Document:

EX-10.6

 Exhibit 10.6 
 Approved Dec. 7, 2007 
 THE AES CORPORATION 

2001 PLAN FOR OUTSIDE DIRECTORS  
 (As Amended & Restated) 
 ARTICLE 1 

PURPOSE 
 The AES Corporation desires to encourage and promote the growth and prosperity of the Company by helping to attract, retain and reward outside directors of the Company with equitable and competitive
compensation opportunities and by allowing outside directors of the Company to share in the stock ownership of the Company pursuant to The AES Corporation 2001 Plan for Outside Directors. 

The Plan is amended and restated as set forth herein to comply with Section 409A and to incorporate the First Amendment to The AES
Corporation 2001 Plan for Outside Directors. 
 Notwithstanding anything to the contrary contained herein and with respect to
Options that were earned and vested under this Plan prior to January 1, 2005 (as determined under Section 409A, “Grandfather Options”), such Grandfathered Options are intended to be exempt from Section 409A and shall be
administered and interpreted in a manner intended to ensure that any such Grandfathered Option remains exempt from Section 409A. No amendments or other modifications shall be made to such Grandfathered Options except as specifically set forth
in a separate writing thereto, and no amendment or modification to the Plan shall be interpreted or construed in a manner that would cause a material modification (within the meaning of Section 409A, including Treas. Reg. § 1.409A-6(a)(4))
to any such Grandfathered Options. 
 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) “Alternative Options” shall have the meaning set forth in
Section 5.01(c). 
 (c) “Annual Option” shall have the meaning set forth in Section 5.01(a)(ii)

 (d) “Annual Retainer Fees” shall mean all or such portion of the annual retainer fees or other compensation
payable to an Outside Director in his capacity as such for service on the Board of Directors as determined by the Board of Directions. 
 (e) “Board of Directors” shall mean the Board of Directors of the Company. 
 (f) “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 (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 

  
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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 Board of Directors shall determine the effective date of the Change of Control resulting therefrom for
purposes of this Plan. 
 (g) “Code” shall mean the Internal Revenue Code of 1986, as amended. 

(h) “Company” shall mean The AES Corporation, a Delaware corporation, or its successor. 

(i) “Lead Option” shall have the meaning set forth in Section 5.01(a)(iii). 

(j) “Effective Date” shall mean January l, 2001, subject to its approval by the stockholders of the Company. 

(k) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(l) “Initial Option” shall have the meaning set forth in Section 5.01(a)(i). 

(m) “NYSE” shall mean the New York Stock Exchange, Inc. 

(n) “Option” shall mean the right to purchase stock granted to an Outside Director under this Plan, and may be an
Initial Option, an Annual Option, a Lead Option or an Alternate Option, as the context may require. 
 (o)
“Optionee” shall mean any person who has the right to purchase stock pursuant to an Option granted under this Plan. 
 (p) “Option Valuation Methodology” shall mean the method specified by the Board of Directors from time to time for determining the number of shares of Stock to be subject to an Option
and, if applicable, the exercise price thereof. The Option Valuation Methodology may be the Black-Scholes option valuation methodology or such other methodology as may be deemed reasonable by the Board of Directors. 

(q) “Outside Director” shall mean any director of the Company who is not an employee of the Company or any of its
Affiliates. 

  
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 (r) “Plan” shall mean The AES Corporation 2001 Plan for Outside Directors.

 (s) “Plan Year” shall mean, with respect to an Outside Director, the period commencing at the time of
election of directors at an annual meeting of stockholders of the Company (or the election of a class of directors if the Company then has a classified board), or such Outside Director’s initial election or appointment to the Board of Directors
if not at such an annual meeting of stockholders, and continuing until the close of business of the day preceding the next annual meeting of stockholders of the Company, unless otherwise determined by the Board of Directors. 

(t) “Quoted Market Price” shall mean the closing price of the Stock on the date of grant of an Option on the NYSE or on
any national securities exchange on which the Stock at the time of grant may be listed; provided that if the Stock ceases to be so quoted or listed, the term “Quoted Market Price” shall be the fair market value as of the date of
grant of the Option as determined in good faith by the Board of Directors. 
 (u) “Section 409A” shall mean
Section 409A of the Code, the regulations and other binding guidance promulgated thereunder. 
 (v) “Securities
Act” shall mean the Securities Act of 1933, as amended. 
 (w) “Stock” shall mean the Common Stock of
the Company, par value $.01 per share. 
 (x) “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. 
 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 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 BOARD OF DIRECTORS 

Section 3.01. The Board of Directors. This Plan shall be administered by the Board of Directors. The Board of Directors,
subject to the provisions of this Plan and subject to such restrictions as the Board of Directors may make from 

  
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time to time, shall have authority to modify, 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 determination of the Board of Directors shall be binding and conclusive on all persons. 

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

ARTICLE 4 

ELIGIBILITY 
 Section 4.01. Eligibility. All Outside Directors shall be eligible to receive an Option. 
 ARTICLE 5 
 OUTSIDE DIRECTOR AWARDS

 Section 5.01. Outside Director Awards. Options shall be granted to Outside Directors in accordance with the
policies established from time to time by the Board of Directors specifying the classes of directors (if the Company then has a classified board) to be granted such awards, the number of shares (if any) to be subject to each such award and the
time(s) at which such awards shall be granted. 
 (a) Initial Policy with Respect to Options. The initial policy with
respect to Options granted to Outside Directors under this Section 5.01(a) effective as of the Effective Date and continuing until modified or revoked by the Board of Directors from time to time, shall be as follows: 

(i) As of the date of each person’s initial election or appointment as a member of the Board of Directors, such
person, if he or she is an Outside Director, shall be granted an Option (an “Initial Option”) to purchase a number of whole shares of Stock, which Initial Option shall have a grant date value to be determined by the Board of
Directors in its sole discretion. The number of shares subject to such Initial Option shall be determined in accordance with the Option Valuation Methodology. 
 (ii) As of the date of each annual meeting of stockholders at which a director is elected or reelected as a member of the Board of Directors (or at which members of another class of directors are elected
or 

  
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reelected, if the Company then has a classified board), such director, if he or she is an Outside Director, he or she shall be granted an Option (an “Annual Options”) to purchase
a number of whole shares of Stock, which Annual Option shall have a grant date value equal to $40,000. The number of shares subject to such Annual Option shall be determined in accordance with the Option Valuation Methodology. 

(iii) As of the date of any Outside Director’s initial election or appointment as lead Outside Director and/or
non-executive Chairman of the Board of Directors, such person may be granted at the election of the Board of Directors, in its sole discretion, an Option (a “Lead Option”) to purchase up to 300,000 whole shares of Stock, which Lead
Option shall have a grant date value to be determined by the Board of Directors in its sole discretion. The number of shares, if any, subject to such Lead Option shall be determined in accordance with the Option Valuation Methodology, provided,
however, that such number of shares shall not exceed 300,000 per Lead Option. 
 (b) Terms of Options. Each
Option shall be in writing and shall specify the number of shares of Stock which may be purchased pursuant to such Option and any conditions under which such Option has been granted. Each Option granted under Section 5.01 shall be subject to
the following terms and conditions: 
 (i) Option Valuation Methodology; Exercise Price. The Board of
Directors shall employ the Option Valuation Methodology to determine the number of shares of Stock which may be purchased pursuant to an Option. The exercise price per share of Stock which may be purchased pursuant to an Initial, Annual Option or
Lead Option shall be equal to 100% of the Quoted Market Price on the date of grant of such Option. 
 (ii)
Term. Each Option shall expire ten years after the date of grant of such Option, or such earlier date as such Option may no longer be exercised and cannot, by its terms, thereafter become exercisable. 

(iii) Vesting and Exercisability. The Board of Directors may establish terms regarding the times at which Options
shall become vested and exercisable. Unless otherwise determined by the Board of Directors: 
 (A) an Initial
Option shall vest and become exercisable by an Optionee in five annual installments at the rate of 20% per year (rounded to the nearest whole number), on the anniversary date of such Director’s initial election or appointment to the Board
of Directors. 
 (B) an Annual Option shall vest and become exercisable by an Optionee as to 100% of the number
of shares subject to such Annual Option upon the completion of the Director’s one-year term to which such Annual Option relates. 
 (C) a Lead Option shall vest and become exercisable by an Optionee in four annual installments at the rate of 25% per year (rounded to the nearest whole number), on the anniversary date of such
Director’s initial election or appointment as lead Outside Director and/or non-executive Chairman of the Board of Directors, as applicable. 

  
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 (c) Options Granted in Lieu of Annual Incentive Compensation Grant Retainer Fees.
Each Outside Director may elect to be granted an Option in lieu of receiving his Annual Incentive Compensation Grant Retainer Fees (“Alternative Option”). Any such election, to the extent authorized by the Board, shall be subject to the
following terms and conditions: 
 (i) An election shall be made by filing an election with the Company (on a
form provided by the Company) on or prior to December 31st of the calendar year immediately preceding the beginning of the Plan Year to which such election relates (or at such other date as may be specified by the Board of Directors to the
extent consistent with Section 409A) and shall be irrevocable for such applicable Plan Year. An Outside Director who first becomes eligible to participate in the Plan may file an election (“Initial Election”) at any time prior to the
30-day period following the date on which the Outside Director initially becomes eligible to participate in the Plan. Any such Initial Election shall only apply to Compensation earned and payable for services rendered after the date on which the
Election is delivered to the Company. 
 (ii) An election made by an Outside Director pursuant to this
Section 5.01(c) shall be deemed continuing, and therefore applicable to Plan Years after the initial Plan Year covered by such election, until such election is modified or superseded by such Outside Director. Elections may be modified or
revoked with respect to a subsequent Plan Year by filing a new election on or prior to the last date for filing an Election for the next Plan Year. The latest election filed with the Company shall be deemed to revoke all prior inconsistent elections
that remain revocable at the time of filing of the latest election. 
 (d) Terms of Alternative Options. Each Alternative
Option shall be in writing and shall specify the number of shares of Stock which may be purchased pursuant to such Alternative Option and any conditions under which such Alternative Option has been granted. Each Alternative Option granted shall be
subject to the following terms and conditions: 
 (i) Option Valuation Methodology; Exercise Price. The
Board of Directors shall employ the Option Valuation Methodology to determine the number of shares of Stock which may be purchased pursuant to an Alternative Option. Unless the Board of Directors shall determine otherwise, the exercise price per
share of Stock which may be purchased pursuant to such Alternative Option shall be equal to 100% of the Quoted Market Price on the date of grant of such Alternative Option. 

  
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 (ii) Term. Each Alternative Option shall expire ten years after the
date of grant of such Alternative Option, or such earlier date as such Alternative Option may no longer be exercised and cannot, by its terms, thereafter become exercisable. 

(iii) Vesting and Exercisability. The Board of Directors may establish terms regarding the times at which
Alternative Options shall become vested and exercisable. Unless otherwise determined by the Board of Directors, an Alternative Option shall vest and become exercisable by an Optionee as to 100% of the number of shares subject to such Alternative
Option upon the completion of such Director’s one year-term to which such Alternative Option relates. 

(iv) The foregoing notwithstanding, upon a Change of Control, all Options shall become fully vested and exercisable upon a
Change in Control. Unless otherwise determined by the Board of Directors, the portion of an Option that has not vested and become exercisable at the time of the termination of an Optionee’s service prior to a Change in Control shall be
forfeited. 
 Section 5.02. Maximum Shares Authorized Under This Plan. The total number of shares of Stock for which
Options can be granted pursuant to this Plan shall be 2,750,000 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. 

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 the first date permitted under the relevant vesting schedule
and ending with the expiration date of the Option. 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. 

  
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 (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 Board of Directors 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 Board of Directors 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 service of the Company, 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 service and (b) one (1) year after the date such service
ceases because of such disability. 
 Section 6.04. Death. Unless the Board of Directors shall determine otherwise,
in the event of the death of an Optionee while in the continuous service of the Company, 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 service 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 Board of Directors shall
determine otherwise, in the event that an Optionee is adjudged to be mentally incompetent 

  
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while in the continuous service of Company or during a period of permanent and total disability which commenced while in such service, 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 Service. Unless the Board of Directors shall determine otherwise, in the event that an
Optionee’s service with the Company 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 service and (b) one hundred and eighty (180) days after the date that such Optionee’s service 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. 
 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 5.02. 

(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; 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 Board of Directors determines that an adjustment is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available 

  
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under this Plan, the Board of Directors shall, in such manner as it may deem equitable and consistent with Section 409A or other applicable law, 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 limit specified in Section 5.02. 
 (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. 

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) including without limitation the amount of Options to be granted to Outside Directors under this Plan 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) 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 Board of Directors 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. Notwithstanding the foregoing or any provision of the Plan to the contrary, the Board of Directors may at any time (without the consent of any Optionee) modify or amend the provisions of this Plan
or an Option to the extent necessary to conform the provisions of the Plan or 

  
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an Option with Section 409A an exception thereto, regardless of whether such modification, amendment or termination of the Plan or an Option shall adversely affect the rights of an Optionee.

 (b) Subject to the terms of this Plan and applicable law, the Board of Directors 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 5.02 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 Board of Directors 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 Intended. Nothing in this Plan or in any Option granted pursuant to this Plan shall confer upon any
Outside Director any right to continue in the service of the Company or interfere in any way with the right of the Company to terminate such Outside Director’s service at any time. 

Section 8.05. 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 8.06. 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 Board of Directors, 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 Board of Directors, 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. 

  
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 Section 8.07. 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 8.08. No Fractional Shares. No fractional shares shall be issued or delivered pursuant to this Plan or any Option,
and the Board of Directors 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 8.09. Section 409A. Notwithstanding any provision of the Plan to the contrary,
it is intended that Options shall be granted under terms and conditions consistent with Treas. Reg. § 1.409A-1(b)(5) such that any such Option does not constitute a deferral of compensation under Section 409A, and the provisions of the
Plan and any applicable Option shall be administered, interpreted and construed accordingly (or disregarded to the extent such provision cannot be so administered, interpreted or construed). Accordingly, any such Option may be granted only to
eligible persons of the Company and its subsidiaries or other entities in which the Company has a controlling interest. In determining whether the Company has a controlling interest, the rules of Treas. Reg. § 1.414(c)-2(b)(2)(i) shall apply;
provided, however, that the language “at least 50 percent” shall be used instead of “at least 80 percent” in each place it appears. The rules of Treas. Reg. §§ 1.414(c)-3 and 1.414(c)-4 shall apply for purposes of
determining ownership interests. Notwithstanding any provision of the Plan to the contrary, in no event shall the Stock Option Administrator or the Company (or its employees, officers or directors or Affiliates) have any liability to any Optionee
(or any other person) due to the failure of an Option to satisfy the requirements of Section 409A. 
 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 was originally effective as of January 1, 2001, subject to
its approval by the stockholders of the Company. The Plan as herein amended and restated shall be effective as of December 7, 2007. 

  
 13EX-10.13

 Exhibit 10.13 

 
 

 
 PERFORMANCE 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, as amended (the
“Plan”), and this 2013 Performance Stock Unit Award Agreement (this “Agreement”), this Award of Performance Stock Units (“PSUs”) 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 PSUs 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:	 	 
	 	 
	 	 	 
	Fidelity System ID:	 	 
	 	 
	 	 	 
	Grant Date:	 	 
	 	 
	 	 	 
	Grant Price:	 	 
	 	 
	 	 	 
	Total Number of PSUs Granted:	 	 

  

	2.	Each PSU represents a right to receive one Share on the Payment Date (as defined below) in accordance with the terms of this Agreement. 

 

	3.	Unless otherwise determined by the Committee, each PSU shall also represent a right to receive an additional amount, payable in cash, equal to the accumulated cash
dividends paid by the Company on the PSU between the Grant Date and payout of the PSU (if any). The additional dividend amounts that are accumulated subject to a PSU will be subject to the same terms and conditions (including, without limitation,
any applicable vesting requirements and forfeiture provisions) as the PSU to which they relate under the Award. Any payment due to the Employee under this Agreement shall be made promptly following the date vested PSUs become earned and payable
under paragraph 5(a), paragraph 6 or paragraph 7 of this Agreement, as applicable (the “Payment Date”), but in no event later than March 15th of the calendar year following the calendar year containing the Payment Date.

  

	4.	A PSU (i) carries no voting rights and (ii) the holder will not have an equity interest in the Company or any of such shareholder rights, unless the vesting
and performance conditions of the PSU are met and the PSU is paid out. 

	5.	This Award of PSUs will vest, in accordance with and subject to the terms of this Agreement, in three equal installments on December 31,
2013, December 31, 2014,and December 31, 2015 (each a “Vesting Date”), provided, however, that if: 

  

	 	(a)	the Employee Separates from Service prior to the end of the Performance Period by reason of the Employee’s death or a Separation from Service on account of
Disability, all PSUs that have not previously vested shall vest and the Employee’s PSUs referenced in the chart above shall be paid to the Employee at the rate of one Share for each PSU; 

 

	 	(b)	if (i) the Employee Separates from Service prior to the Payment Date by reason of a Separation from Service by the Company for cause (as determined by the
Committee in its sole discretion) or (ii) the Employee Separates from Service prior to the final Vesting Date by reason of a voluntary Separation from Service by the Employee (including any retirement other than a Qualified Retirement (as
defined below)), this Award of PSUs (including any vested portion) shall immediately upon such termination be cancelled and forfeited without payment or further obligation by the Company; and 

 

	 	(c)	if the Employee Separates from Service for any other reason, including, but not limited to, on account of a Qualified Retirement, by reason of a death or Disability
subsequent to the end of the Performance Period, or by reason of a Separation from Service by the Company without cause (other than for cause, voluntarily by the Employee not as part of a Qualified Retirement or by reason of death or Disability as
provided in paragraphs 5(a) and 5(b)), the Employee will be eligible to receive the value of his or her vested PSUs on the Payment Date in accordance with and subject to the terms set forth in paragraph 6 below. Any PSUs that have not vested prior
to the date that an Employee Separates from Service for any reason (other than by reason of death or Disability), (i) will not subsequently vest; and (ii) will be immediately cancelled and forfeited without payment or further obligation by
the Company or any Affiliate. In addition, the Employee’s right to receive Shares in respect of vested PSUs that have not been forfeited will be paid on the Payment Date if, and only if, all relevant performance conditions are met, in
accordance with the terms and conditions of this Agreement and the Plan. For purposes of this Agreement, “Qualified Retirement” means the Employee’s retirement at a time when such Employee is at least 60 years of age and has had at
least seven years of service as an employee of the Company and/or one or more of its Affiliates. 

  

	6.	The Company will issue and deliver Shares in satisfaction of vested PSUs subject to and conditioned upon the attainment of the performance conditions set forth below,
as approved by the Committee at the time of grant; provided, however, notwithstanding the performance level achieved, the Committee may reduce the number of PSUs earned or terminate this Award of PSUs altogether, but in no event may the Committee
increase the value of a PSU underlying this Award beyond the performance levels achieved. For purposes of this Agreement, the “Performance Period” is the period beginning on January 1, 2012 and ending on December 31, 2014.

  
 2 

	 	(i)	Total Shareholder Return (50% weighted) 

 The value of fifty percent (50%) of the Employee’s vested PSUs will depend upon the performance of the Total Shareholder Return on AES common stock (“AES-TSR”) against the Total
Shareholder Return on the S&P 500 Utilities Sector Index (“S&P Utilities Index—TSR”), in each case, as measured over the Performance Period, as set forth below: 

 

			
	 ACTUAL AES-TSR COMPARED TO

S&P Utilities Index—TSR FOR THE

PERFORMANCE PERIOD
	  	 SHARES EARNED

	Below 30th Percentile	  	None (0%)
	Equal to the 30th Percentile	  	 50%
 (0.5 x 50% of number of vested PSUs)

	Equal to the 50th Percentile	  	 100%
 (1.0 x 50% of number of vested PSUs)

	 Equal to or greater than 70th

Percentile
	  	 150%
 (1.5 x 50% of number of vested PSUs)

	 Equal to or greater than 90th

Percentile
	  	 200%
 (2.0 x 50% of number of vested PSUs)

 For AES-TSR levels achieved greater than the 30th percentile and less than the 50th percentile,
greater than 50th percentile and less than 70th percentile, and greater than the 70th percentile and less than the 90th percentile, the number of Shares eligible for vesting will be determined based on straight-line interpolation. The maximum value
of a PSU is 2 Shares. 
 All PSUs subject to this paragraph 6(i) shall be forfeited and will cease to be outstanding as
of the end of the Performance Period if the AES-TSR over the Performance Period is below the 30th percentile of the S&P Utilities Index -TSR. 
  

	 	(ii)	Adjusted EBITDA1 (50% weighted) 

 The value of the
remaining fifty percent (50%) of the Employee’s vested PSUs will depend upon the Company’s actual Adjusted EBITDA1 over the Performance Period as compared to the performance target, as set forth below. 

 

			
	 ACTUAL ADJUSTED EBITDA OVER THE

PERFORMANCE PERIOD
	  	 SHARES EARNED

	Below 75% of Performance Target =	  	None (0%)
	Equal to 87.5% of Performance Target =	  	 50%
 (0.5 x 50% of number of vested PSUs)

	Equal to 100% of Performance Target =	  	 100%
 (1.0 x 50% of number of vested PSUs)

	 Equal to or greater than 125% of
 Performance Target =
	  	 200%
 (2.0 x 50% of number of vested PSUs)

  
  

	1 	Proportional-Adjusted EBITDA (defined as Earnings Before Income Taxes, Depreciation and Amortization); Addback: Interest; Subtract: Mandatory CapEx (defined as
Maintenance & Environmental Capital Expenditures, excluding Environmental Capital Expenditures with Tracker Returns). 

  
 3 

 All PSUs subject to this paragraph 6(ii) shall be forfeited and will cease to be outstanding
as of the end of the Performance Period if the Adjusted EBITDA for the Performance Period is below 75% of the Performance Target. 
 For Adjusted EBITDA levels achieved greater than 75% and less than 87.5% of performance target, greater than 87.5% and less than 100% of performance target, and greater than 100% and less than 125%
of performance target, the value will be determined based on straight line interpolation. The maximum value of a PSU is 2 Shares. 
  

	7.	In the event that a Change of Control occurs prior to the end of the Performance Period, if the PSUs described herein have not already been previously forfeited or
cancelled, such PSUs will become fully vested (for the total amount of PSUs set forth in paragraph 1) and the Payment Date will occur contemporaneous with the completion of the Change of Control; provided, however, that in connection with a Change
in 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. 

 

	8.	It is intended that under current U.S. federal income tax laws, the Employee will not be subject to income tax unless and until Shares are delivered to the Employee on
the Payment Date, at which time the Fair Market Value of the Shares will be reportable as ordinary income, and subject to income tax withholding as well as social security and Medicare (FICA) taxes. In accordance with administrative procedures
established by the Company, any statutory withholding tax obligations of Employee on account of the issuance of Shares or settlement of this Award shall be satisfied by the Company mandatorily withholding a sufficient number of Shares to be issued
to the Employee hereunder equal to such applicable minimum statutory withholding tax obligation. The Employee should consult his or her personal advisor to determine the effect of this Award of PSUs on his or her own tax situation.

  

	9.	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, which may include electronic delivery, or mailed to his or her address as the same appears
on the records of the Company. 

  

	10.	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. 

 

	11.	By accepting this Award of PSUs, the Employee acknowledges receipt of a copy of the Plan and the prospectus relating to this Award of PSUs, 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. 

  
 4 

 The Employee further acknowledges that the Plan and related documents, which may include the
Plan prospectus, may be delivered electronically. Such means of delivery may include the delivery of a link to a Company intranet site or the internet site of a third party involved in administering the Plan, the delivery of the documents via e-mail
or CD-ROM or such other delivery determined at the Plan Administrator’s discretion. The Employee acknowledges that the Employee may receive from the Company a paper copy of any documents delivered electronically at no cost if the Employee
contacts the Human Resources department of the Company by telephone at (703) 682-6553 or by mail to 4300 Wilson Boulevard, Suite 1100, Arlington, Virginia 22203. The Employee further acknowledges that the Employee will be provided with a paper
copy of any documents delivered electronically if electronic delivery fails. 
  

	12.	This Award is intended to be excepted from coverage under Section 409A of the Code and shall be administered, interpreted and construed accordingly. The Employee
shall have no right to designate the date of any payment under this Agreement. Each payment under this Agreement is intended to be excepted under the short-term deferral exception as specified in Treas. Reg. § 1.409A-1(b)(4). The Company may,
in its sole discretion and without the Employee’s consent, modify or amend the terms and conditions of this Award, impose conditions on the timing and effectiveness of the issuance of the Shares, or take any other action it deems necessary or
advisable, to cause this Award to comply with Section 409A of the Code (or an exception thereto). Notwithstanding, the Employee recognizes and acknowledges that Section 409A of the Code may impose upon the Employee certain taxes or
interest charges for which the Employee is and shall remain solely responsible. 

  

	13.	Notwithstanding any other provisions in this Agreement, any PSUs subject to recovery under any law, government regulation, stock exchange listing requirement, or
Company policy, shall be subject to such deductions, recoupment and clawback as may be required to be made pursuant to such law, government regulation, stock exchange listing requirement or Company policy. 

 

	14.	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: 
 

 
 Tish Mendoza 

Vice President, Human Resources and 

Internal Communications 

  
 5

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