Document:

EXHIBIT 10.1

 

THE AES
CORPORATION

 

2003 LONG TERM COMPENSATION PLAN

As Amended and
Restated on April 24, 2008

 

1.               PURPOSE. The 2003 Long Term Compensation Plan
(the “Plan”) has been established
by The AES Corporation (the “Company”)
(a) to reward Employees by means of appropriate incentives for achieving
long-range Company goals; (b) to provide incentive compensation
opportunities that are competitive with those of other similar companies, (c) to
further match Employees’ financial interests with those of the Company’s other
Stockholders through compensation that is based on the Company’s common stock
and thereby enhance the long-term financial interest of the Company and its
Affiliates, including through the growth in the value of the Company’s equity
and enhancement of long-term shareholder return and (d) to facilitate
recruitment and retention of outstanding personnel eligible to participate in
the plan. The Plan is amended and restated as set forth herein to comply with Section 409A.

 

2.               DEFINITIONS. The capitalized terms used in
this Plan have the meanings set forth below. Except when otherwise indicated by
the context, reference to the masculine gender shall include, when used, the
feminine gender and any term used in the singular shall also include the plural.

 

(a)          “Affiliate” means (i) any Subsidiary of
the Company, (ii) any entity or Person or group of Persons that, directly
or through one or more intermediaries, is controlled by the Company and (iii) any
entity or Person or group of Persons in which the Company has a significant
equity interest, as determined by the Committee.

 

(b)         “Agreement” means any written agreement,
contract or other instrument or document evidencing any Award granted under the
Plan, which may, but need not, be executed or acknowledged by a Participant.

 

(c)          “Award” means any Option, award of
Restricted Stock or Restricted Stock Units, Other Stock-Based Award or
Performance Award granted under the Plan.

 

(d)         “Board” or “Board of Directors” means the Board of Directors of the Company.

 

(e)          “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. Notwithstanding the foregoing or any
provision of this Plan to the contrary, if an Award is subject to Section 409A
(and not excepted therefrom) and a Change of Control is a distribution event
for purposes of an Award, the foregoing definition of Change in Control shall
be interpreted, administered and construed in manner necessary to ensure that
the occurrence of any such event shall result in a Change of Control only if
such event qualifies as a change in the ownership or effective control of a
corporation, or a change in the ownership of a substantial portion of the
assets of a corporation, as applicable, within the meaning of Treas. Reg. § 1.409A-3(i)(5).

 

(f)             ”Code” means the Internal Revenue Code of
1986, as amended and in effect from time to time, or any successor statute.

 

(g)         “Committee” means the Compensation Committee
of the Board, or any successor committee thereto, or such other committee of
the Board as is appointed or designated by the Board to administer the Plan.

 

 

(h)         “Covered Person” means an individual who is
expected by the Committee to be both (i) a “covered employee” as defined
in Section 162(m) of the Code for the tax year of the Company with
regard to which a deduction in respect of such person’s Award would be allowed
and (ii) the recipient of compensation (other than “qualified performance
based compensation” as defined in Section 162(m)) in excess of $1,000,000
for such tax year.

 

(i)             “Disability” means the disability of a
Participant (i) such that the Participant is considered disabled under any
long term disability plan of the Company, or otherwise (ii) as determined
by the Committee.

 

(j)             “Employee” means any full-time or part-time
employee (including an Officer or Director who is also an employee) of the
Company or an Affiliate. “Employee” shall also include any individual or
individuals to whom an offer of employment has been extended. References in
this Plan to “employment” and related terms shall include the provision of
services in any such capacity.

 

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

 

(l)             “Fair Market Value” means the closing sale
price of the Shares, as reported on the composite tape of New York Stock
Exchange issues, or any other reporting system selected by the Committee on the
relevant dates, or, if no sale of Shares is reported for that date, on the date
or dates that the Committee determines, in its sole discretion, to be
appropriate for purposes of the valuation.

 

(m)       “Incentive Stock Option” means an Option
granted under Section 6 that meets the requirements of Section 422 of
the Code, or any successor provision thereto.

 

(n)         “Non-Qualified Stock Option” means an Option
granted under Section 6 that is not an Incentive Stock Option.

 

(o)         “Option” means an Incentive Stock Option or
a Non-Qualified Stock Option.

 

(p)         “Other Stock-Based Award” means any right
granted under Section 8.

 

(q)         “Participant” means an Employee to whom an
Award has been made.

 

(r)            “Performance Award” means an Award to a
Covered Person under Section 9.

 

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

 

(t)             ”Plan” means this 2003 Long Term
Compensation Plan, as amended and in effect from time to time.

 

(u)         “Restricted Stock” means any Share
underlying an Award granted under Section 7.

 

(v)         “Restricted Stock Unit” means a contractual
right underlying an Award granted under Section 7 that is denominated in
Shares, which Unit represents a right to receive the value of a Share (or a
percentage of such value, which percentage may be higher than 100%) upon
the terms and conditions set forth in the Plan and the applicable Agreement.

 

(w)       “Retirement” means retirement of an Employee
(i) as defined under any retirement plan of the Company or any Affiliate
which is qualified under Section 401 of the Code or otherwise (ii) as
determined by the Committee.

 

(x)           “Section 409A” shall mean Section 409A
of the Code, the regulations and other binding guidance promulgated thereunder.

 

(y)         “Separation from Service” and “Separate from
Service” shall mean the Participant’s death, retirement or other termination of
employment with the Company (including all persons treated as a single employer
under Section 414(b) and 414(c) of the Code) that constitutes a “separation
from service” (within the meaning of

 

 

Section 409A).
For purposes hereof, the determination of controlled group members shall be
made pursuant to the provisions of Section 414(b) and 414(c) of
the Code; provided that the language “at least 50 percent” shall be used
instead of “at least 80 percent” in each place it appears in Section 1563(a)(1),(2) and
(3) of the Code and Treas. Reg. § 1.414(c)-2; provided, further,
where legitimate business reasons exist (within the meaning of Treas. Reg. § 1.409A-1(h)(3)),
the language “at least 20 percent” shall be used instead of “at least
80 percent” in each place it appears.

 

(z)           “Specified Employee” means a key employee
(as defined in Section 416(i) of the Code without regard to
paragraph (5) thereof) of the Company as determined in accordance
with Section 409A and the procedures established by the Company.

 

(aa)    “Share” means a share of Stock.

 

(bb)  “Stock” means the common stock, $.01 par value
per share (as such par value may be adjusted from time to time), of the
Company.

 

(cc)    “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,
or other governing group having functions similar to a board of Directors, as
determined by the Committee.

 

(dd)  “Substitute Award” means an Award granted in
assumption of, or in substitution for, an outstanding award previously granted
by a company acquired by the Company or with which the Company combines.

 

(ee)    “Successor” with respect to a Participant
means the legal representative of an incompetent Participant and, if the
Participant is deceased, the legal representative of the estate of the
Participant or the person or persons who may, by bequest or inheritance, or
under the terms of an Award or of forms submitted by the Participant to the
Committee, acquire the right to receive cash and/or Shares issuable in
satisfaction of an Award.

 

3.               ADMINISTRATION. The authority to control and
manage the operation and administration of the Plan shall be vested in the
Committee.

 

(a)          The
Committee shall have exclusive power to make Awards, to determine when and to
whom Awards will be granted, the types of Awards and the number of Shares
covered by the Awards, to establish the terms, conditions, performance
criteria, restrictions, and other provisions of such Awards and, subject to the
terms of the Plan, to cancel or suspend Awards. In making such Award
determinations, the Committee may take into account the nature of services
rendered by the Employee, the Employee’s present and potential contribution to
the Company’s success and such other factors as the Committee deems relevant.

 

(b)         Subject
to the provisions of the Plan, the Committee will have the authority and
discretion to determine the extent to which Awards under the Plan will be
structured to conform to the requirements applicable to performance-based
compensation as described in Section 162(m) of the Code, and to take
such action, establish such procedures, and impose such restrictions at the
time such Awards are granted as the Committee determines to be necessary or
appropriate to conform to such requirements.

 

(c)          The
Committee shall have the authority and discretion to establish terms and
conditions of Awards as the Committee determines to be necessary or appropriate
to conform to applicable requirements or practices of jurisdictions
outside of the United States.

 

(d)         The
Committee may determine whether, to what extent and under what
circumstances Awards may be settled, paid or exercised in cash, Shares or
other Awards or other property, or canceled, forfeited or suspended.

 

(e)          The
Committee shall have the authority to interpret the Plan and any Award or
Agreement made under the Plan, to establish, amend, waive and rescind any rules and
regulations relating to the administration of the Plan, to determine the terms
and provisions of any Agreements entered into hereunder (not inconsistent with
the Plan), and to make all other determinations necessary or advisable for the
administration of the Plan.

 

 

(f)            The
Committee shall determine whether, to what extent, and under what circumstances
cash, Shares, other securities, other Awards, other property, and other amounts
payable with respect to an Award under the Plan shall be deferred either
automatically, or at the election of the holder thereof, or of the Committee.

 

(g)         The
Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or in any Award in the manner and to the extent it
shall deem desirable. The determinations of the Committee in the administration
of the Plan, as described herein, shall be final, binding and conclusive.

 

(h)         In
controlling and managing the operation and administration of the Plan, the
Committee shall act by a majority of its then members, by meeting or by writing
filed without a meeting. The Committee shall maintain and keep adequate records
concerning the Plan and concerning its proceedings and acts in such form and
detail as the Committee may decide.

 

(i)              Except
to the extent prohibited by applicable law or regulation, the Committee may allocate
all or any portion of its responsibilities and powers to any one or more of its
members and may delegate all or any part of its responsibilities and
powers to any person or persons selected by it. The Committee may revoke
any such allocation or delegation at any time.

 

(j)              The
Company and any Affiliate shall furnish the Committee with such data and
information as may be required for it to discharge its duties. The records
of the Company and any Affiliate as to an Employee’s or Participant’s
employment, or other provision of services, termination of employment, or
cessation of the provision of services, leave of absence, reemployment and
compensation shall be conclusive on all persons unless determined to be
incorrect. Participants and other persons entitled to benefit under the Plan
must furnish the Committee such evidence, data or information as the Committee
considers desirable to carry out the terms of the Plan.

 

(k)          To
the fullest extent permitted by law, each member and former member of the
Committee and each person to whom the Committee delegates or has delegated
authority under this Plan shall be entitled to indemnification by the Company
against and from any loss, liability, judgment, damage, cost and reasonable
expense incurred by such member, former member or other person by reason of any
action taken, failure to act or determination made in good faith under or with
respect to this Plan.

 

4.               SHARES AVAILABLE FOR AWARDS.

 

(a)          Subject
to adjustment as provided in Section 4(e), the maximum number of Shares
that may be delivered pursuant to Awards granted under the Plan is
29,000,000. Notwithstanding the foregoing and subject to adjustment as provided
in Section 4(e), no Participant may receive Options and stock
appreciation rights under this Plan in any calendar year that relate to more
than 1,000,000 Shares.

 

(b)         Shares
to be issued under the Plan may be made available from authorized but
unissued Stock, Stock held by the Company in its treasury, or Stock purchased
by the Company on the open market or otherwise. During the term of the Plan,
the Company will at all times reserve and keep available the number of shares
of Stock that shall be sufficient to satisfy the requirements of the Plan.

 

(c)          If
any Shares covered by an Award other than a Substitute Award, or to which such
an Award relates, terminate, lapse or are forfeited or cancelled, or such an
Award is otherwise settled without the delivery of the full number of Shares
underlying the Award, then the Shares covered by such Award, or to which such
Award relates, to the extent of any such forfeiture, termination, lapse,
cancellation, etc ., shall again
be, or shall become available for issuance under the Plan; provided, however,
that Shares (i) delivered in payment of the exercise price of an Option, (ii) not
issued upon the net settlement or net exercise of stock appreciation rights, or
(iii) delivered to or withheld by the Company to pay withholding taxes
related to an Option or stock appreciation right, shall not become available
again for issuance under this Plan.

 

(d)         Shares
underlying Substitute Awards shall not reduce the number of Shares available
for delivery under this Plan.

 

 

(e)          In
the event that the Committee shall determine that any dividend or other
distribution (whether in the form of cash, Shares, other securities, or
other property), recapitalization, share split, reverse share split,
reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of Shares or other securities of the Company, issuance
of warrants or other rights to purchase Shares or other securities of the
Company, or other similar corporate transaction or event affects the Shares
such that an adjustment is determined by the Committee to be appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan, then the Committee shall, in such
manner as it may deem equitable, adjust any or all of (i) the number
and type of Shares (or other securities or property) which thereafter may be
made the subject of Awards, including without limitation the individual limit
set forth in Section 4(a), (ii) the number and type of Shares (or
other securities or property) subject to outstanding Awards, and (iii) the
grant, purchase, or exercise price with respect to any Award or, if deemed
appropriate, make provision for a cash payment to the holder of an outstanding
Award; provided, however , that
the number of Shares subject to any Award shall always be a whole number; provided, further , with respect to any
Award subject to Section 409A, any such adjustment shall be authorized
only to the extent that such adjustment would not cause the Award to fail to
comply with Section 409A.

 

5.               ELIGIBILITY. All Employees are eligible to
participate in this Plan and receive Awards hereunder. Holders of equity-based
awards issued by a company acquired by the Company or with which the Company
combines are eligible to receive Substitute Awards hereunder.

 

6.               OPTIONS. The Committee is hereby authorized
to grant Options to Participants with the following terms and conditions and
with such additional terms and conditions, in either case not inconsistent with
the provisions of the Plan, as the Committee shall determine:

 

(a)          The
purchase price per Share under an Option shall be determined by the Committee;provided,however,
that, except in the case of Substitute Awards, such purchase price shall not be
less than the Fair Market Value of a Share on the date of grant of such Option.

 

(b)         The
term of each Option shall be fixed by the Committee and the effect thereon, if
any, of the termination of employment of the Participant shall be determined by
the Committee and set forth in the applicable Agreement. Notwithstanding, the
term of an Option shall not exceed ten (10) years.

 

(c)          Any
Option may be exercised at any time during the period commencing with
either the date that 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. A Participant may exercise his Option for
all or part of the number of Shares which he is eligible to exercise under
terms of the Option. The Committee shall determine the method or methods by
which, and the form or forms in which, including, without limitation,
cash, Shares, other Awards, or other property, or any combination thereof,
having a Fair Market Value on the exercise date equal to the relevant exercise
price, payment of the exercise price with respect thereto may be made or
deemed to have been made.

 

(d)         The
terms of any Incentive Stock Option granted under the Plan shall comply in all
respects with the provisions of Section 422 of the Code, or any successor
provision thereto, and any regulations promulgated thereunder.

 

7.               RESTRICTED STOCK AND RESTRICTED STOCK UNIT
AWARDS. The Committee is hereby authorized to grant Awards of Restricted Stock
and/or Restricted Stock Units to Participants.

 

(a)          The
Awards granted under this Section 7 shall be subject to such restrictions
as the Committee may impose (including, without limitation, any limitation
on the right to vote Shares underlying Restricted Stock Awards or the right to
receive any dividend, other right or property), which restrictions may lapse
separately or in combination at such time or times, in such installments or
otherwise, as the Committee may deem appropriate. If the vesting
conditions applicable to an Award of Restricted Stock or Restricted Stock Units
relate exclusively to the passage of time and continued employment or provision
of services, or refraining therefrom, the last vesting date of all or a portion
of such Award shall occur no less than 36 months following the date of
such Award, except that the foregoing restriction shall not apply to such
Awards if they (i) are made in satisfaction of Company obligations to
employees that would otherwise be paid in cash, (ii) are issued in
connection with the exercise of an Option or other Award hereunder, or (iii) are
Substitute Awards.

 

 

(b)         Any
Award of Restricted Stock or Restricted Stock Units may be evidenced in
such manner as the Committee may deem appropriate, including, without
limitation, book-entry registration or issuance of a stock certificate or
certificates. In the event any stock certificate is issued in respect of Shares
underlying a Restricted Stock Award, such certificate shall be registered in
the name of the Participant and shall bear an appropriate legend referring to
the terms, conditions, and restrictions applicable to such Shares.

 

8.               OTHER STOCK-BASED AWARDS. The Committee is
hereby authorized to grant to Participants such other Awards (including,
without limitation, stock appreciation rights and rights to dividends and
dividend equivalents) that are denominated or payable in, valued in whole or in
part by reference to, or otherwise based on or related to, Shares
(including, without limitation, securities convertible into Shares) as are
deemed by the Committee to be consistent with the purposes of the Plan. Subject
to the terms of the Plan, the Committee shall determine the terms and
conditions of such Awards. Notwithstanding, the term of a stock appreciation
right shall not exceed ten (10) years. Shares or other securities
delivered pursuant to a purchase right granted under this Section 8 shall
be purchased for such consideration, which may be paid by such method or
methods and in such form or forms, including, without limitation, cash,
Shares, other securities, other Awards, or other property, or any combination
thereof, as the Committee shall determine, the value of which consideration, as
established by the Committee, shall, except in the case of Substitute Awards,
not be less than the Fair Market Value of such Shares or other securities as of
the date such purchase right is granted.

 

9.               PERFORMANCE AWARDS.

 

(a)          The
Committee is hereby authorized to grant Performance Awards to Covered Persons,
if the Committee intends that such Awards shall qualify as “qualified
performance based compensation” under Section 162(m) of the Code.

 

(b)         Performance
Awards shall become earned and payable if targets relating to one or more of
the following performance measures are achieved during a performance period or
periods, as determined by the Committee: (i) Cash Value Added, (ii) Total
Shareholder Return, (iii) Return on Equity, (iv) Revenue Growth, (v) Return
on Net Assets, (vi) Earnings Per Share, (vii) EBITDA, (viii) Return
on Invested Capital, (ix) Parent Operating Cash Flow, (x) Consolidated
Free Cash Flow or (xi) Cash Return on Investment (CRI), each as
hereinafter defined.

 

(c)          Performance
targets relating to the performance measures set forth above shall be
preestablished by the Committee, and achievement thereof certified prior to
payment of the Award, as required by Section 162(m) and regulations
promulgated thereunder, may relate to the Company as a whole, or to one or
more units thereof, and may be measured over such periods, as the
Committee shall determine.

 

(d)         The
maximum value of any Performance Award which may be earned under the Plan
is $10,000,000.

 

(e)          For
purposes of this Plan, the following terms shall have the meanings set forth below.
Each of the financial variables of which the respective measures are a function
shall be determined in accordance with GAAP, as applicable, in a manner
consistent with the Company’s audited financial statements for the relevant
period.

 

(i)             “Cash Return on Investment (CRI)” means (A) consolidated
cash flow from operations less mandatory capital expenditures, divided by (B) gross
investment (where gross investment equals gross property), plant and equipment,
plus working capital.

 

(ii)          “Cash Value Added” means (A) operating
profit after taxes, adjusted for minority interests, plus depreciation and
amortization expenses and other material non-cash charges (if any) minus (B) a
charge reflecting the cost (including replacement) of new capital.

 

(iii)       “Consolidated Free Cash Flow” means
consolidated cash flow from operations less mandatory capital expenditures
(adjusted for minority interests).

 

(iv)      “Earnings Before Income Taxes, Depreciation and
Amortization (EBITDA)” means net income from continuing operations
plus (1) provision for income taxes and (2) depreciation and
amortization expenses.

 

 

(v)         “Earnings Per Share” for a period means
diluted earnings per common share from continuing operations before
extraordinary items.

 

(vi)      “Return on Equity” for a period means net
income divided by average Stockholders’ equity (adjusted for accumulated other
comprehensive losses).

 

(vii) ”Return
on Invested Capital” for a period means (A) net operating
profits after taxes divided by (B) total liabilities plus amounts, if any,
attributable to minority interests, preferred stock and average Stockholders’
equity (adjusted for accumulated other comprehensive losses).

 

(viii) “Return
on Net Assets” for a period means net income less preferred stock
dividends divided by the difference of average total assets less average
non-debt liabilities, with average defined as the sum of assets or liabilities
at the beginning and ending of the period divided by two.

 

(ix)        “Revenue Growth” means the percentage change
in revenue (as defined in Statement of Financial Accounting Concepts No. 6,
published by the Financial Accounting Standards Board) from one period to
another.

 

(x)           “Total Shareholder Return” means the sum of
the appreciation in the Company’s stock price and dividends paid on the common
stock of the Company over a given period of time.

 

(xi)        “Parent Operating Cash Flow” means “Parent
Operating Cash Flow” as defined in the Company’s annual report filed on Form 10-K.

 

10.         TERMINATION
OF EMPLOYMENT. Except as otherwise determined by the Committee or provided by
the Committee in an applicable Agreement and to the extent not inconsistent
with Section 14(k) hereof, in case of termination of employment, the
following provisions shall apply:

 

(a)          Upon
termination of employment or cessation of provision of services by the Employee
for reason of death or Disability, or under other circumstances provided by the
Committee in its discretion in the applicable Agreement:

 

(i)             any
Award (other than Options) then held by such Employee shall be immediately
accelerated and become fully vested, exercisable and payable, and

 

(ii)          any
Option then held by such Employee shall be immediately accelerated and become
fully vested, exercisable and payable and shall expire on the earlier of (1) the
date the Option would have expired had the Employee continued in such
employment and (2) one year after the date such Employee’s service ceases.

 

(b)         Upon
termination of employment or cessation of provision of services by the Employee
for reason of Retirement, or under other circumstances provided by the
Committee in its discretion in the applicable Agreement:

 

(i)             any
Award (other than Options) then held by such Employee shall be immediately
accelerated and become fully vested, exercisable and payable, and

 

(ii)          any
Option then held by such Employee shall automatically expire on the earlier of (1) the
date the Option would have expired had the Employee continued in such
employment and (2) one hundred and eighty days after the date the such
Employee’s service ceases, except that any Incentive Stock Option shall
automatically expire on the earlier of the date set forth in clause (1) above
and three months after the date that such Employee’s service ceases.

 

(c)          Upon
termination of employment by the Company for cause (as determined by the
Committee in its sole discretion), or under other circumstances provided by the
Committee in its discretion in the applicable Agreement:

 

(i)             any
Award then held by such Employee whose restrictions have not lapsed, which is
not exercisable or which is not payable will automatically be forfeited in full
and canceled by the Company upon such termination of employment, and

 

 

(ii)          any
Option then held by such Employee, to the extent exercisable, shall
automatically expire on the earlier of (1) the date the Option would have
expired had the Employee continued in such employment and (2) and three
months after the date that such Employee’s service ceases.

 

(d)         Upon
termination of employment or cessation of provision of services by the Employee
for any reason other than death, Disability, Retirement or termination of
employment by the Company for cause (as determined by the Committee in its sole
discretion), or under other circumstances provided by the Committee in its
discretion in the applicable Agreement:

 

(i)              any
Award (other than Performance Awards) then held by such Employee whose
restrictions have not lapsed, which is not exercisable or which is not payable
will automatically be forfeited in full and canceled by the Company upon such termination
of employment,

 

(ii)          any
Option then held by such Employee, to the extent exercisable, shall
automatically expire on the earlier of (1) the date the Option would have
expired had the Employee continued in such employment and (2) one hundred
and eighty days after the date the such Employee’s service ceases, except that
any Incentive Stock Option shall automatically expire on the earlier of
clause (i) above and three months after the date that such Employee’s
service ceases, and

 

(iii)  any Performance Award then held by
such Employee which is not then payable will be paid in accordance with its
terms at the time the Performance Award would have been payable if the
termination of employment had not occurred, and the payment shall be prorated
based on the number of days in the performance period that occurred prior to
the termination of employment.

 

11.         DURATION.
The Plan shall be effective as of February 1, 2003, subject to its
approval by the stockholders of the Company. No Award shall be granted under
the Plan after the tenth anniversary of the effective date. However, unless
otherwise expressly provided in the Plan or in an applicable Agreement, any
Award theretofore granted may extend beyond such date, and the authority
of the Committee to administer the Plan and to amend, alter, adjust, suspend,
discontinue, or terminate any such Award, or to waive any conditions or rights
under any such Award, and the authority of the Board to amend the Plan, shall
extend beyond such date.

 

12.         AMENDMENT,
MODIFICATION AND TERMINATION.

 

(a)          Except
to the extent prohibited by applicable law and unless otherwise expressly
provided in an Agreement or in the Plan, the Board may amend, alter,
suspend, discontinue, or terminate the Plan or any portion thereof at any time; provided, however , that no such
amendment, alteration, suspension, discontinuation or termination shall be made
without (i) shareholder approval if such approval is necessary to comply
with any tax or regulatory requirement for which or with which the Board deems
it necessary or desirable to qualify or comply or (ii) the consent of the
affected Participant, if such action would adversely affect the rights of such
Participant under any outstanding Award. Notwithstanding anything to the
contrary herein, the Committee may amend the Plan in such manner as may be
necessary to enable the Plan to achieve its stated purposes in any jurisdiction
outside the United States in a tax-efficient manner and in compliance with
local rules and regulations. Notwithstanding the foregoing or any
provision of the Plan or an Award to the contrary, (i) the Committee may at
any time (without the consent of any Participant) modify or amend any or all of
the provisions of the Plan or an Award to the extent necessary to conform the
provisions of the of the Plan or an Award with Section 409A, the
regulations issued thereunder or an exception thereto, regardless of whether
such modification or amendment of the Award shall adversely affect the rights
of a Participant, and (ii) the Committee may not, without stockholder
approval, reduce the exercise price of any Option or stock appreciation right
or take any other action with respect to outstanding Options or stock
appreciation rights that is treated as a repricing of such Options or stock
appreciation rights under generally accepted accounting principles (unless
otherwise permitted by applicable listing standards).

 

(b)         The
Committee may waive any conditions or rights under, amend any terms of, or
amend, alter, suspend, discontinue or terminate, any Award theretofore granted,
prospectively or retroactively, without the consent of any Participant or
holder or beneficiary of an Award, provided,
however , that no such action shall impair the rights of a
Participant or holder or beneficiary under any Award theretofore granted under
the Plan.

 

 

(c)          With
respect to Participants who reside or work outside the United States of
America, the Committee may, in its sole discretion, amend, or otherwise modify,
without Board or shareholder approval, the terms of the Plan or Awards with
respect to such Participant in order to conform such terms with the
provisions of local law; provided that such amendment or other modification
shall not increase the total number of Shares reserved for purposes of the Plan
without the approval of the Stockholders of the Company.

 

(d)         The
Committee shall be authorized to make adjustments in the terms and conditions
of, and the criteria included in, Awards in recognition of unusual or
nonrecurring events (including, without limitation, an event affecting the
Company, or the financial statements of the Company, or of changes in
applicable laws, regulations or accounting principles), whenever the Committee
determines that such adjustments are appropriate in order to prevent dilution
or enlargement of the benefits or potential benefits intended to be made
available under the Plan.

 

(e)          To
the extent not inconsistent with Section 14(k) hereof, in connection
with a Change in Control or an event described in Section 4(e), the Committee
may, in its discretion (i) cancel any or all outstanding Awards under the
Plan in consideration for payment to the holder of each such cancelled Award of
an amount equal to the portion of the consideration that would have been
payable to such holder pursuant to such transaction if such Award had been
fully vested and exercisable, and had been fully exercised, immediately prior
to such transaction, less the exercise price if any that would have been
payable therefore, or (ii) if the net amount referred to in clause (i) would
be negative, cancel such Award for no consideration or payment of any kind.
Payment of any amount payable pursuant to the preceding sentence may be
made in cash and/or securities or other property in the Committee’s discretion.

 

13.         CHANGE
IN CONTROL. Except as otherwise expressly provided in the applicable Agreement
and to the extent not inconsistent with Section 14(k) hereof, upon
the occurrence of a Change in Control, all outstanding Options under this Plan
shall become fully exercisable and all outstanding Awards (other than Options)
under this Plan shall become fully vested and payable.

 

14.         MISCELLANEOUS.

 

(a)          Nothing
in the Plan or in any Agreement shall confer upon any Participant who is an
Employee the right to continue in the service or employment of the Company or
any Affiliate or affect any right which the Company or any Affiliate may have
to terminate or modify the employment or provision of service of the
Participant with or without cause.

 

(b)         The
Company shall have a right to withhold from any payment of cash or Stock to a
Participant or other person under the Plan an amount sufficient to cover any
required withholding taxes, including the Participant’s social security and
Medicare taxes (FICA) and federal, state, local income tax or such other
applicable taxes (“Taxes”) with respect to income arising from payment of the
Award. The Company shall have the right to require the payment of any Taxes
before issuing any Stock pursuant to the Award. The Committee may, if it deems appropriate
in the case of a Participant, withhold such Taxes through a reduction of the
number of Shares delivered to such individual, or allow the Participant to
elect to cover all or any part of the required withholdings, and to cover
any additional withholdings up to the amount needed to cover the Taxes with
respect to income arising from payment of the Award, through a reduction of the
number of Shares delivered to such individual or a subsequent return to the
Company of Shares held by the Participant or other person, in each case valued
in the same manner as used in computing the withholding taxes under the
applicable laws. Notwithstanding the foregoing or any provisions of the Plan to
the contrary, any broker-assisted cashless exercise shall comply with the
requirements for equity classification of Paragraph 35 of FASB Statement No. 123(R) and
any withholding satisfied through a net-settlement shall be limited to the
minimum statutory withholding requirements.

 

(c)          Awards
received by a Participant under this Plan shall not be deemed a part of a
Participant’s regular, recurring compensation for purposes of any termination,
indemnity or severance pay laws and shall not be included in, nor have any
effect on, the determination of benefits under any other employee benefit plan,
contract or similar arrangement provided by the Company or an Affiliate, unless
expressly so provided by such other plan, contract or arrangement, or unless
the Committee so determines. No provision of the Plan shall prevent the Company
from adopting or continuing in effect other or additional compensation
arrangements, including incentive arrangements

 

 

providing
for the issuance of options and stock, and awards that do not qualify under Section 162(m) of
the Code, and such arrangements may be generally applicable or applicable
only in specific cases.

 

(d)         Subject
to the provisions of the Plan, (i) no Award and no right under any Award
shall be assignable, alienable, saleable or transferable by a Participant
otherwise than by will or by the laws of descent and distribution; provided , however , that, if so determined by the Committee, a
Participant may, in the manner established by the Committee, designate a
beneficiary or beneficiaries to exercise the rights of the Participant, and to
receive any property distributable, with respect to any Award upon the death of
the Participant; (ii) each Award, and each right under any Award, shall be
exercisable during the Participant’s lifetime only by the Participant or, if
permissible under applicable law, by the Participant’s guardian or legal
representative; and (iii) no Award and no right under any such Award, may be
pledged, alienated, attached, or otherwise encumbered, and any purported
pledge, alienation, attachment or encumbrance thereof shall be void and
unenforceable against the Company. The provisions of this paragraph shall not
apply to any Award which has been fully exercised, earned or paid, as the case may be,
and shall not preclude forfeiture of an Award in accordance with the terms
thereof.

 

(e)          This
Plan shall be unfunded and the Company shall not be required to segregate any
assets that may at any time be represented by Awards under this Plan.
Neither the Company, its Affiliates, the Committee, nor the Board shall be
deemed to be a trustee of any amounts to be paid under this Plan nor shall
anything contained in this Plan or any action taken pursuant to its provisions
create or be construed to create a fiduciary relationship between the Company
and/or its Affiliates, and a Participant or Successor. To the extent any person
acquires a right to receive an Award under this Plan, such right shall be no
greater than the right of an unsecured general creditor of the Company.

 

(f)             Any
liability of the Company to any Participant with respect to an Award shall be
based solely upon contractual obligations created by this Plan and the
applicable Agreement. Except as may be required by law, neither the
Company nor any member or former member of the Board or of the Committee, nor
any other person participating (including participation pursuant to a
delegation of authority under Sections 3(c) and 3(i) hereof) in
any determination of any question under this Plan, or in the interpretation,
administration or application of this Plan, shall have any liability to any
party for any action taken, or not taken, under this Plan.

 

(g)         No
certificate for Shares distributable pursuant to this Plan shall be issued and
delivered unless the issuance of such certificate complies with all applicable
legal requirements including, without limitation, compliance with the
provisions of applicable state securities laws, the Securities Act of 1933, as
amended and in effect from time to time or any successor statute, the Exchange
Act and the requirements of the exchanges on which the Company’s Shares may, at
such time be listed.

 

(h)         To the
extent that federal laws do not otherwise control, this Plan and all
determinations made and actions taken pursuant to this Plan shall be governed
by the laws of Delaware and construed accordingly.

 

(i)              In
the event that any provision of this Plan shall be held illegal or invalid for
any reason, the illegality or invalidity shall not affect the remaining
provisions of this Plan, and this Plan shall be construed and enforced as if
the illegal or invalid provision had not been included.

 

(j)              No
fractional shares shall be issued or delivered pursuant to this Plan or any
Agreement, 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.

 

(k)          Notwithstanding
any provision of the Plan or an Agreement to the contrary, if any Award or
benefit provided under this Plan is subject to the provisions of Section 409A,
the provisions of the Plan and any applicable Agreement shall be administered,
interpreted and construed in a manner necessary to comply with Section 409A
or an exception thereto (or disregarded to the extent such provision cannot be
so administered, interpreted or construed). The following provisions shall
apply, as applicable:

 

(i)              If
a Participant is a Specified Employee and a payment subject to Section 409A
(and not excepted therefrom) to the Participant is due upon Separation from
Service, such payment shall be delayed for a period of six (6) months
after the date the Participant Separates from Service (or, if earlier, the
death of the Participant). Any

 

 

payment
that would otherwise have been due or owing during such six-month period will
be paid immediately following the end of the six-month period in the month
following the month containing the 6-month anniversary of the date of
termination unless another compliant date is specified in the applicable
Agreement.

 

(ii)          For
purposes of Section 409A, and to the extent applicable to any Award or
benefit under the Plan, it is intended that distribution events qualify as
permissible distribution events for purposes of Section 409A and shall be
interpreted and construed accordingly. W ith
respect to payments subject to Section 409A, the Company reserves the
right to accelerate and/or defer any payment to the extent permitted and
consistent with Section 409A. Whether a Participant has
Separated from Service or employment will be determined based on all of the
facts and circumstances and, to the extent applicable to any Award or benefit,
in accordance with the guidance issued under Section 409A. For this
purpose, a Participant will be presumed to have experienced a Separation from
Service when the level of bona fide  services performed permanently decreases to a
level less than twenty percent (20%) of the average level of bona fide 
services performed during the immediately preceding thirty-six (36) month
period or such other applicable period as provided by Section 409A.

 

(iii)       The
Committee, in its discretion, may specify the conditions under which the
payment of all or any portion of any Award may be deferred until a later
date. Deferrals shall be for such periods or until the occurrence of such
events, and upon such terms and conditions, as the Board shall determine in its
discretion, in accordance with the provisions of Section 409A, the
regulations and other binding guidance promulgated thereunder; provided,
however, that no deferral shall be permitted with respect to Options and other
stock rights subject to Section 409A. 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 calendar year (or other applicable service period) to which
such election relates (or at such other date as may be specified by the
Board to the extent consistent with Section 409A) and shall be irrevocable
for such applicable calendar year (or other applicable service period).

 

(iv)      The grant
of Non-Qualified Stock Options and other stock rights subject to Section 409A
shall be granted under terms and conditions consistent with Treas. Reg. § 1.409A-1(b)(5) such
that any such Award does not constitute a deferral of compensation under Section 409A.
Accordingly, any such Award may be granted to Employees of the Company and
its subsidiaries and affiliates 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 that the
language “at least 50 percent” shall be used instead of “at least
80 percent” in each place it appears; provided, further, where legitimate
business reasons exist (within the meaning of Treas. Reg. § 1.409A-1(b)(5)(iii)(E)(i)),
the language “at least 20 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.

 

(v)         Notwithstanding
anything to the contrary contained herein and with respect to Options that were
earned and vested under the 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.

 

(vi)      In no
event shall any member of the Board, the Committee or the Company (or its
employees, Officers or Directors) have any liability to any Participant (or any
other Person) due to the failure of an Award to satisfy the requirements of Section 409A.

 

 

This
amendment and restatement of The AES Corporation 2003 Long Term Compensation
Plan has been duly executed by the undersigned and is effective this 24th day
of April 2008.

	
   

  	
   

  	
  The AES Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Jay L. Kloosterboer

  
	
   

  	
   

  	
   

  	
  Jay L. Kloosterboer

  
	
   

  	
   

  	
   

  	
  Executive Vice President, Business ExcellenceEXHIBIT 4.4

 

STATEMENT
REGARDING RESTRICTIONS ON

TRANSFERABILITY
OF SHARES OF COMMON STOCK

 

(To Appear
on Stock Certificate or to Be Sent upon Request

and without
Charge to Stockholders Issued Shares without Certificates)

 

The
securities of Behringer Harvard REIT I, Inc. (the “Company”) are subject
to restrictions on Beneficial and Constructive Ownership and Transfer for the
purpose of the Company’s maintenance of its status as a real estate investment
trust under the Internal Revenue Code of 1986, as amended (the “Code”). Subject
to certain further restrictions and except as expressly provided in the Company’s
charter, (i) no Person may Beneficially or Constructively Own Common
Shares of the Company in excess of 9.8 percent (in value or number of shares)
of the outstanding Common Shares of the Company unless such Person is an
Excepted Holder (in which case the Excepted Holder Limit shall be applicable); (ii) no
Person may Beneficially or Constructively Own Preferred Shares of the Company
in excess of 9.8 percent (in value or number of shares) of the outstanding
Preferred Shares of the Company unless such Person is an Excepted Holder (in
which case the Excepted Holder Limit shall be applicable); (iii) no Person
may Beneficially or Constructively Own Shares that would result in the Company
being “closely held” under Section 856(h) of the Code or otherwise
cause the Company to fail to qualify as a REIT; and (iv) no Person may
Transfer Shares if such Transfer would result in the Shares of the Company
being owned by fewer than 100 Persons. Any Person who Beneficially or
Constructively Owns or attempts to Beneficially or Constructively Own Shares
which causes or will cause a Person to Beneficially or Constructively Own
Shares in excess or in violation of the above limitations must immediately
notify the Company. If any of the restrictions on transfer or ownership are
violated, the Shares represented hereby will be automatically transferred to a
Trustee of a Trust for the benefit of one or more Charitable Beneficiaries. In
addition, upon the occurrence of certain events, attempted Transfers in
violation of the restrictions described above may be void ab initio.

 

Subject
to suitability standards established by individual states, until the Common
Shares are Listed, to purchase Common Shares, the purchaser must represent to
the Company: (i) that the purchaser (or, in the case of sales to fiduciary
accounts, that the beneficiary, fiduciary account or grantor or donor who
directly or indirectly supplies the funds to purchase the shares if the grantor
or donor is the fiduciary) has a minimum annual gross income of $45,000 and a
net worth (excluding home, furnishings and automobiles) of not less than $45,000;
or (ii) that the purchaser (or, in the case of sales to fiduciary accounts,
that the beneficiary, fiduciary account or grantor or donor who directly or
indirectly supplies the funds to purchase the shares if the grantor or donor is
the fiduciary) has a net worth (excluding home, furnishings and automobiles) of
not less than $150,000. Until the Common Shares are Listed, each transfer of
Common Shares shall comply with the requirements regarding minimum initial and
subsequent cash investment amounts set forth in Company’s registration
statement filed under the Securities Act for its current public offering as
such registration statement has been amended or supplemented as of the date of
such issuance or transfer.

 

 

All
capitalized terms in this notice have the meanings defined in the Charter of
the Company, as the same may be amended from time to time, a copy of which,
including the restrictions on transfer and ownership, will be furnished to each
holder of Shares of the Company on request and without charge.

 

Note: Instead of the foregoing legend, the certificate may
state that state that the Company will furnish information about the
restrictions on transfer to the Stockholder on request and without charge.

 

2

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