Document:

Exhibit 10.13.B

 

FORM OF

PERFORMANCE UNIT AWARD AGREEMENT 

PURSUANT TO

THE AES CORPORATION 2003 LONG TERM COMPENSATION PLAN

 

The
AES Corporation, a Delaware Corporation (the “Company”), grants to the Employee
named below, pursuant to The AES Corporation 2003 Long-Term Compensation Plan
(the “Plan”) and this Performance Unit Award Agreement (this “Agreement”), this
Award of Performance Units (“Performance Units”), the value of which is related
to and contingent upon the achievement of a predetermined Performance Target
(as set forth herein).  Capitalized terms
not otherwise defined herein shall each have the meaning assigned to them in
the Plan.

 

1.     This
Award of Performance Units is subject to all terms and conditions of this
Agreement and the Plan, the terms of which are herein incorporated by
reference:

 

	
  Name of Employee: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date of Birth:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AES Directory Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total Number of
  Performance Units Granted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Target Value:

  	
  USD$

  	
  1.00

  	
   

  
				

 

Notwithstanding any
provision of the Plan to the contrary, this Award of Performance Units is
subject to the terms and conditions of this Agreement and the Plan regardless
of whether the Employee is a Covered Person, as defined in the Plan.

 

2.     The
Employee is hereby granted an Award of the total number of Performance Units
set forth above.  The Performance Units
will be reflected in a book account by the Company during the Performance
Period (as defined below).  Contingent
upon achieving or exceeding 90% or more of the performance target, the value of
vested Performance Units, will be paid in cash as soon as practicable after the
end of the Performance Period but such date (the “Payment Date”) will be no
later than 90 days after the last day of the Performance Period.

 

 

3.     The
“Performance Period” is the period beginning on January 1, [       ]
and ending on December 31, [       ].

 

4.     This
Award of Performance Units will vest in three equal installments on December
31,         , December 31,        
and December 31,        (each a “Vesting
Date”); provided, however:

 

(A)    that
if the Employee’s employment is terminated or the Employee’s provision of
services is terminated prior to the end of the Performance Period, in either
case by reason of the Employee’s death or Disability,
all Performance Units referenced in the chart above shall vest on such
termination date and, within 90 days after such date, a cash amount equal to
$1.00 for each Performance Unit shall be paid to the Employee;

 

(B)    that
if the Employee’s employment is terminated or the Employee’s provision of
services is terminated prior to the Payment Date, in either case by the Company for cause (as
determined by the Committee in its sole discretion), this Award of Performance
Units (including any vested portion) will be forfeited in full and cancelled by
the Company, and shall cease to be outstanding, upon such termination date; and

 

(C)    that
if the Employee’s employment is terminated or the Employee’s provision of
services is terminated for any other reason (including voluntarily by the Employee (including without limitation,
Retirement) or by the Company other than for cause or by reason of Disability
or death), the Employee will be eligible to receive the value of
his or her vested Performance Units on the Payment Date in accordance with the
terms set forth in paragraph 5 below.

 

Any Performance Units
that have not vested on or before the date that an Employee’s employment or
provision of services terminates for any reason (other than death or
Disability), (i) will not subsequently vest; (ii) will be forfeited in full and
cancelled by the Company and (iii) will no longer be outstanding.  In addition, the Employee’s right to receive
the applicable Performance Unit value in respect of any such forfeited
Performance Units will be forfeited at such time and only Performance Unit
value in respect of vested Performance Units that have not been forfeited, will
be paid on the Payment Date, as may be applicable and in accordance with the
terms and conditions of the Plan.

 

5.     Each
Performance Unit represents a right to receive the applicable Performance Unit
value in the chart below, in cash on the Payment Date, if and only if, such
Performance Unit (i) has not been forfeited prior to its Vesting Date and (ii)
has vested in accordance with the terms of this Agreement.

 

2

 

The value of each
Performance Unit will depend upon the Company’s actual Cash Value Added (“CVA”),
as defined below, over the Performance Period as compared to the performance target
set forth and approved by the Compensation Committee of the Board of Directors
of the Company (the “Committee”) at the time of grant as follows:

 

For CVA levels achieved
between 90% and 120% of the Performance Target, the Performance Unit value will
be determined based on straight-line interpolation. The maximum value of a
Performance Unit is between $0.50 and $2.00.

 

CVA means (i)
consolidated un-leveraged operating cash flow minus (ii) a cumulative charge
for capital used during the Performance Period as determined by the Committee
at the time of grant.

 

Notwithstanding the
performance level achieved, the Committee may reduce or terminate the
Performance Award altogether, but in no event may the Committee increase the
value of a Performance Unit underlying this Award of Performance Units beyond
the performance levels achieved.

 

6.     In
addition, in the event that a Change of Control occurs prior to the end of the
Performance Period, if the Performance Units described herein have not already
been previously forfeited or cancelled, such Performance Units shall become
fully vested and payable in a cash amount equal to $1.00 for each Performance
Unit.  Payment of any amount payable
pursuant to the preceding sentence may be made in cash and/or securities or other
property in the Committees discretion.

 

7.     Notices
hereunder and under the Plan, if to the Company, shall be delivered to the Plan
Administrator (as so designated by the Company) or mailed to the Company’s
principal office, 4300 Wilson Boulevard, Arlington, VA 22203 (or as
subsequently designated by the Company), attention of the Plan Administrator,
or, if to the Employee, shall be delivered to the Employee or mailed to his or
her address as the same appears on the records of the Company.

 

8.     All
decisions and interpretations made by the Board of Directors or the Committee
with regard to any question arising hereunder or under the Plan shall be
binding and conclusive on all persons. 
Unless otherwise specifically provided herein, in the event of any inconsistency
between the terms of the Plan and this Agreement, the terms of the Plan will
govern.

 

9.     By
accepting this Award of Performance Units, the Employee acknowledges receipt of
a copy of the Plan and the prospectus relating to this Award of Performance
Units, and agrees to be bound by the terms and conditions set forth in the Plan
and this Agreement, as in effect and/or amended from time to time.

 

3

 

10.   This
Agreement will be governed by the laws of the State of Delaware without giving
effect to its choice of law provisions.

 

 

	
   

  	
  The AES CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

4Exhibit
10.13.C

 

FORM OF

RESTRICTED STOCK UNIT AWARD AGREEMENT

PURSUANT TO

THE AES CORPORATION 2003 LONG TERM COMPENSATION PLAN

 

The AES Corporation, a Delaware corporation (the “Company”), grants to
the Employee named below, pursuant to The AES Corporation 2003 Long Term
Compensation Plan (the “Plan”) and this Restricted Stock Unit Award Agreement
(this “Agreement”), this Award of Restricted Stock Units (“RSUs”) upon the
terms and conditions set forth herein. 
Capitalized terms not otherwise defined herein will each have the
meaning assigned to them in the Plan.

 

1.     This
Award of RSUs is subject to all terms and conditions of this Agreement and the
Plan, the terms of which are incorporated herein by reference:

 

	
  Name of Employee: 

  	
   

  
	
   

  	
   

  
	
  Date of Birth:

  	
   

  
	
   

  	
   

  
	
  AES Directory Name:

  	
   

  
	
   

  	
   

  
	
  Grant Date:

  	
   

  
	
   

  	
   

  
	
  Number of RSUs Granted:

  	
   

  

 

2.     Each
RSU represents a right to receive one Share on a date (the “Delivery Date”)
selected by the Committee that occurs during the 90 day period commencing on
December 31,       , if and only if, such RSU (i)
has not been forfeited prior to the Delivery Date and (ii) has vested in
accordance with this Agreement prior to the Delivery Date; provided, however,
that in lieu of delivery of a Share on the Delivery Date, the Committee may, in
its discretion, cause the Company to deliver cash having a Fair Market Value
equivalent to a Share on the Delivery Date.

 

3.     An
RSU (i) does not represent an equity interest in the Company, (ii) carries no
voting, dividend or dividend equivalent rights and (iii) the holder will not
have an equity interest in the Company or any of such shareholder rights,
unless the vesting conditions of the RSU are met and the RSU is paid out with a
Share rather than cash and in such case not until the relevant Share is delivered
on the Delivery Date.

 

4.     This
Award of RSUs will vest in three equal installments on each of the first,
second and third anniversary of the Grant Date (each a “Vesting Date”), if the following two conditions are met:

 

(i)   During
the 3-year period from and including January 1, [      ]
through and including December 31, [      ] (the “Performance
Period”) either:

 

 

(a)   the
Total Shareholder Return on AES common stock exceeds the Total Shareholder
Return on the S&P 500 Index; or

 

(b)   the
Total Shareholder Return on AES common stock is positive, the S&P 500 Index
is positive, the Total Shareholder Return on AES common stock is no more than     %
less than the Total Shareholder Return on the S&P 500 Index and the
Committee does not exercise the discretion it has under such circumstances to
prevent any or all of the RSUs from vesting.

 

Except for any RSUs forfeited prior to the end of the Performance
Period pursuant to the following paragraph, all RSUs pursuant to this Award
will be forfeited and will cease to be outstanding as of the end of the
Performance Period unless either (i)(a) or (i)(b) occurs.

 

(ii)   With
regard to each equal one third portion of RSUs, in order for any such portion
to be eligible for vesting if (i)(a) or (i)(b) above occurs, either:

 

(a)   the
Employee remains an Employee through the relevant Vesting Date, or

 

(b)   prior
to the relevant Vesting Date, the Employee’s employment terminated by reason of
the Employee’s death or Disability.

 

If the Employee’s employment is terminated or the Employee’s provision
of services is terminated prior to the third anniversary of the Grant Date, in either case for any reason other than death or
Disability (including voluntarily by the Employee (including
Retirement) or by the Company with or without cause), all RSUs with Vesting
Dates after the termination date will be forfeited and will no longer be
outstanding, the Employee’s right to receive Shares and/or cash on the Delivery
Date in respect of any such forfeited RSUs will be forfeited at such time and
in the event that (i)(a) or (i)(b) above occurs only Shares and/or cash in
respect of RSUs with Vesting Dates prior such termination date will be
delivered on the Delivery Date.

 

5.     In
the event that a Change of Control occurs prior to the Delivery Date, if the
RSUs described herein have not already been previously forfeited or cancelled,
such RSUs will become fully vested and the Delivery Date will occur immediately
prior to the Change in Control; provided, however, that in connection with a
Change of Control and certain other events, payment of any obligation payable
pursuant to the preceding sentence may be made in cash of equivalent value
and/or securities or other property in the Committee’s discretion.

 

6.     Under
current U.S. federal income tax laws, the Employee will not be subject to
income tax unless and until Shares and/or cash are delivered to the Employee on
the Delivery Date, at which time the Fair Market Value of the Shares and/or
cash will be reportable as ordinary income, and subject to income tax
withholding.  However, under a special
rule applicable to deferred compensation, the value of the Shares underlying
the RSUs as and when the RSUs vest, although the Shares are not then delivered,
is reportable at such time as wages for

 

2

 

purposes of social security and Medicare (e.g., FICA) taxes and is
subject to withholding.  The Company and
its subsidiaries and affiliates have the right (i) to withhold any tax required
to be withheld in connection with this Award of RSUs from Shares and/or cash
otherwise deliverable or from any other payment to be made to the Employee, or
(ii) to otherwise condition the Employee’s right to receive or retain the
Shares and/or cash on the Employee making arrangements satisfactory to the
Company or any of its subsidiaries or affiliates to enable any related  tax obligation of the Employee to be
satisfied.  The Employee should consult
his or her personal advisor to determine the effect of this Award of RSUs on
his or her own tax situation.

 

7.     Notices
hereunder and under the Plan, if to the Company, will be delivered to the Plan
Administrator (as so designated by the Company) or mailed to the Company’s
principal office, 4300 Wilson Boulevard, Arlington, VA 22203, attention of the
Plan Administrator, or, if to the Employee, will be delivered to the Employee
or mailed to his or her address as the same appears on the records of the
Company.

 

8.     All
decisions and interpretations made by the Board of Directors or the Committee
with regard to any question arising hereunder or under the Plan will be binding
and conclusive on all persons.  Unless
otherwise specifically provided herein, in the event of any inconsistency
between the terms of this Agreement and the Plan, the Plan will govern.

 

9.     By
accepting this Award of RSUs, the Employee acknowledges receipt of a copy of
the Plan and the prospectus relating to this Award of RSUs, and agrees to be
bound by the terms and conditions set forth in this Agreement and the Plan, as
in effect and/or amended from time to time.

 

3

 

10.   This
Agreement will be governed by the laws of the State of Delaware without giving
effect to its choice of law provisions.

 

 

	
   

  	
  THE AES CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

4

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