Document:

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                                                                   Exhibit 10.12

                               THE AES CORPORATION
                             2001 STOCK OPTION PLAN

                                    ARTICLE 1
                                     PURPOSE

     The AES Corporation desires to encourage and promote the growth and
prosperity of the Company by allowing certain employees of the Company and its
Affiliates to continue to share in the stock ownership of the Company pursuant
to The AES Corporation 2001 Stock Option Plan.

                                    ARTICLE 2
                                   DEFINITIONS

     SECTION 2.01 . DEFINITIONS. Whenever used in this Plan, the words and
phrases set forth below shall have the following meanings:

     (a) "AFFILIATES" shall mean, with respect to any entity, those entities
directly or indirectly controlling, controlled by, or under common control with
the Company; PROVIDED that no securityholder of the Company shall be deemed an
"Affiliate" of any other securityholder of the Company solely by reason of any
investment in the Company; and PROVIDED FURTHER that "control" (including with
correlative meanings, the terms "controlling", "controlled by" and "under common
control with"), when used with respect to any entity, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of such entity, whether through the ownership of voting
securities, by contract or otherwise.

     (b) "BOARD OF DIRECTORS" shall mean the Board of Directors of the Company.

     (c) "CHANGE OF CONTROL" shall mean the first to occur of:

          (i) an individual, corporation, partnership, group, associate or other
     entity or "person", as such term is defined in Section 14(d) of the
     Exchange Act of 1934, other than the Company or any employee benefit
     plan(s) sponsored by the Company, is or becomes the "beneficial owner" (as
     defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
     30% or more of the combined voting power of the Company's outstanding
     securities ordinarily having the right to vote at elections of directors;

          (ii) individuals who constitute the Board of Directors on the
     Effective Date (the "INCUMBENT BOARD") cease for any reason to constitute
     at least a majority thereof; PROVIDED that any Approved Director

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     (as hereinafter defined) shall be, for purposes of this subsection (ii),
     considered as though such person were a member of the Incumbent Board. An
     "Approved Director", for purposes of this subsection (ii), shall mean any
     person becoming a director subsequent to the Effective Date whose election,
     or nomination for election by the Company's stockholders, was approved by a
     vote of at least three-quarters of the directors comprising the Incumbent
     Board (either by a specific vote or by approval of the proxy statement of
     the Company in which such person is named as a nominee of the Company for
     director), but shall not include any such individual whose initial
     assumption of office occurs as a result of either an actual or threatened
     election contest (as such terms are used in Rule 14a-11 of Regulation 14A
     under the Exchange Act) or other actual or threatened solicitation of
     proxies or consents by or on behalf of an individual, corporation,
     partnership, group, associate or other entity or "person" other than the
     Board of Directors; or

          (iii) the approval by the stockholders of the Company of a plan or
     agreement providing for a merger or consolidation of the Company other than
     with a wholly-owned subsidiary and other than a merger or consolidation
     that would result in the voting securities of the Company outstanding
     immediately prior thereto continuing to represent (either by remaining
     outstanding or by being converted into voting securities of the surviving
     entity) more than 51% of the combined voting power of the voting securities
     of the Company or such surviving entity outstanding immediately after such
     merger or consolidation, or for a sale, exchange or other disposition of
     all or substantially all of the assets of the Company. If any of the events
     enumerated in this subsection (iii) occurs, the Committee shall determine
     the effective date of the Change of Control resulting therefrom for
     purposes of this Plan.

     (d) "CODE" shall mean the Internal Revenue Code of 1986, as amended.

     (e) "COMMITTEE" shall mean a committee of the Board designated by the Board
of Directors to administer this Plan. Unless otherwise determined by the Board
of Directors, the Compensation Committee of the Board of Directors shall be the
Committee under this Plan.

     (f) "COMPANY" shall mean The AES Corporation, a Delaware corporation, or
its successor.

     (g) "EFFECTIVE DATE" shall mean January l, 2001; provided, however, no
stock option grants are granted to executive officers until approved by
stockholders.

     (h) "EMPLOY" or "EMPLOYMENT" shall mean the absence of any interruption or
termination of employment by the Company or an Affiliate. Employment shall not
be considered interrupted in the case of transfers between

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payroll locations of the Company and/or an Affiliate or in the case of such
leave or any other leave of absence approved by the Company.

     (i) "EMPLOYEE" shall mean any person who is a common law employee of the
Company or an Affiliate.

     (j) "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.

     (k) "INCENTIVE STOCK OPTION" shall mean an Option granted under Article 5,
which is designated by the Board of Directors as an Incentive Stock Option.

     (l) "NYSE" shall mean the New York Stock Exchange, Inc.

     (m) "NONQUALIFIED OPTION" shall mean an option granted under Article 5,
which is designated by the Board of Directors as a Nonqualified Option.

     (n) "OFFICER" shall mean any officer of the Company or of a subsidiary of
the Company whose office or duties subject him to the reporting, "short swing"
transaction and other provisions of Section 16 of the Exchange Act.

     (o) "OPTION" shall mean the right to purchase stock granted to an Employee
under this Plan.

     (p) "OPTIONEE" shall mean any person who has the right to purchase stock
pursuant to an Option granted under this Plan.

     (q) "PLAN" shall mean The AES Corporation 2001 Stock Option Plan.

     (r) "SECURITIES ACT" shall mean the Securities Act of 1933, as amended.

     (s) "STOCK" shall mean the Common Stock of the Company, par value $.01 per
share.

     (t) "STOCK OPTION ADMINISTRATOR" shall mean one or more persons, who may be
employees of the Company and/or Optionees, who is or are selected by the Company
from time to time to be responsible for the day-to-day operations of this Plan.

     (u) "SUBSTITUTE OPTION" shall mean an Option granted in assumption of, or
in substitution for, an outstanding option previously granted by a company
acquired by the Company or an Affiliate or with which the Company or an
Affiliate combines.

     SECTION 2.02 . WORD USAGE. Wherever used in this Plan, any word denoting
the masculine shall include the feminine, and any word denoting the plural shall
include the singular and vice versa unless the context indicates

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otherwise. As used in this Plan, the words "herein," "hereafter," or
"hereunder," or any other compound of the words "here" shall refer to this Plan
in its entirety and not to any subpart, unless the context indicates otherwise.
Any reference in this Plan to a statute or a provision of a statute shall
include any successor statute or provision thereto and any regulations
promulgated thereunder.

                                    ARTICLE 3
                                  THE COMMITTEE

     SECTION 3.01. THE COMMITTEE. This Plan shall be administered by the
Committee. The Committee shall consist of not less than the minimum number of
persons from time to time required by Rule 16b-3 under the Exchange Act and
Section 162(m) of the Code, each of whom, to the extent necessary to comply with
such Rule 16b-3 and Section 162(m) only, is a "Non-Employee Director" and an
"Outside Director" within the meaning of such Rule 16b-3 and Section 162(m),
respectively. The Board may designate one or more directors as alternate members
of the Committee who may replace any absent or disqualified member at any
meeting of the Committee. No member or alternate member of the Committee shall
be eligible, while a member or alternate member, for participation in this Plan.
The Committee, subject to the provisions of this Plan and subject to such
restrictions as the Board of Directors may make from time to time, shall have
authority to prescribe, amend and rescind rules and regulations relating to this
Plan, to construe all Plan provisions and to determine any and all questions
arising under this Plan. The Committee shall determine the manner, timing and
amount of any Options granted pursuant to this Plan. The determination of the
Committee shall be binding and conclusive on all persons.

     SECTION 3.02. ACTION BY COMMITTEE. A majority of the members of the
Committee constitute a quorum for the transaction of business. Any determination
or action of the Committee may be made or taken by a majority of the members of
the Committee present (either in person or by telephone) at any meeting of the
Committee, or without a meeting by resolution or instrument in writing signed by
a majority of the members of the Committee.

     SECTION 3.03. DELEGATION OF POWERS. The Committee may delegate its powers
set forth in Section 3.01 and Section 4.01 to each of the Chairman of the Board
of Directors and the President of the Company in respect of determinations of
Options to be granted to Employees who are not (a) Officers, (b) directors of
the Company or (c) beneficial owners of more than 10% of the Stock or of any
other class of equity security of the Company registered under Section 12 of the
Exchange Act; PROVIDED, HOWEVER, that any such delegation shall conform with the
requirements of the General Corporation Law of the State of Delaware.

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                                   ARTICLE 4
                                  ELIGIBILITY

     SECTION 4.01. ELIGIBILITY. (a) All Employees shall be eligible to receive
an Option. The Committee shall determine which Employees shall receive an
Option. In making this determination, the Committee may take into account the
nature and length of service rendered by the Employee, his past, present and
potential contributions to the success of the Company and such other factors
that the Committee, in its sole discretion, shall deem relevant.

     (b) Holders of options granted by a company acquired by the Company or with
which the Company combines are eligible for grants of Substitute Options under
this Plan.

                                   ARTICLE 5
                                GRANT OF OPTIONS

     SECTION 5.01. GRANT OF OPTIONS. Each Incentive Stock Option and
Nonqualified Option shall be in writing and shall specify the number of shares
of Stock which may be purchased pursuant to the Option, the purchase price, the
period during which the Option may be exercised and other conditions, if any,
under which the Option has been granted. Unless the Committee shall determine
otherwise, such writing shall also provide for any vesting of the Option.
Without limiting the generality of the foregoing, unless specifically provided
to the contrary in an award or other instrument evidencing an Option, upon a
Change of Control, all Options shall become fully vested and exercisable.

     SECTION 5.02. LIMITATIONS ON INCENTIVE STOCK OPTIONS. The terms of any
Incentive Stock Option shall comply in all respects with the provisions of
Section 422 of the Code.

     SECTION 5.03. MAXIMUM SHARES AUTHORIZED UNDER THIS PLAN. (a) The total
number of shares of Stock for which Options can be granted pursuant to this Plan
shall be 15,000,000 shares, subject to adjustment as provided in Article 7. The
Company shall reserve, either from authorized but heretofore unissued Stock or
from Stock reacquired by the Company and held in its treasury, the full number
of shares of Stock necessary to satisfy all Options that may be granted under
this Plan.

     (b) Subject to adjustment as provided in Article 7, no Employee may receive
Options in any calendar year that relate to more than one million shares of
Stock.

     (c) Any shares of Stock underlying a Substitute Option shall not be counted
against the shares of Stock available for Options under this Plan.

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                                   ARTICLE 6
                               EXERCISE OF OPTIONS

     SECTION 6.01. PROCEDURE FOR EXERCISING OPTIONS. (a) Any Option may be
exercised at any time during the period commencing with either the date the
Option is granted or the first date permitted under a vesting schedule
established by the Committee and ending with the expiration date of the Option;
PROVIDED, HOWEVER, that any Option granted to (a) an Officer, (b) a director of
the Company or (c) a beneficial owner of 10% or more of the Stock or of any
other class of equity security of the Company registered pursuant to Section 12
of the Exchange Act cannot be exercised until at least six months and one day
after the date the Option is granted. An Optionee may exercise his Option for
all or part of the number of shares of Stock which he is eligible to exercise
under the terms of the Option.

     (b) The exercise of an Option shall be effective only upon delivery to the
Stock Option Administrator of (i) written notice of such exercise in the form
prescribed by the Committee and (ii) payment of the full purchase price of
shares of stock in respect of which notice of exercise is given. The notice
shall specify the number of shares to be exercised and shall be signed by the
Optionee. The full purchase price of the shares of Stock as to which an Option
is exercised shall be paid to the Company in full, or adequate provision for
such payment made, at the time of exercise at the election of the Optionee in
cash. Notwithstanding the foregoing, if shares of Stock are listed on the NYSE
or on any national securities exchange, the requirement of the payment in cash
will be deemed satisfied if the Optionee makes arrangements that are
satisfactory to the Company with a broker that is satisfactory to the Company to
sell a sufficient number of shares of Stock which are being purchased pursuant
to the exercise, so that the net proceeds of the sale transaction will at least
equal the amount of the aggregate purchase price of such shares plus any amounts
required to be withheld, and pursuant to which the broker undertakes to deliver
to the Company such amount not later than the date on which the sale transaction
will settle in the ordinary course of business.

     SECTION 6.02. ISSUANCE OF SHARES. Until such time as the issuance of shares
of Stock in the name of the Optionee is registered on the stockholders ledger of
the Company, the Optionee shall have no rights of a stockholder of the Company,
including without limitation the right to vote any such shares or to receive any
dividends which are attributable to such shares.

     SECTION 6.03. DISABILITY. Unless the Committee shall determine otherwise,
in the event an Optionee becomes "permanently and totally disabled" (as defined
in Section 22(e)(3) of the Code) while in the continuous employment of the
Company or an Affiliate, all Options held by such Optionee shall become fully
vested and exercisable and shall expire on the earlier of (a) the date the
Option would have expired had the Optionee continued in such employment and (b)
one (1) year after the date such employment ceases because of such disability.

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     SECTION 6.04. DEATH. Unless the Committee shall determine otherwise, in the
event of the death of an Optionee while in the continuous employment of the
Company or an Affiliate, all Options held by such Optionee shall become fully
vested and exercisable and shall automatically expire on the earlier of (a) the
date the Option would have expired had the Optionee continued in such employment
and (b) one (1) year after such death. Any such Option may be exercised by the
personal representative of the deceased Optionee's estate or by the person or
persons to whom his rights under such Option have passed either by will or by
the laws of descent and distribution. Any such Option is exercisable in the same
manner and subject to the same conditions (other than the expiration date) which
would have applied if the Optionee had exercised such Option before he died.

     SECTION 6.05. INCAPACITY. Unless the Committee shall determine otherwise,
in the event that an Optionee is adjudged to be mentally incompetent while in
the continuous employment of Company or an Affiliate or during a period of
permanent and total disability which commenced while in such employment, the
Optionee's guardian, conservator or legal representative shall have the right to
exercise on behalf of the Optionee any Options granted to the Optionee.

     SECTION 6.06. TERMINATION OF EMPLOYMENT. Unless the Committee shall
determine otherwise, in the event that an Optionee's employment with the Company
or an Affiliate terminates for any reason other than the death or disability of
such Optionee, all Options held by such Optionee shall automatically expire on
the earlier of (a) the date the Option would have expired had the Optionee
continued in such employment and (b) one hundred and eighty (180) days after the
date that such Optionee's employment ceases, except that any Incentive Stock
Option shall automatically expire on the earlier of clause (a) above and three
(3) months after the date that such Optionee's employment with the Company or an
Affiliate ceases.

     SECTION 6.07. TRANSFER OF OPTIONS. Except to the extent that an Option may
be transferred by will or by the laws of descent and distribution as provided
for in Section 6.04, no Option granted under this Plan shall be sold, assigned,
transferred, conveyed, pledged or otherwise disposed of by the Optionee or by
any other person having or claiming to have any rights thereto or therein, and
no Option shall be subject to bankruptcy proceedings, claims of creditors,
attachment, garnishment, execution, levy or other legal process against the
Optionee or any such other person or their property.

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                                   ARTICLE 7
          ADJUSTMENTS UPON RECAPITALIZATIONS AND OTHER CORPORATE EVENTS

     SECTION 7.01. RECAPITALIZATIONS. In the event of any stock split, reverse
stock split, stock dividend or other subdivision or combination of the Stock or
other securities of the Company, the following shall be adjusted
proportionately:

     (a) the number of shares of Stock (or number and kind of other securities
or property) with respect to which Options may thereafter be granted, including
the aggregate and individual limits specified in Section 5.03;

     (b) the number of shares of Stock or such other securities (or number kind
of other securities or property) subject to outstanding Options; and

     (c) the grant, purchase or exercise price with respect to any Option;
PROVIDED, HOWEVER, that the number of shares subject to any Option shall always
be a whole number.

     Section 7.02. OTHER CORPORATE EVENTS. In the event of any merger,
consolidation, split-up, spin-off, combination or exchange of shares or other
recapitalization or change in capitalization or other similar corporate
transaction or event that affects the Stock or other securities of the Company
(other than any corporate event described in Section 7.01 or Section 7.03) and
the Committee determines that an adjustment is appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be
made available under this Plan, the Committee shall, in such manner as it may
deem equitable, adjust any or all of:

     (a) the number of shares of Stock (or number and kind of other securities
or property) with respect to which Options may thereafter be granted, including
the aggregate and individual limits specified in Section 5.03

     (b) the number of shares of Stock or such other securities (or number and
kind of other securities or property) subject to outstanding Options; and

     (c) the grant, purchase or exercise price with respect to any Option;or, if
deemed appropriate, make provision for a cash payment to an Optionee; PROVIDED,
HOWEVER, that the number of shares subject to any Option shall always be a whole
number.

     Section 7.03. TERMINATION UPON LIQUIDATION. A liquidation or dissolution of
the Company shall cause all Options, to the extent not previously exercised, to
terminate, unless the plan or agreement of liquidation or dissolution provides
otherwise.

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                                    ARTICLE 8
                                  Miscellaneous

     Section 8.01. AMENDMENT AND TERMINATION OF THIS PLAN AND ANY OPTIONS. (a)
This Plan shall terminate no later than January 1, 2011. Notwithstanding the
immediately preceding sentence, the Company reserves the right, by action of its
Board of Directors, to change, amend, modify or terminate this Plan (or any
portion thereof) at any time; PROVIDED that no such change, amendment,
modification or termination shall be made without stockholder approval if such
approval is necessary to qualify for or comply with any tax or regulatory status
or requirement (including any approval requirement which is a prerequisite for
exemptive relief from Section 16(b) of the Exchange Act or Section 162(m) of the
Code) for which or with which the Board of Directors deems it necessary or
desirable to qualify or comply. Notwithstanding anything to the contrary herein,
the Committee may amend this Plan in such manner as may be necessary so as to
have this Plan conform with local rules and regulations in any jurisdiction
outside the United States. Neither the termination of this Plan (or any portion
thereof) nor any change, amendment or modification shall have the effect of
changing, amending, modifying or terminating in any way any Option which has
been granted under this Plan prior to the effective date of any such change,
amendment, modification or termination of this Plan.

     (b) Subject to the terms of this Plan and applicable law, the Committee may
waive any conditions or rights under or change, amend, modify or terminate any
Option theretofore granted, prospectively or retroactively;

     (c) The Board shall not amend this Plan to increase the maximum shares
authorized by Section 5.03(a) without stockholder approval, other than as set
forth in Article 7.

     Section 8.02. COMPLIANCE WITH SECURITIES LAWS. Options shall not be
granted, and shares of Stock shall not be issued, unless in the discretion of
the Committee all such grants and issuances shall comply with all relevant
provisions of federal and state laws, including the Securities Act, the Exchange
Act and the requirements of any interdealer quotation system or stock exchange
upon which the Stock may then be quoted or listed. The Company may require
Optionees to deliver representations, agreements and other documents at the time
of exercise of Options, necessary to comply with any such laws, regulations and
other requirements.

     Section 8.03. LEGENDS. In the event the offer and sale of the Stock issued
pursuant to this Plan has not been registered under the Securities Act, a legend
shall be placed on any certificates representing such Stock stating that such
shares have not been so registered and that the resale thereof is restricted.

     Section 8.04. NO CONTRACT OF EMPLOYMENT INTENDED. Nothing in this Plan or
in any Option granted pursuant to this Plan shall confer upon any Employee

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any right to continue in the employ or other service of the Company or an
Affiliate or interfere in any way with the right of the Company or such
Affiliate to terminate such Employee's employment or service at any time.

     Section 8.05. WITHHOLDING. The Company shall be authorized to withhold any
withholding taxes due in respect of an Option, its exercise, or any payment or
transfer under such Option or under this Plan and to take such other action as
may be necessary in the opinion of the Company to satisfy all obligations for
the payment of such taxes.

     Section 8.06. NON-EXCLUSIVITY. Nothing contained in this Plan or in an
Option shall prevent the Company from adopting or continuing in effect other or
additional compensation arrangements, and such arrangements may be either
generally applicable or applicable only in specific cases.

     Section 8.07. SEVERABILITY. If any provision of this Plan or any Option is
or becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction, or as to any person or Option, or would disqualify this Plan or
any Option under any law deemed applicable by the Committee, such provision
shall be construed or deemed amended to conform to applicable laws, or if it
cannot be so construed or deemed amended without, in the determination of the
Committee, materially altering the intent of this Plan or the Option, such
provision shall be stricken as to such jurisdiction, person or Option, and the
remainder of this Plan and any such Option shall remain in full force and
effect.

     Section 8.08. NO TRUST; UNSECURED STATUS. Neither this Plan nor any Option
shall create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company and an Optionee or any other person.
To the extent that any person acquires a right to receive payments from the
Company pursuant to an Option, such right shall be no greater than the right of
any unsecured general creditor of the Company.

     Section 8.09. NO FRACTIONAL SHARES. No fractional shares shall be issued or
delivered pursuant to this Plan or any Option, and the Committee shall determine
whether cash, other securities or other property shall be paid or transferred in
lieu of any fractional shares, or whether such fractional shares or any rights
thereto shall be canceled, terminated or otherwise eliminated.

     Section 8.10. HEADINGS NOT CONTROLLING. The titles to articles and the
headings of sections in this Plan are placed herein for convenience of reference
only and, in the case of any conflict, the text of this Plan rather than such
titles or headings shall control.

     Section 8.11. EFFECTIVE DATE. This Plan shall be effective as of January 1,
2001, provided, however, no stock option grants are granted to executive
officers until approved by stockholders.

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                                                                   EXHIBIT 10.13

                                                        EFFECTIVE: FEB. 20, 2001

                               THE AES CORPORATION
                           SECOND AMENDED AND RESTATED
                    DEFERRED COMPENSATION PLAN FOR DIRECTORS

                                    ARTICLE I
                               GENERAL PROVISIONS

         SECTION 1.1. ESTABLISHMENT AND PURPOSE. The AES Corporation ("Company")
hereby amends and restates The AES Corporation Deferred Compensation Plan for
Directors ("Plan") pursuant to which each director of the Company who is not an
employee of the Company or any of its subsidiaries (a "Non-Employee Director")
shall be eligible through an election to defer receipt of any compensation to be
earned by such Non-Employee Director and to have Stock Units (as hereinafter
defined) credited to an account established for such Non-Employee Director by
the Company. The purpose of the Plan is to assist the Company in attracting,
retaining and motivating highly qualified Non-Employee Directors and to promote
identification of, and align Non-Employee Directors' interests more closely
with, the interests of the stockholders of the Company.

         SECTION 1.2. DEFINITIONS. In addition to the terms previously or
hereafter defined herein, the following terms when used herein shall have the
meaning set forth below:

         "BOARD" shall mean the Board of Directors of the Company.

         "COMMITTEE" shall mean the committee of the Board appointed by the
Board to administer the Plan. Unless otherwise determined by the Board, the
Committee shall be the Compensation Committee of the Board.

         "COMMON STOCK" shall mean the Company's common stock, par value $.01
per share.

         "COMPENSATION" shall mean all remuneration paid to a Non-Employee
Director for service as such that is not deferred hereunder.

         "DEFERRED COMPENSATION" shall mean all remuneration paid to a
Non-Employee Director for service as such that is deferred hereunder.

         "FAIR MARKET VALUE" shall mean, as of any date, the mean of the highest
and lowest sales prices for the Common Stock as reported in the New York Stock
Exchange -- Composite Transactions reporting system for the date in question or,
if no sales were effected on such date, on the next preceding date on which
sales were effected.

         "PLAN YEAR" shall mean the twelve-month period beginning January 1 and
ending December 31 in any particular year.

         "STOCK UNIT" shall mean a credit that is equivalent to one share of
Common Stock.

         SECTION 1.3. ADMINISTRATION. The Plan shall be administered by the
Committee. The Committee shall serve at the pleasure of the Board. A majority of
the Committee shall constitute a quorum, and the acts of a majority of the
members of the Committee present at any meeting at which a quorum is present, or
acts approved in writing by a majority of the members of the Committee, shall be
deemed the acts of the Committee. The Committee is authorized to interpret and
construe the Plan, to make all

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determinations and take all other actions necessary or advisable for the
administration of the Plan, and to delegate to employees of the Company or any
subsidiary the authority to perform administrative functions under the Plan;
provided, however, that the Committee shall have no authority to determine the
persons entitled to receive Common Stock or Stock Units under the Plan nor the
timing, amount or price of Common Stock or Stock Units issued under the Plan.

         SECTION 1.4. ELIGIBILITY. An individual who is a Non-Employee Director
shall be eligible to participate in the Plan.

         SECTION 1.5. COMMON STOCK SUBJECT TO THE PLAN. The maximum number of
shares of Common Stock that may be issued pursuant to the Plan is 2,000,000.
Common Stock to be issued under the Plan may be either authorized and unissued
shares of Common Stock or shares of Common Stock held in treasury by the
Company.

                                   ARTICLE II
                           ELECTIONS AND DISTRIBUTIONS

         SECTION 2.1. ELECTIONS TO DEFER COMPENSATION. Any Non-Employee Director
may elect to defer receipt of compensation otherwise payable to the Non-Employee
Director for the Plan Year commencing January 1, 1998 and thereafter and to have
such Deferred Compensation credited as Stock Units hereunder ("Stock Unit
Election"). An election made by any Non-Employee Director prior to January 1,
1997, under the Plan as in effect prior to April 1, 1997, relating to
Compensation otherwise payable to the Non-Employee Director in 1997 and prior
years shall be given effect hereunder. If a Non-Employee Director makes a Stock
Unit Election, an account established for the Non-Employee Director and
maintained by the Company shall be credited with that number of Stock Units
equal to the number of shares of Common Stock (including fractions of a share to
two decimal places) that could have been purchased with the amount of Deferred
Compensation subject to a Stock Unit Election based on the average closing price
of the Common Stock on a national securities exchange for the 30-day period
ending on the last trading day of the quarter with respect to which such
Deferred Compensation is credited to the Non-Employee Director.

         SECTION 2.2. TERMS AND CONDITIONS OF ELECTIONS. A Stock Unit Election
(an "Election") shall be subject to the following terms and conditions:

An Election shall be in writing and shall be irrevocable; and
With respect to the Plan Year commencing January 1, 1998 and subsequent Plan
Years, an Election shall be effective for any Plan Year only if made on or prior
to the June 30 immediately preceding the commencement of such Plan Year; and An
Election shall remain in effect for all future Plan Years unless terminated or
changed pursuant to an Election made on or prior to June 30 to take effect for
the next Plan Year.

         SECTION 2.3.  ADJUSTMENT OF STOCK UNIT ACCOUNTS.

                  a. CASH DIVIDENDS -- As of the date that any cash dividend is
paid to stockholders of the Company, the Non-Employee Director's Stock Unit
account shall be credited with additional Stock Units equal to the number of
shares of Common Stock

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(including fractions of a share to two decimal places) that could have been
purchased with the dividends paid on the number of shares of Common Stock equal
to the number of Stock Units in such Non-Employee Director's account, based on
the methodology described in Section 2.1 hereof.

                  b. STOCK DIVIDENDS -- In the event that a dividend shall be
paid upon the Common Stock of the Company in shares of Common Stock, the number
of Stock Units in each Non-Employee Director's Stock Unit account shall be
adjusted by adding thereto additional Stock Units equal to the number of shares
of Common Stock which would have been distributable on the Common Stock
represented by Stock Units if such shares of Common Stock had been outstanding
on the date fixed for determining the stockholders entitled to receive such
stock dividend.

                  c. OTHER ADJUSTMENTS -- In the event that the outstanding
shares of Common Stock of the Company shall be changed into or exchanged for a
different number or kind of shares of stock or other securities of the Company
or of another corporation, whether through reorganization, recapitalization,
stock split-up, combination of shares, merger or consolidation, then there shall
be substituted, for the shares of Common Stock represented by Stock Units, the
number and kinds of shares of stock or other securities which would have been
substituted therefor if such shares of Common Stock had been outstanding on the
date fixed for determining the stockholders entitled to receive such changed or
substituted stock or other securities.

In the event there shall be any change, other than specified in this Section
2.3, in the number or kind of outstanding shares of Common Stock of the Company
or of any stock or other securities into which such Common Stock shall be
changed or for which it shall have been exchanged, an adjustment in the number
of Stock Units or the Common Stock represented by such Stock Units, such
adjustment shall be made by the Board and shall be effective and binding for all
purposes of the Plan and on each outstanding Stock Unit account. In the event of
any recapitalization in which shares of Common Stock are converted into,
exchanged for or entitled to shares of a non-equity security of the Company,
securities of another issuer or other non-stock consideration, all stock units
shall be converted to cash based on the fair market value of the Common Stock
immediately prior to the first public announcement of the recapitalization, or
the effective date of the recapitalization, whichever occurs earlier, and such
cash shall be distributed to all participants in the same manner as in the case
of termination of this Plan pursuant to Section 3.2.

         SECTION 2.4. DISTRIBUTION OF STOCK UNITS. Unless a Non-Employee
Director has selected a different payment option as set forth below, as soon as
practicable after the end of the calendar quarter following the date that such
Non-Employee Director ceases (other than by reason of such Non-Employee
Director's death) to be a Non-Employee Director (hereinafter, "retirement"), the
Company shall issue (the "Initial Distribution") to such Non-Employee Director
one-fifth (20.00%) of that number of shares of Common Stock equal to the whole
number of Stock Units in such Non-Employee Director's Stock Unit account
determined as of the close of the calendar quarter in which the Non-Employee
Director ceased to be a Non-Employee Director; on the first, second and third
anniversary of the Initial Distribution, the Company shall issue to such
Non-Employee Director the

                                       3

<PAGE>

same number of shares of Common Stock distributed in connection with the Initial
Distribution. As soon as practicable after the fourth anniversary of the Initial
Distribution, the Company shall (i) issue to such Non-Employee Director the
balance of that number of shares of Common Stock equal to the whole number of
Stock Units in such Non-Employee Director's Stock Unit account as of such
anniversary date and (ii) distribute cash equal to any fractional Stock Units
remaining in such account multiplied by the Fair Market Value of the Common
Stock as of such fourth anniversary date. A Non-Employee Director may elect to
receive the Common Stock represented by the Stock Units in such Non-Employee
Director's Stock Unit account in a single payment on such date as the
Non-Employee Director may specify or in annual installments (not to exceed ten)
beginning after retirement from the Board by written notification to the Company
of such elected payment option and may modify any such election by a subsequent
written notification to the Company; provided, however, that the Company shall
be required to give effect to any such written notification only if submitted to
the Company no fewer than twelve months prior to such Non-Employee Director's
retirement from the Board.

         SECTION 2.5. SPECIAL ELECTION. Each Non-Employee Director serving as a
member of the Board on May 1, 1997 may elect the manner in which the
Non-Employee Director's Stock Unit account is to be distributed following the
date of such Non-Employee Director's retirement. Such election must be made by
May 1, 1997 and shall be effective only with respect to distributions made on or
after May 1, 1998.

         SECTION 2.6. DISTRIBUTIONS ON DEATH. In the event of the death of a
Non-Employee Director, whether before or after cessation of service as a
Non-Employee Director, any Stock Units remaining in the Stock Unit account to
which he or she was entitled shall be converted to Common Stock as of the last
day of the calendar quarter in which the Non-Employee Director's death occurred.
Fractional Stock Units shall be converted to cash based on the Fair Market Value
of the Common Stock. The Company shall issue the Common Stock and distribute the
cash as soon as practicable after the end of the calendar quarter in which the
Non-Employee Director's death occurred in a lump sum to such person or persons
or the supervisors thereof, including corporations, unincorporated associations
or trusts, as the Non-Employee Director may have designated. All such
designations shall be made in writing, signed by the Non-Employee Director and
delivered to the Company. A Non-Employee Director may from time to time revoke
or change any such designation by written notice to the Company. If there is no
unrevoked designation on file with the Company at the time of the Non-Employee
Director's death, or if the person or persons designated therein shall have all
predeceased the Non-Employee Director or otherwise ceased to exist, such
distributions shall be made to the Non-Employee Director's estate. Any
distribution under this Section 2.6 shall be made as soon as practicable
following notification to the Company of the Non-Employee Director's death.

                                   ARTICLE III
                            MISCELLANEOUS PROVISIONS

         SECTION 3.1. AMENDMENT AND DISCONTINUANCE. The Board may alter, amend,
suspend or discontinue the Plan, provided that no such action shall deprive any
person without such person's consent of any rights theretofore granted pursuant
hereto. The

                                       4

<PAGE>

Board may, in its discretion, submit any proposed amendment to the Plan to the
stockholders of the Company for approval and shall submit proposed amendments to
the Plan to the stockholders of the Company for approval if such approval is
required in order for the Plan to comply with Rule 16b-3 of the Exchange Act (or
any successor rule).

         SECTION 3.2. TERMINATION OF THE PLAN. This Plan shall terminate and
full distribution shall be made from all participants' Deferred Compensation
accounts upon any change of control of the Company. Either of the following
shall be deemed to be a change of control: (a) the occurrence, without the prior
approval of the Board, of the acquisition, directly or indirectly, by any person
of 50% or more of the outstanding Common Stock; (b) the failure of the prior
directors to constitute a majority of the Board at any time within two years
following any electoral event. As used in this sentence and the preceding
sentence, person shall mean a natural person, an entity (together with an
affiliate thereof, as defined in Rule 405 under the Securities Act of 1933, as
amended) or a group, as defined in Rule 13d-5 under the Securities Exchange Act
of 1934, as amended; prior directors shall mean the persons serving on the Board
immediately prior to any electoral event; and electoral event shall mean any
contested election of directors or any tender or exchange offer for Common Stock
by any person other than the Company or a majority-owned subsidiary thereof. The
Board at any time, at its discretion, may terminate this Plan. If the Board
terminates this Plan after any person or group of persons shall have acquired or
proposed to acquire control of the Company control of the Board, full and prompt
distribution shall be made from all Non-Employee Directors' Deferred
Compensation accounts. Otherwise, distributions in respect of credits to
Non-Employee Directors' Deferred Compensation accounts as of the date of
termination shall be made in the manner and at the time prescribed in Sections
2.4, 2.5 and 2.6 herein.

         SECTION 3.3. COMPLIANCE WITH GOVERNMENTAL REGULATIONS. Notwithstanding
any provision of the Plan or the terms of any agreement entered into pursuant to
the Plan, the Company shall not be required to issue any shares hereunder prior
to registration of the shares subject to the Plan under the Securities Act of
1933 or the Exchange Act, if such registration shall be necessary, or before
compliance by the Company or any participant with any other provisions of either
of those acts or of regulations or rulings of the Securities and Exchange
Commission thereunder, or before compliance with other federal and state laws
and regulations and rulings thereunder, including the rules of the New York
Stock Exchange, Inc. The Company shall use its best efforts to effect such
registrations and to comply with such laws, regulations and rulings forthwith
upon advice by its counsel that any such registration or compliance is
necessary.

         SECTION 3.4. COMPLIANCE WITH SECTION 16. With respect to persons
subject to Section 16 of the Exchange Act, transactions under this Plan are
intended to comply with all applicable conditions of Rule 16b-3 (or its
successor rule). To the extent that any provision of the Plan or any action by
the Board of Directors or the Committee fails to so comply, it shall be deemed
null and void to the extent permitted by law and to the extent deemed advisable
by the Committee.

         SECTION 3.5. NON-ALIENATION OF BENEFITS. No right or interest of a
Non-Employee Director in a Stock Unit account under the Plan may be sold,
assigned, transferred,

                                       5

<PAGE>

pledged, encumbered or otherwise disposed of except as expressly provided in the
Plan; and no interest or benefit of any Non-Employee Director under the Plan
shall be subject to the claims of creditors of the Non-Employee Director.

         SECTION 3.6. WITHHOLDING TAXES. To the extent required by applicable
law or regulation, each Non-Employee Director must arrange with the Company for
the payment of any federal, state or local income or other tax applicable to the
receipt of Common Stock or Stock Units under the Plan before the Company shall
be required to deliver to the Non-Employee Director a certificate for Common
Stock free and clear of all restrictions under the Plan.

         SECTION 3.7. FUNDING. No obligation of the Company under the Plan shall
be secured by any specific assets of the Company, nor shall any assets of the
Company be designated as attributable or allocated to the satisfaction of any
such obligation. To the extent that any person acquires a right to receive
payments from the Company under the Plan, such right shall be no greater than
the right of any unsecured creditor of the Company.

         SECTION 3.8. GOVERNING LAW. The Plan shall be governed by and construed
and interpreted in accordance with the internal laws of the Commonwealth of
Virginia.

         SECTION 3.9. EFFECTIVE DATE OF PLAN. The Plan as herein amended and
restated shall be effective as of April 1, 1997.

                                       6

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