Document:

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                                                                    Exhibit 10.1

                             INFORMATICA CORPORATION
                       2000 EMPLOYEE STOCK INCENTIVE PLAN
                              (AMENDED APRIL, 2001)

        1. Purposes of the Plan. The purposes of this Employee Stock Incentive
Plan are to attract and retain the best available personnel, to provide
additional incentive to Employees and Consultants and to promote the success of
the Company's business.

        2. Definitions. As used herein, the following definitions shall apply:

            (a) "Administrator" means the Board or any of the Committees
appointed to administer the Plan.

            (b) "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act.

            (c) "Applicable Laws" means the legal requirements relating to the
administration of stock incentive plans, if any, under applicable provisions of
federal securities laws, state corporate and securities laws, the Code, the
rules of any applicable stock exchange or national market system, and the rules
of any foreign jurisdiction applicable to Awards granted to residents therein.

            (d) "Award" means the grant of an Option, SAR, Dividend Equivalent
Right, Restricted Stock, Performance Unit, Performance Share, or other right or
benefit under the Plan.

            (e) "Award Agreement" means the written agreement evidencing the
grant of an Award executed by the Company and the Grantee, including any
amendments thereto.

            (f) "Board" means the Board of Directors of the Company.

            (g) "Change in Control" means a change in ownership or control of
the Company effected through either of the following transactions:

                (i) the direct or indirect acquisition by any person or related
group of persons (other than an acquisition from or by the Company or by a
Company-sponsored employee benefit plan or by a person that directly or
indirectly controls, is controlled by, or is under common control with, the
Company) of beneficial ownership (within the meaning of Rule 13d-3 of the
Exchange Act) of securities possessing more than fifty percent (50%) of the
total combined voting power of the Company's outstanding securities pursuant to
a tender or exchange offer made directly to the Company's stockholders which a
majority of the Continuing Directors who are not Affiliates or Associates of the
offeror do not recommend such stockholders accept, or

                (ii) a change in the composition of the Board over a period of
thirty-six (36) months or less such that a majority of the Board members
(rounded up to the next whole

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number) ceases, by reason of one or more contested elections for Board
membership, to be comprised of individuals who are Continuing Directors.

            (h) "Code" means the Internal Revenue Code of 1986, as amended.

            (i) "Committee" means any committee appointed by the Board to
administer the Plan.

            (j) "Common Stock" means the common stock of the Company.

            (k) "Company" means Informatica Corporation.

            (l) "Consultant" means any person (other than an Employee or a
Director who is engaged by the Company or any Related Entity to render
consulting or advisory services to the Company or such Related Entity.

            (m) "Continuous Service" means that the provision of services to the
Company or a Related Entity in any capacity of Employee or Consultant, is not
interrupted or terminated. Continuous Service shall not be considered
interrupted in the case of (i) any approved leave of absence, (ii) transfers
between locations of the Company or among the Company, any Related Entity, or
any successor, in any capacity of Employee or Consultant, or (iii) any change in
status as long as the individual remains in the service of the Company or a
Related Entity in any capacity of Employee or Consultant (except as otherwise
provided in the Award Agreement). An approved leave of absence shall include
sick leave, military leave, or any other authorized personal leave.

            (n) "Corporate Transaction" means any of the following transactions:

                (i) a merger or consolidation in which the Company is not the
surviving entity, except for a transaction the principal purpose of which is to
change the state in which the Company is incorporated;

                (ii) the sale, transfer or other disposition of all or
substantially all of the assets of the Company (including the capital stock of
the Company's subsidiary corporations) in connection with the complete
liquidation or dissolution of the Company;

                (iii) any reverse merger in which the Company is the surviving
entity but in which securities possessing more than fifty percent (50%) of the
total combined voting power of the Company's outstanding securities are
transferred to a person or persons different from those who held such securities
immediately prior to such merger; or

                (iv) an acquisition by any person or related group of persons
(other than the Company or by a Company-sponsored employee benefit plan) of
beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of
securities possessing more than fifty percent (50%) of the total combined voting
power of the Company's outstanding securities (whether or not in a transaction
also constituting a Change in Control), but excluding any such transaction that
the Administrator determines shall not be a Corporate Transaction.

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            (o) "Director" means a member of the Board or the board of Directors
of any Related Entity.

            (p) "Disability" means that a Grantee would qualify for benefit
payments under the long-term disability policy of the Company or the Related
Entity to which the Grantee provides services regardless of whether the Grantee
is covered by such policy.

            (q) "Dividend Equivalent Right" means a right entitling the Grantee
to compensation measured by dividends paid with respect to Common Stock.

            (r) "Employee" means any person, excluding any Officer or Director,
who is an employee of the Company or any Related Entity.

            (s) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            (t) "Fair Market Value" means, as of any date, the value of Common
Stock determined as follows:

                (i) Where there exists a public market for the Common Stock, the
Fair Market Value shall be (A) the closing price for a Share for the last market
trading day prior to the time of the determination (or, if no closing price was
reported on that date, on the last trading date on which a closing price was
reported) on the stock exchange determined by the Administrator to be the
primary market for the Common Stock or the Nasdaq National Market, whichever is
applicable or (B) if the Common Stock is not traded on any such exchange or
national market system, the average of the closing bid and asked prices of a
Share on the Nasdaq Small Cap Market for the day prior to the time of the
determination (or, if no such prices were reported on that date, on the last
date on which such prices were reported), in each case, as reported in The Wall
Street Journal or such other source as the Administrator deems reliable; or

                (ii) In the absence of an established market for the Common
Stock of the type described in (i), above, the Fair Market Value thereof shall
be determined by the Administrator in good faith.

                (iii) Notwithstanding the preceding in (i) and (ii) above, for
federal, state, and local income tax reporting purposes, fair market value shall
be determined by the Administrator in accordance with uniform and
nondiscriminatory standards adopted by it from time to time.

            (u) "Grantee" means an Employee or Consultant who receives an Award
pursuant to an Award Agreement under the Plan.

            (v) "Incentive Stock Option" means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code.

            (w) "Non-Qualified Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

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            (x) "Officer" means a person who is an Officer of the Company or a
Related Entity within the meaning of Section 16 of the Exchange Act and the
rules and regulations promulgated thereunder or, in the case of provisions
herein regarding the eligibility of participants in the Plan, such other persons
as may be deemed officers under the rules and regulations of the Nasdaq Stock
Market, Inc.

            (y) "Option" means a Non-Qualified Stock Option to purchase Shares
pursuant to an Award Agreement granted under the Plan.

            (z) "Parent" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

            (aa) "Performance Shares" means Shares or an Award denominated in
Shares which may be earned in whole or in part upon attainment of performance
criteria established by the Administrator.

            (bb) "Performance Units" means an Award which may be earned in whole
or in part upon attainment of performance criteria established by the
Administrator and which may be settled for cash, Shares or other securities or a
combination of cash, Shares or other securities as established by the
Administrator.

            (cc) "Plan" means this 2000 Employee Stock Incentive Plan.

            (dd) "Registration Date" means the first to occur of (i) the closing
of the first sale to the general public of (A) the Common Stock or (B) the same
class of securities of a successor corporation (or its Parent) issued pursuant
to a Corporate Transaction in exchange for or in substitution of the Common
Stock, pursuant to a registration statement filed with and declared effective by
the Securities and Exchange Commission under the Securities Act of 1933, as
amended; and (ii) in the event of a Corporate Transaction, the date of the
consummation of the Corporate Transaction if the same class of securities of the
successor corporation (or its Parent) issuable in such Corporate Transaction
shall have been sold to the general public pursuant to a registration statement
filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended on or prior to the date of
consummation of such Corporate Transaction.

            (ee) "Related Entity" means any Parent, Subsidiary and any business,
corporation, partnership, limited liability company or other entity in which the
Company, a Parent or a Subsidiary holds a substantial ownership interest,
directly or indirectly.

            (ff) "Related Entity Disposition" means the sale, distribution or
other disposition by the Company, a Parent or a Subsidiary of all or
substantially all of the interests of the Company, a Parent or a Subsidiary in
any Related Entity effected by a sale, merger or consolidation or other
transaction involving that Related Entity or the sale of all or substantially
all of the assets of that Related Entity.

            (gg) "Restricted Stock" means Shares issued under the Plan to the
Grantee for such consideration, if any, and subject to such restrictions on
transfer, rights of first refusal,

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repurchase provisions, forfeiture provisions, and other terms and conditions as
established by the Administrator.

            (hh) "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange
Act or any successor thereto.

            (ii) "SAR" means a stock appreciation right entitling the Grantee to
Shares or cash compensation, as established by the Administrator, measured by
appreciation in the value of Common Stock.

            (jj) "Share" means a share of the Common Stock.

            (kk) "Subsidiary" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

        3. Stock Subject to the Plan.

            (a) Subject to the provisions of Section 10, below, the maximum
aggregate number of Shares which may be issued pursuant to all Awards is 400,000
Shares. The Shares to be issued pursuant to Awards may be authorized, but
unissued, or reacquired Common Stock.

            (b) Any Shares covered by an Award (or portion of an Award) which is
forfeited or canceled, expires or is settled in cash, shall be deemed not to
have been issued for purposes of determining the maximum aggregate number of
Shares which may be issued under the Plan. If any unissued Shares are retained
by the Company upon exercise of an Award in order to satisfy the exercise price
for such Award or any withholding taxes due with respect to such Award, such
retained Shares subject to such Award shall become available for future issuance
under the Plan (unless the Plan has terminated). Shares that actually have been
issued under the Plan pursuant to an Award shall not be returned to the Plan and
shall not become available for future issuance under the Plan, except that if
unvested Shares are forfeited, or repurchased by the Company at their original
purchase price, such Shares shall become available for future grant under the
Plan.

        4. Administration of the Plan.

            (a) Plan Administrator.

                (i) Directors and Officers. No Options hereunder shall be
granted to Officers or Directors of the Company.

                (ii) Administration of the Plan. The Plan shall be administered
by (A) the Board or (B) a Committee designated by the Board, which Committee
shall be constituted in such a manner as to satisfy the Applicable Laws. Once
appointed, such Committee shall continue to serve in its designated capacity
until otherwise directed by the Board. Subject to Applicable Laws, the Board may
authorize one or more Officers to grant such Awards and may limit such authority
as the Board determines from time to time.

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                (iii) Administration Errors. In the event an Award is granted in
a manner inconsistent with the provisions of this subsection (a), such Award
shall be presumptively valid as of its grant date to the extent permitted by the
Applicable Laws.

            (b) Powers of the Administrator. Subject to Applicable Laws and the
provisions of the Plan (including any other powers given to the Administrator
hereunder), and except as otherwise provided by the Board, the Administrator
shall have the authority, in its discretion:

                (i) to select the Employees and Consultants to whom Awards may
be granted from time to time hereunder;

                (ii) to determine whether and to what extent Awards are granted
hereunder;

                (iii) to determine the number of Shares or the amount of other
consideration to be covered by each Award granted hereunder;

                (iv) to approve forms of Award Agreements for use under the
Plan;

                (v) to determine the terms and conditions of any Award granted
hereunder;

                (vi) to amend the terms of any outstanding Award granted under
the Plan, provided that any amendment that would adversely affect the Grantee's
rights under an outstanding Award shall not be made without the Grantee's
written consent;

                (vii) to construe and interpret the terms of the Plan and Awards
granted pursuant to the Plan, including without limitation, any notice of Award
or Award Agreement, granted pursuant to the Plan;

                (viii) to establish additional terms, conditions, rules or
procedures to accommodate the rules or laws of applicable foreign jurisdictions
and to afford Grantees favorable treatment under such laws; provided, however,
that no Award shall be granted under any such additional terms, conditions,
rules or procedures with terms or conditions which are inconsistent with the
provisions of the Plan; and

                (ix) to take such other action, not inconsistent with the terms
of the Plan, as the Administrator deems appropriate.

            (c) Effect of Administrator's Decision. All decisions,
determinations and interpretations of the Administrator shall be conclusive and
binding on all persons.

        5. Eligibility. Only Employees or, at the discretion of the
Administrator, Consultants are eligible for grants of Options under this Plan.
An Employee or Consultant who has been granted an Award may, if otherwise
eligible, be granted additional Awards. Awards

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may be granted to such Employees and Consultants who are residing in foreign
jurisdictions as the Administrator may determine from time to time.

        6. Terms and Conditions of Awards.

            (a) Type of Awards. The Administrator is authorized under the Plan
to award any type of arrangement to an Employee or Consultant that is not
inconsistent with the provisions of the Plan and that by its terms involves or
might involve the issuance of (i) Shares, (ii) an Option, a SAR or similar right
with a fixed or variable price related to the Fair Market Value of the Shares
and with an exercise or conversion privilege related to the passage of time, the
occurrence of one or more events, or the satisfaction of performance criteria or
other conditions, or (iii) any other security with the value derived from the
value of the Shares. Such awards include, without limitation, Options, SARs,
sales or bonuses of Restricted Stock, Dividend Equivalent Rights, Performance
Units or Performance Shares, and an Award may consist of one such security or
benefit, or two (2) or more of them in any combination or alternative.

            (b) Designation of Award. Each Award shall be designated in the
Award Agreement. Options shall be designated as Non-Qualified Stock Options.

            (c) Conditions of Award. Subject to the terms of the Plan, the
Administrator shall determine the provisions, terms, and conditions of each
Award including, but not limited to, the Award vesting schedule, repurchase
provisions, rights of first refusal, forfeiture provisions, form of payment
(cash, Shares, or other consideration) upon settlement of the Award, payment
contingencies, and satisfaction of any performance criteria. The performance
criteria established by the Administrator may be based on any one of, or
combination of, increase in share price, earnings per share, total stockholder
return, return on equity, return on assets, return on investment, net operating
income, cash flow, revenue, economic value added, personal management
objectives, or other measure of performance selected by the Administrator.
Partial achievement of the specified criteria may result in a payment or vesting
corresponding to the degree of achievement as specified in the Award Agreement.

            (d) Acquisitions and Other Transactions. The Administrator may issue
Awards under the Plan in settlement, assumption or substitution for, outstanding
awards or obligations to grant future awards in connection with the Company or a
Related Entity acquiring another entity, an interest in another entity or an
additional interest in a Related Entity whether by merger, stock purchase, asset
purchase or other form of transaction.

            (e) Deferral of Award Payment. The Administrator may establish one
or more programs under the Plan to permit selected Grantees the opportunity to
elect to defer receipt of consideration upon exercise of an Award, satisfaction
of performance criteria, or other event that absent the election would entitle
the Grantee to payment or receipt of Shares or other consideration under an
Award. The Administrator may establish the election procedures, the timing of
such elections, the mechanisms for payments of, and accrual of interest or other
earnings, if any, on amounts, Shares or other consideration so deferred, and
such other terms, conditions, rules and procedures that the Administrator deems
advisable for the administration of any such deferral program.

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            (f) Award Exchange Programs. The Administrator may establish one or
more programs under the Plan to permit selected Grantees to exchange an Award
under the Plan for one or more other types of Awards under the Plan on such
terms and conditions as determined by the Administrator from time to time.

            (g) Separate Programs. The Administrator may establish one or more
separate programs under the Plan for the purpose of issuing particular forms of
Awards to one or more classes of Grantees on such terms and conditions as
determined by the Administrator from time to time.

            (h) Early Exercise. The Award Agreement may, but need not, include a
provision whereby the Grantee may elect at any time while an Employee or
Consultant to exercise any part or all of the Award prior to full vesting of the
Award. Any unvested Shares received pursuant to such exercise may be subject to
a repurchase right in favor of the Company or a Related Entity or to any other
restriction the Administrator determines to be appropriate.

            (i) Term of Award. The term of each Award shall be the term stated
in the Award Agreement.

            (j) Transferability of Awards. Awards shall be transferable to the
extent provided in the Award Agreement.

            (k) Time of Granting Awards. The date of grant of an Award shall for
all purposes be the date on which the Administrator makes the determination to
grant such Award, or such other date as is determined by the Administrator.
Notice of the grant determination shall be given to each Employee or Consultant
to whom an Award is so granted within a reasonable time after the date of such
grant.

        7. Award Exercise or Purchase Price, Consideration and Taxes.

            (a) Exercise or Purchase Price. The exercise or purchase price, if
any, for an Award shall be as follows:

                (i) The per Share exercise price for Options shall be not less
than eighty-five percent (85%) of the Fair Market Value per Share on the date of
grant unless otherwise determined by the Administrator.

                (ii) In the case of other Awards, such price as is determined by
the Administrator.

                (iii) Notwithstanding the foregoing provisions of this Section
7(a), in the case of an Award issued pursuant to Section 6(d), above, the
exercise or purchase price for the Award shall be determined in accordance with
the principles of Section 424(a) of the Code.

            (b) Consideration. Subject to Applicable Laws, the consideration to
be paid for the Shares to be issued upon exercise or purchase of an Award
including the method of payment, shall be determined by the Administrator. In
addition to any other types of

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consideration the Administrator may determine, the Administrator is authorized
to accept as consideration for Shares issued under the Plan the following,
provided that the portion of the consideration equal to the par value of the
Shares must be paid in cash or other legal consideration permitted by the
Delaware General Corporation Law:

                (i) cash;

                (ii) check;

                (iii) delivery of Grantee's promissory note with such recourse,
interest, security, and redemption provisions as the Administrator determines as
appropriate;

                (iv) if the exercise or purchase occurs on or after the
Registration Date, surrender of Shares or delivery of a properly executed form
of attestation of ownership of Shares as the Administrator may require
(including withholding of Shares otherwise deliverable upon exercise of the
Award) which have a Fair Market Value on the date of surrender or attestation
equal to the aggregate exercise price of the Shares as to which said Award shall
be exercised (but only to the extent that such exercise of the Award would not
result in an accounting compensation charge with respect to the Shares used to
pay the exercise price unless otherwise determined by the Administrator);

                (v) with respect to Options, if the exercise occurs on or after
the Registration Date, payment through a broker-dealer sale and remittance
procedure pursuant to which the Grantee (A) shall provide written instructions
to a Company designated brokerage firm to effect the immediate sale of some or
all of the purchased Shares and remit to the Company, out of the sale proceeds
available on the settlement date, sufficient funds to cover the aggregate
exercise price payable for the purchased Shares and (B) shall provide written
directives to the Company to deliver the certificates for the purchased Shares
directly to such brokerage firm in order to complete the sale transaction; or

                (vi) any combination of the foregoing methods of payment.

            (c) Taxes. No Shares shall be delivered under the Plan to any
Grantee or other person until such Grantee or other person has made arrangements
acceptable to the Administrator for the satisfaction of any foreign, federal,
state, or local income and employment tax withholding obligations, including,
without limitation, obligations incident to the receipt of Shares. Upon exercise
of an Award, the Company shall withhold or collect from Grantee an amount
sufficient to satisfy such tax obligations.

        8. Exercise of Award.

            (a) Procedure for Exercise; Rights as a Stockholder.

                (i) Any Award granted hereunder shall be exercisable at such
times and under such conditions as determined by the Administrator under the
terms of the Plan and specified in the Award Agreement.

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                (ii) An Award shall be deemed to be exercised when written
notice of such exercise has been given to the Company in accordance with the
terms of the Award by the person entitled to exercise the Award and full payment
for the Shares with respect to which the Award is exercised, including, to the
extent selected, use of the broker-dealer sale and remittance procedure to pay
the purchase price as provided in Section 7(b)(v). Until the issuance (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the stock certificate evidencing
such Shares, no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to Shares subject to an Award,
notwithstanding the exercise of an Option or other Award. The Company shall
issue (or cause to be issued) such stock certificate promptly upon exercise of
the Award. No adjustment will be made for a dividend or other right for which
the record date is prior to the date the stock certificate is issued, except as
provided in the Award Agreement or Section 10, below.

            (b) Exercise of Award Following Termination of Continuous Service.

                (i) An Award may not be exercised after the termination date of
such Award set forth in the Award Agreement and may be exercised following the
termination of a Grantee's Continuous Service only to the extent provided in the
Award Agreement.

                (ii) Where the Award Agreement permits a Grantee to exercise an
Award following the termination of the Grantee's Continuous Service for a
specified period, the Award shall terminate to the extent not exercised on the
last day of the specified period or the last day of the original term of the
Award, whichever occurs first.

            (c) Buyout Provisions. The Administrator may at any time offer to
buy out for a payment in cash or Shares, an Award previously granted, based on
such terms and conditions as the Administrator shall establish and communicate
to the Grantee at the time that such offer is made.

        9. Conditions Upon Issuance of Shares.

            (a) Shares shall not be issued pursuant to the exercise of an Award
unless the exercise of such Award and the issuance and delivery of such Shares
pursuant thereto shall comply with all Applicable Laws, and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

            (b) As a condition to the exercise of an Award, the Company may
require the person exercising such Award to represent and warrant at the time of
any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by any
Applicable Laws.

        10. Adjustments Upon Changes in Capitalization. Subject to any required
action by the shareholders of the Company, the number of Shares covered by each
outstanding Award, and the number of Shares which have been authorized for
issuance under the Plan but as to which no Awards have yet been granted or which
have been returned to the Plan, the exercise or purchase

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price of each such outstanding Award, as well as any other terms that the
Administrator determines require adjustment shall be proportionately adjusted
for (i) any increase or decrease in the number of issued Shares resulting from a
stock split, reverse stock split, stock dividend, combination or
reclassification of the Shares, or similar transaction affecting the Shares,
(ii) any other increase or decrease in the number of issued Shares effected
without receipt of consideration by the Company, or (iii) as the Administrator
may determine in its discretion, any other transaction with respect to Common
Stock to which Section 424(a) of the Code applies or a similar transaction;
provided, however that conversion of any convertible securities of the Company
shall not be deemed to have been "effected without receipt of consideration."
Such adjustment shall be made by the Administrator and its determination shall
be final, binding and conclusive. Except as the Administrator determines, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason hereof shall be made with respect to, the number or price of Shares
subject to an Award.

        11. Corporate Transactions/Related Entity Dispositions/Buyout. Except as
may be provided in an Award Agreement:

            (a) Effective upon the consummation of a Corporate Transaction, all
outstanding Awards under the Plan shall terminate. However, all such Awards
shall not terminate if they are, in connection with the Corporate Transaction,
assumed by the successor corporation or Parent thereof.

            (b) Effective upon the consummation of a Related Entity Disposition,
for purposes of the Plan and all Awards, the Continuous Service of each Grantee
who is at the time engaged primarily in service to the Related Entity involved
in such Related Entity Disposition shall be deemed to terminate and each Award
of such Grantee which is at the time outstanding under the Plan shall be
exercisable in accordance with the terms of the Award Agreement evidencing such
Award. However, such Continuous Service shall be not to deemed to terminate if
such Award is, in connection with the Related Entity Disposition, assumed by the
successor entity or its parent.

        12. Effective Date and Term of Plan. The Plan shall become effective
upon the earlier to occur of its adoption by the Board or its approval by the
stockholders of the Company. It shall continue in effect for a term of ten (10)
years unless sooner terminated. Subject to Section 17, below, and Applicable
Laws, Awards may be granted under the Plan upon its becoming effective.

        13. Amendment, Suspension or Termination of the Plan.

            (a) The Board may at any time amend, suspend or terminate the Plan.
To the extent necessary to comply with Applicable Laws, the Company shall obtain
stockholder approval of any Plan amendment in such a manner and to such a degree
as required.

            (b) No Award may be granted during any suspension of the Plan or
after termination of the Plan.

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            (c) Any amendment, suspension or termination of the Plan (including
termination of the Plan under Section 12, above) shall not affect Awards already
granted, and such Awards shall remain in full force and effect as if the Plan
had not been amended, suspended or terminated, unless mutually agreed otherwise
between the Grantee and the Administrator, which agreement must be in writing
and signed by the Grantee and the Company.

        14. Reservation of Shares.

            (a) The Company, during the term of the Plan, will at all times
reserve and keep available such number of Shares as shall be sufficient to
satisfy the requirements of the Plan.

            (b) The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company's
counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been
obtained.

        15. No Effect on Terms of Employment/Consulting Relationship. The Plan
shall not confer upon any Grantee any right with respect to the Grantee's
Continuous Service, nor shall it interfere in any way with his or her right or
the Company's right to terminate the Grantee's Continuous Service at any time,
with or without cause.

        16. No Effect on Retirement and Other Benefit Plans. Except as
specifically provided in a retirement or other benefit plan of the Company or a
Related Entity, Awards shall not be deemed compensation for purposes of
computing benefits or contributions under any retirement plan of the Company or
a Related Entity, and shall not affect any benefits under any other benefit plan
of any kind or any benefit plan subsequently instituted under which the
availability or amount of benefits is related to level of compensation. The Plan
is not a "Retirement Plan" or "Welfare Plan" under the Employee Retirement
Income Security Act of 1974, as amended.

                                       12Prepared by MerrillDirect

EX 10.26

SECOND AMENDMENT

OF ESI PENSION PLAN

             This
Second Amendment of ESI Pension Plan (the "Plan") is adopted by
ITT Educational Services, Inc. (the "Employer").

Background

             A.         The Employer originally established the
Plan effective June 9, 1998.

             B.          The Plan has been amended by a First
Amendment.

             C.          The Employer now wishes to amend the
Plan further.

Amendment

             Effective
as of the dates indicated, the Plan is amended as follows:

             1.          Effective January 1, 2001, the
definition of "Compensation" at Section 2.01 is clarified
through amendment to read as follows:

             "Compensation" means, with respect to an
Employee for a Plan Year, the Employee's wages, salaries, fees for professional
services, and other amounts received for personal services actually rendered in
the course of employment with the Employer to the extent that the amounts are
included in gross income.  For purposes
of Sections 6.02 and 6.03, an Employee's salary specifically includes retention
bonuses and lump sum vacation pay, and specifically excludes curriculum
development pay, settlement agreement pay, lieu of notice pay, and severance
pay.   Compensation also includes
amounts contributed by the Employer pursuant to a salary reduction agreement
that are not includable in the gross income of the Member under Code
section 125 or 457, subsection 402(h) or 403(b), or
paragraph 132(f)(4) or 402(e)(3); and Employee contributions described in
Code paragraph 414(h)(2) that are treated as Employer contributions.  Compensation does not include, whether or not
included in gross income, reimbursements or other expense allowances; fringe
benefits (cash and non–cash); moving expenses (including settling in
allowances); or nonqualified deferred compensation; welfare benefits; amounts
realized from the exercise of a nonqualified stock option, or when restricted
stock (or property) held by an employee either becomes freely transferable or
is no longer subject to a substantial risk of forfeiture.  Except as permitted by the Code for purposes
of Section 7.08 and Articles XI and XIII, an Employee's Compensation
will not exceed $150,000, as adjusted to reflect increases in the limitation
pursuant to Code paragraph 401(a)(17).

             2.          Effective January 1, 2000, the
definition of "Continuous Service" is added to Section 2.01 to
read as follows:

             "Continuous Service" means the aggregate
period of time during which the employment relationship exists between an
Employee and the Employer, determined as follows:

             (1)         The
period of time beginning on the date an Employee first performs an Hour of
Service and ending on the Employee's Severance from Service date.

             (2)         Any
Period of Severance by reason of a quit, discharge or retirement, of less than
12 months; provided, however, that if an Employee is absent from service for a
reason other than a quit, discharge, or retirement and subsequently incurs a
Severance from Service as a result of a quit, discharge, or retirement, the
Period of Severance shall be credited only if the Employee returns to the
Employer's service on or before the first anniversary of the date the Employee
was first absent from service.

             (3)         Any
period of time beginning on the date the Employee first performs an Hour of
Service after a Period of Severance and ending on the date the Employee again
incurs a Severance from Service.

             (4)         For
purposes of aggregating periods of Continuous Service, 12 months of
completed service shall equal one year of Continuous Service, and 30 days
of completed service shall equal one month of Continuous Service.

             3.          Effective January 1, 2000, the
definition of "Full–Time Employee" is added to
Section 2.01 to read as follows:

             "Full–Time Employee" means an Employee
who regularly works at least 40 hours per week.

             4.          Effective January 1, 2001, the
definition of "Regular Part–Time Employee" is added to Section
2.01 to read as follows:

             "Regular Part–Time Employee" means an
Employee who regularly works at least 20 hours per week, but less than 40 hours
per week.

             5.          Effective January 1, 2000, the
definition of "Period of Severance" is added to Section 2.01 to
read as follows:

             "Period of Severance" means a period of time
that begins on the Severance from Service date and ends on the date on which an
Employee again performs an Hour of Service.

             6.          Effective January 1, 2000, the
definition of "Severance from Service" is added to Section 2.01
to read as follows:

             "Severance from Service" occurs on the earlier
of the following two dates:

                           (1)         The
date the Employee quits, is discharged, retires or dies; or

                           (2)         The
later of:

             (A)       the first
anniversary of the first day the Employee is absent from the service of the
Employer for a reason not enumerated in Paragraph (1);

             (B)        the
expiration of an authorized leave of absence, provided the Employee does not
return to the service of the Employer following the expiration of the leave of
absence;

             (C)        in the
case of an absence due to maternity or paternity leave for reason of the birth
of a child of the Employee, the placement of a child with the Employee in
connection with the adoption of the child by the Employee, or the caring for a
child for a period immediately following birth or placement, the second
anniversary of the date the absence commences; or

             (D)        any
period of military service in the Armed Forces of the United States required to
be credited by law; provided, however, that the Employee does not return to the
service of the Employer within the period the Employee's reemployment rights
are protected by law.

             7.          Effective January 1, 2000,
Section 3.01 is amended to read as follows:

             Section 3.01.  Date of Membership. 
Each Eligible Employee who was a Member on December 31, 1999 will
remain a Member on January 1, 2000, subject to the terms of the Plan in
effect on and after that date.  Each
Eligible Employee who was not a Member on December 31, 1999, but who is
credited with an Hour of Service on or after January 1, 2000, will become a
Member in accordance with the provisions of this Section.

             (a)         Each
Eligible Employee who is not a Full–Time Employee will become a Member on
the first Entry Date that occurs on or after the date he has both reached
age 21 and has completed one Year of Eligibility Service.  A former Eligible Employee who has
previously completed one Year of Eligibility Service but who has not become a
Member will become a Member as of the first Entry Date on or after the date he
has both reached age 21 and has completed an Hour of Service upon his
reemployment as an Eligible Employee, if he completes a Year of Eligibility
Service after he returns to employment with the Employer.  An Eligible Employee who becomes a Member
and Separates from Service will again become a Member on the date he first
completes an Hour of Service after his reemployment as an Eligible Employee.

             (b)        Each
Eligible Employee who is a Full–Time Employee will become a Member on the
first Entry Date that occurs on or after the date he has both reached
age 21 and has completed one year of Continuous Service.  If an Employee incurs a Severance from
Service before completing a year of Continuous Service, thereafter incurs at least
a 12-month Period of Severance and is then reemployed, his Period of Severance
will not be counted as Continuous Service in determining the date he completes
a year of Continuous Service after his reemployment.  If an Employee incurs a Severance from Service before completing
a year of Continuous Service, thereafter incurs a Period of Severance of less
than 12 months and is then reemployed, his Period of Severance will be counted
as Continuous Service in determining the date he completes a year of Continuous
Service after his reemployment.  A
former Eligible Employee who has previously completed one year of Continuous
Service but who has not become a Member will become a Member as of the first
Entry Date on or after the date he has both reached age 21 and has
completed an Hour of Service upon his reemployment as an Eligible Employee, if
he completes a year of Continuous Service after he returns to employment with
the Employer.  An Eligible Employee who
becomes a Member and incurs a 12–month Period of Severance will again
become a Member on the date he first completes an Hour of Service after his
reemployment as an Eligible Employee.

             (c)         Notwithstanding
the preceding Paragraphs, the period of an Employee's employment prior to
January 1, 2000 that was recognized as eligibility service under the terms
of the Plan then in effect will be recognized as eligibility service on
January 1, 2000.  Recognition of
service will be in accordance with the transition rules set forth in Treasury
Regulation § 1.410(a)–7(f) and (g).

             8.          Effective January 1, 2001, Section
3.01 is amended to read as follows:

             Section 3.01.  Date of Membership. 
Each Eligible Employee who was a Member on December 31, 2000, will
remain a Member on January 1, 2001, subject to the terms of the Plan in
effect on and after that date.  Each
Eligible Employee who was not a Member on December 31, 2000, but who is
credited with an Hour of Service on or after January 1, 2001, will become a
Member in accordance with the provisions of this Section.

             (a)         Each
Eligible Employee who is not a Full–Time Employee or a Regular Part–Time
Employee will become a Member on the first Entry Date that occurs on or after
the date he has both reached age 21 and has completed one Year of
Eligibility Service.  A former Eligible
Employee who has previously completed one Year of Eligibility Service but who
has not become a Member will become a Member as of the first Entry Date on or
after the date he has both reached age 21 and has completed an Hour of
Service upon his reemployment as an Eligible Employee, if he completes a Year
of Eligibility Service after he returns to employment with the Employer.  An Eligible Employee who becomes a Member
and Separates from Service will again become a Member on the date he first
completes an Hour of Service after his reemployment as an Eligible Employee.

             (b)        Each
Eligible Employee who is a Full–Time Employee or a Regular Part–Time
Employee will become a Member on the first Entry Date that occurs on or after
the date he has both reached age 21 and has completed one year of
Continuous Service.  If an Employee
incurs a Severance from Service before completing a year of Continuous Service,
thereafter incurs at least a 12-month Period of Severance and is then
reemployed, his Period of Severance will not be counted as Continuous Service
in determining the date he completes a year of Continuous Service after his
reemployment.  If an Employee incurs a
Severance from Service before completing a year of Continuous Service,
thereafter incurs a Period of Severance of less than 12 months and is then
reemployed, his Period of Severance will be counted as Continuous Service in
determining the date he completes a year of Continuous Service after his
reemployment.  A former Eligible
Employee who has previously completed one year of Continuous Service but who
has not become a Member will become a Member as of the first Entry Date on or
after the date he has both reached age 21 and has completed an Hour of
Service upon his reemployment as an Eligible Employee, if he completes a year
of Continuous Service after he returns to employment with the Employer.  An Eligible Employee who becomes a Member
and incurs a 12–month Period of Severance will again become a Member on
the date he first completes an Hour of Service after his reemployment as an
Eligible Employee.

             (c)         Notwithstanding
the preceding Paragraphs, the period of an Employee's employment prior to
January 1, 2001 that was recognized as eligibility service under the terms
of the Plan then in effect will be recognized as eligibility service on
January 1, 2001.  Recognition of
service will be in accordance with the transition rules set forth in Treasury
Regulation § 1.410(a)–7(f) and (g).

             9.          Effective January 1, 2000,
Subsection 3.03(b) is amended to read as follows:

             (b)        The
Member will continue to accrue Continuous Service, Years of Eligibility Service
and Years of Vesting Service; and

             10.        Effective June 9, 1998,
Subsection 7.08(a) is amended to read as follows:

             (a)         A Non–Key
Employee who is a Member and has completed at least 1,000 Hours of Service
during the Plan Year will accrue a minimum benefit for the Plan Year that, when
expressed as a single life annuity beginning on the Employee's Normal
Retirement Date, must equal at all times at least the product of (1) the
Employee's average Compensation for the five consecutive Plan Years when the
Employee had the highest aggregate Compensation and (2) the lesser of
(A) 2% per each Plan Year or (B) 20%.  A Non–Key Employee will not fail to accrue a minimum benefit
for a Plan Year merely because he was not employed on a specified date of that
Plan Year or because his compensation for that Plan Year is less than a stated
amount.

             11.        Effective June 9, 1998,
Subsection 7.09(b) is amended to read as follows:

             (b)        Notwithstanding
any other provision of this Plan, the entire interest of each Member will be
distributed either (1) in a single lump sum payment not later than the
Required Beginning Date or (2) in a series of payments beginning not later
than the Required Beginning Date over the life of the Member or over the lives
of the Member and a designated Beneficiary (or over a period not extending
beyond the life expectancy of the Member or the life expectancy of the Member
and a designated Beneficiary).  If a
Member's entire interest is to be distributed in other than a lump sum, then
the amount to be distributed each year must be at least an amount equal to the
quotient obtained by dividing the Member's entire interest by the life
expectancy of the Member or joint and last survivor expectancy of the Member
and designated Beneficiary.  Life
expectancy and joint and last survivor expectancy are computed by the use of
the expected return multiples contained in Tables V and VI of
26 C.F.R. § 1.72–9.  For
purposes of this computation, life expectancies will not be recalculated.  With respect to a Member who is not a 5%
owner and who Separates from Service after the calendar year in which he
reaches age 701⁄2, his benefit pursuant to Sections 7.01, 7.02 and 7.03
will be actuarially increased, pursuant to Code clause 401(a)(9)(C)(iii),
for the period beginning on April 1 of the calendar year after he reaches
age 701⁄2 and ending on the date as of which payment of his benefit begins.  In no event may the Member's benefit payable
pursuant to the preceding sentence be less than the Actuarial Equivalent of the
benefit that would have been payable to him as of April 1 of the calendar year
after he reached age 701⁄2.  The
actuarial increase provided for in the preceding two sentences is the same as,
and not in addition to, the actuarial increase required by Code
section 411.

             12.        Effective June 9, 1998, a new
Section 11.03 is added to read as follows:

             Section 11.03. 
Special Limitation Pursuant to Code Subsection 415(e)  Notwithstanding any other provision of the
Plan, for Plan Years ending before January 1, 2000, for any individual who
is a Participant in this Plan and has been a participant in a defined
contribution plan of the Employer, the sum of the defined benefit plan fraction
and the defined contribution plan fraction for any Plan Year shall not exceed
one.  The defined benefit plan fraction
for any year is a fraction with a numerator that is the projected annual
benefit of the individual under all defined benefit plans of the Employer and
with a denominator that is the lesser of (a) the product of
1.25 multiplied by the dollar limitation in effect under Code
subparagraph 415(b)(1)(A) for that year or (b) the product of 1.4
multiplied by the amount of the limitation in effect under subparagraph 415(b)(1)(B)
with respect to that individual for that year. 
The defined contribution plan fraction for any year is a fraction with a
numerator that is the sum of the annual additions for all years to the
individual's accounts in all defined contribution plans of the Employer and
with a denominator that is the sum of the lesser of the following amounts
determined for that year and for each prior year of service with the
Employer:  (a) the product of 1.25
multiplied by the dollar limitation in effect under Code
subparagraph 415(c)(1)(A) for that year (determined without regard to
paragraph 415(c)(6)), or (b) the product of 1.4 multiplied by the
amount of the limitation in effect under subparagraph 415(c)(1)(B) with
respect to that individual for that year. 
Notwithstanding the foregoing provisions, for any Plan Year for which
the Plan is a Top–Heavy Plan, 1.0 shall be substituted for 1.25.  To the extent that the limitations of this
Section are exceeded, the appropriate adjustments shall be made under this Plan
first.

             13.        Effective June 9, 1998,
Subsection 13.03(a) is amended to read as follows:

             (a)         In
determining the present value of an Employee's accrued benefits under any
defined benefit Retirement Plan, the mortality table and interest rate used for
actuarial equivalents in that Retirement Plan will be used.  In addition, subsidized benefits will not be
taken into account unless they are nonproportional subsidies.

             This
Second Amendment of ESI Pension Plan is executed this   25th    day of          July         ,
2001.

	 	ITT
  EDUCATIONAL SERVICES, INC.
	 	 	 
	 	By:	/s/
  Joseph B. Rainier

	 	 	(Signature)
	 	 	 
	 	 	Joseph
  B. Rainier

	 	 	(Printed)
	 	 	 
	 	 	V.P.
  Dir. H.R.

	 	 	(Title)
	ATTEST:	 	 
	 	 	 
	   /s/ Jenny Yonce

	 	 
	(Signature)	 	 
	 	 	 
	   Jenny Yonce

	 	 
	(Printed)	 	 
	 	 	 
	   MGR, Benefits & HRIS

	 	 
	(Title)

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