Document:

Exhibit
10.22

 

The AES
Corporation

2004

Restoration Supplemental Retirement Plan

 

 

The AES Corporation

2004

Restoration Supplemental Retirement Plan

Article I. – General Provisions

 

1.1          Establishment
and Purpose

 

The
AES Corporation hereby establishes The AES Restoration Supplemental Retirement
Plan (the “Plan”) on the terms and conditions hereinafter set forth.   The Plan is designed primarily for the
purpose of providing benefits for a select group of management and highly
compensated employees of the Company and its Subsidiaries and is intended to
qualify as a “top hat” plan under Sections 201(2), 301(a)(3) and 401(a)(1) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

 

1.2          Definitions

 

“Bonus Compensation” means, as determined
in the sole discretion of the Committee, such annual bonus or other bonus
Compensation paid to a Participant.

 

“Beneficiary” means the person or persons designated by a
Participant as his beneficiary hereunder in accordance with the provisions of
Article V.

 

“Board” means the Board of Directors of the
Company.

 

“Change in Control” means the occurrence of
one or more of the following events: (i) any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all, or
substantially all, of the assets of the Company to any person or group (as that
term is used in Section 13(d)(3) of the Exchange Act) of Persons; (ii) a Person
or group (as so defined) of Persons (other than management of the Company on
the date of the adoption of this Plan or their affiliates) shall have become
the beneficial owner of more than 35% of the outstanding voting stock of the
Company; or (iii) during any one-year period, individuals who at the beginning
of such period constitute the Board (together with any new director whose
election or nomination was approved by a majority of the directors then in
office who were either directors at the beginning of such period or who were
previously so approved, but excluding under all circumstances any such new
director whose initial assumption of office occurs as a result of an actual or
threatened election contest or other actual or threatened solicitation of
proxies or consents by or on behalf of any individual, corporation, partnership
or other entity or group) cease to constitute a majority of the Board of
Directors.

 

“Code” means the Internal Revenue Code of
1986, as amended, and any successor code or law.

 

“Committee” means the Compensation
Committee of the Board, or such other committee designated by the Board to
discharge the duties of the Committee hereunder.

 

“Company” means The AES Corporation, a
Delaware Corporation, or any
successor thereto.

 

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“Company Match” means the employer matching
contributions contributed to the Participant’s account under the Qualified Plan
for the Plan Year.

 

“Compensation” shall, unless otherwise
determined by the Committee, have the meaning assigned thereto in the Qualified
Plan (determined without regard to any amounts voluntarily deferred under the
terms of this Plan to the extent necessary to carry out the terms and intent of
this Plan).

 

“Deferral Account” means the bookkeeping
account(s) established on behalf of a Participant to track the Participant’s
deferred compensation benefits under the Plan.

 

“Deferral Election” means an election by a Participant to defer
Compensation in accordance with the provisions of Section 2.2 of the Plan.

 

“Deferrals” shall have the meaning ascribed
thereto in Section 2.2(b) hereof.

 

“Disability” means a Participant: (1) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or to last for a
continuous period of not less than 12 months; or (2) is, by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or last for a continuous period of not less than 12 months,
receiving income replacement benefits for a period of not less than 3 months
under an accident and health plan of the Company or its Subsidiaries.

 

“Disability Date” means the date on which a Participant’s
employment terminates due to Disability.

 

“Distribution
Date” means the date on which distributions to a Participant
are to commence.  Distribution Dates are
determined according to each Participant’s Deferral Account elections or as
otherwise provided under the terms of the Plan.

 

“Distribution
Option” means the form in which payments to a Plan
Participant are to be paid.  Distribution
Options are determined according to each Participant’s Deferral Account
elections or as otherwise provided under the terms of the Plan.

 

“Earnings” shall have the meaning ascribed
thereto in Section 2.4(b) of the Plan.

 

“Insolvency” means, with respect to the
Company: (1) an adjudication of bankruptcy; (2) the assignment for the benefit
of creditors of or by the Company; (3) a material part of all of the property
of the Company becomes subject to the control and direction of a receiver,
which receivership is not dismissed within sixty (60) days of such receiver’s
appointment; or (4) the filing by the Company of a petition for relief under
any federal or other bankruptcy or other insolvency law or for an arrangement
with creditors.

 

“Key Employee” means a key employee (as
defined in Section 416(i) of the Code without regard to paragraph (5) thereof)
of the Company.

 

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“Participant”
means any employee who has satisfied the eligibility requirements set forth in
Section 1.4 of the Plan.

 

“Person” means any individual, corporation, joint venture,
association, joint stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

 

“Plan Year” means the twelve-month period
beginning each January 1.

 

“Profit Sharing Contribution” means the
annual discretionary employer profit sharing contribution allocated to the
accounts of participants under the Qualified Plan for a Plan year.

 

“Qualified Plan” means The AES Corporation
Profit Sharing and Stock Ownership Plan, as amended, or such other plan as
designated by the Committee.

 

“Retirement” means a Participant’s
termination of employment with the Company for any reason on or after the date
such Participant attains age fifty-nine and a half (591⁄2).

 

“Subsidiary”
means any entity in which the Company owns or otherwise controls, directly or
indirectly, stock or other ownership interests having the voting power to elect
a majority of the board of directors, or other governing group having functions
similar to a board of directors, as determined by the Committee.

 

“Unforeseeable Emergency” means a severe financial hardship to the
Participant resulting from an illness or accident of the Participant, the
Participant’s spouse, or a dependent (as determined under Section 152(a) of the
Code) of the Participant, loss of the Participant’s property due to casualty,
or other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant.

 

1.3          Administration.

 

(a)           The Committee shall administer the Plan and have
sole and absolute authority and discretion to decide all matters relating to
the administration of the Plan, including, without limitation, determining the rights
and status of Participants or their beneficiaries under the Plan.  The Committee is authorized to interpret the
Plan, to adopt administrative rules, regulations, and guidelines for the Plan,
and may correct any defect, supply any omission or reconcile any inconsistency
or conflict in the Plan.  The Committee’s
determinations under the Plan need not be uniform among all Participants, or
classes or categories of Participants, and may be applied to such Participants,
or classes or categories of Participants, as the Committee, in its sole and
absolute discretion, considers necessary, appropriate or desirable.  All determinations by the Committee shall be
final, conclusive and binding on the Company, the Participant and any and all
interested parties.

 

(b)           The Committee may delegate such of its powers and authority under the Plan
to the Company’s officers as it deems necessary or appropriate.  In
the event of such delegation, all references to the Committee in this Plan
shall be deemed references to such officers as it relates to those aspects of
the Plan that have been delegated.

 

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(c)           Any action taken by the Committee with respect to
the rights or benefits under the Plan of any Participant shall be revocable by
the Committee as to payments not yet made to such person, and acceptance of any
deferred compensation benefits under the Plan constitutes acceptance of and
agreement to the Committee’s or the Company’s making any appropriate
adjustments in future payments to such person (or to recover from such person)
any excess payment or underpayment previously made to him.

 

(d)           Notwithstanding any provision of the Plan to the
contrary, if any benefit provided under this Plan is subject to the provisions
of Section 409A of the Code and the regulations issued thereunder, the
provisions of the Plan shall be administered, interpreted and construed in a
manner necessary to comply with Section 409A and the regulations issued
thereunder (or disregarded to the extent such provision cannot be so
administered, interpreted or construed).

 

1.4          Eligibility
and Participation.

 

(a)           Participation in the Plan is limited to officers
and key management employees of the Company and its Subsidiaries who are
designated by the Committee as eligible to participate in the Plan and who are
within the category of a select group of management and highly compensated
employees as referred to in Sections 201(2), 301(a)(3) and 401(a)(1) of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

 

(b)           A Participant shall cease to be a Participant upon
receiving payment for the full amount of benefits to which the Participant is
entitled under the Plan.  If the
Committee determines a Participant is no longer eligible to actively participate
in the Plan, he shall not be entitled to make Deferral Elections or accrue
additional supplemental matching contributions or supplemental profit sharing
awards under Article II of the Plan.

 

Article II. – Supplemental Retirement Benefits

 

2.1          Supplemental
Profit Sharing Contribution.

 

(a)           In the event that the Profit Sharing Contribution
for a Participant under the Qualified Plan is limited by the application of
Section 401(a)(17) or Section 415 for any Plan Year, the Participant shall
receive a supplemental profit sharing award under this Plan for such Plan year
equal to the difference between: (i) the Profit Sharing Contribution actually
made to the Participant; and (ii) the Profit Sharing Contribution that would
have been made to the Qualified Plan on behalf of such Participant for such
Plan Year if the Section 401(a)(17) limitations and the Section 415 limitations
were not contained therein.  Supplemental
profit sharing awards shall be credited to the Participant’s Retirement Account
established and maintained under the Plan.

 

(b)           The award for any Plan year shall be deemed to be
made as of the day the Profit Sharing Contribution is made under the Qualified
Plan, and shall be deemed invested in Company stock.  Supplemental profit sharing awards are not
required to remain invested in Company stock and a Participant may subsequently
change his investment designations as permitted under Section 2.4(b).

 

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2.2          Supplemental
Deferral Elections.

 

(a)           Each Participant shall be eligible to elect to
defer Compensation under the Plan with respect to a Plan Year in accordance
with the terms of the Plan and the rules and procedures established by the
Committee.  Deferral Elections under the
Plan are entirely voluntary and are irrevocable once made.

 

(b)           A Participant may make a Deferral Election by
filing a written or electronic election with the Committee directing the
Company to reduce the Participant’s Compensation and to credit the amount of
any such reduction (the “Deferrals”) to the Deferral Accounts established and
maintained for such Participant pursuant to Section 2.4 of the Plan.  Deferral Elections hereunder shall be made in
accordance with the terms of the Plan and the rules established by the
Committee, and must be filed not later than December 31 of the calendar year
preceding the Plan Year to which the election relates (or at such other times
as may be established by the Committee). 
Notwithstanding, for the first Plan Year in which a Participant is eligible
to participate in the Plan, a Participant’s initial Deferral Election may be
made within thirty (30) days after the date the Participant becomes eligible to
participate in the Plan and shall apply only to Compensation for services
performed after the date of such election. 
Unless otherwise determined by the Committee, a separate Deferral
Election must be filed each Plan Year.

 

(c)           Deferrals shall be credited to each Participant’s
Deferral Accounts as of such time or times determined by the Committee; provided,
however, that Deferrals shall be credited to each Participant’s Deferral
Accounts not later than thirty (30) days after the date on which such
Compensation would have otherwise been paid. 
Deferrals shall be deemed to be invested in accordance with a
Participant’s investment designations as permitted under Section 2.4(b).

 

(d)           Unless otherwise determined by the Committee, a
Participant may elect to defer up to 50% of Compensation (exclusive of Bonus
Compensation) and up to 80% of Bonus Compensation paid to the Participant.

 

(e)           Notwithstanding the foregoing and unless otherwise
determined by the Committee, a Deferral Election shall automatically terminate
on the earliest to occur of: (1) the termination of a Participant’s employment
for any reason; (2) the Insolvency of the Company; (3) the Committee’s
determination that the Participant is no longer eligible to participate in the
Plan; (4) the termination or discontinuance of the Plan; or (5) a Change in
Control.

 

2.3          Supplemental
Company Matching Awards.

 

(a)           With respect to each Plan Year and to the extent
provided under this Section 2.3, the Company shall annually credit a
supplemental matching contribution (“Supplemental Match”) to each eligible
Participant’s Deferral Accounts.  To be
eligible for a Supplemental Match, a Participant must have made a Deferral
Election for the Plan Year and be employed on December 31st of the Plan Year
(or have terminated during the Plan Year due to Retirement, death or
Disability).

 

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(b)           The amount of the Supplemental Match shall be
equal to: (i) the Company Match that would have been awarded under the
Qualified Plan, taking into account the Participant’s Deferral Election and the
maximum percentage of Compensation for matching awards permitted under the
Qualified Plan, if the Participant’s Compensation and elective contributions to
the Qualified Plan were not subject to the Section 401(a)(17) and 402(g)
limitations under the Qualified Plan; less (ii) the maximum Company Match
available for award to the Participant under the Qualified Plan.

 

(c)           The Supplemental Match will be allocated to the
Participant’s Deferral Accounts in the same proportion as the Participant’s
Deferrals are allocated among the Participant’s Deferral Accounts and shall be
deemed invested in Company stock. 
Supplemental Matching contributions are not required to remain invested
in Company stock and a Participant may subsequently change his investment
designations as permitted under Section 2.4(b).

 

2.4          Deferral
Accounts/Earnings

 

(a)           Unless otherwise determined by the Committee, the
Company shall maintain on behalf of each Participant as many as three (3)
separate Deferral Accounts which accounts shall be designated Special Purpose
Account #1, Special Purpose Account #2 and Retirement Account.  A Participant may elect to allocate his
Deferrals among such Deferral Accounts and may have a different Distribution
Date and Distribution Option for such Deferral Accounts as provided under
Article III.

 

(b)           The Participant’s Deferral Account shall be
adjusted by an amount equal to the amount that would have been earned (or lost)
if the amounts deferred under this Plan had been invested in hypothetical
investments designated by the Participant from time to time, based on a list of
hypothetical investments provided by the Committee from time to time (such
hypothetical earnings or losses shall be referred to as “Earnings”).  The Participant shall designate the
investments used to measure Earnings from the list of authorized investments
provided by the Committee by completing the appropriate form (or electronically
via the Plan’s website) or in such other manner as the Committee may designate
from time to time.  The Participant may
change such designations at such times as are permitted by the Committee,
provided that the Participant shall be entitled to change such designations at
least quarterly.  Earnings shall be
credited to the Participant’s Deferral Accounts at least annually (or more
frequently at the discretion of the Company). 
Earnings shall be credited to Deferral Accounts until all payments with
respect to such account have been made under this Plan.  Neither the Company nor the Committee shall
act as a guarantor, or be liable or otherwise responsible for the investment
performance of the designated investments (including any losses sustained by a
Participant) with respect to a Participant’s Deferral Accounts.

 

(c)           Each Participant shall at all times be 100% vested
in his Deferral Accounts and the Earnings thereon.

 

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Article III. – Distributions

 

3.1          Distribution
Dates.

 

(a)           Distribution Dates shall be established and
determined in accordance with the Participant’s Deferral Account
elections.  Distributions from Special
Purpose Accounts shall be paid annually commencing on or about February 1 of
the year following the year designated by the Participant as his Distribution
Date.  Distributions from Retirement
Accounts are payable on or about February 1 of the year following a Participant’s
Retirement.  Notwithstanding, a
Distribution Date must be on or before February 1 of the year following the
calendar year in which the Participant obtains age 70.

 

(b)           Notwithstanding the foregoing or any Plan
provision to the contrary, distributions to Key Employees upon separation from
service (including termination and Retirement) may not be made before the date
that is 6 months after the date of separation from service (or, if earlier, the
date of death of the employee).

 

3.2          Distribution
Option/Manner of Payment.

 

The
Distribution Option for Deferral Accounts shall be determined in accordance
with such election procedures as are established by the Committee and
distributions shall, at the Participant’s option, be paid in the form of a lump
sum or in annual installments over a period of 2-to-15 years; provided,
however, that the Distribution Option must be established at the time of
initial deferral.  All payments under the
Plan shall be made in cash.

 

3.3          Modification
of Distribution Elections.

 

(a)           A Participant has the right to change any
Distribution Date or Distribution Option associated with a Special Purpose
Account previously designated by the Participant pursuant to this Article III; provided, however, that: (1) any new
Distribution Date must be later in time than the Distribution Date previously
designated; (2) all payments that otherwise would have begun on the
Distribution Date previously designated must, after such change, begin on the
new Distribution Date; (3) the new Distribution Option can extend, but not
accelerate payments; (4) the Participant must file an election designating the
new Distribution Date and Distribution Option not later than one year prior to
the Distribution Date previously designated; and (5) the new election must also
provide that the new Distribution Date be a minimum of five years later than
the existing Distribution Date.  Any such
election shall be made in accordance with such rules and procedures as are
established by the Committee and shall not take effect for at least twelve (12)
months after the date on which such election is made

 

(b)           A Participant cannot change the Distribution
Option associated with his Retirement Account originally designated pursuant to
Section 3.2.  The Distribution Date for
Retirement Accounts must remain payable on or about February 1 of the year
following a Participant’s Retirement.

 

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(c)           A Participant cannot postpone the commencement of
distributions beyond February 1 of the year following the calendar year in
which the Participant obtains age 70.

 

3.4          Termination.

 

Notwithstanding
the foregoing provisions, in the event a Participant’s employment terminates
for any reason (other than death) prior to the Participant reaching Retirement
eligibility, the Participant will receive a lump sum payment of all amounts
credited to the Participant’s Deferral Accounts.  Such payments will be made as soon as
administratively practicable following such termination, subject to the rules
applicable to Key Employees.

 

3.5          Unforeseeable
Emergency.

 

The
Committee may, upon request of the Participant, cause to be paid to such
Participant an amount equal to all or any part of the amounts credited to such
Participant’s Deferral Accounts if the Committee determines, in its absolute
discretion based on such reasonable evidence that it shall require, that such a
payment or payments is necessary for the purpose of alleviating the
consequences of an Unforeseeable Emergency occurring with respect to the
Participant.  The amounts distributed
with respect to an Unforeseeable Emergency may not exceed the amount necessary
to satisfy the emergency plus amounts necessary to pay taxes on the
distribution, after taking into account the extent to which the hardship is or
may be relieved through reimbursement or compensation by insurance or otherwise
or by liquidation of the Participant’s assets (to the extent liquidation would
not itself cause severe financial hardship).

 

3.6          Change in
Control.

 

Notwithstanding
the foregoing provisions, upon a Change in Control the Participant will receive
a lump sum payment of all of the amounts credited to the Participant’s Deferral
Accounts.  Such payment will be paid in a
lump sum within thirty (30) days of the Change in Control.

 

3.7          Death.

 

The
Beneficiary or Beneficiaries of a Participant shall be entitled to receive the
unpaid balance of the Participant’s Deferral Accounts to which the Participant
was entitled at his death, payable according to the Participant’s elections, if
the Participant dies on or after age 591⁄2. 
In the event of a Participant’s death prior to obtaining Retirement
eligibility, the value of the Participant’s Deferral Accounts will be paid to
the Participant’s beneficiary in a lump sum as soon as administratively
practicable.  If the Beneficiary is the
Participant’s estate, then the unpaid balance of the Participant’s Deferral
Accounts will be paid in a lump sum to the Participant’s estate as soon as
administratively practicable (regardless of whether the Participant obtained
Retirement age).  The Participant shall
designate his Beneficiary in accordance with the provisions of Article V.

 

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Article IV. – Funding By Company

 

4.1          Unsecured
Obligation of Company.

 

(a)           Any benefit payable pursuant to this Plan shall be paid from the general
assets of the Company.  Nothing contained
in this Plan and no action taken pursuant to the provisions of this Plan shall
create a trust of any kind or a fiduciary relationship between any Participant
(or any other interested person) and the Company or the Committee, or require
the Company to maintain or set aside any specific funds for the purpose of
paying any benefit hereunder.  To the
extent that a Participant or any other person acquires a right to receive
payments from the Company under this Plan, such right shall be no greater than
the right of any unsecured general creditor of the Company.

 

(b)           If the Company maintains a separate fund or makes specific investments, including the
purchase of insurance insuring the life of the a Participant, to assure its ability to pay any benefits due under this Plan, neither the
Participant nor the Participant’s beneficiary shall have any legal or equitable
ownership interest in, or lien on, such fund, policy, investment or any other
asset of the Company.  The Company, in
its sole discretion, may determine the exact nature and method of informal
funding (if any) of the obligations under this Plan.  If the Company elects to maintain a separate fund or makes specific
investments
to fund its obligations under this Plan, the Company reserves the right, in its
sole discretion, to terminate such method of funding at any time, in whole or
in part.

 

4.2          Cooperation
of Participant.

 

If the Company, in its sole discretion, elects to
invest in a life insurance, disability or annuity policy on the life of
Participant to assist it with the informal funding of its obligations under
this Plan, Participant shall assist the Company, from time to time, promptly
upon the request of the Company, in obtaining such insurance policy by
supplying any information necessary to obtain such policy as well as submitting
to any physical examinations required therefore.  The Company shall be responsible for the payment
of all premiums with respect to any whole life, variable, or universal life
insurance policy purchased in connection with this Plan unless otherwise
expressly agreed.

 

Article V. – Beneficiaries

 

5.1          Beneficiary
Designations.

 

A designation of a Beneficiary hereunder may be made
only by an instrument (in form acceptable to the Committee) signed by the
Participant and filed with the Committee prior to the Participant’s death.  In the absence of such a designation and at
any other time when there is no existing Beneficiary designated hereunder, the unpaid
value of the Participant’s Deferral Accounts to which the Participant was
entitled at his death shall be
distributed to the Participant’s estate. 
A Beneficiary who dies or which ceases to exist shall not be entitled to
any part of any payment thereafter to be made to the Participant’s Beneficiary
unless the Participant’s designation specifically provides to the contrary.  If
two or more persons designated as a Participant’s Beneficiary are in existence with
respect to a single Deferred Compensation Benefit, the amount of any payment to
the Beneficiary

 

9

 

under this Plan shall be
divided equally among such persons, unless the Participant’s designation specifically
provides to the contrary.  The
Beneficiary Designations must be the same for all Deferral Accounts under the
Plan.

 

5.2          Change in
Beneficiary.

 

A Participant may, at any time and from time to
time, change a Beneficiary designation hereunder without the consent of any
existing Beneficiary or any other person. Any change in Beneficiary shall be
made only by an instrument (in form acceptable to the Committee) signed by the
Participant, and any change shall be effective only if received by the Committee
prior to the death of the Participant.

 

Article VI. – Claims Procedures

 

6.1          Claims for
Benefits.

 

The
Committee shall determine the rights of any Participant to any deferred
compensation benefits hereunder.  Any
Participant who believes that he has not received the deferred compensation
benefits to which he is entitled under the Plan may file a claim in writing
with the Committee.  The Committee shall,
no later than 90 days after the receipt of a claim (plus an additional period
of 90 days if required for processing, provided that notice of the extension of
time is given to the claimant within the first 90-day period), either allow or
deny the claim in writing.  If a claimant
does not receive written notice of the Committee’s decision on his claim within
the above-mentioned period, the claim shall be deemed to have been denied in
full.

 

A
denial of a claim by the Committee, wholly or partially, shall be written in a
manner calculated to be understood by the claimant and shall include:

 

(a)           the specific reasons for the denial;

 

(b)           specific reference to pertinent Plan provisions on
which the denial is based;

 

(c)           a description of any additional material or
information necessary for the claimant to perfect the claim and an explanation
of why such material or information is necessary; and

 

(d)           an explanation of the claim review procedure and
the time limits applicable to such procedures, including a statement of the
claimant’s right to bring a civil action under Section 502(a) of ERISA.

 

6.2          Appeal
Provisions.

 

A
claimant whose claim is denied (or his duly authorized representative) may
within 60 days after receipt of denial of a claim file with the Committee a
written request for a review of such claim. 
If the claimant does not file a request for review of his claim within
such 60-day period, the claimant shall be deemed to have acquiesced in the
original decision of the Committee on his claim, the decision shall become
final and the claimant will not be entitled to bring a civil action under
Section 502(a) of

 

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ERISA..  If such
an appeal is so filed within such 60-day period, the Company (or its delegate)
shall conduct a full and fair review of such claim.  During such review, the claimant (or the
claimant’s authorized representative) shall be given the opportunity to review
all documents that are pertinent to his claim and to submit issues and comments
in writing.

 

The
Company shall mail or deliver to the claimant a written decision on the matter
based on the facts and the pertinent provisions of the Plan within 60 days
after the receipt of the request for review (unless special circumstances
require an extension of up to 60 additional days, in which case written notice
of such extension shall be given to the claimant prior to the commencement of
such extension).  Such decision shall be
written in a manner calculated to be understood by the claimant, shall state
the specific reasons for the decision and the specific Plan provisions on which
the decision was based and shall, to the extent permitted by law, be final and
binding on all interested persons.  If
the decision on review is not furnished to the claimant within the above-mentioned
time period, the claim shall be deemed to have been denied on review.

 

 

Article VII. – Miscellaneous

 

7.1          Withholding.

 

The
Company shall have the right to withhold from any deferred compensation
benefits payable under the Plan or other wages payable to a Participant an
amount sufficient to satisfy all federal, state and local tax withholding
requirements, if any, arising from or in connection with the Participant’s
receipt or vesting of deferred compensation benefits under the Plan.

 

7.2          No Guarantee
of Employment.

 

Nothing
in this Plan shall be construed as guaranteeing future employment to any
Participant.  Without limiting the
generality of the preceding sentence, except as otherwise set forth in a
written agreement, a Participant continues to be an employee of the Company
solely at the will of the Company subject to discharge at any time, with or
without cause.  The benefits provided for herein for a
Participant shall not be deemed to modify, affect or limit any salary or salary
increases, bonuses, profit sharing or any other type of compensation of a
Participant in any manner whatsoever. 
Nothing contained in this Plan shall affect the right of a Participant
to participate in or be covered by or under any qualified or nonqualified
pension, profit sharing, group, bonus or other supplemental compensation,
retirement or fringe benefit Plan constituting any part of the Company’s
compensation structure whether now or hereinafter existing.

 

7.3          Payment to
Guardian.

 

If a
benefit payable hereunder is payable to a minor, to a person declared
incompetent or to a person incapable of handling the disposition of his
property, the Committee may direct payment of such benefit to the guardian,
legal representative or person having the care and custody of such minor,
incompetent or person.  The Committee may
require such proof of incompetency, minority, incapacity

 

11

 

or guardianship, as it may deem appropriate prior to
distribution of the benefit.  Such
distribution shall completely discharge the Company from all liability with
respect to such benefit.

 

7.4          Assignment.

 

No
right or interest under this Plan of any Participant or Beneficiary shall be
assignable or transferable in any manner or be subject to alienation,
anticipation, sale, pledge, encumbrance or other legal process or in any manner
be liable for or subject to the debts or liabilities of the Participant or
Beneficiary.

 

7.5          Severability.

 

If any
provision of this Plan or the application thereof to any circumstance(s) or
person(s) is held to be invalid by a court of competent jurisdiction, the
remainder of the Plan and the application of such provision to other
circumstances or persons shall not be affected thereby.

 

7.6          Amendment
and Termination.

 

The Company may at any time (without the consent of
any Participant) modify, amend or terminate any or all of the provisions of this Plan;
provided, however, that no modification, amendment or termination of
this Plan shall adversely affect
the rights of a Participant under the Plan without the consent of such
Participant.   Notwithstanding the foregoing or any
provision of the Plan to the contrary, the Company may at any time (without the
consent of any Participant) modify, amend or terminate any or all of the provisions of this Plan to the extent necessary to conform the
provisions of the Plan with Section 409A of the Code regardless of whether such
modification, amendment or termination of this Plan shall adversely affect the rights of
a Participant under the Plan.

 

7.7          Exculpation
and Indemnification

 

The
Company shall indemnify and hold harmless the members of the Committee from and
against any and all liabilities, costs and expenses incurred by such persons as
a result of any act, or omission to act, in connection with the performance of
such person’s duties, responsibilities and obligations under the Plan, other
than such liabilities, costs and expenses as may result from the gross
negligence, willful misconduct, and/or criminal acts of such persons.

 

7.8          Confidentiality.

 

In further consideration of the benefits available
to each Participant under this Plan, each Participant shall agree that, except
as such may be disclosed in financial statements and tax returns, or in
connection with estate planning, all terms and provisions of this Plan, and any
agreement between the Company and the Participant entered into pursuant this
Plan, are and shall forever remain confidential until the death of Participant;
and the Participant shall not reveal the terms and conditions contained in this
Plan or any such agreement at any time to any person or entity, other than his
respective financial and professional advisors unless required to do so by a
court of competent jurisdiction or as otherwise may be required by law.

 

12

 

7.9          Leave of
Absence.

 

The Company may, in its sole discretion, permit a
Participant to take a leave of absence for a period not to exceed one
year.  Any such leave of absence must be
approved by the Company.  During this
time, the Participant will still be considered to be in the employ of the Company
for purposes of this Plan.

 

7.10        Gender and
Number.

 

For
purposes of interpreting the provisions of this Plan, the masculine gender
shall be deemed to include the feminine, the feminine gender shall be deemed to
include the masculine, and the singular shall include the plural unless
otherwise clearly required by the context.

 

7.11        Governing
Law.

 

Except
as otherwise preempted by the laws of the United States, this Plan shall be
governed by and construed in accordance with the laws of the State of Delaware,
without giving effect to its conflict of law provisions.

 

7.12        Effective
Date.

 

The
effective date of the Plan is generally January 1, 2005; provided, however,
that the effective date of the Plan for purposes of determining contributions
under Section 2.1 of the Plan shall be January 1, 2004.

 

 

	
   

  	
  The AES Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
   Jay Kloosterboer

  
	
   

  	
   

  	
  Title:
  

  	
  Vice
  President and

  Chief Human Resources Officer

  
					

 

13Exhibit 10.23

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

 

THIS
FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (the “First
Amendment”) is made
and entered into this 30th day of September, 2004, to be effective as of the
30th day of June, 2004, between HCS I, Inc., a Louisiana corporation (the “Company”), and JOHN C. HULL (the “Executive”) with
reference to the foregoing.

 

RECITALS

 

A.            The Company and the Executive entered into
that certain Employment Agreement dated January 30, 2004, but effective as of
March 1, 2003 (the “Existing
Employment Agreement”);
and

 

B.            The Company and the Executive now desire to
amend the Existing Employment Agreement as provided below.

 

AGREEMENTS

 

NOW,
THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.             Section 2 of the Existing Employment
Agreement is hereby amended in its entirety to read as follows:

 

“Section
2.  TERM OF AGREEMENT.  Subject to Section 5, the term (the “Term”) of this Agreement shall commence on
the Effective Date and shall continue through the earlier of (i) December 31,
2004 or (ii) the “effective date” of a plan of reorganization of Hollywood
Casino Shreveport (“HCS”) which
has been confirmed by the bankruptcy court having jurisdiction thereof and
provides, among other things, for the sale or other disposition of the
ownership of HCS in a transaction that extinguishes or restructures HCS’s
indebtedness to its bondholders (the “HCS
Plan of Reorganization Effective Date”).  The Company may extend the Term of this
Agreement for up to an additional six months with thirty (30) days prior
written notice to the Executive of its desire to extend the Term.”

 

2.             Section 3(b) of the Existing Employment
Agreement is hereby amended in its entirety to read as follows:

 

“(b)  ANNUAL BONUS.  In addition to the Base Salary, the Company
shall pay to the Executive an annual bonus of $80,000 (the “Annual Bonus”), payable as soon as
reasonably practicable after the first to occur of (i) the close of the
calendar year or (ii) the expiration or earlier termination of this
Agreement.  The Annual Bonus shall be
prorated for the actual time the Executive is employed by the Company under
this Agreement.”

 

1

 

3.             A new Section 3(g) shall be added to the
Existing Employment Agreement and shall read as follows:

 

“(g)  SPECIAL PERFORMANCE BONUS.  In addition to the Base Salary and the Annual
Bonus, the Executive shall also be entitled to receive a special performance
bonus (the “Special Performance Bonus”
and, together with the Annual Bonus, the “Bonus”)
which shall be (i) equal to the sum of $100,000 and (ii) due and payable on the
HCS Plan of Reorganization Effective Date.”

 

4.             This First Amendment may be executed in
multiple counterparts, each of which shall be deemed an original but all of
which together shall constitute one and the same instrument.

 

5.             If any provision of this First Amendment or
the application hereof to any person or circumstances shall to any extent be
held void, unenforceable or invalid, then the remainder of this First Amendment
and the Existing Employment Agreement or the application of such provision to
persons or circumstances other than those as to which it is held void,
unenforceable or invalid shall not be affected thereby, and each provision of
this First Amendment and the Existing Employment Agreement shall be valid and
enforced to the fullest extent permitted by law.

 

6.             Except as amended hereby, the Existing
Employment Agreement shall continue in full force and effect without any
further action by the parties thereto. 
On or after the effective date of this First Amendment, references to
the “Agreement” in the Existing Employment Agreement, as amended hereby, shall
be deemed to mean, for purposes of determining the rights, remedies,
obligations and liabilities of the parties thereto and all other purposes, the
Existing Employment Agreement, as amended by this First Amendment.

 

IN
WITNESS WHEREOF, the
parties to this First Amendment have executed such First Amendment effective as
of the effective date set forth above.

 

 

	
   

  	
  /s/ John C. Hull

  
	
   

  	
  JOHN
  C. HULL

  
	
   

  	
   

  
	
   

  	
  HCS
  I, INC., a Louisiana corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tonya Tarrant

  
	
   

  	
   

  	
  Name:

  	
  Tonya Tarrant

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Chief
  Financial Officer

  

 

2

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