Document:

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                                                                    Exhibit 10.2

                               CYTYC CORPORATION

                     2001 Non-Employee Director Stock Plan
                     -------------------------------------
                          as Amended on June 20, 2001
                          ---------------------------

1.   Purpose and Eligibility
     -----------------------

     The purpose of this 2001 Non-Employee Director Stock Plan (the "Plan") of
                                                                     ----
Cytyc Corporation (the "Company") is to provide stock options and other equity
                        -------
interests in the Company (each an "Award") to directors of the Company or its
                                   -----
Subsidiaries who are not employees or officers of the Company or its
Subsidiaries, all of whom are eligible to receive Awards under the Plan.  Any
person to whom an Award has been granted under the Plan is called a
"Participant".  Additional definitions are contained in Section 8.
 -----------

2.   Administration
     --------------

     a.   Administration by Board of Directors. The Plan will be administered by
          ------------------------------------
the Board of Directors of the Company (the "Board"). The Board, in its sole
                                            -----
discretion, shall have the authority to grant and amend Awards, to adopt, amend
and repeal rules relating to the Plan and to interpret and correct the
provisions of the Plan and any Award. All decisions by the Board shall be final
and binding on all interested persons. Neither the Company nor any member of the
Board shall be liable for any action or determination relating to the Plan.

     b.   Appointment of Committees.  To the extent permitted by applicable law,
          -------------------------
the Board may delegate any or all of its powers under the Plan to one or more
committees or subcommittees of the Board (a "Committee").  All references in the
                                             ---------
Plan to the "Board" shall mean such Committee or the Board.
             -----

3.   Stock Available for Awards
     --------------------------

     a.   Number of Shares.  Subject to adjustment under Section 3(b), the
          ----------------
aggregate number of shares of Common Stock of the Company (the "Common Stock")
                                                                ------------
that may be issued pursuant to the Plan is 4,000,000 shares.  If any Award
expires, or is terminated, surrendered or forfeited, in whole or in part, the
unissued Common Stock covered by such Award shall again be available for the
grant of Awards under the Plan.  If shares of Common Stock issued pursuant to
the Plan are repurchased by, or are surrendered or forfeited to, the Company at
no more than cost, such shares of Common Stock shall again be available for the
grant of Awards under the Plan; provided, however, that the cumulative number of
such shares that may be so reissued under the Plan will not exceed 4,000,000
shares.  Shares issued under the Plan may consist in whole or in part of
authorized but unissued shares or treasury shares.

     b.   Adjustment to Common Stock.  In the event of any stock split, stock
          --------------------------
dividend, extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, combination, exchange of shares, liquidation, spin-off, split-up,
or other similar change in capitalization or event, (i) the number and class of
securities available for Awards under the Plan and the

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per-Participant share limit, (ii) the number and class of securities, vesting
schedule and exercise price per share subject to each outstanding Option, (iii)
the repurchase price per security subject to repurchase, and (iv) the terms of
each other outstanding stock-based Award shall be adjusted by the Company (or
substituted Awards may be made) to the extent the Board shall determine, in good
faith, that such an adjustment (or substitution) is appropriate. If Section
7(e)(i) applies for any event, this Section 3(c) shall not be applicable.

4.   Stock Options
     -------------

     a.   General.  The Board may grant options to purchase Common Stock (each,
          -------
an "Option") and determine the number of shares of Common Stock to be covered by
    ------
each Option, the exercise price of each Option and the conditions and
limitations applicable to the exercise of each Option and the Common Stock
issued upon the exercise of each Option, including vesting provisions,
repurchase provisions and restrictions relating to applicable federal or state
securities laws, as it considers advisable.

     b.   Nonstatutory Stock Options.  Options awarded under the Plan are not
          --------------------------
intended to be "incentive stock options" as defined in Section 422 of the Code.
Options awarded under the Plan are referred to herein as "Nonstatutory Stock
                                                          ------------------
Options."
-------

     c.   Exercise Price.  The Board shall establish the exercise price (or
          --------------
determine the method by which the exercise price shall be determined) at the
time each Option is granted and specify it in the applicable option agreement.

     d.   Duration of Options.  Each Option shall be exercisable at such times
          -------------------
and subject to such terms and conditions as the Board may specify in the
applicable option agreement.

     e.   Exercise of Option.  Options may be exercised only by delivery to the
          ------------------
Company of a written notice of exercise signed by the proper person together
with payment in full as specified in Section 4(f) for the number of shares for
which the Option is exercised.

     f.   Payment Upon Exercise.  Common Stock purchased upon the exercise of an
          ---------------------
Option shall be paid for by one or any combination of the following forms of
payment:

          (i)    by check payable to the order of the Company;

          (ii)   except as otherwise explicitly provided in the applicable
option agreement, and only if the Common Stock is then publicly traded, delivery
of an irrevocable and unconditional undertaking by a creditworthy broker to
deliver promptly to the Company sufficient funds to pay the exercise price, or
delivery by the Participant to the Company of a copy of irrevocable and
unconditional instructions to a creditworthy broker to deliver promptly to the
Company cash or a check sufficient to pay the exercise price; or

          (iii)  to the extent explicitly provided in the applicable option
agreement, by (x) delivery of shares of Common Stock owned by the Participant
valued at  fair market value (as

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determined by the Board or as determined pursuant to the applicable option
agreement), (y) delivery of a promissory note of the Participant to the Company
(and delivery to the Company by the Participant of a check in an amount equal to
the par value of the shares purchased), or (z) payment of such other lawful
consideration as the Board may determine.

5.   Restricted Stock
     ----------------

     a.   Grants.  The Board may grant Awards entitling recipients to acquire
          ------
shares of Common Stock, subject to (i) delivery to the Company by the
Participant of a check in an amount at least equal to the par value of the
shares purchased, and (ii) the right of the Company to repurchase all or part of
such shares at their issue price or other stated or formula price from the
Participant in the event that conditions specified by the Board in the
applicable Award are not satisfied prior to the end of the applicable
restriction period or periods established by the Board for such Award (each, a
"Restricted Stock Award").
 ----------------------

     b.   Terms and Conditions. The Board shall determine the terms and
          --------------------
conditions of any such Restricted Stock Award.  Any stock certificates issued in
respect of a Restricted Stock Award shall be registered in the name of the
Participant and, unless otherwise determined by the Board, deposited by the
Participant, together with a stock power endorsed in blank, with the Company (or
its designee).  After the expiration of the applicable restriction periods, the
Company (or such designee) shall deliver the certificates no longer subject to
such restrictions to the Participant or, if the Participant has died, to the
beneficiary designated by a Participant, in a manner determined by the Board, to
receive amounts due or exercise rights of the Participant in the event of the
Participant's death (the "Designated Beneficiary").  In the absence of an
                          ----------------------
effective designation by a Participant, Designated Beneficiary shall mean the
Participant's estate.

6.   Other Stock-Based Awards
     ------------------------

     The Board shall have the right to grant other Awards based upon the Common
Stock having such terms and conditions as the Board may determine, including,
without limitation, the grant of shares based upon certain conditions, the grant
of securities convertible into Common Stock and the grant of phantom stock
awards or stock units.  Notwithstanding the foregoing, the Board shall not have
the right to grant stock appreciation rights.

7.   General Provisions Applicable to Awards
     ---------------------------------------

     a.   Transferability of Awards.  Except as the Board may otherwise
          -------------------------
determine or provide in an Award, Awards shall not be sold, assigned,
transferred, pledged or otherwise encumbered by the person to whom they are
granted, either voluntarily or by operation of law, except by will or the laws
of descent and distribution, and, during the life of the Participant, shall be
exercisable only by the Participant. References to a Participant, to the extent
relevant in the context, shall include references to authorized transferees.

     b.   Documentation.  Each Award under the Plan shall be evidenced by a
          -------------
written instrument in such form as the Board shall determine or as executed by
an officer of the

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Company pursuant to authority delegated by the Board. Each Award may contain
terms and conditions in addition to those set forth in the Plan provided that
such terms and conditions do not contravene the provisions of the Plan.

     c.   Board Discretion.  The terms of each type of Award need not be
          ----------------
identical, and the Board need not treat Participants uniformly.

     d.   Termination of Status. The Board shall determine the effect on an
          ---------------------
Award of the disability, death, retirement, authorized leave of absence or other
change in status of a Participant and the extent to which, and the period during
which, the Participant, or the Participant's legal representative, conservator,
guardian or Designated Beneficiary, may exercise rights under the Award.

     e.   Acquisition of the Company
          --------------------------

          (i)    Consequences of an Acquisition.
                 ------------------------------

               (A)  Acquisition Intended to be Accounted for as a Pooling-of-
                    ---------------------------------------------------------
Interests. With respect to an Acquisition intended to be accounted for as a
---------
pooling-of-interests: (x) all outstanding Options shall become exercisable in
full immediately prior to the consummation of the Acquisition; if the shares of
Common Stock subject to such Options are subject to repurchase provisions, then
such repurchase restrictions shall lapse upon the consummation of the
Acquisition; and all outstanding Options shall remain the obligation of the
Company or be assumed by the surviving or acquiring entity, and there shall be
automatically substituted for the shares of Common Stock then subject to such
Options the consideration payable with respect to the outstanding shares of
Common Stock in connection with the Acquisition; (y) all Restricted Stock Awards
then outstanding shall become immediately free of all repurchase provisions upon
the consummation of the Acquisition; and (z) all other stock-based Awards shall
become immediately exercisable, realizable or vested in full, or shall be
immediately free of all repurchase provisions, as the case may be, upon the
consummation of the Acquisition.

               (B)  Acquisition Intended to be Accounted for under the Purchase
                    -----------------------------------------------------------
Method. Unless otherwise expressly provided in the applicable Option or Award,
------
upon the occurrence of an Acquisition intended to be accounted for under the
purchase method, the Board or the board of directors of the surviving or
acquiring entity (as used in this Section 7(e)(i)(B), also the "Board"), shall,
                                                                -----
as to outstanding Awards (on the same basis or on different bases, as the Board
shall specify), make appropriate provision for the continuation of such Awards
by the Company or the assumption of such Awards by the surviving or acquiring
entity and by substituting on an equitable basis for the shares then subject to
such Awards either (a) the consideration payable with respect to the outstanding
shares of Common Stock in connection with the Acquisition, (b) shares of stock
of the surviving or acquiring corporation or (c) such other securities as the
Board deems appropriate, the fair market value of which (as determined by the
Board in its sole discretion) shall not materially differ from the fair market
value of the shares of Common Stock subject to such Awards immediately preceding
the Acquisition. In addition to

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or in lieu of the foregoing, with respect to outstanding Options, the Board may,
upon written notice to the affected optionees, provide that one or more Options
then outstanding shall become immediately exercisable in full and that such
Options must be exercised within a specified number of days of the date of such
notice, at the end of which period such Options shall terminate; or provide that
one or more Options then outstanding shall become immediately exercisable in
full and shall be terminated in exchange for a cash payment equal to the excess
of the fair market value (as determined by the Board in its sole discretion) for
the shares subject to such Options over the exercise price thereof; in the event
of the acceleration of the exercisability of one or more outstanding Options,
the Board may provide, as a condition of full exercisability of any or all such
Options, that the Common Stock as to which exercisability has been accelerated
shall be restricted stock subject to forfeiture and repurchase at the option of
the Company at the cost thereof upon termination of employment or other
relationship, with the timing and other terms of the vesting of such restricted
stock being equivalent to the timing and other terms of the superseded exercise
schedule of the related Option.

               (C)  Acquisition Defined. An "Acquisition" shall mean: (x) the
                    -------------------      -----------
sale of the Company by merger in which the shareholders of the Company in their
capacity as such no longer own a majority of the outstanding equity securities
of the Company (or its successor); or (y) any sale of all or substantially all
of the assets or capital stock of the Company (other than in a spin-off or
similar transaction) or (z) any other acquisition of the business of the
Company, as determined by the Board.

          (ii)   Assumption of Options Upon Certain Events. In connection with a
                 -----------------------------------------
merger or consolidation of an entity with the Company or the acquisition by the
Company of property or stock of an entity, the Board may grant Awards under the
Plan in substitution for stock and stock-based awards issued by such entity or
an affiliate thereof. The substitute Awards shall be granted on such terms and
conditions as the Board considers appropriate in the circumstances.

          (iii)  Pooling-of Interests-Accounting. If the Company proposes to
                 -------------------------------
engage in an Acquisition intended to be accounted for as a pooling-of-interests,
and in the event that the provisions of this Plan or of any Award hereunder, or
any actions of the Board taken in connection with such Acquisition, are
determined by the Company's or the acquiring company's independent public
accountants to cause such Acquisition to fail to be accounted for as a pooling-
of-interests, then such provisions or actions shall be amended or rescinded by
the Board, without the consent of any Participant, to be consistent with
pooling-of-interests accounting treatment for such Acquisition.

          (iv)   Parachute Awards. Notwithstanding the provisions of Section
                 ----------------
7(e)(i)(A), if, in connection with an Acquisition described therein, a tax under
Section 4999 of the Code would be imposed on the Participant (after taking into
account the exceptions set forth in Sections 280G(b)(4) and 280G(b)(5) of the
Code), then the number of Awards which shall become exercisable, realizable or
vested as provided in such section shall be reduced (or delayed), to the minimum
extent necessary, so that no such tax would be imposed on the Participant (the
Awards not becoming so accelerated, realizable or vested, the "Parachute
                                                               ---------
Awards"); provided, however, that if the "aggregate present value" of the
------                                    -----------------------
Parachute Awards

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would exceed the tax that, but for this sentence, would be imposed on the
Participant under Section 4999 of the Code in connection with the Acquisition,
then the Awards shall become immediately exercisable, realizable and vested
without regard to the provisions of this sentence. For purposes of the preceding
sentence, the "aggregate present value" of an Award shall be calculated on an
               -----------------------
after-tax basis (other than taxes imposed by Section 4999 of the Code) and shall
be based on economic principles rather than the principles set forth under
Section 280G of the Code and the regulations promulgated thereunder. All
determinations required to be made under this Section 7(e)(iv) shall be made by
the Company.

     f.   Withholding.  Each Participant shall pay to the Company, or make
          -----------
provisions satisfactory to the Company for payment of, any taxes required by law
to be withheld in connection with Awards to such Participant no later than the
date of the event creating the tax liability.  The Board may allow Participants
to satisfy such tax obligations in whole or in part by transferring shares of
Common Stock, including shares retained from the Award creating the tax
obligation, valued at their fair market value (as determined by the Board or as
determined pursuant to the applicable option agreement).  The Company may, to
the extent permitted by law, deduct any such tax obligations from any payment of
any kind otherwise due to a Participant.

     g.   Amendment of Awards. The Board may amend, modify or terminate any
          -------------------
outstanding Award including, but not limited to, substituting therefor another
Award of the same or a different type and changing the date of exercise or
realization, provided that, except as otherwise provided in Section 7(e)(iii),
the Participant's consent to such action shall be required unless the Board
determines that the action, taking into account any related action, would not
materially and adversely affect the Participant.  Notwithstanding the foregoing,
the Board shall not reduce the exercise price of any outstanding Option,
including without limitation, by (i) amending the terms of such outstanding
Option, (ii) canceling such Option and issuing a new Option which, as determined
by the Board in good faith, is intended to replace such cancelled Option, or
(iii) issuing a new Option at a lower exercise price which, as determined by the
Board in good faith, is intended to replace an Option which is currently
outstanding, in any event, without the prior approval of the Company's
stockholders.

     h.   Conditions on Delivery of Stock.  The Company will not be obligated to
          -------------------------------
deliver any shares of Common Stock pursuant to the Plan or to remove
restrictions from shares previously delivered under the Plan until (i) all
conditions of the Award have been met or removed to the satisfaction of the
Company, (ii) in the opinion of the Company's counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied,
including any applicable securities laws and any applicable stock exchange or
stock market rules and regulations, and (iii) the Participant has executed and
delivered to the Company such representations or agreements as the Company may
consider appropriate to satisfy the requirements of any applicable laws, rules
or regulations.

     i.   Acceleration.  The Board may at any time provide that any Options
          ------------
shall become immediately exercisable in full or in part, that any Restricted
Stock Awards shall be free of some or all restrictions, or that any other stock-
based Awards may become exercisable in full or in part or free of some or all
restrictions or conditions, or otherwise realizable in full or in part, as the

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case may be, despite the fact that the foregoing actions may cause the
application of Sections 280G and 4999 of the Code if a change in control of the
Company occurs.

     j.   Acceleration Upon Retirement.  Except as the Board may otherwise
          ----------------------------
determine or provide in an Award, in the event a Participant ceases to be a
member of the Board by reason of his or her retirement from the Board, any
Option granted to such Participant shall become immediately exercisable in full,
any Restricted Stock Award granted to such Participant shall be free of all
restrictions, and any other stock-based Award granted to such Participant shall
become exercisable or realizable in full, free of all restrictions or
conditions, as the case may be.  Each such Option, Restricted Stock Award or
other stock-based Award shall be exercisable or realizable, as the case may be,
until the scheduled expiration date of the Award.  For purposes of this Plan,
"retirement from the Board" shall mean the resignation from the Board or the
election not to stand for re-election to the Board by a Participant being of at
least 65 years of age and having served at least 5 years on the Board.  Any such
retirement shall become effective as of the effective date of such Participant's
resignation or the due election and qualification of such Participant's
successor, as the case may be.

8.   Miscellaneous
     -------------

     a.   Definitions.
          -----------

          (i)    "Company," for purposes of eligibility under the Plan, shall
                  -------
include any present or future subsidiary corporations of Cytyc Corporation, as
defined in Section 424(f) of the Code (a "Subsidiary"), and any present or
                                          ----------
future parent corporation of Cytyc Corporation, as defined in Section 424(e) of
the Code. The term "Company" shall also include any other business venture in
                    -------
which the Company has a direct or indirect significant interest, as determined
by the Board in its sole discretion.

          (ii)   "Code" means the Internal Revenue Code of 1986, as amended,
                  ----
and any regulations promulgated thereunder.

     b.   No Right To Employment or Other Status. No person shall have any claim
          --------------------------------------
or right to be granted an Award, and the grant of an Award shall not be
construed as giving a Participant the right to continued employment or any other
relationship with the Company. The Company expressly reserves the right at any
time to dismiss or otherwise terminate its relationship with a Participant free
from any liability or claim under the Plan.

     c.   Definition of "employee" and "officer."  For purposes of the Plan,
          -------------------------------------
service as Chairman or Vice Chairman of the Board, if no additional compensation
is paid to the individual with respect to such service other than reimbursement
of expenses approved by the Board, shall be deemed not to constitute service as
an employee or officer of the Company.

     d.   No Rights As Stockholder.  Subject to the provisions of the applicable
          ------------------------
Award, no Participant or Designated Beneficiary shall have any rights as a
stockholder with respect to any

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shares of Common Stock to be distributed with respect to an Award until becoming
the record holder thereof.

     e.   Effective Date and Term of Plan.  The Plan shall become effective on
          -------------------------------
the date on which it was approved by the Company's stockholders and any
modification, suspension or termination hereof shall be effective as of the date
approved by the Board of Directors.  No Awards shall be granted under the Plan
after the completion of ten years from the date on which the Plan was adopted by
the Board, but Awards previously granted may extend beyond that date.

     f.   Amendment of Plan.  The Board may amend, suspend or terminate the Plan
          -----------------
or any portion thereof at any time.

     g.   Governing Law.  The provisions of the Plan and all Awards made
          -------------
hereunder shall be governed by and interpreted in accordance with the laws of
the State of Delaware, without regard to any applicable conflicts of law.

                                    Adopted by the Board of Directors on
                                    March 26, 2001

                                    Approved by the stockholders on
                                    May 23, 2001

                                    Amended by the Board of Directors on
                                    June 20, 2001

                                      32<PAGE>

                                                                   EXHIBIT 10.23

                      ENERGY AND CAPACITY SALES AGREEMENT

     THIS ENERGY AND CAPACITY SALES AGREEMENT (this "Agreement"), dated as of
                                                     ---------
August 1, 2001 (the "Effective Date"), is by and between MIRANT MID-ATLANTIC,
                     --------------
LLC (formerly known as Southern Energy Mid-Atlantic, LLC), a Delaware limited
liability company ("Seller"), and MIRANT AMERICAS ENERGY MARKETING, LP (formerly
                    ------
known as Southern Company Energy Marketing L.P.), a Delaware limited partnership
("Buyer").  Seller and Buyer are referred to individually as a "Party" and
  -----                                                         -----
collectively as the "Parties."
                     -------

                             W I T N E S S E T H:

     WHEREAS, Seller owns or leases (a) certain electric generation facilities
and associated facilities located in Charles County, Maryland (the "Morgantown
                                                                    ----------
Station"), and (b) certain electric generation facilities and associated
-------
facilities located in Upper Montgomery County, Maryland (the "Dickerson
                                                              ---------
Station;" and, collectively with the Morgantown Station, the "Generating
                                                              ----------
Stations"); and
--------

     WHEREAS, Buyer is engaged in the sale and purchase of electric energy,
capacity and other products; and

     WHEREAS, Seller and Buyer are parties to that certain Master Power Purchase
and Sale Agreement, dated as of December 18, 2000 (the "Master Agreement"),
                                                        ----------------
pursuant to which Seller and Buyer may make sales of capacity, energy and other
products to each other; and

     WHEREAS, Seller and Buyer are parties to that certain Amended and Restated
Services and Risk Management Agreement dated March 30, 2001 (the "Services
                                                                  --------
Agreement"), pursuant to which Buyer provides certain services to Seller,
---------
including bidding and dispatch services; and

     WHEREAS, the Parties desire to enter into this Agreement for the sale and
purchase of Products, as hereinafter defined, from the Generating Stations; and

     WHEREAS, Mirant Chalk Point, LLC, Mirant Peaker, LLC, and Mirant Potomac
River, LLC (collectively, the "Other Generating Companies"), are entering into
                               --------------------------
Energy and Capacity Sales Agreements with Buyer concurrently with Seller and
Buyer entering into this Agreement on substantially similar terms and
conditions;

     NOW, THEREFORE, in consideration of the foregoing premises and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Seller and Buyer hereby agree as follows:

     1.  Definitions.  Unless otherwise defined herein, capitalized terms shall
         -----------
have the meaning set forth in the Master Agreement.  The following terms shall
have the meanings set
<PAGE>

forth below:

     "Additional Products" means all PJM Products produced by Seller and all
other PJM Products, if any, used to supply Buyer's obligations (a) under the
TPAs, and (b) in respect of any sales by Buyer to serve load which has migrated
from Potomac Electric Power Company and would otherwise have been supplied under
the TPAs, in either case which is not met by deliveries under (x) Buyer's power
purchase agreements with Ohio Edison Company and Pennsylvania Power Company for
450MW, Panda-Brandywine or Panda for approximately 230MW, Northeast Maryland
Waste Disposal for 50MW, and one other agreement for 2.6MW, (y) power sales
agreements between Buyer and each of Mirant Potomac River, LLC, Mirant Peaker,
LLC, and Mirant Chalk Point, LLC, and (z) this Agreement, with respect to sales
of Committed Products and Uncommitted Products.

     "Agreement" means this Agreement.

     "Availability Shortfall Payment" has the meaning set forth in Section 6 of
this Agreement.

     "Capacity Payment" has the meaning set forth in Section 5 of this
Agreement.

     "Committed Capacity" means the amount of the Unit Capacity designated as
Committed Capacity in accordance with Section 4, as adjusted from time to time
in accordance with Section 11.

     "Committed Energy" has the meaning set forth in Section 7 of this
Agreement.

     "Committed Energy Payment" has the meaning set forth in Section 7 of this
Agreement.

     "Committed Percentage" means for any Contract Year, the Committed Capacity
for such Contract Year divided by the Unit Capacity.

     "Committed Products" means the Committed Capacity and all Committed Energy,
ancillary services or other products commercially recognized in the PJM market
(or any successor market) associated with the Committed Capacity.

     "Contract Year" means Contract Year 1, Contract Year 2, Contract Year 3 or
Contract Year 4, as the case may be.

     "Contract Year 1" means the period between the Effective Date through and
including December 31, 2001.

     "Contract Year 2" means the period between January 1, 2002, through and
including December 31, 2002.

     "Contract Year 3" means the period between January 1, 2003, through and
including

                                       2
<PAGE>

December 31, 2003.

     "Contract Year 4" means the period between January 1, 2004, through and
including June 30, 2004.

     "Delivery Point" means the high side of the step-up transformer for each
Unit.

     "Effective Date" has the meaning set forth in the Preamble to this
Agreement.

     "Equivalent Availability Factor" or "EAF" means the equivalent availability
factor for the Portfolio Units, computed in accordance with North American
Electric Reliability Council definitions at the end of each month on a rolling
12 month basis; provided, however, that for Contract Year 1, the EAF will be
                --------  -------
computed based on availability commencing January 1, 2001.

     "Extension Notice" has the meaning set forth in Section 2 of this
Agreement.

     "Extension Term" means the period between July 1, 2004, and December 31,
2004.

     "Generating Companies" has the meaning set forth in the Recitals to this
Agreement.

     "Generating Stations" has the meaning set forth in the Recitals to this
Agreement.

     "Material Portfolio Unit" means the generating units of Seller and the
Other Generating Companies listed as Material Portfolio Units on Exhibit A,
                                                                 ---------
attached hereto.

     "Master Agreement" has the meaning set forth in the Recitals to this
Agreement.

     "Other Generating Companies" has the meaning set forth in the Recitals to
this Agreement.

     "Other Sales Agreement" means each of the Energy and Capacity Sales
Agreements of even date herewith between Buyer and the Other Generating
Companies, respectively.

     "PJM Products" means all energy, capacity, ancillary services or other
products commercially recognized in the PJM market.

     "Portfolio Units" means the generating units of Seller and the Other
Generating Companies, as listed on Exhibit A.

     "Products" means all Committed Products, all Uncommitted Products and all
Additional Products.

     "Services Agreement" has the meaning set forth in the Recitals to this
Agreement.

     "Term" has the meaning set forth in Section 2 of this Agreement.

                                       3
<PAGE>

     "TPAs" means those certain Transition Power Agreements between MAEM and
Potomac Electric Power Company dated as of December 19, 2000.

     "Uncommitted Capacity" means the amount of Unit Capacity which is not
designated as Committed Capacity under the terms of this Agreement.

     "Uncommitted Energy" has the meaning set forth in Section 7 of this
Agreement.

     "Uncommitted Products" means the Uncommitted Capacity and all Uncommitted
Energy, ancillary services or other products commercially recognized in the PJM
market (or any successor market) associated with the Uncommitted Capacity.

     "Unit" means each of the generating units at the Generating Stations.

     "Unit Capacity" means the aggregate capacity of the Units as listed on

Exhibit A attached hereto.
---------

     2.  Term.  The term of this Agreement (the "Term") shall commence on the
         ----                                    ----
Effective Date and end on June 30, 2004, unless earlier terminated in accordance
with the terms of this Agreement.  Buyer shall have the right to extend the Term
for the Extension Term by giving Seller written notice of such extension (the
"Extension Notice") on or before April 1, 2004.  The applicable provisions of
-----------------
this Agreement shall continue in effect after cancellation or termination hereof
to the extent necessary to provide for final billings, billing adjustments and
payments pertaining to liability and indemnification obligations arising from
acts or events that occurred while this Agreement, including the Extension Term,
if applicable, was in effect.

     3.  Products.  Seller shall deliver or make available to Buyer all
         --------
Committed and Uncommitted Products produced or available from the Generating
Stations and delivered by Seller to Buyer pursuant to and during the Term
(including the Extension Term, if applicable) of this Agreement.  Seller shall
also deliver to Buyer all Additional Products during the Term (including the
Extension Term, if applicable) of this Agreement.

     4.  Committed Capacity and Uncommitted Capacity.  Seller shall make
         -------------------------------------------
available to Buyer all of the Unit Capacity of Seller's Units, and for purposes
of this Agreement such capacity shall be either Committed Capacity or
Uncommitted Capacity.  For Contract Year 1 all Unit Capacity shall be Committed
Capacity.  On or before November 15 of Contract Year, Buyer shall have the
option to designate the amount of Committed Capacity for the next Contract Year;
provided, however, for Contract Year 2 the Committed Capacity shall not be less
--------  -------
than 75% of the Unit Capacity.  The Committed Capacity may not be increased by
Buyer for any Contract Year without the written approval of Seller and Buyer.
If Buyer exercises its right for the Extension Term, Buyer shall designate the
amount of Committed Capacity in its notice of exercise for the Extension Term.

     5.  Capacity Payments.  Each month during the Term, Buyer shall pay Seller
         -----------------
a

                                       4
<PAGE>

capacity payment (the "Capacity Payment") for the Committed Capacity calculated
                         ----------------
as follows:

     Capacity Payment = Committed Capacity x Capacity Rate

     Where:
     Capacity Rate    Year
     -------------    ----
     $11,825/MW-mo    Contract Year 1
     $12,120/MW-mo    Contract Year 2
     $11,285/MW-mo    Contract Year 3
     $10,400/MW-mo    Contract Year 4
     $10,400/MW-mo    Extension Term

     6.  Availability Shortfall Payment.  In the event the EAF during any month
         ------------------------------
is less than 75%, then Seller shall pay Buyer an amount (the "Availability
                                                              ------------
Shortfall Payment") calculated as follows:
-----------------

Availability Shortfall Payment = [(0.75 - EAF)/0.75] x Committed Capacity x
Capacity Rate

     7.  Payments for Committed Energy.  As used herein "Committed Energy" is
         -----------------------------                   ----------------
the energy delivered to the Delivery Point multiplied by the Committed
Percentage, and all other energy delivered to the Delivery Point is referred to
as the "Uncommitted Energy." Buyer shall pay Seller for all Committed Energy
        ------------------
delivered to the Delivery Point (such payment, the "Committed Energy Payment")
                                                    ------------------------
as follows:

     Committed Energy Payment = Committed Energy x Energy Price

     Where:
     Year               Energy Price
     ----               ------------
     Contract Year 1    $16.50/MWh
     Contract Year 2    $17.15/MWh
     Contract Year 3    $17.75/MWh
     Contract Year 4    $18.80/MWh
     Extension Term     $18.80/MWh

     8.  Payments for Uncommitted Capacity and Uncommitted Energy.  Unless
         --------------------------------------------------------
otherwise agreed to by Seller and Buyer, Buyer shall pay Seller the market price
for all products associated with the Uncommitted Products.

     9.  Payment for Additional Products. Unless otherwise agreed to by Seller
         -------------------------------
and Buyer, Buyer shall pay Seller the market price for all Additional Products
delivered to Buyer.

     10.  Payment Date.  Payments made by Buyer to Seller under this Agreement
          ------------
shall be made on or before the 20th of each month for Products delivered in the
prior month.  Buyer may setoff any amounts due from Seller for Availability
Shortfall Payments.

                                       5
<PAGE>

     11.  Material Unplanned Outage.  In the event of an unplanned outage or
          -------------------------
derating of any Unit of Seller which is expected to last at least 30 consecutive
days:

     (a)  Buyer may upon written notice to Seller reduce the Committed Capacity
     by the amount of the outage or derated capacity of the Unit, and during the
     term of the unplanned outage such capacity of the Unit shall not be
     included in the calculation of the Equivalent Availability Factor.  Upon
     restoration of the Unit to service, Buyer may designate such amount of the
     Unit's capacity as either Committed Capacity or Uncommitted Capacity.

     (b)  If the Unit is a Material Portfolio Unit, Buyer may terminate this
     agreement upon written notice to Seller.

Seller shall give Buyer written notice of the occurrence of the unplanned outage
of the Unit promptly upon determining that the outage is expected to last at
least 30 days, and Buyer shall have 30 days after receiving such notice to
exercise its rights under Section 11(a) or 11(b).

     12.  Termination.  In addition to the termination rights in the Master
          -----------
Agreement, this Agreement shall terminate upon the termination of any of the
Other Sales Agreements.

     13.  Cross Default.  An Event of Default by Buyer under any of the Other
          -------------
Sales Agreements shall be an Event of Default by Buyer under this Agreement.  An
Event of Default by any of the Other Generating Companies under the Other Sales
Agreements shall be an Event of Default by Seller under this Agreement.

     14.  Confirmation Under Master Agreement.  This Agreement is a
          -----------------------------------
"Confirmation" under the terms of the Master Agreement.  For purposes of the
Master Agreement, the "Quantity" shall mean the amounts of Products delivered
hereunder, the "Contract Price" shall mean the amounts payable under Sections 5,
6, 7, 8 and 9 of this Agreement, and the "Delivery Period" shall mean the Term.
Any scheduling of Products shall be conducted by Buyer pursuant to the Services
Agreement.

     15.  Entire Agreement.  That certain Confirmation of Power Sale Transaction
          ----------------
dated March 30, 2001, is hereby terminated.  This Agreement, the Master
Agreement and the Services Agreement embody the entire agreement and
understanding of the Parties in respect of the transactions contemplated by this
Agreement.  This Agreement shall constitute a Confirmation of Power Sale
Transaction for purposes of the Master Agreement.

                                       6
<PAGE>

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by
the Parties as of the date first written above.

MIRANT MID-ATLANTIC, LLC               MIRANT AMERICAS ENERGY MARKETING, LP

                                       By MIRANT AMERICAS DEVELOPMENT, INC.,
                                       its General Partner

By:                                    By:
   --------------------------------       -----------------------------------
   Name:                                  Name:
   Title:                                 Title:

                                       7
<PAGE>

                                   EXHIBIT A
<TABLE>
<CAPTION>

Generating Station          Unit  Capacity  Material Portfolio Unit
--------------------------  ----  --------  -----------------------
<S>                         <C>   <C>       <C>

Mirant Mid-Atlantic, LLC

  Dickerson                 D1       182               Yes
  Dickerson                 D2       182               Yes
  Dickerson                 D3       182               Yes
  Dickerson                 DCT1      13
  Dickerson                 HCT1     147
  Dickerson                 HCT2     147

  Morgantown                F1       624               Yes
  Morgantown                F2       620               Yes
  Morgantown                FCT1      16
  Morgantown                FCT2      16
  Morgantown                FCT3      54
  Morgantown                FCT4      54
  Morgantown                FCT5      54
  Morgantown                FCT6      54

  Mirant Chalk Point, LLC

  Chalk Point               E1       341               Yes
  Chalk Point               E2       342               Yes
  Chalk Point               E3       612               Yes
  Chalk Point               E4       612               Yes

  Mirant Peaker, LLC

  Chalk Point               ECT1      18
  Chalk Point               ECT2      30
  Chalk Point               ECT3      86
  Chalk Point               ECT4      86
  Chalk Point               ECT5     109
  Chalk Point               ECT6     109

  SMECO                     CT1       84
</TABLE>

                                       8
<PAGE>

<TABLE>
<CAPTION>
Mirant Potomac River, LLC
<S>                         <C>     <C>

  Potomac River             C1        88
  Potomac River             C2        88
  Potomac River             C3       102
  Potomac River             C4       102
  Potomac River             C5       102
</TABLE>

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]