall
mean (a) Acquisition Partners, Inc., and (b) any person, corporation, or other
entity engaged in (i) the Present Business of the Company (as defined in Section
1 of this Agreement), or (ii) any other business in which the Company was
engaged, or with respect to which the Company had taken substantial steps to
engage in, as of the Employee's date of termination of employment. The Employee
acknowledges that the Company conducts or intends to conduct business within the
geographic area specified and, therefore, the Employee acknowledges that this
restriction is reasonable and necessary to protect Company's business and that
it will not prevent the Employee's gainful employment by others.

          4. Solicitation of Customers. The Employee covenants and agrees that
             -------------------------
while employed by the Company, and for a two (2) year period following
termination of employment for any reason, the Employee shall not, directly or
indirectly, solicit the business of, or do business with, any Customer, or
otherwise deal in a manner adverse to the Company with respect

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to such Customer. The term "Customer" shall mean any customer, supplier, or
prospective customer or supplier of the Company or an affiliate of the Company
with whom the Employee has or had direct or indirect contact or about whom the
Employee may have acquired any knowledge while employed by the Company.

          5. Solicitation of Employees. During the Employee's employment, and
             -------------------------
for a two (2) year period following termination of employment for any reason,
the Employee shall not, directly or indirectly, solicit the services of any
employee of the Company, induce such employees to terminate their employment, or
otherwise deal in a manner adverse to the Company with respect to such
employees. If, during the Employee's employment, the Employee is approached or
contacted by any employee or former employee of the Company suggesting,
proposing, recruiting, or inducing the Employee to terminate employment with the
Company, the Employee shall notify the Company immediately in writing.

          6. Ownership of Intellectual Property. The Employee agrees that all
             ----------------------------------
inventions, improvements, developments and/or discoveries (whether or not
patentable), and all works of authorship (whether or not copyrightable)
(hereinafter collectively "Intellectual Property"), which are conceived of,
created, or made within the scope of the Employee's employment by the Company,
whether solely or jointly with others, shall be the sole and exclusive property
of the Company. The Employee further agrees to promptly and fully disclose all
such Intellectual Property and to execute, acknowledge, and deliver, upon
request of the Owner and without further compensation, either during or
subsequent to employment, all instruments which are desirable or necessary to
prosecute an application for and to acquire, maintain, and enforce all patents,
copyrights or registrations covering such Intellectual Property in all
countries. Moreover, the Employee hereby conveys, assigns, and transfers the
Employee's entire right, title, and interest in and to such Intellectual
Property to the Company and otherwise agrees to cooperate as necessary to
perfect the Company's rights and ownership to such Intellectual Property. Upon
termination of employment, or upon request by the Company, the Employee will
deliver to the Company all materials relating to Intellectual Property then in
the Employee's possession or under the Employee's control.

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          7. Rights and Remedies Upon Breach. If the Employee breaches, or
             -------------------------------
threatens to breach, any material terms and conditions of this Agreement, then
the Company shall have the following rights and remedies, each of which shall be
independent of the other and severally enforceable, and all of which rights and
remedies shall be in addition to, and not in lieu of, any other rights and
remedies available to the Company under law or in equity:

          (a) Specific Performance. The right and remedy to have all provisions
              --------------------
     of this Agreement specifically enforced by any court having equity
     jurisdiction, including obtaining an injunction to prevent any continuing
     violation of this Agreement; the Employee acknowledges that the Employee's
     services to the Company are of a unique character and have a special value
     to the Company, that any such breach or threatened breach will cause
     irreparable injury to the Company, and that money damages will be difficult
     to ascertain and will not provide an adequate remedy to the Company.

          (b) Accounting. The right and remedy to require the Employee to
              ----------
     account for and pay over to the Company all compensation, profits, monies,
     accruals, increments or other benefits derived or received by the Employee
     as a result of any transactions constituting a breach of any material
     provision of this Agreement.

          (c) Damages, Costs, and Attorneys Fees. If the Employee is found to
              ----------------------------------
     have breached this Agreement by a court, the Employee shall be liable for
     and agree to pay the Company: (i) all damages suffered by the Company as a
     result of the breach, and (ii) all costs and reasonable attorneys fees and
     costs incurred by the Company to enforce its rights under this Agreement.

          (d) Effect Under the EPP. A breach of the Employee's obligations under
              --------------------
     this Agreement shall affect the Employee's rights under the EPP in the
     manner set forth in the EPP .

          8. Obligations Survive Termination of Employment. The termination of
             ---------------------------------------------
the Employee's employment for whatever reason shall not impair or relieve the
Employee of any

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of the Employee's obligations under this Agreement which, by their express terms
or by implication, extend beyond the term of the Employee's employment.

          9. Binding Effect and Assignability. This Agreement may not be
             --------------------------------
assigned by either party without the prior written consent of the other party,
except that in the event Company should undergo any change in ownership or
change in structure or control, or should Company transfer some or all of its
assets to another entity, this Agreement may be assigned by Company without the
Employee's further consent to any company, business, partnership, individual or
entity , and that the Employee will continue to remain bound by this Agreement.
Subject to the foregoing, this Agreement shall be binding upon and inure to the
benefit of the parties and their respective heirs, legatees, devisees, personal
representatives, successors and assigns.

          10. Notice to New Employer and Notice to the Company. The Employee
              ------------------------------------------------
agrees that, prior to the commencement of any new employment, the Employee will
furnish the new employer with a copy of this Agreement. The Employee also agrees
that the Company may advise any new or prospective employer of the Employee of
the existence and terms of this Agreement and furnish the employer with a copy
of this Agreement. Accordingly, the Employee agrees to notify the Company prior
to the commencement of any new employment of the name of the new employer.

          11. Authorization to Modify Restrictions. It is the 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. Should a court determine that the
character, duration, or geographical scope of any covenant of this Agreement is
unreasonable in light of the circumstances as they then exist, then it is the
intention and the agreement of the parties that this Agreement shall be
construed by the court so as to impose only those restrictions on the conduct of
the Employee

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which are reasonable in light of the circumstances as they then exist and as are
necessary to assure the Company of the intended benefit of this Agreement.

          12. Tolling. The periods of time set forth in Section 3, 4, and 5 of
              -------
this Agreement shall be extended, at the option of the Company, for a period of
time equal to all periods during which the Employee is or was in violation of
such provision and to extend the restricted period to run from the date of any
injunction which may be issued against the Employee to enable the Company to
receive the full benefit of these provisions.

          13. Waiver. Waiver of any term or condition of this Agreement by any
              ------
party shall not be construed as a waiver of a subsequent breach or failure of
the same term or condition, or as a waiver of any other term or condition of
this Agreement.

          14. Governing Law. This Agreement and all determinations made and
              -------------
actions taken pursuant to this Agreement shall be governed by the laws of the
Commonwealth of Pennsylvania other than the conflict of laws provisions of such
laws, and shall be construed in accordance therewith.

          15. Consent to Jurisdiction and Service of Process. The Company and
              ----------------------------------------------
the Employee shall be deemed to have expressly agreed and consented to the
personal jurisdiction of the Court of Common Pleas for Allegheny County,
Pennsylvania and/or the United States District Court for the Western District of
Pennsylvania with respect to any dispute or controversy related to, arising
under, or in connection with this Agreement. The Company and the Employee shall
also be deemed to have expressly agreed that such courts are convenient forums
for the parties to any such controversy or dispute and for any potential
witnesses and that process issued out of any such court or in accordance with
the rules of practice of such court may be served by mail or other forms of
substituted service to the Company at the address of its principal executive
office and to the Employee at his or her last known address as reflected in the
Company's records.

                                        7
<PAGE>

          16. Termination of Employment. The Employee's employment may be
              -------------------------
terminated at any time by the Company for any reason, with or without Cause. The
Company shall continue to pay the Employee's base salary and all health and
welfare benefits for 52 weeks to the Employee as severance pay upon any
termination by Company without Cause (as defined in the EPP). Pension benefits
will continue to accrue during the severance period if and to the extent
permitted by the applicable plan or plans and the law. No severance pay will be
due and payable if Employee is terminated for Cause or resigns from employment.

          17. Entire Agreement. This Agreement, together with the EPP and the
              ----------------
ancillary documents referred to in the EPP, embody the entire agreement and
understanding between the parties and supersede all prior agreements and
understandings, including without limitation all prior non-competition and
confidentiality agreements between the parties. Notwithstanding the foregoing,
this Agreement shall have no effect on the Employee' s rights, if any, with
respect to severance pay and benefits under the terms of the Severance
Agreement, dated as of April 4, 1997 (the "Severance Agreement"), it being
understood that this reference to the Severance Agreement shall not be construed
as an admission or representation by any party with respect to the current or
future legal effect of the Severance Agreement.

 /s/ Barbara Sommerer                         /s/ Alexis Tsaggaris
-----------------------------------          -----------------------------------
WITNESS                                      EMPLOYEE

                                             DQE ENERGY SERVICES, INC.

 /s/ Lora E. Dikun                           By: /s/ David D. Marshall
-----------------------------------              -------------------------------
WITNESS

                                             Title:  Chairman of the Board
                                                   -----------------------------

                                           8

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