<SUBMISSION>
<ACCESSION-NUMBER>0001104659-08-079145
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20081231
<ITEMS>2.06
<ITEMS>5.02
<ITEMS>7.01
<ITEMS>9.01
<FILING-DATE>20081231
<DATE-OF-FILING-DATE-CHANGE>20081231
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AES CORP
<CIK>0000874761
<ASSIGNED-SIC>4991
<IRS-NUMBER>541163725
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-12291
<FILM-NUMBER>081279462
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>4300 WILSON BOULEVARD
<CITY>ARLINGTON
<STATE>VA
<ZIP>22203
<PHONE>7035221315
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>4300 WILSON BOULEVARD
<CITY>ARLINGTON
<STATE>VA
<ZIP>22203
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>AES CORPORATION
<DATE-CHANGED>19930328
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a08-27657_28k.htm
<DESCRIPTION>8-K
<TEXT>

<html>

<head>





</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">

<div style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 3.0pt;padding:1.0pt 0in 1.0pt 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WASHINGTON,
D.C. 20549</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM&nbsp;8-K</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">PURSUANT TO SECTION&nbsp;13 OR 15(d)&nbsp;OF<br>
THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (date of earliest event reported): <b>December&nbsp;31, 2008</b></font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">THE AES CORPORATION</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant as specified in its charter)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DELAWARE</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">001-12291</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">54-1163725</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State of Incorporation)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File No.)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer Identification<br>
  No.)</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4300
Wilson Boulevard, Suite&nbsp;1100</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Arlington,
Virginia 22203</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive offices, including zip
code)</font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registrant&#146;s telephone number, including area code:</font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(703)
522-1315</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOT
APPLICABLE</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former Name or Former Address, if changed since last
report)</font></p>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check
the appropriate box below if the Form&nbsp;8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Written communications pursuant to Rule&nbsp;425
under the Securities Act (17 CFR 230.425)</font></p>

<p style="margin:0in 0in .0001pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Soliciting material pursuant to Rule&nbsp;14a-12
under the Exchange Act (17 CFR 240.14a-12)</font></p>

<p style="margin:0in 0in .0001pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Pre-commencement communications pursuant
to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

<p style="margin:0in 0in .0001pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Pre-commencement communications pursuant
to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17 CFR 240.13e-4(c))</font></p>

<p style="margin:0in 0in .0001pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="border-bottom:solid windowtext 3.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 1.0pt 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\rcheney\08-27657-2\task3286025\27657-2-ba.htm',USER='rcheney',CD='Dec 31 16:25 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2.06</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Material Impairments.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On December&nbsp;29,
2008, the Financial Audit Committee of The AES Corporation (the &#147;Company&#148;)
determined that certain development projects in the Company&#146;s pipeline have
been impaired. This determination was made upon the recommendation of the
Company&#146;s management.&#160; The aggregate
impairment charge is estimated to range from $30 million to $65 million net of
estimated tax impact.&#160; The impairment
charge will not impact the Company&#146;s cash flow or cash balances and is not
expected to result in any material future cash expenditures.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the fourth quarter of
2008 and in response to the financial market crisis, the Company undertook to
review and prioritize the projects in its development pipeline.&#160; In the course of this review, management determined
that the carrying value of certain projects exceeded their net realizable
value.&#160; Under generally accepted
accounting principles, the Company is required to write down these assets to
their net realizable value.&#160; The projects
that have been impaired include certain liquefied natural gas projects
supplying North America, various palm oil projects in the Company&#146;s climate
solutions business, a previously planned capacity expansion and non-power
development project at one of our North American facilities, and various other
projects whose total estimated impairment is expected to be immaterial.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
5.02</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Departure of Directors
or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.</font></b></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On December&nbsp;29,
2008, the Company entered into amended and restated employment agreements with
Chief Executive Officer Paul Hanrahan and Chief Financial Officer Victoria D.
Harker. </font><font size="2" style="font-size:10.0pt;">In 2007, final rules under Section 409A of the Internal Revenue
Code (&#147;Section 409A&#148;) clarified the requirements with respect to deferral
elections, payment events, and payment elections.&#160; While the agreements with Mr. Hanrahan and
Ms. Harker have been amended and restated, the changes from the executives&#146;
previously disclosed employment agreements have been made to ensure compliance
with Section 409A. </font><font size="2" style="font-size:10.0pt;">&#160;The executives&#146; original employment agreements
provided for an initial base salary, which would be reviewed annually by the
Board (or a committee thereof). The amended employment agreements update this
information. In addition, the Company entered into an employment agreement with
Chief Operating Officer Andres Gluski.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The material terms of these
agreements are described below, with defined terms having the meaning set forth
in the respective agreements, which are filed as exhibits to this Form&nbsp;8-K</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Paul
Hanrahan Amended and Restated Employment Agreement</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Mr.&nbsp;Hanrahan&#146;s
Amended and Restated Employment Agreement provides him with an initial base
salary of $999,000 and an annual incentive payment target of 150% of his base
salary.&#160; The annual incentive payment is
based upon achievement of performance goals and other targets established by
the Compensation Committee of the Board of Directors.&#160; Mr.&nbsp;Hanrahan also has the right to
participate in the Company&#146;s long term compensation plans and employee benefit
plans on terms no less favorable than other senior executives of the Company.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">The
agreement renews each year on January&nbsp;1 for an additional one year period,
unless either the Company or Mr.&nbsp;Hanrahan gives notice of non-renewal at
least six (6)&nbsp;months prior to the renewal date.&#160; &#160;In
addition, Mr.&nbsp;Hanrahan will receive certain payments and benefits after
termination of his employment which may be subject to execution of a release
agreement by Mr. Hanrahan.&#160; If Mr.&nbsp;Hanrahan&#146;s
employment terminates for Cause or by a resignation without Good Reason, he will
receive his base salary through the termination date.&#160; If his employment terminates because of death
or disability, Mr.&nbsp;Hanrahan will receive benefits under the Company&#146;s
long-term disability plan and/or a pro rata target annual incentive payment (a &#147;Pro
Rata AIP&#148;), as applicable.&#160; If employment
is terminated by Mr.&nbsp;Hanrahan for Good Reason or by the Company other than
for Cause or disability, Mr.&nbsp;Hanrahan will receive: (a)&nbsp; his base
salary through the termination date, (b)&nbsp;a Pro Rata AIP, (c)&nbsp;a
severance payment (&#147;Severance Payment&#148;) equal to two times his base salary and
target bonus for the termination year, (d)&nbsp;under some circumstances, benefits
under the Company&#146;s plans for a period of twenty-four (24) months (or the cash
equivalent), (e)&nbsp;certain life insurance benefits and other benefits and (f)&nbsp;continued
stock option vesting until the earlier of the original expiration of the
affected option or the third anniversary of the termination. If such a
termination or resignation were to occur within two years after a Change of
Control, Mr.&nbsp;Hanrahan would receive the same benefits and payments, except
that his Severance Payment would be three times the sum of his base salary and
target bonus; under some </font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">2</font></p>

<div style="color:black;margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\rcheney\08-27657-2\task3286025\27657-2-ba.htm',USER='rcheney',CD='Dec 31 16:25 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p style="color:black;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">circumstances,
he would receive 36 months of benefits or cash equivalent; and his stock
options would be immediately exercisable and would not expire until the earlier
of the original expiration date of the affected stock options or the fourth
anniversary of his termination. Finally, in the event of a Change of Control,
the Company will provide Mr.&nbsp;Hanrahan with a Section&nbsp;4999 gross up
for any excise tax he incurs.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Victoria
D. Harker Amended and Restated Employment Agreement</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Ms.&nbsp;Harker&#146;s
Amended and Restated Employment Agreement is generally the same as Mr.&nbsp;Hanrahan&#146;s
employment agreement, except as follows.&#160;
Ms.&nbsp;Harker&#146;s annual incentive target is 100% of her annual base
salary and her current base salary is $585,000.&#160;
In the event of a termination by Ms.&nbsp;Harker for Good Reason, or by
the Company for Cause, or because of disability, her Severance Payment would be
one times the sum of her base salary and her annual target incentive payment, benefits
would continue for twelve (12) months following the termination date, and she
would not be eligible for certain life insurance benefits and other perquisites
referenced in (e)&nbsp;above.&#160; In
addition, if such a termination were to occur within two (2)&nbsp;years after a
Change in Control, Ms.&nbsp;Harker&#146;s Severance Payment would be doubled.&#160; Furthermore, there are certain other
differences in the gross up terms that are specified in the agreement.&#160; Finally, Ms.&nbsp;Harker&#146;s agreement does not
include any provisions concerning any stock options of the Company that she may
hold at the time of termination.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Andres
Gluski Employment Agreement</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Gluski&#146;s
employment agreement is generally the same as Ms.&nbsp;Harker&#146;s, except that Mr.&nbsp;Gluski&#146;s
current base salary is $660,000.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The descriptions set
forth above are qualified in their entirety by the terms of the respective
employment agreements, which are filed as Exhibits 99.1, 99.2 and 99.3 to this Form&nbsp;8-K.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
7.01</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Regulation FD
Disclosure.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a result of the
impairment charge described in Item 2.06 to this Form&nbsp;8-K, the Company is
modifying its diluted earnings per share guidance for 2008 by the amount of the
impairment charge, which is approximately $0.04 to $0.09 per share.&#160; No other elements of the Company&#146;s previously
disclosed guidance are affected by the impairment charge.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This information is
furnished pursuant to Item 7.01 and shall not be deemed &#147;filed&#148; for any
purpose, including for the purposes of Section&nbsp;18 of the Exchange Act, or
otherwise subject to the liabilities of that Section. The information in this
Current Report on Form&nbsp;8-K shall not be deemed incorporated by reference
into any filing under the Securities Act or the Exchange Act regardless of any
general incorporation language in such filing.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
9.01</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Financial Statements and
Exhibits.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&nbsp;Exhibits.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.16%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.42%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="89%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:89.42%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:89.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended and Restated
  Employment Agreement of Paul Hanrahan</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.2</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended and Restated
  Employment Agreement of Victoria D. Harker</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.3</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment Agreement of
  Andres Gluski</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Forward-looking Statements</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Form&nbsp;8-K
contains forward-looking statements within the meaning of the Securities Act of
1933 and of the Securities Exchange Act of 1934. Such forward-looking statements
include, but are not limited to, those related to future earnings, growth and
financial and operating performance. Forward-looking</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\rcheney\08-27657-2\task3286025\27657-2-ba.htm',USER='rcheney',CD='Dec 31 16:25 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">statements are not
intended to be a guarantee of future results, but instead constitute AES&#146;s
current expectations based on reasonable assumptions. Forecasted financial
information is based on certain material assumptions. These assumptions
include, but are not limited to, continued normal levels of operating
performance and electricity volume at our distribution companies and
operational performance at our generation businesses consistent with historical
levels, as well as achievements of planned productivity improvements and
incremental growth investments at normalized investment levels and rates of
return consistent with prior experience.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Actual results could
differ materially from those projected in our forward-looking statements due to
risks, uncertainties and other factors. Important factors that could affect
actual results are discussed in AES&#146;s filings with the Securities and Exchange
Commission, including, but not limited to, the risks discussed under Item 1A &#147;Risk
Factors&#148; in AES&#146;s 2007 Annual Report on Form&nbsp;10-K. Readers are encouraged
to read AES&#146;s filings to learn more about the risk factors associated with AES&#146;s
business. AES undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\rcheney\08-27657-2\task3286025\27657-2-ba.htm',USER='rcheney',CD='Dec 31 16:25 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf of the undersigned hereunto duly
authorized.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:50.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THE AES CORPORATION</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: December&nbsp;31,
  2008</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:46.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Mary E. Wood</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:6.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="39%" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:39.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mary E. Wood</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.62%;">
  <p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0in 0in 0in 0in;width:39.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President and
  Corporate</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="39%" valign="top" style="padding:0in 0in 0in 0in;width:39.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Controller</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\rcheney\08-27657-2\task3286025\27657-2-ba.htm',USER='rcheney',CD='Dec 31 16:25 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT INDEX</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="8%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:8.16%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit&nbsp;No.</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.42%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="89%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:89.42%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:8.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:89.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended and Restated
  Employment Agreement of Paul Hanrahan</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.2</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended and Restated
  Employment Agreement of Victoria D. Harker</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.3</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="89%" valign="top" style="padding:0in 0in 0in 0in;width:89.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment Agreement of
  Andres Gluski</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

</div>
<!-- SEQ.=1,FOLIO='6',FILE='C:\JMS\rcheney\08-27657-2\task3286025\27657-2-ba.htm',USER='rcheney',CD='Dec 31 16:25 2008' -->


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a08-27657_2ex99d1.htm
<DESCRIPTION>EX-99.1
<TEXT>

<html>

<head>





</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.1</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">AMENDED&nbsp;&amp;
RESTATED EMPLOYMENT AGREEMENT</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This AMENDED&nbsp;&amp;
RESTATED EMPLOYMENT AGREEMENT (&#147;<u>Agreement</u>&#148;) is made as of this 29<sup>th</sup>
day of December, 2008 (the &#147;<u>Effective Date</u>&#148;), between The AES
Corporation, a Delaware corporation (the &#147;<u>Company</u>&#148;), and Paul T.
Hanrahan (the &#147;<u>Executive</u>&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Executive is
currently employed by the Company in the position of President and Chief
Executive Officer pursuant to the terms and conditions set forth in that
certain Employment Agreement dated as of February&nbsp;14, 2003 (&#147;Employment
Agreement&#148;); and</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Company and the
Executive desire to amend and restate the Employment Agreement and to continue
the employment of the Executive with the Company pursuant to the terms and
conditions set forth in this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in
consideration of the premises and the respective covenants and agreements of
the parties herein contained, and intending to be legally bound hereby, the
parties hereto agree as follows:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Employment</u>.&#160; The Company hereby agrees to continue to
employ the Executive, and the Executive hereby agrees to continue to serve the
Company, on the terms and conditions set forth herein.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Term</u>.&#160; The term of this Agreement (the &#147;<u>Term</u>&#148;)
shall commence as of the Effective Date and shall end on December&nbsp;31,
2008, <i>provided, however</i>, that commencing on January&nbsp;1,
2009, and on each subsequent January&nbsp;1 (each such January&nbsp;1, a &#147;<u>Renewal
Date</u>&#148;), the Term shall automatically be extended for one (1)&nbsp;additional
year unless, not later than the date which is six (6)&nbsp;months prior to such
Renewal Date, the Company or the Executive shall have given written notice not
to extend the Term for such one (1)&nbsp;additional year; and further,
provided, that if a Change in Control (as hereinafter defined) occurs during
the Term, the Term shall not end prior to the second anniversary of such Change
in Control.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Position and
Duties</u>.&#160; The Executive shall serve as
President and Chief Executive Officer of the Company and shall have such
responsibilities, duties and authorities consistent with such position as may
from time to time be assigned to the Executive by the Board of Directors of the
Company (the &#147;<u>Board</u>&#148;) The Executive shall report to the Board.&#160; The Executive shall devote substantially all
of his working time and efforts to the business and affairs of the Company; <i>provided, however</i>, that the Executive will be permitted to
serve as a director to other for profit and not for profit organizations and
corporations so long as (a)&nbsp;such service does not materially interfere
with the performance of his obligations hereunder, (b)&nbsp;such organizations
and corporations are not competitive in any business area in which the Company
is engaged during the employment period and (c)&nbsp;such service, if first
assumed after the Effective Date, is approved by the Board prior to the
commencement of such service.&#160; The
Executive shall furnish to the Company a list of each such entity on the
Effective Date and shall update such list as appropriate.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Place of
Performance</u>.&#160; In connection with the
Executive&#146;s employment by the Company, the Executive shall initially perform
his duties and conduct his business, and his </h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-01.htm',USER='105576',CD='Dec 30 06:53 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">initial principal place of
employment shall be, at the Executive&#146;s principal place of employment
immediately prior to the Effective Date, except for required travel on the
Company&#146;s business.&#160; From and after the
Effective Date, and prior to the occurrence of a Change in Control (as defined
in Section&nbsp;8(h)&nbsp;hereof), the Company shall have the ability,
consistent with its overall business needs, to change the Executive&#146;s principal
place of employment.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Compensation
and Related Matters</u>.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Salary</u>.&#160; During the period of the Executive&#146;s
employment hereunder, the Company shall pay to the Executive an annual base
salary at a rate of $999,000, which salary shall be reviewed annually by the
Board (or a committee thereof) for possible increase but not decrease;
provided, however, that once the Executive&#146;s annual base salary is increased,
it may not thereafter be decreased during the Term, as such Term may be
extended pursuant to the terms hereof (such salary, as it may be increased, the
&#147;<u>Base Salary</u>&#148;).&#160; The Base Salary
shall be paid in substantially equal installments, no less frequently than
monthly, in accordance with the Company&#146;s standard payroll practices.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Annual
Bonuses</u>.&#160; With respect to each fiscal
year of the Company during the Term, the Executive shall be eligible to receive
an annual bonus with a target of 150% of his Base Salary, payable based on the
achievement of corporate performance goals and/or other conditions that are
established by the Compensation Committee of the Board and which are generally
applicable with respect to annual bonuses for other senior executive officers
of the Company in accordance with the terms of The AES Corporation Performance
Incentive Plan, or any successor plan.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Long-Term
Compensation</u>.&#160; The Executive shall be
eligible to participate in all of the Company&#146;s long-term cash and equity award
and equity-based grant programs applicable to, and on a basis no less favorable
than, other senior executive officers of the Company, in accordance with the
terms and conditions of such plans.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Other
Benefits</u>.&#160; The Executive shall be
eligible to participate in all employee benefit plans and arrangements of the
Company applicable to, and on a basis no less favorable than, other senior
executive officers (including, without limitation, medical, dental, vision,
hospitalization, life insurance, short term disability, long term disability,
accidental death and dismemberment protection, travel accident insurance plans,
fringe benefits and perquisites).</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Vacations</u>.&#160; The Executive shall be entitled to four (4)&nbsp;weeks
of vacation in each calendar year.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Expenses</u>.&#160; During the term of the Executive&#146;s employment
hereunder, the Executive shall be entitled to receive prompt reimbursement for
all reasonable and customary expenses incurred by the Executive in performing
services hereunder, subject to submission of appropriate documentation in
accordance with Company policy and procedure.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Indemnification</u>.&#160; The Company agrees that if the Executive is
made a party, or is threatened to be made a party, to any action, suit or
proceeding, whether civil, criminal, administrative or investigative (a &#147;<u>Proceeding</u>&#148;),
by reason of the fact that he is or was a director or employee of the Company
or is or was serving at the request of the Company as a </h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-01.htm',USER='105576',CD='Dec 30 06:53 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">director, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, including service with respect to employee
benefit plans, whether or not the basis of such Proceeding is the Executive&#146;s
alleged action in an official capacity while serving as a director, employee or
agent, the Executive shall be indemnified and held harmless by the Company to
the fullest extent legally permitted or authorized by the Company&#146;s certificate
of incorporation or bylaws or resolutions of the Company&#146;s Board of Directors
or, if greater, by the laws of the State of Delaware against all cost, expense,
liability and loss (including, without limitation, attorney&#146;s fees, judgments,
fines, excise taxes or penalties and amounts paid or to be paid in settlement)
reasonably incurred or suffered by the Executive in connection therewith, and
such indemnification shall continue as to the Executive even if he has ceased
to be a director, employee or agent of the Company or other entity and shall
inure to the benefit of the Executive&#146;s heirs, executors and administrators.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Directorships/Other
Offices</u>.&#160; The Executive agrees to
serve without additional compensation, if elected or appointed thereto, as a
director of any of the Company&#146;s subsidiaries and in one or more executive
offices of any of the Company&#146;s subsidiaries, provided that the Executive is
indemnified for serving in any and all such capacities on a basis no less
favorable than is from time to time provided by the Company or any of its
subsidiaries to its other directors and senior executive officers.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination</u>.&#160; Subject to the provisions of this Agreement,
the Executive&#146;s employment hereunder may be terminated under the following
circumstances:</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Death</u>.&#160; The Executive&#146;s employment shall terminate
upon his death.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Disability</u>.&#160; If, the Executive is unable, due to physical
or mental incapacity, to substantially perform his full time duties and
responsibilities under this Agreement for a period of six (6)&nbsp;consecutive
months (as determined by a medical doctor selected by Company and Executive)
the Company may terminate the Executive&#146;s employment for &#147;<u>Disability</u>&#148;.&#160; If the parties cannot agree on a medical
doctor for purposes of such determination of Disability, each party shall
select a medical doctor and the two doctors shall select a third who shall be
the approved medical doctor for this purpose.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination
by the Company/Cause</u>.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company may involuntarily terminate the Executive&#146;s employment (A)&nbsp;for
Cause or (B)&nbsp;without Cause.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For
purposes of this Agreement, &#147;<u>Cause</u>&#148; shall mean (A)&nbsp;the willful and
continued failure by the Executive to substantially perform his duties with the
Company (other than any such failure resulting from the Executive&#146;s
incapability due to physical or mental illness or any such actual or
anticipated failure after the issuance of a Notice of Termination by the
Executive for Good Reason), after demand for substantial performance is
delivered by the Company that specifically identifies the manner in which the
Company believes that the Executive has not substantially performed his duties,
or (B)&nbsp;the willful engaging by the Executive in misconduct which is
demonstrably and </h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-01.htm',USER='105576',CD='Dec 30 06:53 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">materially injurious to the Company, monetarily or otherwise
(including, but not limited to, conduct that constitutes a violation of Section&nbsp;11
hereof).&#160; No act, or failure to act, on
the Executive&#146;s part shall be considered &#147;willful&#148; unless done, or omitted to
be done, by him not in good faith and without reasonable belief that his action
or omission was in the best interest of the Company.&#160; Notwithstanding the foregoing, the Executive
shall not be deemed to have been terminated for Cause without (1)&nbsp;reasonable
notice from the Board to Executive setting forth the reasons for Company&#146;s
intention to terminate for Cause and (2)&nbsp;delivery to the Executive of a
Notice of Termination, which shall include a resolution duly adopted by the
affirmative vote of two thirds or more of the Board then in office (excluding
the Executive) at a meeting of the Board called and held for such purpose, and
at which the Executive, together with his counsel, is given an opportunity to
be heard, finding that in the good faith opinion of the Board, the Executive
was guilty of the conduct set forth in this section and specifying the
particulars thereof in detail.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination
by the Executive</u>.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Executive may terminate his employment for (A)&nbsp;Good Reason or (B)&nbsp;without
Good Reason.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For
purposes of this Agreement, &#147;<u>Good Reason</u>&#148; shall mean, without the
Executive&#146;s written consent, any material breach of this Agreement by the
Company which is not cured within the Notice Period (as defined below).&#160; A material breach of this Agreement shall
include, but not be limited to: (A)&nbsp;the failure by the Company to have any
successor to all or substantially all of the business and/or assets of the
Company expressly assume and agree to perform this Agreement in accordance with
Section&nbsp;12 hereof; (B)&nbsp;following a Change in Control, the relocation
of the Executive&#146;s principal place of employment to a site outside of the
metropolitan area of the Executive&#146;s previous principal place of employment; (C)&nbsp;following
a Change in Control, any material adverse change in the Executive&#146;s overall
responsibilities, duties and authorities from those in place immediately prior
to such Change in Control; and (D)&nbsp;following a Change in Control, the
failure by the Company to continue the Executive&#146;s participation in a long-term
cash or equity award or equity-based grant program (or in a comparable
substitute program) on a basis not materially less favorable than that provided
to the Executive immediately prior to such Change in Control.&#160; For purposes of any determination regarding
the existence of Good Reason following a Change in Control, any good faith
claim by the Executive that Good Reason exists shall be presumed to be correct
unless the Company establishes by clear and convincing evidence that Good
Reason does not exist.&#160; In order for
Executive to terminate for Good Reason, (i)&nbsp;Executive must notify the Board,
in writing, within ninety (90) days of the event constituting Good Reason of
Executive&#146;s intent to terminate employment for Good Reason, that specifically
identifies in reasonable detail the manner in which the Executive believes that
the Company has materially breached this Agreement (ii)&nbsp;the event must
remain uncorrected for thirty (30) days following the date that Executive
notifies the Board in writing of Executive&#146;s intent to terminate employment for
Good Reason (the &#147;<u>Notice Period</u>&#148;), and (iii)&nbsp;the termination date
must occur within sixty (60) days after the expiration of the Notice Period.</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-01.htm',USER='105576',CD='Dec 30 06:53 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Notice
of Termination</u>.&#160; Any termination of
the Executive&#146;s employment by the Company or by the Executive (other than a
termination by reason of death) shall be communicated by written Notice of
Termination to the other party hereto in accordance with Section&nbsp;13
hereof.&#160; For purposes of this Agreement,
a &#147;Notice of Termination&#148; shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive&#146;s employment under the provision so indicated.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Date
of Termination</u>.&#160; &#147;<u>Date of
Termination</u>&#148; shall mean (i)&nbsp;if the Executive&#146;s employment is
terminated by his death, the date of his death, (ii)&nbsp;if the Executive&#146;s
employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided, that the Executive shall not have returned to
the full-time performance of the Executive&#146;s duties during such thirty (30) day
period), and (ii)&nbsp;if the Executive&#146;s employment is terminated for any
other reason, the date specified in the Notice of Termination (which, in the
case of a termination by the Company, shall not be less than thirty (30) days
(except in the case of a termination for Cause) and, in the case of a
termination by the Executive, shall not be less than fifteen (15) days nor more
than sixty (60) days, respectively, from the date such Notice of Termination is
given).</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Compensation
Upon Certain Separation from Service Events</u>.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Any
Termination of Employment</u>.&#160; Subject
to Section&nbsp;19 hereof, if the Executive Separates from Service for any
reason, in addition to any amounts and benefits provided pursuant to the
remainder of this Section&nbsp;8, the Company shall pay or provide to the
Executive (i)&nbsp;any fully earned but unpaid bonus for completed periods,
subject to any deferral election that the Executive has made with respect to
such amounts, (ii)&nbsp;any expense reimbursements owed to the Executive by the
Company, and (iii)&nbsp;all compensation and benefits that are due to the
Executive under the terms of the Company&#146;s compensation and benefit plans,
programs and arrangements in accordance with the terms of such plans, programs
and arrangements.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Disability</u>.&#160; Subject to Section&nbsp;19 hereof, if the
Executive Separates from Service by reason of the Executive&#146;s Disability, then (i)&nbsp;the
Executive shall receive disability benefits in accordance with the terms of the
long-term disability program then in effect for senior executives of the
Company, (ii)&nbsp;the Company shall pay to the Executive his Base Salary
through the Termination Date or, if earlier, the end of the month immediately
preceding the month in which such disability benefits commence, and (iii)&nbsp;the
Company shall pay to the Executive, to the extent earned and at the time
bonuses are customarily paid to senior executive officers in accordance with
the terms of The AES Corporation Performance Incentive Plan (or any successor
plan), a bonus for the year in which such Separation from Service occurs equal
to the Executive&#146;s annual bonus for such year, as described in Section&nbsp;5(b)&nbsp;hereof,
multiplied by a fraction, the numerator of which is the number of days during
such year that the Executive was employed by the Company and the denominator of
which is 365 (the &#147;<u>Pro Rata Bonus</u>&#148;).</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Death</u>.&#160; If the Executive Separates from Service by
reason of the Executive&#146;s death, then (i)&nbsp;the Company shall pay to his
legal representative the Executive&#146;s Base </h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-01.htm',USER='105576',CD='Dec 30 06:53 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Salary through the Date of Termination (the &#147;<u>Earned Salary</u>&#148;) and
(ii)&nbsp;the Company shall pay to the Executive&#146;s legal representative the Pro
Rata Bonus.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>By
the Company for Cause</u>.&#160; Subject to Section&nbsp;19
hereof, if the Executive Separates from Service on account of an involuntary
termination by the Company for Cause, then the Company shall pay to the Executive
the Earned Salary.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>By
the Company other than for Disability or Cause; By the Executive for Good
Reason</u>.&#160; Subject to Section&nbsp;19
hereof, if the Executive Separates from Service on account of any involuntary
termination by the Company other than for Disability or Cause, or the Executive
shall Separate from Service for Good Reason, then:</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company shall pay to the Executive the Earned Salary;</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company shall pay to the Executive the Pro Rata Bonus;</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>except
as provided in paragraph (g)&nbsp;below, the Company shall pay to the
Executive, within ten (10)&nbsp;days following the Date of&#160; Termination (or, if later, the date the
Executive has provided a release in accordance with the provisions of Section&nbsp;19),
a cash lump sum equal to the product of (A)&nbsp;two (2)&nbsp;and (B)&nbsp;the
sum of (1)&nbsp;the annual Base Salary rate in effect for the Executive
immediately preceding the Date of Termination, disregarding any reduction in
annual Base Salary which constitutes Good Reason hereunder, and (2)&nbsp;the
Executive&#146;s target bonus for the year in which the Date of Termination occurs;</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>except
as provided in paragraph (g)&nbsp;below, for the twenty four (24) month period
immediately following the Date of Termination:</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if
the Executive elects COBRA Continuation Coverage, the Executive shall continue
to participate in all medical, dental and hospitalization insurance plans he
was participating on the Date of Termination.&#160;&#160;
If, however, any such plan does not permit his continued participation
following the end of the COBRA Continuation Period, then the Company will
reimburse Employee for the actual cost to Employee of any individual health
insurance policy obtained by Employee in accordance with Section&nbsp;8(e)(iv)(E).&#160; During the applicable period of coverage
described in the foregoing sentences, Executive shall be entitled to benefits
on substantially the same basis and cost as would have otherwise been provided
had Executive not Separated from Service.&#160;
To the extent that such benefits are available under the above-referenced
Benefit Plans and Executive had such coverage immediately prior to termination
of employment, such continuation of benefits for Executive shall also cover
Executive&#146;s dependents for so long as Executive is receiving benefits under
this paragraph (iv).&#160; The COBRA
Continuation Period for medical and dental insurance under this paragraph (iv)&nbsp;shall
be deemed to run concurrent with the continuation period federally mandated by
COBRA (generally 18 months), or any other legally mandated and applicable federal,
state, or local coverage period for benefits </h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='6',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-01.htm',USER='105576',CD='Dec 30 06:53 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">provided to terminated
employees under the health care plan.&#160;
For purposes of this Agreement, (1)&nbsp;&#147;COBRA&#148; means the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended, and (2)&nbsp;&#147;COBRA
Continuation Period&#148; shall mean the continuation period for medical and dental
insurance to be provided under the terms of this Agreement which shall commence
on the first day of the calendar month following the month in which the date of
termination falls and generally shall continue for an 18 month period.</font></h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Executive shall receive life insurance benefits (through the reimbursement of
Executive&#146;s premiums upon conversion to individual policy and subject to the
limitations of Section&nbsp;8(e)(iv)(E)).</h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(C)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Executive shall participate in all other welfare, fringe benefit and perquisite
plans and programs in each case in which he was participating on the Date of
Termination; provided, however, if any such plan or program does not permit his
continued participation (or participation on a tax-free basis), the Company
shall pay the Executive, within ten (10)&nbsp;days following the Date of
Termination (or, if later, the date the Executive has provided a release in accordance
with the provisions of Section&nbsp;19), a cash lump sum equal to the economic
equivalent on an after-tax basis.</h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(D)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Benefits
or payments otherwise receivable by the Executive pursuant to this Section&nbsp;8(e)(iv)&nbsp;shall
be reduced to the extent benefits of the same type are received by or made
available to the Executive by a subsequent employer during the twenty four (24)
month period following the Date of Termination (and any such benefits received
by or made available to the Executive shall be reported to the Company by the
Executive);</h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(E)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Reimbursement
to the Executive pursuant to this Section&nbsp;8(e)(iv)&nbsp;will be available
only to the extent that (1)&nbsp;such expense is actually incurred for any
particular calendar year and reasonably substantiated; (2)&nbsp;reimbursement
shall be made no later than the end of the calendar year following the year in
which such expense is incurred by Employee; (3)&nbsp;no reimbursement will be
provided for any expense incurred following the 24th month anniversary of the
Date of Termination or for any expense which relates to insurance coverage
after such date; and (4)&nbsp;any life insurance premiums incurred prior to the
six (6)&nbsp;month anniversary of the Date of Termination (&#147;Six Month Payment
Date&#148;) shall not be reimbursed prior to such Six Month Payment Date. and</h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>except
as provided in paragraph (g)&nbsp;below, each option to acquire common stock of
the Company granted under a Company incentive plan or other arrangement that is
held by the Executive on the Date of Termination shall remain outstanding, and
shall continue to vest according to its terms as if the Executive remained
employed by the Company, until the earlier of (i)&nbsp;the end of the original
term of such option or (ii)&nbsp;the third anniversary of the Date of
Termination.</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='7',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-01.htm',USER='105576',CD='Dec 30 06:53 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Upon
Termination of Employment by the Executive Other Than for Good Reason or Other
Than by Reason of Death</u>.&#160; Subject to Section&nbsp;19
hereof, if the Executive voluntarily Separates from Service other than a
Separation from Service for Good Reason or on account of his death, then the
Company shall pay to the Executive the Earned Salary.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Change
in Control</u>.&#160; Subject to Section&nbsp;19
hereof, if the Executive Separates from Service on account of any involuntary
termination by the Company other than for Cause or Disability, or if the
Executive shall Separate from Service for Good Reason, in either case within
two (2)&nbsp;years following a Change in Control, then (i)&nbsp;the Executive
shall receive the payments and benefits set forth in Section&nbsp;8(e)&nbsp;above,
except that the two (2)&nbsp;times multiplier set forth in Section&nbsp;8(e)(iii)&nbsp;shall
be increased to three (3), (ii)&nbsp;the twenty four (24) month benefit
continuation period set forth in Section&nbsp;8(e)(iv)&nbsp;shall be extended
to thirty six (36) months and (iii)&nbsp;each option held by the Executive
described in Section&nbsp;8(e)(v)&nbsp;shall&#160;
vest and become immediately exercisable in full on the Date of
Termination and shall remain exercisable until the earlier of (A)&nbsp;the end
of the original term of such option or (B)&nbsp;the fourth anniversary of the
Date of Termination.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Definitions</u>.&#160; For purposes of this Agreement, the following
terms shall have the following meanings:</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Change
in Control</u>&#148; shall mean the occurrence of any one of the following events:</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company (not including in the securities beneficially owned
by such Person any securities acquired directly from the Company or its
Affiliates) representing 30% or more of the combined voting power of the
Company&#146;s then outstanding securities, excluding any Person who becomes such a
Beneficial Owner in connection with a transaction described in clause (1)&nbsp;of
paragraph (C)&nbsp;below; or</h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
following individuals cease for any reason to constitute a majority of the
number of directors then serving: individuals who, on the date hereof,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of directors of the Company) whose appointment or election by the
Board or nomination for election by the Company&#146;s stockholders was approved or
recommended by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors on the date hereof or whose appointment,
election or nomination for election was previously so approved or recommended;
or</h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(C)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there
is consummated a merger or consolidation of the Company or any direct or
indirect subsidiary of the Company with any other corporation, other than (1)&nbsp;a
merger or consolidation immediately following </h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='8',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-01.htm',USER='105576',CD='Dec 30 06:53 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">which the individuals who
comprise the Board immediately prior thereto constitute at least a majority of
the board of directors of the Company, the entity surviving such merger or
consolidation or any parent thereof, or (2)&nbsp;a merger or consolidation
effected to implement a recapitalization of the Company (or similar
transaction) in which no Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company (not including in the securities
Beneficially Owned by such Person any securities acquired directly from the
Company or its Affiliates) representing 30% or more of the combined voting
power of the Company&#146;s then outstanding securities; or</font></h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(D)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
stockholders of the Company approve a plan of complete liquidation or
dissolution of the Company or there is consummated an agreement for the sale or
disposition by the Company of all or substantially all of the Company&#146;s assets,
other than a sale or disposition by the Company of all or substantially all of
the Company&#146;s assets immediately following which the individuals who comprise
the Board immediately prior thereto constitute at least a majority of the board
of directors of the entity to which such assets are sold or disposed or any
parent thereof.</h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding the foregoing, a &#147;Change in Control&#148; shall not be
deemed to have occurred by virtue of the consummation of any transaction or
series of integrated transactions immediately following which the record
holders of the common stock of the Company immediately prior to such
transaction or series of transactions continue to have substantially the same
proportionate ownership in an entity which owns all or substantially all of the
assets of the Company immediately following such transaction or series of
transactions.</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Affiliate</u>&#148;
shall have the meaning set forth in Rule&nbsp;12b-2 promulgated under Section&nbsp;12
of the Exchange Act.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Beneficial
Owner</u>&#148; shall have the meaning used in Rule&nbsp;13d-3 promulgated under the
Exchange Act.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Exchange
Act</u>&#148; shall mean the Securities Exchange Act of 1934, as amended.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Person</u>&#148;
shall have the meaning given in Section&nbsp;3(a)(9)&nbsp;of the Exchange Act,
as modified and used in Sections 13(d)&nbsp;and 14(d)&nbsp;thereof, except that
such term shall not include (A)&nbsp;the Company or any of its subsidiaries, (B)&nbsp;a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or any of its Affiliates, (C)&nbsp;an underwriter temporarily
holding securities pursuant to an offering of such securities, or (D)&nbsp;a
corporation owned, directly or indirectly, by the stockholders of the Company
in substantially the same proportions as their ownership of stock of the
Company.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Section&nbsp;409A</u>&#148;
shall mean Section&nbsp;409A of the Code, the regulations and other binding
guidance promulgated thereunder.</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='9',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-01.htm',USER='105576',CD='Dec 30 06:53 2008' -->



<br clear="all" style="page-break-before:always;">
<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Separation
from Service</u>&#148; and &#147;Separate from Service&#148; shall mean the Executive&#146;s death,
retirement or other termination of employment with the Company and all of its
controlled group members within the meaning of Section&nbsp;409A of the
Code.&#160; For purposes hereof, the
determination of controlled group members shall be made pursuant to the
provisions of Section&nbsp;414(b)&nbsp;and 414(c)&nbsp;of the Code; provided
that the language &#147;at least 50 percent&#148; shall be used instead of &#147;at least 80
percent&#148; in each place it appears in Section&nbsp;1563(a)(1),(2)&nbsp;and (3)&nbsp;of
the Code and Treas. Reg. &#167; 1.414(c)-2; provided, further, where legitimate
business reasons exist (within the meaning of Treas. Reg. &#167; 1.409A-1(h)(3)),
the language &#147;at least 20 percent&#148; shall be used instead of &#147;at least 80
percent&#148; in each place it appears.&#160;
Whether Executive has a Separation from Service will be determined based
on all of the facts and circumstances and in accordance with the guidance
issued under Section&nbsp;409A of the Code.&#160;
Executive 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 period as provided by regulation.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Specified
Employee</u>&#148; means a key employee (as defined in Section&nbsp;416(i)&nbsp;of
the Code without regard to paragraph (5)&nbsp;thereof) of the Company as
determined in accordance with the regulations issued under Code Section&nbsp;409A
and the procedures established by the Company.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;409.</u>&#160;&#160; Each payment&#160;
under this Agreement is intended to be excepted from Section&nbsp;409A,
including, but not limited to, by compliance with the short-term deferral
exception as specified in Treas. Reg. &#167; 1.409A-1(b)(4), and the provisions of
this Agreement will be administered, interpreted and construed accordingly (or
disregarded to the extent such provision cannot be so administered,
interpreted, or construed).</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><em><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;">(i)</font></i></em><em><i><font size="1" face="Times New Roman" style="font-size:3.0pt;font-style:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i></em>Notwithstanding
any provision of this Agreement to the contrary, to the extent that a payment
hereunder is subject to Section&nbsp;409A (and not excepted therefrom) and
payable on account of a Separation from Service, such payment shall be delayed
for a period of six months after the Termination Date (or, if earlier, the
death of the Executive) if the Executive is a Specified Employee.&#160; 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.&#160;
W<em><i><font face="Times New Roman" style="font-style:normal;">ith
respect to payments subject to Section&nbsp;409A of the Code, the Company
reserves the right to accelerate and/or defer any payment to the extent
permitted and consistent with Section&nbsp;409A of the Code, the regulations
and other binding guidance promulgated thereunder.</font></i></em></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(ii)</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><em><b><i><font face="Times New Roman" style="font-weight:bold;">Notwithstanding any
provision of this Agreement to the contrary, Executive acknowledges and agrees
that the Company and its </font></i></b></em><b><i><font style="font-style:italic;font-weight:bold;">employees,
officers, directors, subsidiaries and </font><em><i><font face="Times New Roman">affiliates shall not be liable for, and
nothing provided or contained in this Agreement will be construed to obligate
or cause the Company and/or its </font></i></em>employees, officers,
directors, <em><i><font face="Times New Roman">affiliates and subsidiaries to be liable for, any tax, interest or
penalties imposed on Executive related to or arising with respect to any
violation of Section&nbsp;409A.</font></i></em></i></b></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='10',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-03.htm',USER='105576',CD='Dec 30 06:54 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Excise Tax
Reimbursement</u>.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If
any of the payments or benefits received or to be received by the Executive in
connection with a Change in Control or the Executive&#146;s Separation from Service,
whether pursuant to the terms of this Agreement or any other plan, arrangement
or agreement with the Company, any Person whose actions result in a Change in
Control or any Person affiliated with the Company or such Person (all such
payments and benefits, excluding the Gross-Up Payment, being hereinafter
referred to as the &#147;<u>Total Payments</u>&#148;) will be subject to the excise tax
(the &#147;<u>Excise Tax</u>&#148;) imposed under Section&nbsp;4999 of the Internal
Revenue Code of 1986, as amended (the &#147;<u>Code</u>&#148;), the Company shall pay to
the Executive an additional amount (the &#147;<u>Gross-Up Payment</u>&#148;) such that
the net amount retained by the Executive, after deduction of any Excise Tax on
the Total Payments and any federal, state and local income and employment taxes
and Excise Tax upon the Gross-Up Payment, shall be equal to the Total Payments.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For
purposes of determining whether any of the Total Payments will be subject to
the Excise Tax and the amount of such Excise Tax, (i)&nbsp;all of the Total
Payments shall be treated as &#147;parachute payments&#148; (within the meaning of Section&nbsp;280G(b)(2)&nbsp;of
the Code) unless, in the opinion of tax counsel (&#147;<u>Tax Counsel</u>&#148;)
reasonably acceptable to the Executive and selected by the accounting firm
which was, immediately prior to the Change in Control, the Company&#146;s
independent auditor (the &#147;<u>Auditor</u>&#148;), such payments or benefits (in whole
or in part) do not constitute parachute payments, including by reason of Section&nbsp;280G(b)(4)(A)&nbsp;of
the Code, (ii)&nbsp;all &#147;excess parachute payments&#148; within the meaning of Section&nbsp;280G(b)(1)&nbsp;of
the Code shall be treated as subject to the Excise Tax unless, in the opinion
of Tax Counsel, such excess parachute payments (in whole or in part) represent
reasonable compensation for services actually rendered (within the meaning of Section&nbsp;280G(b)(4)(B)&nbsp;of
the Code) in excess of the base amount (within the meaning of Section&nbsp;280G(b)(3)&nbsp;of
the Code) allocable to such reasonable compensation, or are otherwise not
subject to the Excise Tax, and (iii)&nbsp;the value of any noncash benefits or
any deferred payment or benefit shall be determined by the Auditor in
accordance with the principles of Sections 280G(d)(3)&nbsp;and (4)&nbsp;of the
Code.&#160; Subject to Section&nbsp;8(i)&nbsp;of
this Agreement, as applicable, if any Gross-Up Payment is required to be made,
the Company shall make the Gross-Up Payment within 30 days after the Company
has received the final determination, but in no event later than the end of the
Executive&#146;s taxable year following the Executive&#146;s taxable year in which the
Executive remits the related taxes.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In
the event that the Excise Tax is finally determined to be less than the amount
taken into account hereunder in calculating the Gross-Up Payment, the Executive
shall repay to the Company, within five (5)&nbsp;business days following the
time that the amount of such reduction in the Excise Tax is finally determined,
the portion of the Gross-Up Payment attributable to such reduction (plus that
portion of the Gross-Up Payment attributable to the Excise Tax and federal,
state and local income and employment taxes imposed on the Gross-Up Payment
being repaid by the Executive, to the extent that such repayment results in a
reduction in the Excise Tax and a dollar-for-dollar reduction in the Executive&#146;s
taxable income and wages for purposes of federal, state and local income and
employment taxes, plus interest on the amount of such repayment at 120% of the
rate provided in Section&nbsp;1274(b)(2)(B)&nbsp;of the Code.&#160; In the event that the Excise Tax is
determined to exceed the amount taken into account hereunder in calculating the
Gross-Up Payment (including by reason of any payment the existence or amount of
which cannot be determined at the time of the Gross-Up Payment), the </h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='11',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-03.htm',USER='105576',CD='Dec 30 06:54 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company shall make an additional Gross-Up Payment in respect of such
excess (plus any interest, penalties or additions payable by the Executive with
respect to such excess) within five (5)&nbsp;business days following the time
that the amount of such excess is finally determined.&#160; The Executive and the Company shall each
reasonably cooperate with the other in connection with any administrative or
judicial proceedings concerning the existence or amount of liability for Excise
Tax with respect to the Total Payments.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No Mitigation</u>.&#160; The Company agrees that, if the Executive&#146;s
employment with the Company terminates during the Term, the Executive is not required
to seek other employment or to attempt in any way to reduce any amounts payable
to the Executive by the Company hereunder.&#160;
Further, the amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as
the result of employment by another employer, by retirement benefits, by offset
against any amount claimed to be owed by the Executive to the Company, or
otherwise, except as specifically provided in this Agreement.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Non-competition/
Inventions/ Confidential Information</u>.&#160;
The Executive agrees that restrictions on his activities during and
after his employment are necessary to protect the goodwill, Confidential
Information and other legitimate interests of the Company and its Subsidiaries,
and that the agreed restrictions set forth below will not deprive the Executive
of the ability to earn a livelihood:</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Subject
to Section&nbsp;11(h)&nbsp;hereof, while the Executive is in the employment of
the Company and for a period of twenty four (24) months after a termination of
Executive&#146;s employment with the Company (the &#147;<u>Non-Competition Period</u>&#148;),
the Executive shall not, directly or indirectly, whether as owner, partner,
investor, consultant, agent, employee, co venturer or otherwise, engage in
Competitive Activity.&#160; For purposes of
this Agreement, &#147;<u>Competitive Activity</u>&#148; means any activity that is (i)&nbsp;directly
or indirectly competitive with the business of the Company or any of its
Subsidiaries, as conducted or which has been proposed by management to be
conducted within six (6)&nbsp;months prior to termination of the Executive&#146;s
employment and (ii)&nbsp;conducted in the geographic areas in which the Company
or any of its Subsidiaries operate on the Executive&#146;s Date of Termination.&#160; Competitive Activity also includes without
limitation accepting employment or a consulting position with any person who
is, or at any time within twelve (12) months prior to termination of the
Executive&#146;s employment has been, a licensee of the Company or any of its
Subsidiaries.&#160; For the purposes of this Section&nbsp;11,
the business of the Company and its Subsidiaries, as currently conducted,
consists of the generation, sale, supply or distribution of electricity.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Executive agrees that during the Non-Competition Period, the Executive will
not, either directly or through any agent or employee, Solicit any employee of
the Company or any of its Subsidiaries to terminate his or her relationship
with the Company or any of its Subsidiaries or to apply for or accept
employment with any enterprise engaged in Competitive Activity with the
Company, or Solicit any customer, supplier, licensee or vendor of the Company
or any of its Subsidiaries to terminate or materially modify its relationship
with them, or, in the case of a customer, to conduct with any person any
business or activity which such customer conducts or could conduct with the
Company or any of its Subsidiaries.</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='12',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-03.htm',USER='105576',CD='Dec 30 06:54 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Executive and the Company further agree that following any termination of the
Executive&#146;s employment, (i)&nbsp;the Executive shall not make statements or
representations, otherwise communicate, directly or indirectly, in writing,
orally, or otherwise, or take any action which may, directly, or indirectly,
disparage or be damaging to the Company or any if its Subsidiaries or
affiliates or their respective former or current officers, directors,
employees, advisors, businesses or reputations, (ii)&nbsp;the Company shall
instruct its Board members and senior management to not make statements or
representations, otherwise communicate, directly, or indirectly, in writing,
orally or otherwise, or take any action which may, directly, or indirectly,
disparage or be damaging to the Executive or his reputation.&#160; Nothing in this paragraph is intended to
undermine any obligations the Executive or the Company may have to comply with
applicable law, or prohibit the Executive or the Company from providing
truthful testimony or information pursuant to subpoena, court order, discovery
demand or similar legal process, or truthfully responding to lawful inquiries
by any governmental or regulatory entity.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Nothing
in this Agreement shall prevent the Executive, during the Non-Competition
Period and following termination of employment hereunder, from acquiring or
holding, solely as an investment, publicly traded securities of any competitor
corporation so long as such securities do not, in the aggregate, constitute
more than 3% of the outstanding voting securities of such corporation.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Executive
agrees that all inventions, improvements, discoveries, patents, trade concepts
and copyrightable materials made, conceived or developed by Executive during
the Term, in respect of the business of the Company, either singly or in
collaboration with others, shall be the sole and exclusive property of the
Company.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Executive acknowledges that the Company and its Subsidiaries continually
develop Confidential Information, that the Executive may develop Confidential
Information for the Company or its Subsidiaries and that the Executive may
learn of Confidential Information during the course of his employment under
this Agreement.&#160; The Executive will
comply with the policies and procedures of the Company and its Subsidiaries for
protecting Confidential Information and shall not disclose to any person
(except as required by applicable law or legal process or for the proper
performance of his duties and responsibilities to the Company and its
Subsidiaries, or in connection with any litigation between the Company and the
Executive (provided that the Company shall be afforded a reasonable opportunity
in each case to obtain a protective order)), or use for his own benefit or
gain, any Confidential Information obtained by the Executive incident to his
employment or other association with the Company or any of its
Subsidiaries.&#160; The Executive understands
that this restriction shall continue to apply after his employment terminates,
regardless of the reason for such termination.&#160;
All documents, records, tapes and other media of every kind and
description relating to the business, present or otherwise, of the Company or
its Subsidiaries and any copies, in whole or in part, thereof (the &#147;<u>Documents</u>&#148;),
whether or not prepared by the Executive, shall be the sole and exclusive
property of the Company and its Subsidiaries.&#160;
The Executive shall safeguard all Documents and shall surrender to the
Company at the time his employment terminates, or at such earlier time or times
as the Board or its designee may specify, all Documents then in the Executive&#146;s
possession or control.</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='13',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-03.htm',USER='105576',CD='Dec 30 06:54 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Without
limiting the foregoing, it is understood that the Company shall not be
obligated to make any of the payments or to provide for any of the benefits
specified in Section&nbsp;8 hereof in connection with the termination of
Executive&#146;s employment (other than by reason of death), and shall be entitled
to recoup the pro rata portion of any such payments and of the value of any
such benefits previously provided to the Executive in the event of a material
breach by the Executive of the provisions of this Section&nbsp;11 (such pro
ration to be determined as a fraction, the numerator of which is the number of
days from such breach to the second anniversary of the date on which the
Executive terminates employment and the denominator of which is 730), which
breach continues without having been cured within fifteen (15) days after
written notice to the Executive specifying the breach in reasonable detail.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Following
a Change in Control, the covenants contained in Section&nbsp;11(a)&nbsp;hereof
shall cease to apply.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Definitions</u>.&#160; For purposes of this Section&nbsp;11, the
following definitions shall apply:</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Confidential
Information</u>&#148; means any and all information of the Company and its
Subsidiaries that is not generally known by others with whom they compete or do
business, or with whom they plan to compete or do business and any and all
information not readily available to the public, which, if disclosed by the
Company or its Subsidiaries could reasonably be of benefit to such person or
business in competing with or doing business with the Company.&#160; Confidential Information includes without
limitation such information relating to (A)&nbsp;the development, research,
testing, manufacturing, store operational processes, marketing and financial
activities, including costs, profits and sales, of the Company and its
Subsidiaries, (B)&nbsp;the costs, sources of supply, financial performance and
strategic plans of the Company and its Subsidiaries, (C)&nbsp;the identity and
special needs of the customers and suppliers of the Company and its
Subsidiaries and (D)&nbsp;the people and organizations with whom the Company
and its Subsidiaries have business relationships and those relationships.&#160; Confidential Information also includes
comparable information that the Company or any of its Subsidiaries have
received belonging to others or which was received by the Company or any of its
Subsidiaries with an agreement by the Company that it would not be disclosed.&#160; Confidential Information does not include
information which (1)&nbsp;is or becomes available to the public generally
(other than as a result of a disclosure by the Executive), (2)&nbsp;was within
the Executive&#146;s possession prior to the date hereof or prior to its being
furnished to the Executive by or on behalf of the Company, provided that the
source of such information was not bound by a confidentiality agreement with or
other contractual, legal or fiduciary obligation of confidentiality to the
Company or any other party with respect to such information, (3)&nbsp;becomes
available to the Executive on a non confidential basis from a source other than
the Company, provided that such source is not bound by a confidentiality
agreement with or other contractual, legal or fiduciary obligation of
confidentiality to the Company or any other party with respect to such
information, or (4)&nbsp;was independently developed the Executive without
reference to the Confidential Information.</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='14',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-03.htm',USER='105576',CD='Dec 30 06:54 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Subsidiary</u>&#148;
means any corporation or other business organization of which the securities
having a majority of the normal voting power in electing the board of directors
or similar governing body of such entity are, at the time of determination,
owned by the Company directly or indirectly through one or more Subsidiaries.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Solicit</u>&#148;
means any direct or indirect communication of any kind whatsoever, regardless
of by whom initiated, inviting, advising, encouraging or requesting any person
or entity, in any manner, with respect to any action.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
provisions of this Section&nbsp;11 shall survive the expiration or termination
of the Term.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Successors; Binding
Agreement</u>.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place.&#160; As used in this Agreement, &#147;<u>Company</u>&#148;
shall mean the Company as hereinbefore defined and, except in determining under
Section&nbsp;8(h)&nbsp;hereof whether or not any Change in Control of the
Company has occurred, any successor to its business and/or assets as aforesaid
which executes and delivers the agreement provided for in this Section&nbsp;12
or which otherwise becomes bound by all the terms and provisions of this
Agreement by operation of law.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>This
Agreement and all rights of the Executive hereunder shall inure to the benefit
of and be enforceable by the Executive&#146;s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.&#160; If the Executive should die
while any amounts would still be payable to him hereunder if he had continued
to live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to the Executive&#146;s devisee,
legatee, or other designee or, if there be no such designee, to the Executive&#146;s
estate.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Notice</u>.&#160; For the purposes of this Agreement, notices,
demands and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given when delivered or (unless
otherwise specified) mailed by United States certified or registered mail,
return receipt requested, postage prepaid, addressed as follows:</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Executive:</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Paul T. Hanrahan</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27640 Villa Road</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Easton, MD 21601</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='15',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-03.htm',USER='105576',CD='Dec 30 06:54 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Company:</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The AES Corporation</font></p>

<p style="margin:0in 0in .0001pt 2.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4300 Wilson
Blvd</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Arlington, VA 22203</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn: Board of Directors</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or to such other address as any party may
have furnished to the other in writing in accordance herewith, except that
notices of change of address shall be effective only upon receipt.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Miscellaneous</u>.&#160; No provisions of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing signed by the Executive and such officer of the Company as
may be specifically designated by the Board.&#160;
If the Company determines in good faith, and after consultation with
Executive, that any amounts to be paid to Executive under this Agreement are
subject to Section&nbsp;409A, then the Company may, to the extent necessary,
adjust the form and/or the timing of such payments as determined to be
necessary or advisable to be in compliance with Section&nbsp;409A. The Company
and Executive acknowledge and agree to cooperate with each other, in good
faith, to modify or amend any provision of this Agreement to the extent
necessary or advisable to ensure that this Agreement complies with Section&nbsp;409A
(or an exception thereto) and that any payments or benefits under this
Agreement are not subject to tax, interest and penalties under Section&nbsp;409A.&#160;&#160; No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.&#160; No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not set forth expressly in this Agreement.&#160;
The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Delaware without regard
to its conflicts of law principles.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Validity</u>.&#160; The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain in
full force and effect.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Counterparts</u>.&#160; This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Injunctive Relief</u>.&#160; The Executive acknowledges that he has
carefully read and considered all the terms and conditions of this Agreement,
including the restraints imposed upon him pursuant to Section&nbsp;11
hereof.&#160; The Executive agrees that said
restraints are necessary for the reasonable and proper protection of the
Company and that each and every one of the restraints is reasonable in respect
to subject matter, length of time and geographic area.&#160; The Executive further acknowledges that, were
he to breach any of the covenants contained in Section&nbsp;11 hereof, the
damage to the Company would be irreparable.&#160;
The Executive therefore agrees that the Company, in addition to any
other remedies available to it, and notwithstanding any provision of this
Agreement to the contrary, shall be entitled to seek preliminary and permanent
injunctive relief against any breach or threatened breach by the Executive of
any of said covenants, without having to post bond.&#160; The parties further agree that, in the event
that any </h1>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='16',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-03.htm',USER='105576',CD='Dec 30 06:54 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">provisions of Section&nbsp;11
hereof shall be determined by any court of competent jurisdiction to be
unenforceable by reason of its being extended over too great a time, too large
a geographic area or too great a range of activities, such provision shall be
deemed to be modified to permit its enforcement to the maximum extent permitted
by law.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Resolution of
Disputes</u>.&#160; Any disputes arising under
or in connection with this Agreement shall be resolved by binding arbitration,
to be held in Arlington, Virginia in accordance with the rules&nbsp;and
procedures of the American Arbitration Association.&#160; Judgment upon the award rendered by the
arbitrator(s)&nbsp;may be entered in any court having jurisdiction
thereof.&#160; All costs and expenses of any
arbitration or court proceeding (including fees and disbursements of counsel)
shall be borne by the respective party incurring such costs and expenses;
provided, that the Company shall reimburse the Executive for such reasonable
costs and expenses in the event he substantially prevails in such arbitration
or court proceeding; and further provided, that if the events to which such
dispute relates occurred on or after a Change in Control, the Executive shall
be reimbursed by the Company for all such reasonable costs and expenses
incurred by the Executive in seeking good faith to enforce his rights
hereunder.&#160; Notwithstanding the
foregoing, the Company shall be entitled to seek equitable relief pursuant to Section&nbsp;17
hereof without otherwise waiving the right to exclusive arbitration of all
other disputes.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Release</u>.&#160; The Company shall not be required to make any
payment pursuant to Section&nbsp;8 hereof in connection with the termination of
Executive&#146;s employment (other than by reason of death) unless and until the
Executive executes a standard form of release, provided by the Company, within
forty-five (45) days after the Date of Termination, and does not revoke such
release within the seven-day revocation period.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Entire Agreement</u>.&#160; This Agreement sets forth the entire
agreement of the parties hereto in respect of the subject matter contained herein
and supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto; and any prior
agreement of the parties hereto in respect of the subject matter contained
herein is hereby terminated and canceled.&#160;
In the event of any inconsistency between any provision of this
Agreement and any provision applicable to the Executive in any plan, program,
policy or other agreement of the Company, the provisions of this Agreement
shall control to the extent that such provisions of this Agreement are more
favorable to the Executive.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties
have executed this Agreement as of the Effective Date.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXECUTIVE</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THE AES CORPORATION</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:46.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:45.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/Paul T. Hanrahan</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Jay L. Kloosterboer</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Paul T. Hanrahan</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jay L. Kloosterboer, Executive Vice</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.26%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President, Business Excellence</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='17',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mo-03.htm',USER='105576',CD='Dec 30 06:54 2008' -->


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>a08-27657_2ex99d2.htm
<DESCRIPTION>EX-99.2
<TEXT>

<html>

<head>





</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.2</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">AMENDED&nbsp;&amp;
RESTATED EMPLOYMENT AGREEMENT</font></u></b></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-transform:uppercase;"><font face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This AMENDED&nbsp;&amp;
RESTATED EMPLOYMENT AGREEMENT (&#147;<u>Agreement</u>&#148;) is made as of this 29th<sup>th</sup>
day of December&nbsp;2008 (the &#147;<u>Effective Date</u>&#148;), between The AES
Corporation, a Delaware corporation (the &#147;<u>Company</u>&#148;), and Victoria Harker
(the &#147;<u>Executive</u>&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Executive is
currently employed by the Company in the position of Executive Vice President
and Chief Financial Officer pursuant to the terms and conditions set forth in
that certain Employment Agreement dated as of January&nbsp;23, 2006 (&#147;Employment
Agreement&#148;); and</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Company and the
Executive desire to amend and restate the Employment Agreement and to continue
the employment of the Executive with the Company pursuant to the terms and
conditions set forth in this Agreement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in
consideration of the premises and the respective covenants and agreements of
the parties herein contained, and intending to be legally bound hereby, the
parties hereto agree as follows:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Employment</u>.&#160; The Company hereby agrees to continue to
employ the Executive, and the Executive hereby agrees to continue to serve the
Company, on the terms and conditions set forth herein.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Term</u>.&#160; The term of this Agreement (the &#147;<u>Term</u>&#148;)
shall commence as of the Effective Date and shall end on December&nbsp;31,
2008, <i>provided, however</i>, that commencing on January&nbsp;1,
2009, and on each subsequent January&nbsp;1 (each such January&nbsp;1, a &#147;<u>Renewal
Date</u>&#148;), the Term shall automatically be extended for one (1)&nbsp;additional
year unless, not later than the date which is six (6)&nbsp;months prior to such
Renewal Date, the Company or the Executive shall have given written notice not
to extend the Term for such one (1)&nbsp;additional year; and further,
provided, that if a Change in Control (as hereinafter defined) occurs during
the Term, the Term shall not end prior to the second anniversary of such Change
in Control.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Position and
Duties</u>.&#160; The Executive shall serve as
Executive Vice President and Chief Financial Officer of the Company and shall
have such responsibilities, duties and authorities consistent with such
position as may from time to time be assigned to the Executive by the Chief
Executive Officer of the Company (the &#147;<u>CEO</u>&#148;).&#160; The Executive shall report to the CEO.&#160; The Executive shall devote substantially all
of her working time and efforts to the business and affairs of the Company; <i>provided however</i>, that the Executive will be permitted to
serve as a director to other for profit and not for profit organizations and
corporations so long as (a)&nbsp;such service does not materially interfere
with the performance of her obligations hereunder, (b)&nbsp;such organizations
and corporations are not competitive in any business area in which the Company
is engaged during the employment period and (c)&nbsp;such service, if first
assumed after the Effective Date, is approved by the Board of Directors of the
Company (the &#147;<u>Board</u>&#148;) prior to the commencement of such service.&#160; A list of each such entity on the Effective
Date is set forth on Exhibit&nbsp;A hereof and the Executive agrees to update
such list as appropriate.</h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\jms\105579\08-27657-2\task3284472\27657-2-mq-01.htm',USER='105579',CD='Dec 31 02:05 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Place of
Performance</u>.&#160; In connection with the
Executive&#146;s employment by the Company, the Executive shall initially perform
her duties and conduct her business, and her initial principal place of
employment shall be, at the Executive&#146;s principal place of employment
immediately prior to the Effective Date, except for required travel on the
Company&#146;s business.&#160; From and after the
Effective Date, and prior to the occurrence of a Change in Control (as defined
in Section&nbsp;8(h)&nbsp;hereof), the Company shall have the ability,
consistent with its overall business needs, to change the Executive&#146;s principal
place of employment.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Compensation
and Related Matters</u>.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Salary</u>.&#160; During the period of the Executive&#146;s
employment hereunder, the Company shall pay to the Executive an annual base
salary at a rate of $585,000, which salary shall be reviewed annually by the
Board (or a committee thereof) for possible increase but not decrease; <i>provided however</i>, that once the Executive&#146;s annual base
salary is increased, it may not thereafter be decreased during the Term, as
such Term may be extended pursuant to the terms hereof (such salary, as it may
be increased, the &#147;<u>Base Salary</u>&#148;).&#160;
The Base Salary shall be paid in substantially equal installments, no
less frequently than monthly, in accordance with the Company&#146;s standard payroll
practices.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Annual
Bonuses</u>.&#160; With respect to each fiscal
year of the Company during the Term, the Executive shall be eligible to receive
an annual bonus with a target of 100% of her Base Salary, payable based on the
achievement of corporate performance goals and/or other conditions that are
established by the Compensation Committee of the Board and which are generally
applicable with respect to annual bonuses for other senior executive officers
of the Company in accordance with the terms of The AES Corporation Performance
Incentive Plan, or any successor plan.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Long-Term
Compensation</u>.&#160; The Executive shall be
eligible to participate in all of the Company&#146;s long term cash and equity award
and equity based grant programs applicable to other senior executive officers
of the Company, in accordance with the terms and conditions of such plans.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Other
Benefits</u>.&#160; The Executive shall be
eligible to participate in all employee benefit plans and arrangements of the
Company applicable to other senior executive officers (including, without
limitation, medical, dental, vision, hospitalization, life insurance, short
term disability, long term disability, accidental death and dismemberment
protection, travel accident insurance plans, fringe benefits and perquisites).</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Vacations</u>.&#160; The Executive shall be entitled to four (4)&nbsp;weeks
of vacation in each calendar year.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Expenses</u>.&#160; During the term of the Executive&#146;s employment
hereunder, the Executive shall be entitled to receive prompt reimbursement for
all reasonable and customary expenses incurred by the Executive in performing
services hereunder, subject to submission of appropriate documentation in
accordance with Company policy and procedure.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Indemnification</u>.&#160; The Company agrees that if the Executive is
made a party, or is threatened to be made a party, to any action, suit or
proceeding, whether civil, </h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='2',FILE='C:\jms\105579\08-27657-2\task3284472\27657-2-mq-01.htm',USER='105579',CD='Dec 31 02:05 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">criminal, administrative or investigative (a &#147;<u>Proceeding</u>&#148;), by
reason of the fact that she is or was a director or employee of the Company or
is or was serving at the request of the Company as a director, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, including service with respect to employee benefit plans, whether
or not the basis of such Proceeding is the Executive&#146;s alleged action in an
official capacity while serving as a director, employee or agent, the Executive
shall be indemnified and held harmless by the Company to the fullest extent
legally permitted or authorized by the Company&#146;s certificate of incorporation
or bylaws or resolutions of the Company&#146;s Board of Directors or, if greater, by
the laws of the State of Delaware against all cost, expense, liability and loss
(including, without limitation, attorney&#146;s fees, judgments, fines, excise taxes
or penalties and amounts paid or to be paid in settlement) reasonably incurred
or suffered by the Executive in connection therewith, and such indemnification
shall continue as to the Executive even if she has ceased to be a director,
employee or agent of the Company or other entity and shall inure to the benefit
of the Executive&#146;s heirs, executors and administrators.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Directorships/Other
Offices</u>.&#160; The Executive agrees to
serve without additional compensation, if elected or appointed thereto, as a
director of any of the Company&#146;s subsidiaries and in one or more executive
offices of any of the Company&#146;s subsidiaries, provided that the Executive is
indemnified for serving in any and all such capacities on a basis no less
favorable than is from time to time provided by the Company or any of its
subsidiaries to its other directors and senior executive officers.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination</u>.&#160; Subject to the provisions of this Agreement,
the Executive&#146;s employment hereunder may be terminated under the following
circumstances:</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Death</u>.&#160; The Executive&#146;s employment shall terminate
upon her death.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Disability</u>.&#160; If, the Executive is unable, due to physical
or mental incapacity, to substantially perform her full time duties and
responsibilities under this Agreement for a period of six (6)&nbsp;consecutive
months (as determined by a medical doctor selected by Company and Executive)
the Company may terminate the Executive&#146;s employment for &#147;<u>Disability</u>&#148;.&#160; If the parties cannot agree on a medical
doctor for purposes of such determination of Disability, each party shall
select a medical doctor and the two doctors shall select a third who shall be
the approved medical doctor for this purpose.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination
by the Company/Cause</u>.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company may involuntarily terminate the Executive&#146;s employment (A)&nbsp;for
Cause or (B)&nbsp;without Cause.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For
purposes of this Agreement, &#147;<u>Cause</u>&#148; shall mean (A)&nbsp;the willful and
continued failure by the Executive to substantially perform her duties with the
Company (other than any such failure resulting from the Executive&#146;s
incapability due to physical or mental illness or any such actual or
anticipated failure after the issuance of a Notice of Termination by the
Executive for Good Reason), after demand for substantial performance is
delivered by the Company that specifically identifies in reasonable detail </h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='3',FILE='C:\jms\105579\08-27657-2\task3284472\27657-2-mq-01.htm',USER='105579',CD='Dec 31 02:05 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the manner in which the Company believes that the Executive has not
substantially performed her duties, or (B)&nbsp;the willful engaging by the
Executive in misconduct which is demonstrably and materially injurious to the
Company, monetarily or otherwise (including, but not limited to, conduct that
constitutes a violation of Section&nbsp;11 hereof).&#160; No act, or failure to act, on the Executive&#146;s
part shall be considered &#147;willful&#148; unless done, or omitted to be done, by her
not in good faith and without reasonable belief that her action or omission was
in the best interest of the Company.&#160;
Notwithstanding the foregoing, the Executive shall not be deemed to have
been terminated for Cause without (1)&nbsp;reasonable notice from the Board to
Executive setting forth in reasonable detail the reasons for Company&#146;s
intention to terminate for Cause and (2)&nbsp;delivery to the Executive of a
Notice of Termination, which shall include a resolution duly adopted by the
affirmative vote of two thirds or more of the Board then in office at a meeting
of the Board called and held for such purpose, and at which the Executive,
together with her counsel, is given an opportunity to be heard, finding that in
the good faith opinion of the Board, the Executive was guilty of the conduct
set forth in this section and specifying the particulars thereof in detail.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination
by the Executive</u>.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Executive may terminate her employment for (A)&nbsp;Good Reason or (B)&nbsp;without
Good Reason.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For
purposes of this Agreement, &#147;<u>Good Reason</u>&#148; shall mean, without the Executive&#146;s
written consent, any material breach of this Agreement by the Company which is
not cured within the Notice Period (as defined below).&#160; A material breach of this Agreement shall
include, but not be limited to: (A)&nbsp;the failure by the Company to have any
successor to all or substantially all of the business and/or assets of the
Company expressly assume and agree to perform this Agreement in accordance with
Section&nbsp;12 hereof, (B)&nbsp;the Company requiring the Executive to report
to any person other than the CEO, (C)&nbsp;following a Change in Control, the
relocation of the Executive&#146;s principal place of employment to a site outside
of the metropolitan area of the Executive&#146;s previous principal place of
employment, (D)&nbsp;following a Change in Control, any material adverse change
in the Executive&#146;s overall responsibilities, duties and authorities from those
in place immediately prior to such Change in Control, provided that the fact
that the Executive continues to report to the CEO following a Change in Control
will not preclude the Executive from claiming that a material adverse change in
the Executive&#146;s overall responsibilities, duties and authorities has occurred,
and (E)&nbsp;following a Change in Control, the failure by the Company to
continue the Executive&#146;s participation in a long-term cash or equity award or
equity-based grant program (or in a comparable substitute program) on a basis
not materially less favorable than that provided to the Executive immediately
prior to such Change in Control.&#160; For
purposes of any determination regarding the existence of Good Reason following
a Change in Control, any good faith claim by the Executive that Good Reason
exists shall be presumed to be correct unless the Company establishes by clear
and convincing evidence that Good Reason does not exist.&#160; In order for Executive to terminate for Good
Reason, (i)&nbsp;Executive must notify the Board, in writing, within ninety
(90) days of the event constituting Good Reason of Executive&#146;s intent to
terminate employment for Good Reason, that specifically identifies </h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='4',FILE='C:\jms\105579\08-27657-2\task3284472\27657-2-mq-01.htm',USER='105579',CD='Dec 31 02:05 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">in reasonable detail the manner in which the Executive believes that
the Company has materially breached this Agreement, (ii)&nbsp;the event must
remain uncorrected for thirty (30) days following the date that Executive
notifies the Board in writing of Executive&#146;s intent to terminate employment for
Good Reason (the &#147;<u>Notice Period</u>&#148;), and (iii)&nbsp;the termination date
must occur within sixty (60) days after the expiration of the Notice Period.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Notice
of Termination</u>.&#160; Any termination of
the Executive&#146;s employment by the Company or by the Executive (other than a
termination by reason of death) shall be communicated by written Notice of
Termination to the other party hereto in accordance with Section&nbsp;13
hereof.&#160; For purposes of this Agreement,
a &#147;<u>Notice of Termination</u>&#148; shall mean a notice which shall indicate the
specific termination provision in this Agreement relied upon and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive&#146;s employment under the provision so
indicated.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Date
of Termination</u>.&#160; &#147;<u>Date of
Termination</u>&#148; shall mean (i)&nbsp;if the Executive&#146;s employment is
terminated by her death, the date of her death, (ii)&nbsp;if the Executive&#146;s
employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that the Executive shall not have returned to
the full time performance of the Executive&#146;s duties during such thirty (30) day
period), and (ii)&nbsp;if the Executive&#146;s employment is terminated for any
other reason, the date specified in the Notice of Termination (which, in the
case of a termination by the Company, shall not be less than thirty (30) days
(except in the case of a termination for Cause) and, in the case of a
termination by the Executive, shall not be less than fifteen (15) days nor more
than sixty (60) days, respectively, from the date such Notice of Termination is
given).</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Compensation
Upon Certain Separation from Service Events</u>.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Any
Termination of Employment</u>.&#160; Subject
to Section&nbsp;19 hereof, if the Executive Separates from Service for any
reason, in addition to any amounts and benefits provided pursuant to the
remainder of this Section&nbsp;8, the Company shall pay or provide to the
Executive (i)&nbsp;any fully earned but unpaid bonus for completed periods,
subject to any deferral election that the Executive has made with respect to
such amounts, (ii)&nbsp;any expense reimbursements owed to the Executive by the
Company and (iii)&nbsp;all compensation and benefits that are due to the
Executive under the terms of the Company&#146;s compensation and benefit plans,
programs and arrangements in accordance with the terms of such plans, programs
and arrangements.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Disability</u>.&#160; Subject to Section&nbsp;19 hereof, if the
Executive Separates from Service by reason of the Executive&#146;s Disability, then (i)&nbsp;the
Executive shall receive disability benefits in accordance with the terms of the
long-term disability program then in effect for senior executives of the Company,
(ii)&nbsp;the Company shall pay to the Executive her Base Salary through the
Termination Date or, if earlier, the end of the month immediately preceding the
month in which such disability benefits commence and (iii)&nbsp;the Company
shall pay to the Executive, to the extent earned and at the time bonuses are
customarily paid to senior executive officers in accordance with the terms of
The AES Corporation Performance Incentive Plan (or any successor plan), a bonus
for the year in which such Separation from Service occurs equal to the
Executive&#146;s annual bonus for such year, as described in Section&nbsp;5(b)&nbsp;hereof,
multiplied by a </h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='5',FILE='C:\jms\105579\08-27657-2\task3284472\27657-2-mq-01.htm',USER='105579',CD='Dec 31 02:05 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">fraction, the numerator of which is the number of days during such year
that the Executive was employed by the Company and the denominator of which is
365 (the &#147;<u>Pro Rata Bonus</u>&#148;).</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Death</u>.&#160; If the Executive Separates from Service by
reason of the Executive&#146;s death, then (i)&nbsp;the Company shall pay to her
legal representative the Executive&#146;s Base Salary through the Date of
Termination (the &#147;<u>Earned Salary</u>&#148;) and (ii)&nbsp;the Company shall pay to
the Executive&#146;s legal representative the Pro Rata Bonus.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>By
the Company for Cause</u>.&#160; Subject to Section&nbsp;19
hereof, if the Executive Separates from Service on account of an involuntary
termination by the Company for Cause, then the Company shall pay to the
Executive the Earned Salary.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>By
the Company other than for Disability or Cause; By the Executive for Good
Reason</u>.&#160; Subject to Section&nbsp;19
hereof, if the Executive Separates from Service on account of any involuntary
termination by the Company other than for Disability or Cause, or the Executive
shall Separate from Service for Good Reason, then:</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company shall pay to the Executive the Earned Salary;</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company shall pay to the Executive the Pro Rata Bonus;</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>except
as provided in paragraph (g)&nbsp;below, the Company shall pay to the
Executive, within ten (10)&nbsp;days following the Date of Termination (or, if
later, the date the Executive has provided a release in accordance with the
provisions of Section&nbsp;19), a cash lump sum equal to the product of (A)&nbsp;one
(1)&nbsp;and (B)&nbsp;the sum of (1)&nbsp;the annual Base Salary rate in effect
for the Executive immediately preceding the Date of Termination, disregarding
any reduction in annual Base Salary which constitutes Good Reason hereunder,
and (2)&nbsp;the Executive&#146;s target bonus for the year in which the Date of
Termination occurs;</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if
the Executive elects COBRA Continuation Coverage, for the twelve (12) month
period immediately following the Date of Termination, the Executive shall
continue to participate in all medical, dental and hospitalization insurance
plans she was participating on the Date of Termination. During the applicable
period of coverage described in the foregoing sentences, Executive shall be
entitled to benefits on substantially the same basis and cost as would have
otherwise been provided had Executive not Separated from Service.&#160; To the extent that such benefits are
available under the above-referenced Benefit Plans and Executive had such
coverage immediately prior to termination of employment, such continuation of
benefits for Executive shall also cover Executive&#146;s dependents for so long as
Executive is receiving benefits under this paragraph (iv).&#160; The COBRA Continuation Period for medical and
dental insurance under this paragraph (iv)&nbsp;shall be deemed to run
concurrent with the continuation period federally mandated by COBRA, or any
other legally mandated and applicable federal, state, or local coverage period
for benefits provided to terminated employees under the health care plan.&#160; For purposes of this Agreement, (1)&nbsp;&#147;COBRA&#148;
means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended,
and (2)&nbsp;&#147;COBRA </h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='6',FILE='C:\jms\105579\08-27657-2\task3284472\27657-2-mq-01.htm',USER='105579',CD='Dec 31 02:05 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Continuation Period&#148; shall mean the continuation period for medical and
dental insurance to be provided under the terms of this Agreement which shall
commence on the first day of the calendar month following the month in which
the date of termination falls and generally shall continue for an 18 month
period.&#160;&#160; Benefits or payments otherwise
receivable by the Executive pursuant to this Section&nbsp;8(e)(iv)&nbsp;shall
be reduced to the extent that similar benefits are received by or made available
to the Executive by a subsequent employer during the twelve (12) month period
following the Date of Termination (and any such benefits received by or made
available to the Executive shall be reported to the Company by the Executive).</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Upon
Termination of Employment by the Executive Other Than for Good Reason or Other
Than by Reason of Death</u>.&#160; Subject to Section&nbsp;19
hereof, if the Executive voluntarily Separates from Service other than a
Separation from Service for Good Reason or on account of her death, then the
Company shall pay to the Executive the Earned Salary.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Change
in Control</u>.&#160; Subject to Section&nbsp;19
hereof, if the Executive Separates from Service on account of any involuntary
termination by the Company other than for Cause or Disability, or if the
Executive shall Separate from Service for Good Reason, in either case within
two (2)&nbsp;years following a Change in Control, then (i)&nbsp;the Executive
shall receive the payments and benefits set forth in Section&nbsp;8(e)&nbsp;above,
except that the one (1)&nbsp;times multiplier set forth in Section&nbsp;8(e)(iii)&nbsp;shall
be increased to two (2).</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Definitions</u>.&#160; For purposes of this Agreement, the following
terms shall have the following meanings:</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Change
in Control</u>&#148; shall mean the occurrence of any one of the following events:</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company (not including in the securities beneficially owned
by such Person any securities acquired directly from the Company or its
Affiliates) representing 30% or more of the combined voting power of the
Company&#146;s then outstanding securities, excluding any Person who becomes such a
Beneficial Owner in connection with a transaction described in clause (1)&nbsp;of
paragraph (C)&nbsp;below; or</h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
following individuals cease for any reason to constitute a majority of the
number of directors then serving: individuals who, on the date hereof,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of directors of the Company) whose appointment or election by the
Board or nomination for election by the Company&#146;s stockholders was approved or
recommended by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors on the date hereof or whose appointment, </h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='7',FILE='C:\jms\105579\08-27657-2\task3284472\27657-2-mq-01.htm',USER='105579',CD='Dec 31 02:05 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">election or nomination
for election was previously so approved or recommended; or</font></h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(C)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there
is consummated a merger or consolidation of the Company or any direct or
indirect subsidiary of the Company with any other corporation, other than (1)&nbsp;a
merger or consolidation immediately following which the individuals who
comprise the Board immediately prior thereto constitute at least a majority of
the board of directors of the Company, the entity surviving such merger or
consolidation or any parent thereof, or (2)&nbsp;a merger or consolidation effected
to implement a recapitalization of the Company (or similar transaction) in
which no Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company (not including in the securities Beneficially Owned
by such Person any securities acquired directly from the Company or its
Affiliates) representing 30% or more of the combined voting power of the
Company&#146;s then outstanding securities; or</h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(D)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
stockholders of the Company approve a plan of complete liquidation or dissolution
of the Company or there is consummated an agreement for the sale or disposition
by the Company of all or substantially all of the Company&#146;s assets, other than
a sale or disposition by the Company of all or substantially all of the Company&#146;s
assets immediately following which the individuals who comprise the Board
immediately prior thereto constitute at least a majority of the board of
directors of the entity to which such assets are sold or disposed or any parent
thereof.</h4>

<h4 style="font-weight:normal;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding the foregoing, a &#147;Change in
Control&#148; shall not be deemed to have occurred by virtue of the consummation of
any transaction or series of integrated transactions immediately following
which the record holders of the common stock of the Company immediately prior
to such transaction or series of transactions continue to have substantially
the same proportionate ownership in an entity which owns all or substantially
all of the assets of the Company immediately following such transaction or
series of transactions.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Affiliate</u>&#148;
shall have the meaning set forth in Rule&nbsp;12b-2 promulgated under Section&nbsp;12
of the Exchange Act.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Beneficial
Owner</u>&#148; shall have the meaning used in Rule&nbsp;13d-3 promulgated under the
Exchange Act.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Exchange
Act</u>&#148; shall mean the Securities Exchange Act of 1934, as amended.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Person</u>&#148;
shall have the meaning given in Section&nbsp;3(a)(9)&nbsp;of the Exchange Act,
as modified and used in Sections 13(d)&nbsp;and 14(d)&nbsp;thereof, except that
such term shall not include (A)&nbsp;the Company or any of its subsidiaries, (B)&nbsp;a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or any of its Affiliates, (C)&nbsp;an underwriter temporarily
holding securities pursuant to an offering of such securities, or (D)&nbsp;a
corporation owned, directly or indirectly, by the stockholders </h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='8',FILE='C:\jms\105579\08-27657-2\task3284472\27657-2-mq-01.htm',USER='105579',CD='Dec 31 02:05 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of the Company in substantially the same proportions as their ownership
of stock of the Company.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Section&nbsp;409A</u>&#148;
shall mean Section&nbsp;409A of the Code, the regulations and other binding
guidance promulgated thereunder.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Separation
from Service</u>&#148; and &#147;Separate from Service&#148; shall mean the Executive&#146;s death,
retirement or other termination of employment with the Company and all of its
controlled group members within the meaning of Section&nbsp;409A of the
Code.&#160; For purposes hereof, the
determination of controlled group members shall be made pursuant to the
provisions of Section&nbsp;414(b)&nbsp;and 414(c)&nbsp;of the Code; provided
that the language &#147;at least 50 percent&#148; shall be used instead of &#147;at least 80
percent&#148; in each place it appears in Section&nbsp;1563(a)(1),(2)&nbsp;and (3)&nbsp;of
the Code and Treas. Reg. &#167; 1.414(c)-2; provided, further, where legitimate
business reasons exist (within the meaning of Treas. Reg. &#167; 1.409A-1(h)(3)),
the language &#147;at least 20 percent&#148; shall be used instead of &#147;at least 80
percent&#148; in each place it appears.&#160;
Whether Executive has a Separation from Service will be determined based
on all of the facts and circumstances and in accordance with the guidance issued
under Section&nbsp;409A of the Code.&#160;
Executive 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 period as provided by regulation.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Specified
Employee</u>&#148; means a key employee (as defined in Section&nbsp;416(i)&nbsp;of
the Code without regard to paragraph (5)&nbsp;thereof) of the Company as
determined in accordance with the regulations issued under Code Section&nbsp;409A
and the procedures established by the Company.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Section&nbsp;409.</u>&#160;&#160; Each payment&#160;
under this Agreement is intended to be excepted from Section&nbsp;409A,
including, but not limited to, by compliance with the short-term deferral
exception as specified in Treas. Reg. &#167; 1.409A-1(b)(4), and the provisions of
this Agreement will be administered, interpreted and construed accordingly (or
disregarded to the extent such provision cannot be so administered,
interpreted, or construed).</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><em><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;">(i)</font></i></em><em><i><font size="1" face="Times New Roman" style="font-size:3.0pt;font-style:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i></em>Notwithstanding
any provision of this Agreement to the contrary, to the extent that a payment
hereunder is subject to Section&nbsp;409A (and not excepted therefrom) and
payable on account of a Separation from Service, such payment shall be delayed
for a period of six months after the Termination Date (or, if earlier, the
death of the Executive) if the Executive is a Specified Employee.&#160; 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.&#160;
W<em><i><font face="Times New Roman" style="font-style:normal;">ith
respect to payments subject to Section&nbsp;409A of the Code, the Company
reserves the right to accelerate and/or defer any payment to the extent
permitted and consistent with Section&nbsp;409A of the Code, the regulations
and other binding guidance promulgated thereunder.</font></i></em></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='9',FILE='C:\jms\105579\08-27657-2\task3284472\27657-2-mq-01.htm',USER='105579',CD='Dec 31 02:05 2008' -->



<br clear="all" style="page-break-before:always;">
<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><em><b><i><font face="Times New Roman" style="font-weight:bold;">Notwithstanding any
provision of this Agreement to the contrary, Executive acknowledges and agrees
that the Company and its </font></i></b></em><b><i><font style="font-style:italic;font-weight:bold;">employees,
officers, directors, subsidiaries and </font><em><i><font face="Times New Roman">affiliates shall not be liable for, and
nothing provided or contained in this Agreement will be construed to obligate
or cause the Company and/or its </font></i></em>employees, officers,
directors, <em><i><font face="Times New Roman">affiliates and subsidiaries to be liable for, any tax, interest or
penalties imposed on Executive related to or arising with respect to any
violation of Section&nbsp;409A.</font></i></em></i></b></h3>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Excise Tax
Reimbursement</u>.</h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If
any of the payments or benefits received or to be received by the Executive in
connection with a Change in Control or the Executive&#146;s Separation from Service,
whether pursuant to the terms of this Agreement or any other plan, arrangement
or agreement with the Company, any Person whose actions result in a Change in
Control or any Person affiliated with the Company or such Person (all such
payments and benefits, excluding the Gross-Up Payment, being hereinafter
referred to as the &#147;<u>Total Payments</u>&#148;) will be subject to the excise tax
(the &#147;<u>Excise Tax</u>&#148;) imposed under Section&nbsp;4999 of the Internal
Revenue Code of 1986, as amended (the &#147;<u>Code</u>&#148;), the Company shall pay to
the Executive an additional amount (the &#147;<u>Gross-Up Payment</u>&#148;) such that
the net amount retained by the Executive, after deduction of any Excise Tax on
the Total Payments and any federal, state and local income and employment taxes
and Excise Tax upon the Gross-Up Payment, shall be equal to the Total Payments.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For
purposes of determining whether any of the Total Payments will be subject to
the Excise Tax and the amount of such Excise Tax, (i)&nbsp;all of the Total
Payments shall be treated as &#147;parachute payments&#148; (within the meaning of Section&nbsp;280G(b)(2)&nbsp;of
the Code) unless, in the opinion of tax counsel (&#147;<u>Tax Counsel</u>&#148;)
reasonably acceptable to the Executive and selected by the accounting firm
which was, immediately prior to the Change in Control, the Company&#146;s
independent auditor (the &#147;<u>Auditor</u>&#148;), such payments or benefits (in whole
or in part) do not constitute parachute payments, including by reason of Section&nbsp;280G(b)(4)(A)&nbsp;of
the Code, (ii)&nbsp;all &#147;excess parachute payments&#148; within the meaning of Section&nbsp;280G(b)(1)&nbsp;of
the Code shall be treated as subject to the Excise Tax unless, in the opinion
of Tax Counsel, such excess parachute payments (in whole or in part) represent
reasonable compensation for services actually rendered (within the meaning of Section&nbsp;280G(b)(4)(B)&nbsp;of
the Code) in excess of&#160; the base amount
(within the meaning of Section&nbsp;280G(b)(3)&nbsp;of the Code) allocable to
such reasonable compensation, or are otherwise not subject to the Excise Tax,
and (iii)&nbsp;the value of any noncash benefits or any deferred payment or
benefit shall be determined by the Auditor in accordance with the principles of
Sections 280G(d)(3)&nbsp;and (4)&nbsp;of the Code.&#160; Any determination by the Auditor and/or Tax
Counsel shall be binding upon the Company and Executive.&#160;&#160;&#160; Subject to Section&nbsp;8(i)&nbsp;of this
Agreement, as applicable, if any Gross-Up Payment is required to be made, the
Company shall make the Gross-Up Payment within 30 days after the Company has
received the final determination, but in no event later than the end of the
Executive&#146;s taxable year following the Executive&#146;s taxable year in which the
Executive remits the related taxes.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In
the event that the Excise Tax is finally determined to be less than the amount
taken into account hereunder in calculating the Gross-Up Payment, the Executive
shall repay to the Company, within five (5)&nbsp;business days following the
time that the amount of such reduction in the Excise Tax is finally determined,
the portion of the Gross-Up </h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='10',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mq-03.htm',USER='105576',CD='Dec 30 06:55 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Payment attributable to such reduction (plus that portion of the
Gross-Up Payment attributable to the Excise Tax and federal, state and local
income and employment taxes imposed on the Gross-Up Payment being repaid by the
Executive), to the extent that such repayment results in a reduction in the
Excise Tax and a dollar-for-dollar reduction in the Executive&#146;s taxable income
and wages for purposes of federal, state and local income and employment taxes,
plus interest on the amount of such repayment at 120% of the rate provided in Section&nbsp;1274(b)(2)(B)&nbsp;of
the Code.&#160; In the event that the Excise
Tax is determined to exceed the amount taken into account hereunder in
calculating the Gross-Up Payment (including by reason of any payment the
existence or amount of which cannot be determined at the time of the Gross-Up
Payment), the Company shall make an additional Gross-Up Payment in respect of
such excess (plus any interest, penalties or additions payable by the Executive
with respect to such excess) within five (5)&nbsp;business days following the
time that the amount of such excess is finally determined.&#160; The Executive and the Company shall each
reasonably cooperate with the other in connection with any administrative or
judicial proceedings concerning the existence or amount of liability for Excise
Tax with respect to the Total Payments.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Executive shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Company
of the Gross-Up Payment.&#160; Such
notification shall be given as soon as practicable but no later than five (5)&nbsp;business
days after the Executive is informed in writing of such claim and shall apprise
the Company of the nature of such claim and the date on which such claim is
requested to be paid.&#160; The Executive
shall not pay such claim prior to the expiration of the thirty (30) calendar
day period following the date on which the Executive gives such notice to the
Company (or such shorter period ending on the date that any payment of taxes
with respect to such claim is due).&#160; If
the Company notifies the Executive in writing prior to the expiration of such
period that it desires to contest such claim, the Executive shall permit the
Company to participate in any proceedings relating to such claim.&#160; Without limitation on the foregoing provisions
of this Section&nbsp;9(d), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forego any
and all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; <i>provided however</i>, that if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall
advance the amount of such payment to the Executive, on an interest free basis
and shall indemnify and hold the Executive harmless, on an after tax basis,
from any Excise Tax or income tax (including interest or penalties with respect
thereto) imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and further provided that any extension of
the statute of limitations relating to payment of taxes for the taxable year of
the Executive with respect to which such contested amount is claimed to be due
is limited solely to such contested amount.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No Mitigation</u>.&#160; The Company agrees that, if the Executive&#146;s
employment with the Company terminates during the Term, the Executive is not
required to seek other employment or to attempt in any way to reduce any
amounts payable to the Executive by the Company hereunder.&#160; Further, the amount of any payment or benefit
provided for in this </h1>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='11',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mq-03.htm',USER='105576',CD='Dec 30 06:55 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement shall not be reduced
by any compensation earned by the Executive as the result of employment by
another employer, by retirement benefits, by offset against any amount claimed
to be owed by the Executive to the Company, or otherwise, except as
specifically provided in this Agreement.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Non competition/
Inventions/ Confidential Information</u>.&#160;
The Executive agrees that restrictions on her activities during and
after her employment are necessary to protect the goodwill, Confidential
Information and other legitimate interests of the Company and its Subsidiaries,
and that the agreed restrictions set forth below will not deprive the Executive
of the ability to earn a livelihood:</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Subject
to Section&nbsp;11(h)&nbsp;hereof, while the Executive is in the employment of
the Company and for a period of twelve (12) months after a termination of
Executive&#146;s employment with the Company (the &#147;<u>Non-Competition Period</u>&#148;),
the Executive shall not, directly or indirectly, whether as owner, partner,
investor, consultant, agent, employee, co venturer or otherwise, engage in
Competitive Activity.&#160; For purposes of
this Agreement, &#147;<u>Competitive Activity</u>&#148; means any activity that is (i)&nbsp;directly
or indirectly competitive with the business of the Company or any of its
Subsidiaries, as conducted or which has been proposed by management to be
conducted within six (6)&nbsp;months prior to termination of the Executive&#146;s
employment and (ii)&nbsp;conducted in the geographic areas in which the Company
or any of its Subsidiaries operate on the Executive&#146;s Date of Termination.&#160; Competitive Activity also includes without
limitation accepting employment or a consulting position with any person who
is, or at any time within twelve (12) months prior to termination of the
Executive&#146;s employment has been, a licensee of the Company or any of its Subsidiaries.&#160; For the purposes of this Section&nbsp;11, the
business of the Company and its Subsidiaries, as currently conducted, consists
of the generation, sale, supply or distribution of electricity.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Executive agrees that during the Non Competition Period, the Executive will
not, either directly or through any agent or employee, Solicit any employee of
the Company or any of its Subsidiaries to terminate her or her relationship
with the Company or any of its Subsidiaries or to apply for or accept employment
with any enterprise engaged in Competitive Activity with the Company, or
Solicit any customer, supplier, licensee or vendor of the Company or any of its
Subsidiaries to terminate or materially modify its relationship with them, or,
in the case of a customer, to conduct with any person any business or activity
which such customer conducts or could conduct with the Company or any of its
Subsidiaries.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Executive and the Company further agree that following any termination of the
Executive&#146;s employment, (i)&nbsp;the Executive shall not make statements or
representations, otherwise communicate, directly or indirectly, in writing,
orally, or otherwise, or take any action which may, directly, or indirectly,
disparage or be damaging to the Company or any if its Subsidiaries or
affiliates or their respective former or current officers, directors,
employees, advisors, businesses or reputations, (ii)&nbsp;the Company shall
instruct its Board members and senior management to not make statements or
representations, otherwise communicate, directly, or indirectly, in writing,
orally or otherwise, or take any action which may, directly, or indirectly,
disparage or be damaging to the Executive or her reputation.&#160; Nothing in this paragraph is intended to
undermine any obligations the Executive or the Company may have to comply with
applicable law, or prohibit the Executive or the Company </h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='12',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mq-03.htm',USER='105576',CD='Dec 30 06:55 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">from providing truthful testimony or information pursuant to subpoena,
court order, discovery demand or similar legal process, or truthfully
responding to lawful inquiries by any governmental or regulatory entity.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Nothing
in this Agreement shall prevent the Executive, during the Non Competition
Period and following termination of employment hereunder, from acquiring or
holding, solely as an investment, publicly traded securities of any competitor
corporation so long as such securities do not, in the aggregate, constitute
more than 3% of the outstanding voting securities of such corporation.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Executive
agrees that all inventions, improvements, discoveries, patents, trade concepts
and copyrightable materials made, conceived or developed by Executive during
the Term, in respect of the business of the Company, either singly or in
collaboration with others, shall be the sole and exclusive property of the
Company.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Executive acknowledges that the Company and its Subsidiaries continually
develop Confidential Information, that the Executive may develop Confidential
Information for the Company or its Subsidiaries and that the Executive may
learn of Confidential Information during the course of her employment under
this Agreement.&#160; The Executive will
comply with the policies and procedures of the Company and its Subsidiaries for
protecting Confidential Information and shall not disclose to any person
(except as required by applicable law or legal process or for the proper
performance of her duties and responsibilities to the Company and its
Subsidiaries, or in connection with any litigation between the Company and the
Executive (provided that the Company shall be afforded a reasonable opportunity
in each case to obtain a protective order)), or use for her own benefit or
gain, any Confidential Information obtained by the Executive incident to her
employment or other association with the Company or any of its
Subsidiaries.&#160; The Executive understands
that this restriction shall continue to apply after her employment terminates,
regardless of the reason for such termination.&#160;
All documents, records, tapes and other media of every kind and
description relating to the business, present or otherwise, of the Company or
its Subsidiaries and any copies, in whole or in part, thereof (the &#147;<u>Documents</u>&#148;),
whether or not prepared by the Executive, shall be the sole and exclusive
property of the Company and its Subsidiaries.&#160;
The Executive shall safeguard all Documents and shall surrender to the
Company at the time her employment terminates, or at such earlier time or times
as the Board or its designee may specify, all Documents then in the Executive&#146;s
possession or control.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Without
limiting the foregoing, it is understood that the Company shall not be
obligated to make any of the payments or to provide for any of the benefits
specified in Section&nbsp;8 hereof in connection with the termination of
Executive&#146;s employment (other than by reason of death), and shall be entitled
to recoup the pro rata portion of any such payments and of the value of any
such benefits previously provided to the Executive in the event of a material
breach by the Executive of the provisions of this Section&nbsp;11 (such pro
ration to be determined as a fraction, the numerator of which is the number of
days from such breach to the first anniversary of the date on which the
Executive terminates employment and the denominator of which is 365), which
breach continues without having been cured within fifteen (15) days after
written notice to the Executive specifying the breach in reasonable detail.</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='13',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mq-03.htm',USER='105576',CD='Dec 30 06:55 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Following
a Change in Control, the covenants contained in Section&nbsp;11(a)&nbsp;hereof
shall cease to apply.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Definitions</u>.&#160; For purposes of this Section&nbsp;11, the
following definitions shall apply:</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Confidential
Information</u>&#148; means any and all information of the Company and its
Subsidiaries that is not generally known by others with whom they compete or do
business, or with whom they plan to compete or do business and any and all
information not readily available to the public, which, if disclosed by the
Company or its Subsidiaries could reasonably be of benefit to such person or
business in competing with or doing business with the Company.&#160; Confidential Information includes without
limitation such information relating to (A)&nbsp;the development, research, testing,
manufacturing, store operational processes, marketing and financial activities,
including costs, profits and sales, of the Company and its Subsidiaries, (B)&nbsp;the
costs, sources of supply, financial performance and strategic plans of the
Company and its Subsidiaries, (C)&nbsp;the identity and special needs of the
customers and suppliers of the Company and its Subsidiaries and (D)&nbsp;the
people and organizations with whom the Company and its Subsidiaries have
business relationships and those relationships.&#160;
Confidential Information also includes comparable information that the
Company or any of its Subsidiaries have received belonging to others or which
was received by the Company or any of its Subsidiaries with an agreement by the
Company that it would not be disclosed.&#160;
Confidential Information does not include information which (1)&nbsp;is
or becomes available to the public generally (other than as a result of a
disclosure by the Executive), (2)&nbsp;was within the Executive&#146;s possession
prior to the date hereof or prior to its being furnished to the Executive by or
on behalf of the Company, provided that the source of such information was not
bound by a confidentiality agreement with or other contractual, legal or
fiduciary obligation of confidentiality to the Company or any other party with
respect to such information, (3)&nbsp;becomes available to the Executive on a
non confidential basis from a source other than the Company, provided that such
source is not bound by a confidentiality agreement with or other contractual, legal
or fiduciary obligation of confidentiality to the Company or any other party
with respect to such information, or (4)&nbsp;was independently developed the
Executive without reference to the Confidential Information.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Subsidiary</u>&#148;
means any corporation or other business organization of which the securities
having a majority of the normal voting power in electing the board of directors
or similar governing body of such entity are, at the time of determination,
owned by the Company directly or indirectly through one or more Subsidiaries.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h3 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>Solicit</u>&#148;
means any direct or indirect communication of any kind whatsoever, regardless
of by whom initiated, inviting, advising, encouraging or requesting any person
or entity, in any manner, with respect to any action.</h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman">&nbsp;</font></h3>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
provisions of this Section&nbsp;11 shall survive the expiration or termination
of the Term.</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='14',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mq-03.htm',USER='105576',CD='Dec 30 06:55 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Successors;
Binding, Agreement</u>.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required
to perform it if no such succession had taken place.&#160; As used in this Agreement, &#147;<u>Company</u>&#148;
shall mean the Company as hereinbefore defined and, except in determining under
Section&nbsp;8(h)&nbsp;hereof whether or not any Change in Control of the
Company has occurred, any successor to its business and/or assets as aforesaid
which executes and delivers the agreement provided for in this Section&nbsp;12
or which otherwise becomes bound by all the terms and provisions of this
Agreement by operation of law.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>This
Agreement and all rights of the Executive hereunder shall inure to the benefit
of and be enforceable by the Executive&#146;s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.&#160; If the Executive should die
while any amounts would still be payable to her hereunder if she had continued
to live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to the Executive&#146;s devisee,
legatee, or other designee or, if there be no such designee, to the Executive&#146;s
estate.</h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Notice</u>.&#160; For the purposes of this Agreement, notices,
demands and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given when delivered or (unless
otherwise specified) mailed by United States certified or registered mail,
return receipt requested, postage prepaid, addressed as follows:</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Executive:</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Victoria Harker</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1127 Rector Lane</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">McLean, VA 22102</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 2.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Company:</font></p>

<p style="margin:0in 0in .0001pt 2.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The AES
Corporation</font></p>

<p style="margin:0in 0in .0001pt 2.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4300 Wilson
Blvd</font></p>

<p style="margin:0in 0in .0001pt 2.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Arlington, VA
22203</font></p>

<p style="margin:0in 0in .0001pt 2.0in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn: Board of
Directors</font></p>

<p style="margin:0in 0in .0001pt 2.0in;page-break-after:avoid;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or to such other address as any party may
have furnished to the other in writing in accordance herewith, except that
notices of change of address shall be effective only upon receipt.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Miscellaneous</u>.&#160; No provisions of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing signed by the Executive and such officer of the Company as
may be specifically designated by the Board.&#160;
If the Company determines in good faith, and after consultation with
Executive, that any amounts to be paid to Executive under this Agreement are
subject to Section&nbsp;409A, then the Company may, to the extent necessary,
adjust the form and/or the timing of such payments as determined to be
necessary or advisable to be in compliance with Section&nbsp;409A. The Company </h1>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='15',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mq-03.htm',USER='105576',CD='Dec 30 06:55 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and Executive acknowledge and
agree to cooperate with each other, in good faith, to modify or amend any
provision of this Agreement to the extent necessary or advisable to ensure that
this Agreement complies with Section&nbsp;409A (or an exception thereto) and
that any payments or benefits under this Agreement are not subject to tax,
interest and penalties under Section&nbsp;409A.&#160;
No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.&#160; No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth
expressly in this Agreement.&#160; The
validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of the State of Delaware without regard to its conflicts
of law principles.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Validity</u>.&#160; The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain in
full force and effect.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Counterparts</u>.&#160; This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Injunctive Relief</u>.&#160; The Executive acknowledges that she has
carefully read and considered all the terms and conditions of this Agreement,
including the restraints imposed upon her pursuant to Section&nbsp;11
hereof.&#160; The Executive agrees that said
restraints are necessary for the reasonable and proper protection of the
Company and that each and every one of the restraints is reasonable in respect
to subject matter, length of time and geographic area.&#160; The Executive further acknowledges that, were
she to breach any of the covenants contained in Section&nbsp;11 hereof, the
damage to the Company would be irreparable.&#160;
The Executive therefore agrees that the Company, in addition to any
other remedies available to it, and notwithstanding any provision of this
Agreement to the contrary, shall be entitled to seek preliminary and permanent
injunctive relief against any breach or threatened breach by the Executive of
any of said covenants, without having to post bond.&#160; The parties further agree that, in the event
that any provisions of Section&nbsp;11 hereof shall be determined by any court
of competent jurisdiction to be unenforceable by reason of its being extended
over too great a time, too large a geographic area or too great a range of
activities, such provision shall be deemed to be modified to permit its
enforcement to the maximum extent permitted by law.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Resolution of
Disputes</u>.&#160; Any disputes arising under
or in connection with this Agreement shall be resolved by binding arbitration,
to be held in Arlington, Virginia in accordance with the rules&nbsp;and
procedures of the American Arbitration Association.&#160; Judgment upon the award rendered by the
arbitrator(s)&nbsp;may be entered in any court having jurisdiction
thereof.&#160; All costs and expenses of any
arbitration or court proceeding (including fees and disbursements of counsel)
shall be borne by the respective party incurring such costs and expenses; <u>provided</u>,
that the Company shall reimburse the Executive for such reasonable costs and
expenses in the event she substantially prevails in such&#160; arbitration or court proceeding; and further
provided, that if the events to which such dispute relates occurred on or after
a Change in Control, the Executive shall be reimbursed by the Company for all
such reasonable costs and </h1>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='16',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mq-03.htm',USER='105576',CD='Dec 30 06:55 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">expenses incurred by the
Executive in seeking good faith to enforce her rights hereunder.&#160; Notwithstanding the foregoing, the Company
shall be entitled to seek equitable relief pursuant to Section&nbsp;17 hereof
without otherwise waiving the right to exclusive arbitration of all other
disputes.</font></h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Release</u>.&#160; The Company shall not be required to make any
payment pursuant to Section&nbsp;8 hereof in connection with the termination of
Executive&#146;s employment (other than by reason of death) unless and until the
Executive executes a standard form of release, provided by the Company, within
forty-five (45) days after the Date of Termination, and does not revoke such
release within the seven-day revocation period.</h1>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></h1>

<h1 style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Entire Agreement</u>.&#160; This Agreement sets forth the entire
agreement of the parties hereto in respect of the subject matter contained
herein and supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto; and any prior agreement
of the parties hereto in respect of the subject matter contained herein is
hereby terminated and canceled.&#160; In the
event of any inconsistency between any provision of this Agreement and any
provision applicable to the Executive in any plan, program, policy or other
agreement of the Company, the provisions of this Agreement shall control to the
extent that such provisions of this Agreement are more favorable to the
Executive.</h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties
have executed this Agreement as of the Effective Date.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXECUTIVE</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:49.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THE AES CORPORATION</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:49.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:49.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Victoria Harker</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="46%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;/s/ Jay L. Kloosterboer</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:46.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Victoria Harker</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jay L. Kloosterboer, Executive Vice</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President, Business
  Excellence</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='17',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mq-03.htm',USER='105576',CD='Dec 30 06:55 2008' -->


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>a08-27657_2ex99d3.htm
<DESCRIPTION>EX-99.3
<TEXT>

<html>

<head>





</head>

<body lang="EN-US">

<div>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.3</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;text-decoration:underline;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMPLOYMENT
AGREEMENT</font></u></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AGREEMENT made as of this 29th day of December&nbsp;2008
(the &#147;Effective Date&#148;), between The AES Corporation, a Delaware corporation
(the &#147;<u>Company</u>&#148;), and Andres Gluski (the &#147;<u>Executive</u>&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Executive is currently employed
by the Company in the position of Chief Operating Officer and the Company
wishes to ensure the continued employment of the Executive with the Company;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the parties desire to enter into
this agreement setting forth the terms and conditions of the continuing
employment relationship of the Executive with the Company (this &#147;Agreement&#148;);</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the
premises and the respective covenants and agreements of the parties herein
contained, and intending to be legally bound hereby, the parties hereto agree
as follows:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Employment</u>.&#160; The Company hereby agrees to continue to
employ the Executive, and the Executive hereby agrees to continue to serve the
Company, on the terms and conditions set forth herein.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Term</u>.&#160; The term of this Agreement (the &#147;Term&#148;) shall
commence as of the Effective Date and shall end on December&nbsp;31, 2008, <i>provided, however</i>, that commencing on January&nbsp;1,
2009, and on each subsequent January&nbsp;1 (each such January&nbsp;1, a &#147;<u>Renewal
Date</u>&#148;), the Term shall automatically be extended for one (1)&nbsp;additional
year unless, not later than the date which is six (6)&nbsp;months prior to such
Renewal Date, the Company or the Executive shall have given written notice not
to extend the Term for such one (1)&nbsp;additional year; and further,
provided, that if a Change in Control (as hereinafter defined) occurs during
the Term, the Term shall not end prior to the second anniversary of such Change
in Control.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Position and Duties</u>.&#160; The Executive shall serve as Chief Operating
Officer of the Company and shall have such responsibilities, duties and
authorities consistent with such position as may from time to time be assigned
to the Executive by the Chief Executive Officer of the Company (the &#147;CEO&#148;).&#160; The Executive shall report to the CEO.&#160; The Executive shall devote substantially all
of his working time and efforts to the business and affairs of the Company; <i>provided, however</i>, that the Executive will
be permitted to serve as a director to other for-profit and not-for-profit
organizations and corporations so long as (a)&nbsp;such service does not
materially interfere with the performance of his obligations hereunder, (b)&nbsp;such
organizations and corporations are not competitive in any business area in
which the Company is engaged during the employment period and (c)&nbsp;such
service, if first assumed after the Effective Date, is approved by the Board of
Directors of the Company (the &#147;Board&#148;) prior to the commencement of such
service.&#160; A list of each such entity on
the Effective Date is set forth on Exhibit&nbsp;A hereof and the Executive
agrees to update such list as appropriate.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105733\08-27657-2\task3284422\27657-2-mm-01.htm',USER='105733',CD='Dec 31 01:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Place
of Performance</u>.&#160; In connection with
the Executive&#146;s employment by the Company, the Executive shall initially
perform his duties and conduct his business, and his initial principal place of
employment shall be, at the Executive&#146;s principal place of employment
immediately prior to the Effective Date, except for required travel on the
Company&#146;s business.&#160; From and after the
Effective Date, and prior to the occurrence of a Change in Control (as defined
in Section&nbsp;8(h)&nbsp;hereof), the Company shall have the ability,
consistent with its overall business needs, to change the Executive&#146;s principal
place of employment.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Compensation
and Related Matters</u>.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Salary</u>.&#160; During the period of the Executive&#146;s
employment hereunder, the Company shall pay to the Executive an annual base
salary at a rate of $660,000, which salary shall be reviewed annually by the
Board (or a committee thereof) for possible increase but not decrease; <i>provided, however</i>, that once the Executive&#146;s
annual base salary is increased, it may not thereafter be decreased during the
Term, as such Term may be extended pursuant to the terms hereof (such salary,
as it may be increased, the &#147;<u>Base Salary</u>&#148;).&#160; The Base Salary shall be paid in
substantially equal installments, no less frequently than monthly, in
accordance with the Company&#146;s standard payroll practices.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Annual
Bonuses</u>.&#160; With respect to each fiscal
year of the Company during the Term, the Executive shall be eligible to receive
an annual bonus with a target of 100% of his Base Salary, payable based on the
achievement of corporate performance goals and/or other conditions that are
established by the Compensation Committee of the Board and which are generally
applicable with respect to annual bonuses for other senior executive officers
of the Company, in accordance with the terms of The AES Corporation Performance
Incentive Plan, or any successor plan.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Long-Term
Compensation</u>.&#160; The Executive shall be
eligible to participate in all of the Company&#146;s long-term cash and equity award
and equity-based grant programs applicable to other senior executive officers
of the Company, in accordance with the terms and conditions of such plans.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Other
Benefits</u>.&#160; The Executive shall be
eligible to participate in all employee benefit plans and arrangements of the
Company applicable to other senior executive officers (including, without
limitation, medical, dental, vision, hospitalization, life insurance,
short-term disability, long-term disability, accidental death and dismemberment
protection, travel accident insurance plans, fringe benefits and perquisites).</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Vacations</u>.&#160; The Executive shall be entitled to four (4)&nbsp;weeks
of vacation in each calendar year.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Expenses</u>.&#160; During the term of the Executive&#146;s employment
hereunder, the Executive shall be entitled to receive prompt reimbursement for
all reasonable and customary expenses incurred by the Executive in performing
services </font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">2</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\105733\08-27657-2\task3284422\27657-2-mm-01.htm',USER='105733',CD='Dec 31 01:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">hereunder, subject to submission of
appropriate documentation in accordance with Company policy and procedure.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Indemnification</u>.&#160; The Company agrees that if the Executive is
made a party, or is threatened to be made a party, to any action, suit or
proceeding, whether civil, criminal, administrative or investigative (a &#147;<u>Proceeding</u>&#148;),
by reason of the fact that he is or was a director or employee of the Company
or is or was serving at the request of the Company as a director, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, including service with respect to employee benefit plans, whether
or not the basis of such Proceeding is the Executive&#146;s alleged action in an
official capacity while serving as a director, employee or agent, the Executive
shall be indemnified and held harmless by the Company to the fullest extent
legally permitted or authorized by the Company&#146;s certificate of incorporation
or bylaws or resolutions of the Company&#146;s Board of Directors or, if greater, by
the laws of the State of Delaware against all cost, expense, liability and loss
(including, without limitation, attorney&#146;s fees, judgments, fines, excise taxes
or penalties and amounts paid or to be paid in settlement) reasonably incurred
or suffered by the Executive in connection therewith, and such indemnification
shall continue as to the Executive even if he has ceased to be a director,
employee or agent of the Company or other entity and shall inure to the benefit
of the Executive&#146;s heirs, executors and administrators.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Directorships/Other
Offices</u>.&#160; The Executive agrees to
serve without additional compensation, if elected or appointed thereto, as a
director of any of the Company&#146;s subsidiaries and in one or more executive offices
of any of the Company&#146;s subsidiaries, provided that the Executive is
indemnified for serving in any and all such capacities on a basis no less
favorable than is from time to time provided by the Company or any of its
subsidiaries to its other directors and senior executive officers.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination</u>.&#160; Subject to the provisions of this Agreement,
the Executive&#146;s employment hereunder may be terminated under the following
circumstances:</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(a)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">Death</font></u><font color="black" style="color:windowtext;">.&#160;
The Executive&#146;s employment shall terminate upon his death.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(b)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">Disability.&#160; If, the Executive is unable, due to physical
or mental incapacity, to substantially perform his full time duties and
responsibilities under this Agreement for a period of six (6)&nbsp;consecutive
months (as determined by a medical doctor selected by Company and Executive)
the Company may terminate the Executive&#146;s employment for &#147;<u>Disability</u>&#148;.&#160; If the parties cannot agree on a medical
doctor for purposes of such determination of Disability, each party shall
select a medical doctor and the two doctors shall select a third who shall be
the approved medical doctor for this purpose.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(c)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">Termination by the Company/Cause</font></u><font color="black" style="color:windowtext;">.</font></p>

<p style="color:black;margin:0in 0in .0001pt;page-break-after:avoid;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company may involuntarily
terminate the Executive&#146;s employment (A)&nbsp;for Cause or (B)&nbsp;without
Cause.</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">3</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\105733\08-27657-2\task3284422\27657-2-mm-01.htm',USER='105733',CD='Dec 31 01:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For purposes of this Agreement, &#147;<u>Cause</u>&#148;
shall mean (A)&nbsp;the willful and continued failure by the Executive to
substantially perform his duties with the Company (other than any such failure
resulting from the Executive&#146;s incapability due to physical or mental illness
or any such actual or anticipated failure after the issuance of a Notice of
Termination by the Executive for Good Reason), after demand for substantial
performance is delivered by the Company that specifically identifies in
reasonable detail the manner in which the Company believes that the Executive
has not substantially performed his duties, or (B)&nbsp;the willful engaging by
the Executive in misconduct which is demonstrably and materially injurious to
the Company, monetarily or otherwise (including, but not limited to, conduct
that constitutes a violation of Section&nbsp;11 hereof).&#160; No act, or failure to act, on the Executive&#146;s
part shall be considered &#147;willful&#148; unless done, or omitted to be done, by him
not in good faith and without reasonable belief that his action or omission was
in the best interest of the Company.&#160;
Notwithstanding the foregoing, the Executive shall not be deemed to have
been terminated for Cause without (1)&nbsp;reasonable notice from the Board to
Executive setting forth in reasonable detail the reasons for Company&#146;s
intention to terminate for Cause and (2)&nbsp;delivery to the Executive of a
Notice of Termination, which shall include a resolution duly adopted by the
affirmative vote of two-thirds or more of the Board then in office at a meeting
of the Board called and held for such purpose, and at which the Executive,
together with his counsel, is given an opportunity to be heard, finding that in
the good faith opinion of the Board, the Executive was guilty of the conduct
set forth in this section and specifying the particulars thereof in detail.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(d)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">Termination by the Executive</font></u><font color="black" style="color:windowtext;">.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Executive may terminate his
employment for (A)&nbsp;Good Reason or (B)&nbsp;without Good Reason.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For purposes of this Agreement, &#147;<u>Good
Reason</u>&#148; shall mean, without the Executive&#146;s written consent, any material
breach of this Agreement by the Company which is not cured within the <u>Notice
Period</u> (as defined below).&#160; A
material breach of this Agreement shall include, but not be limited to: (A)&nbsp;the
failure by the Company to have any successor to all or substantially all of the
business and/or assets of the Company expressly assume and agree to perform
this Agreement in accordance with Section&nbsp;12 hereof, (B)&nbsp;the Company
requiring the Executive to report to any person other than the CEO, (C)&nbsp;following
a Change in Control, the relocation of the Executive&#146;s principal place of
employment to a site outside of the metropolitan area of the Executive&#146;s
previous principal place of employment, (D)&nbsp;following a Change in Control,
any material adverse change in the Executive&#146;s overall responsibilities, duties
and authorities from those in place immediately prior to such Change in
Control, provided that the fact that the Executive continues to report to the
CEO following a Change in Control will not preclude the Executive from claiming
that a material adverse change in the Executive&#146;s overall responsibilities,
duties and authorities has occurred, and (E)&nbsp;following a Change in
Control, the failure by the Company </font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">4</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\105733\08-27657-2\task3284422\27657-2-mm-01.htm',USER='105733',CD='Dec 31 01:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">to continue the Executive&#146;s participation in
a long-term cash or equity award or equity-based grant program (or in a
comparable substitute program) on a basis not materially less favorable than that
provided to the Executive immediately prior to such Change in Control.&#160; For purposes of any determination regarding
the existence of Good Reason following a Change in Control, any good faith
claim by the Executive that Good Reason exists shall be presumed to be correct
unless the Company establishes by clear and convincing evidence that Good
Reason does not exist.&#160; In order for
Executive to terminate for Good Reason, (i)&nbsp;Executive must notify the
Board, in writing, within ninety (90) days of the event constituting Good
Reason of Executive&#146;s intent to terminate employment for Good Reason, that
specifically identifies in reasonable detail the manner in which the Executive
believes that the Company has materially breached this Agreement, (ii)&nbsp;the
event must remain uncorrected for thirty (30) days following the date that
Executive notifies the Board in writing of Executive&#146;s intent to terminate
employment for Good Reason (the &#147;<u>Notice Period</u>&#148;), and (iii)&nbsp;the
termination date must occur within sixty (60) days after the expiration of the
Notice Period.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Notice
of Termination</u>.&#160; Any termination of
the Executive&#146;s employment by the Company or by the Executive (other than a
termination by reason of death) shall be communicated by written Notice of
Termination to the other party hereto in accordance with Section&nbsp;13
hereof.&#160; For purposes of this Agreement,
a &#147;<u>Notice of Termination</u>&#148; shall mean a notice which shall indicate the
specific termination provision in this Agreement relied upon and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive&#146;s employment under the provision so
indicated.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Date
of Termination</u>.&#160; &#147;<u>Date of
Termination</u>&#148; shall mean (i)&nbsp;if the Executive&#146;s employment is
terminated by his death, the date of his death, (ii)&nbsp;if the Executive&#146;s
employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that the Executive shall not have returned to
the full-time performance of the Executive&#146;s duties during such thirty (30) day
period), and (ii)&nbsp;if the Executive&#146;s employment is terminated for any
other reason, the date specified in the Notice of Termination (which, in the
case of a termination by the Company, shall not be less than thirty (30) days
(except in the case of a termination for Cause) and, in the case of a
termination by the Executive, shall not be less than fifteen (15) days nor more
than sixty (60) days, respectively, from the date such Notice of Termination is
given).</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Compensation
Upon Certain Separation from Service Events</u>.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Any
Termination of Employment</u>.&#160; Subject
to Section&nbsp;19 hereof, if the Executive Separates from Service for any
reason, in addition to any amounts and benefits provided pursuant to the
remainder of this Section&nbsp;8, the Company shall pay or provide to the
Executive (i)&nbsp;any fully earned but unpaid bonus for completed periods,
subject to any deferral election that the Executive has made with respect to
such amounts, (ii)&nbsp;any expense reimbursements owed to the Executive by the
Company, and (iii)&nbsp;all compensation and benefits that are due to the
Executive under the terms of the </font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">5</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\105733\08-27657-2\task3284422\27657-2-mm-01.htm',USER='105733',CD='Dec 31 01:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Company&#146;s compensation and benefit plans,
programs and arrangements in accordance with the terms of such plans, programs
and arrangements.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(b)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">Disability</font></u><font color="black" style="color:windowtext;">.&#160;
Subject to Section&nbsp;19 hereof, if the Executive Separates from
Service by reason of the Executive&#146;s Disability, then (i)&nbsp;the Executive
shall receive disability benefits in accordance with the terms of the long-term
disability program then in effect for senior executives of the Company, (ii)&nbsp;the
Company shall pay to the Executive his Base Salary through the Termination
Date, or if earlier, the end of the month immediately preceding the month in
which such disability benefits commence and (iii)&nbsp;the Company shall pay to
the Executive, to the extent earned and at the time bonuses are customarily
paid to senior executive officers in accordance with the terms of The AES
Corporation Performance Incentive Plan (or any successor plan), a bonus for the
year in which such Separation from Service occurs equal to the Executive&#146;s
annual bonus for such year, as described in Section&nbsp;5(b)&nbsp;hereof,
multiplied by a fraction, the numerator of which is the number of days during
such year that the Executive was employed by the Company and the denominator of
which is 365 (the &#147;<u>Pro Rata Bonus</u>&#148;).</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(c)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">Death</font></u><font color="black" style="color:windowtext;">.&#160;
If the Executive Separates from Service by reason of the Executive&#146;s
death, then (i)&nbsp;the Company shall pay to his legal representative the
Executive&#146;s Base Salary through the Date of Termination (the &#147;<u>Earned Salary</u>&#148;)
and (ii)&nbsp;the Company shall pay to the Executive&#146;s legal representative the
Pro Rata Bonus.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(d)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">By the Company for Cause</font></u><font color="black" style="color:windowtext;">.&#160;
Subject to Section&nbsp;19 hereof, if the Executive Separates from
Service on account of an involuntary termination by the Company for Cause, then
the Company shall pay to the Executive the Earned Salary.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(e)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">By the Company other than for
Disability or Cause; By the Executive for Good Reason</font></u><font color="black" style="color:windowtext;">.&#160;
Subject to Section&nbsp;19 hereof, if the Executive Separates from
Service on account of any involuntary termination by the Company other than for
Disability or Cause, or the Executive shall Separate from Service for Good
Reason, then:</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Company shall pay to the
Executive the Earned Salary;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Company shall pay to the
Executive the Pro Rata Bonus;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; except as provided in paragraph (g)&nbsp;below,
the Company shall pay to the Executive, within ten (10)&nbsp;days following the
Date of Termination (or, if later, the date the Executive has provided a
release in accordance with the provisions of Section&nbsp;19), a cash lump sum
equal to the product of (A)&nbsp;one (1)&nbsp;and (B)&nbsp;the sum of (1)&nbsp;the
annual Base Salary rate in effect for the Executive immediately preceding the
Date of Termination, disregarding any reduction in annual Base Salary which
constitutes Good Reason hereunder, and (2)&nbsp;the Executive&#146;s target bonus
for the year in which the Date of Termination occurs;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">6</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='6',FILE='C:\JMS\105733\08-27657-2\task3284422\27657-2-mm-01.htm',USER='105733',CD='Dec 31 01:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; if the Executive elects COBRA
Continuation Coverage for the twelve (12) month period immediately following
the Date of Termination, the Executive shall continue to participate in all
medical, dental, and hospitalization insurance plans he was participating on
the Date of Termination.&#160; During the
applicable period of coverage described in the foregoing sentences, Executive
shall be entitled to benefits on substantially the same basis and cost as would
have otherwise been provided had Executive not Separated from Service.&#160; To the extent that such benefits are
available under the above-referenced Benefit Plans and Executive had such
coverage immediately prior to termination of employment, such continuation of
benefits for Executive shall also cover Executive&#146;s dependents for so long as
Executive is receiving benefits under this paragraph (iv).&#160; The COBRA Continuation Period for medical and
dental insurance under this paragraph (iv)&nbsp;shall be deemed to run
concurrent with the continuation period federally mandated by COBRA, or any
other legally mandated and applicable federal, state, or local coverage period
for benefits provided to terminated employees under the health care plan.&#160; For purposes of this Agreement, (1)&nbsp;&#147;COBRA&#148;
means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended,
and (2)&nbsp;&#147;COBRA Continuation Period&#148; shall mean the continuation period for
medical and dental insurance to be provided under the terms of this Agreement
which shall commence on the first day of the calendar month following the month
in which the date of termination falls and generally shall continue for an 18
month period.&#160; Benefits or payments
otherwise receivable by the Executive pursuant to this Section&nbsp;8(e)(iv)&nbsp;shall
be reduced to the extent that similar benefits are received by or made
available to the Executive by a subsequent employer during the twelve (12)
month period following the Date of Termination (and any such benefits received
by or made available to the Executive shall be reported to the Company by the
Executive).</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(f)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">Upon Termination of Employment by
the Executive Other Than for Good Reason or Other Than by Reason of Death</font></u><font color="black" style="color:windowtext;">.&#160;
Subject to Section&nbsp;19 hereof, if the Executive voluntarily
Separates from Service other than a Separation from Service&#160; for Good Reason or on account of his death,
then the Company shall pay to the Executive the Earned Salary.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(g)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">Change in Control</font></u><font color="black" style="color:windowtext;">.&#160;
Subject to Section&nbsp;19 hereof, if the Executive Separates from
Service on account of any involuntary termination by the Company other than for
Cause or Disability, or if the Executive shall Separate from Service for Good
Reason, in either case within two (2)&nbsp;years following a Change in Control,
then (i)&nbsp;the Executive shall receive the payments and benefits set forth
in Section&nbsp;8(e)&nbsp;above, except that the one (1)&nbsp;times multiplier
set forth in Section&nbsp;8(e)(iii)&nbsp;shall be increased to two (2).</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(h)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">Definitions</font></u><font color="black" style="color:windowtext;">.&#160;
For purposes of this Agreement, the following terms shall have the
following meanings:</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Change in Control</u>&#148; shall
mean the occurrence of any one of the following events:</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">7</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='7',FILE='C:\JMS\105733\08-27657-2\task3284422\27657-2-mm-01.htm',USER='105733',CD='Dec 31 01:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(A)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such Person any securities
acquired directly from the Company or its Affiliates) representing 30% or more
of the combined voting power of the Company&#146;s then outstanding securities,
excluding any Person who becomes such a Beneficial Owner in connection with a
transaction described in clause (1)&nbsp;of paragraph (C)&nbsp;below; or</font></p>

<p style="color:black;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(B)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the following individuals cease for
any reason to constitute a majority of the number of directors then serving:
individuals who, on the date hereof, constitute the Board and any new director
(other than a director whose initial assumption of office is in connection with
an actual or threatened election contest, including but not limited to a
consent solicitation, relating to the election of directors of the Company)
whose appointment or election by the Board or nomination for election by the
Company&#146;s stockholders was approved or recommended by a vote of at least
two-thirds (2/3) of the directors then still in office who either were
directors on the date hereof or whose appointment, election or nomination for
election was previously so approved or recommended; or</font></p>

<p style="color:black;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(C)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; there is consummated a merger or
consolidation of the Company or any direct or indirect subsidiary of the
Company with any other corporation, other than (1)&nbsp;a merger or
consolidation immediately following which the individuals who comprise the
Board immediately prior thereto constitute at least a majority of the board of
directors of the Company, the entity surviving such merger or consolidation or
any parent thereof, or (2)&nbsp;a merger or consolidation effected to implement
a recapitalization of the Company (or similar transaction) in which no Person
is or becomes the Beneficial Owner, directly or indirectly, of securities of
the Company (not including in the securities Beneficially Owned by such Person
any securities acquired directly from the Company or its Affiliates)
representing 30% or more of the combined voting power of the Company&#146;s then
outstanding securities; or</font></p>

<p style="color:black;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt 1.0in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(D)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the stockholders of the Company
approve a plan of complete liquidation or dissolution of the Company or there
is consummated an agreement for the sale or disposition by the Company of all
or substantially all of the Company&#146;s assets, other than a sale or disposition
by the Company of all or substantially all of the Company&#146;s assets immediately
following which the individuals who comprise the Board immediately prior
thereto constitute at least a majority of the board of directors of the entity
to which such assets are sold or disposed or any parent thereof.</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">8</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='8',FILE='C:\JMS\105733\08-27657-2\task3284422\27657-2-mm-01.htm',USER='105733',CD='Dec 31 01:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding the foregoing, a &#147;Change in Control&#148; shall not be
deemed to have occurred by virtue of the consummation of any transaction or
series of integrated transactions immediately following which the record
holders of the common stock of the Company immediately prior to such
transaction or series of transactions continue to have substantially the same
proportionate ownership in an entity which owns all or substantially all of the
assets of the Company immediately following such transaction or series of
transactions.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Affiliate</u>&#148; shall have the
meaning set forth in Rule&nbsp;12b-2 promulgated under Section&nbsp;12 of the
Exchange Act.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Beneficial Owner</u>&#148; shall have
the meaning used in Rule&nbsp;13d-3 promulgated under the Exchange Act.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Exchange Act</u>&#148; shall mean the
Securities Exchange Act of 1934, as amended.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Person</u>&#148; shall have the
meaning given in Section&nbsp;3(a)(9)&nbsp;of the Exchange Act, as modified and
used in Sections 13(d)&nbsp;and 14(d)&nbsp;thereof, except that such term shall
not include (A)&nbsp;the Company or any of its subsidiaries, (B)&nbsp;a trustee
or other fiduciary holding securities under an employee benefit plan of the
Company or any of its Affiliates, (C)&nbsp;an underwriter temporarily holding securities
pursuant to an offering of such securities, or (D)&nbsp;a corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Section&nbsp;409A</u>&#148; shall mean Section&nbsp;409A
of the Code, the regulations and other binding guidance promulgated thereunder.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Separation from Service</u>&#148; and &#147;Separate
from Service&#148; shall mean the Executive&#146;s death, retirement or other termination
of employment with the Company and all of its controlled group members within
the meaning of Section&nbsp;409A of the Code.&#160;
For purposes hereof, the determination of controlled group members shall
be made pursuant to the provisions of Section&nbsp;414(b)&nbsp;and 414(c)&nbsp;of
the Code; provided that the language &#147;at least 50 percent&#148; shall be used
instead of &#147;at least 80 percent&#148; in each place it appears in Section&nbsp;1563(a)(1),(2)&nbsp;and
(3)&nbsp;of the Code and Treas. Reg. &#167; 1.414(c)-2; provided, further, where
legitimate business reasons exist (within the meaning of Treas. Reg. &#167;
1.409A-1(h)(3)), the language &#147;at least 20 percent&#148; shall be used instead of &#147;at
least 80 percent&#148; in each place it appears.&#160;
Whether Executive has a Separation from Service will be determined based
on all of the facts and circumstances and in accordance with the guidance
issued under Section&nbsp;409A of the Code.&#160;
Executive 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 period as provided by regulation.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='9',FILE='C:\JMS\105733\08-27657-2\task3284422\27657-2-mm-01.htm',USER='105733',CD='Dec 31 01:36 2008' -->



<br clear="all" style="page-break-before:always;">
<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(viii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Specified Employee</u>&#148; means a key
employee (as defined in Section&nbsp;416(i)&nbsp;of the Code without regard to
paragraph (5)&nbsp;thereof) of the Company as determined in accordance with the
regulations issued under Code Section&nbsp;409A and the procedures established
by the Company.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(i)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">Section&nbsp;409.</font></u><font color="black" style="color:windowtext;">&#160;
Each payment under this Agreement is intended to be excepted from Section&nbsp;409A,
including, but not limited to, by compliance with the short-term deferral
exception as specified in Treas. Reg. &#167; 1.409A-1(b)(4), and the provisions of
this Agreement will be administered, interpreted and construed accordingly (or
disregarded to the extent such provision cannot be so administered,
interpreted, or construed).</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><em><i><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-style:normal;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i></em><font color="black" style="color:windowtext;">Notwithstanding any provision of
this Agreement to the contrary, to the extent that a payment hereunder is
subject to Section&nbsp;409A (and not excepted therefrom) and payable on
account of a Separation from Service, such payment shall be delayed for a
period of six months after the Termination Date (or, if earlier, the death of
the Executive) if the Executive is a Specified Employee.&#160; 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.&#160;
W<em><i><font face="Times New Roman" style="font-style:normal;">ith
respect to payments subject to Section&nbsp;409A of the Code, the Company
reserves the right to accelerate and/or defer any payment to the extent
permitted and consistent with Section&nbsp;409A of the Code, the regulations
and other binding guidance promulgated thereunder.</font></i></em></font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <em><b><i><font face="Times New Roman" style="font-weight:bold;">Notwithstanding any provision of this Agreement to the
contrary, Executive acknowledges and agrees that the Company and its </font></i></b></em><b><i><font style="font-style:italic;font-weight:bold;">employees, officers, directors, subsidiaries and </font><em><i><font face="Times New Roman">affiliates shall
not be liable for, and nothing provided or contained in this Agreement will be
construed to obligate or cause the Company and/or its </font></i></em>employees,
officers, directors, <em><i><font face="Times New Roman">affiliates and subsidiaries to be liable for,
any tax, interest or penalties imposed on Executive related to or arising with
respect to any violation of Section&nbsp;409A.</font></i></em></i></b></font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Excise
Tax Reimbursement</u>.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(a)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">If any of the payments or benefits
received or to be received by the Executive in connection with a Change in
Control or the Executive&#146;s Separation from Service, whether pursuant to the
terms of this Agreement or any other plan, arrangement or agreement with the
Company, any Person whose actions result in a Change in Control or any Person
affiliated with the Company or such Person (all such payments and benefits,
excluding the Gross-Up Payment, being hereinafter referred to as the &#147;<u>Total
Payments</u>&#148;) will be subject to the excise tax (the &#147;<u>Excise Tax</u>&#148;)
imposed under Section&nbsp;4999 of the Internal Revenue Code of 1986, as
amended (the &#147;<u>Code</u>&#148;), the Company shall pay to the Executive an
additional amount (the &#147;<u>Gross-Up Payment</u>&#148;) such that the net amount
retained by the Executive, after deduction of any Excise Tax on the Total
Payments and any federal, state and local income and employment taxes and
Excise Tax upon the Gross-Up Payment, shall be equal to the Total Payments.</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">10</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='10',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mm-03.htm',USER='105576',CD='Dec 30 06:57 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For
purposes of determining whether any of the Total Payments will be subject to
the Excise Tax and the amount of such Excise Tax, (i)&nbsp;all of the Total
Payments shall be treated as &#147;parachute payments&#148; (within the meaning of Section&nbsp;280G(b)(2)&nbsp;of
the Code) unless, in the opinion of tax counsel (&#147;<u>Tax Counsel</u>&#148;)
reasonably acceptable to the Executive and selected by the accounting firm
which was, immediately prior to the Change in Control, the Company&#146;s
independent auditor (the &#147;<u>Auditor</u>&#148;), such payments or benefits (in whole
or in part) do not constitute parachute payments, including by reason of Section&nbsp;280G(b)(4)(A)&nbsp;of
the Code, (ii)&nbsp;all &#147;excess parachute payments&#148; within the meaning of Section&nbsp;280G(b)(1)&nbsp;of
the Code shall be treated as subject to the Excise Tax unless, in the opinion
of Tax Counsel, such excess parachute payments (in whole or in part) represent
reasonable compensation for services actually rendered (within the meaning of Section&nbsp;280G(b)(4)(B)&nbsp;of
the Code) in excess of the base amount (within the meaning of Section&nbsp;280G(b)(3)&nbsp;of
the Code) allocable to such reasonable compensation, or are otherwise not subject
to the Excise Tax, and (iii)&nbsp;the value of any noncash benefits or any
deferred payment or benefit shall be determined by the Auditor in accordance
with the principles of Sections 280G(d)(3)&nbsp;and (4)&nbsp;of the Code.&#160; Any determination by the Auditor and/or Tax
Counsel shall be binding upon the Company and Executive.&#160;&#160;&#160; Subject to Section&nbsp;8(i)&nbsp;of this
Agreement, as applicable, if any Gross-Up Payment is required to be made, the
Company shall make the Gross-Up Payment within 30 days after the Company has
received the final determination, but in no event later than the end of the
Executive&#146;s taxable year following the Executive&#146;s taxable year in which the
Executive remits the related taxes.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In
the event that the Excise Tax is finally determined to be less than the amount
taken into account hereunder in calculating the Gross-Up Payment, the Executive
shall repay to the Company, within five (5)&nbsp;business days following the
time that the amount of such reduction in the Excise Tax is finally determined,
the portion of the Gross-Up Payment attributable to such reduction (plus that
portion of the Gross-Up Payment attributable to the Excise Tax and federal,
state and local income and employment taxes imposed on the Gross-Up Payment
being repaid by the Executive), to the extent that such repayment results in a
reduction in the Excise Tax and a dollar-for-dollar reduction in the Executive&#146;s
taxable income and wages for purposes of federal, state and local income and
employment taxes, plus interest on the amount of such repayment at 120% of the
rate provided in Section&nbsp;1274(b)(2)(B)&nbsp;of the Code.&#160; In the event that the Excise Tax is
determined to exceed the amount taken into account hereunder in calculating the
Gross-Up Payment (including by reason of any payment the existence or amount of
which cannot be determined at the time of the Gross-Up Payment), the Company
shall make an additional Gross-Up Payment in respect of such excess (plus any
interest, penalties or additions payable by the Executive with respect to such
excess) within five (5)&nbsp;business days following the time that the amount
of such excess is finally determined.&#160;
The Executive and the Company shall each reasonably cooperate with the
other in connection with any administrative or judicial proceedings concerning
the existence or amount of liability for Excise Tax with respect to the Total
Payments.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Executive shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by </font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">11</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='11',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mm-03.htm',USER='105576',CD='Dec 30 06:57 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">the Company of the Gross-Up Payment.&#160; Such notification shall be given as soon as
practicable but no later than five (5)&nbsp;business days after the Executive
is informed in writing of such claim and shall apprise the Company of the
nature of such claim and the date on which such claim is requested to be
paid.&#160; The Executive shall not pay such
claim prior to the expiration of the thirty (30) calendar day period following
the date on which the Executive gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to
such claim is due).&#160; If the Company
notifies the Executive in writing prior to the expiration of such period that
it desires to contest such claim, the Executive shall permit the Company to
participate in any proceedings relating to such claim.&#160; Without limitation on the foregoing
provisions of this Section&nbsp;9(d), the Company shall control all proceedings
taken in connection with such contest and, at its sole option, may pursue or
forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and the Executive agrees
to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Company shall determine; <i>provided however</i>,
that if the Company directs the Executive to pay such claim and sue for a
refund, the Company shall advance the amount of such payment to the Executive,
on an interest free basis and shall indemnify and hold the Executive harmless,
on an after tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with
respect to any imputed income with respect to such advance; and further
provided that any extension of the statute of limitations relating to payment
of taxes for the taxable year of the Executive with respect to which such
contested amount is claimed to be due is limited solely to such contested
amount.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No
Mitigation</u>.&#160; The Company agrees that,
if the Executive&#146;s employment with the Company terminates during the Term, the
Executive is not required to seek other employment or to attempt in any way to
reduce any amounts payable to the Executive by the Company hereunder.&#160; Further, the amount of any payment or benefit
provided for in this Agreement shall not be reduced by any compensation earned
by the Executive as the result of employment by another employer, by retirement
benefits, by offset against any amount claimed to be owed by the Executive to
the Company, or otherwise, except as specifically provided in this Agreement.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Non-competition/
Inventions/ Confidential Information</u>.&#160;
The Executive agrees that restrictions on his activities during and
after his employment are necessary to protect the goodwill, Confidential
Information and other legitimate interests of the Company and its Subsidiaries,
and that the agreed restrictions set forth below will not deprive the Executive
of the ability to earn a livelihood:</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subject
to Section&nbsp;11(h)&nbsp;hereof, while the Executive is in the employment of
the Company and for a period of twelve (12) months after a termination of
Executive&#146;s employment with the Company (the &#147;<u>Non-Competition Period</u>&#148;),
the Executive shall not, directly or indirectly, whether as owner, partner,
investor, consultant, agent, employee, co-venturer or otherwise, engage in
Competitive </font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">12</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='12',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mm-03.htm',USER='105576',CD='Dec 30 06:57 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">Activity.&#160;
For purposes of this Agreement, &#147;<u>Competitive Activity</u>&#148; means any
activity that is (i)&nbsp;directly or indirectly competitive with the business
of the Company or any of its Subsidiaries, as conducted or which has been
proposed by management to be conducted within six (6)&nbsp;months prior to
termination of the Executive&#146;s employment and (ii)&nbsp;conducted in the geographic
areas in which the Company or any of its Subsidiaries operate on the Executive&#146;s
Date of Termination.&#160; Competitive
Activity also includes without limitation accepting employment or a consulting
position with any person who is, or at any time within twelve (12) months prior
to termination of the Executive&#146;s employment has been, a licensee of the
Company or any of its Subsidiaries.&#160; For
the purposes of this Section&nbsp;11, the business of the Company and its
Subsidiaries, as currently conducted, consists of the generation, sale, supply
or distribution of electricity.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Executive agrees that during the Non-Competition Period, the Executive will
not, either directly or through any agent or employee, Solicit any employee of
the Company or any of its Subsidiaries to terminate his or her relationship
with the Company or any of its Subsidiaries or to apply for or accept
employment with any enterprise engaged in Competitive Activity with the
Company, or Solicit any customer, supplier, licensee or vendor of the Company
or any of its Subsidiaries to terminate or materially modify its relationship
with them, or, in the case of a customer, to conduct with any person any
business or activity which such customer conducts or could conduct with the
Company or any of its Subsidiaries.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Executive and the Company further agree that following any termination of the
Executive&#146;s employment, (i)&nbsp;the Executive shall not make statements or
representations, otherwise communicate, directly or indirectly, in writing,
orally, or otherwise, or take any action which may, directly, or indirectly,
disparage or be damaging to the Company or any if its Subsidiaries or
affiliates or their respective former or current officers, directors,
employees, advisors, businesses or reputations, (ii)&nbsp;the Company shall
instruct its Board members and senior management to not make statements or
representations, otherwise communicate, directly, or indirectly, in writing,
orally or otherwise, or take any action which may, directly, or indirectly, disparage
or be damaging to the Executive or his reputation.&#160; Nothing in this paragraph is intended to
undermine any obligations the Executive or the Company may have to comply with
applicable law, or prohibit the Executive or the Company from providing truthful
testimony or information pursuant to subpoena, court order, discovery demand or
similar legal process, or truthfully responding to lawful inquiries by any
governmental or regulatory entity.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Nothing
in this Agreement shall prevent the Executive, during the Non-Competition
Period and following termination of employment hereunder, from acquiring or
holding, solely as an investment, publicly traded securities of any competitor
corporation so long as such securities do not, in the aggregate, constitute
more than 3% of the outstanding voting securities of such corporation.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Executive
agrees that all inventions, improvements, discoveries, patents, trade concepts
and copyrightable materials made, conceived or developed by Executive during
the Term, in respect of the business of the Company, </font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">13</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='13',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mm-03.htm',USER='105576',CD='Dec 30 06:57 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">either singly or in collaboration with
others, shall be the sole and exclusive property of the Company.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(f)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">The Executive acknowledges that the
Company and its Subsidiaries continually develop Confidential Information, that
the Executive may develop Confidential Information for the Company or its
Subsidiaries and that the Executive may learn of Confidential Information
during the course of his employment under this Agreement.&#160; The Executive will comply with the policies
and procedures of the Company and its Subsidiaries for protecting Confidential
Information and shall not disclose to any person (except as required by applicable
law or legal process or for the proper performance of his duties and
responsibilities to the Company and its Subsidiaries, or in connection with any
litigation between the Company and the Executive (provided that the Company
shall be afforded a reasonable opportunity in each case to obtain a protective
order)), or use for his own benefit or gain, any Confidential Information
obtained by the Executive incident to his employment or other association with
the Company or any of its Subsidiaries.&#160;
The Executive understands that this restriction shall continue to apply
after his employment terminates, regardless of the reason for such
termination.&#160; All documents, records,
tapes and other media of every kind and description relating to the business,
present or otherwise, of the Company or its Subsidiaries and any copies, in
whole or in part, thereof (the &#147;<u>Documents</u>&#148;), whether or not prepared by
the Executive, shall be the sole and exclusive property of the Company and its
Subsidiaries.&#160; The Executive shall
safeguard all Documents and shall surrender to the Company at the time his
employment terminates, or at such earlier time or times as the Board or its
designee may specify, all Documents then in the Executive&#146;s possession or
control.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(g)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">Without limiting the foregoing, it
is understood that the Company shall not be obligated to make any of the
payments or to provide for any of the benefits specified in Section&nbsp;8
hereof in connection with the termination of Executive&#146;s employment (other than
by reason of death), and shall be entitled to recoup the pro rata portion of
any such payments and of the value of any such benefits previously provided to
the Executive in the event of a material breach by the Executive of the
provisions of this Section&nbsp;11 (such pro ration to be determined as a
fraction, the numerator of which is the number of days from such breach to the
first anniversary of the date on which the Executive terminates employment and
the denominator of which is 365), which breach continues without having been
cured within fifteen (15) days after written notice to the Executive specifying
the breach in reasonable detail.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(h)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">Following a Change in Control, the
covenants contained in Section&nbsp;11(a)&nbsp;hereof shall cease to apply.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(i)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font color="black" style="color:windowtext;">Definitions</font></u><font color="black" style="color:windowtext;">.&#160;
For purposes of this Section&nbsp;11, the following definitions shall
apply:</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Confidential Information</u>&#148;
means any and all information of the Company and its Subsidiaries that is not
generally known by others with whom they compete or do business, or with whom
they plan to compete or do business and any and all information not readily
available to the </font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">14</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='14',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mm-03.htm',USER='105576',CD='Dec 30 06:57 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">public, which, if disclosed by the Company or
its Subsidiaries could reasonably be of benefit to such person or business in
competing with or doing business with the Company. Confidential Information
includes without limitation such information relating to (A)&nbsp;the
development, research, testing, manufacturing, store operational processes,
marketing and financial activities, including costs, profits and sales, of the
Company and its Subsidiaries, (B)&nbsp;the costs, sources of supply, financial
performance and strategic plans of the Company and its Subsidiaries, (C)&nbsp;the
identity and special needs of the customers and suppliers of the Company and
its Subsidiaries and (D)&nbsp;the people and organizations with whom the
Company and its Subsidiaries have business relationships and those
relationships.&#160; Confidential Information
also includes comparable information that the Company or any of its
Subsidiaries have received belonging to others or which was received by the
Company or any of its Subsidiaries with an agreement by the Company that it
would not be disclosed. Confidential Information does not include information
which (1)&nbsp;is or becomes available to the public generally (other than as a
result of a disclosure by the Executive), (2)&nbsp;was within the Executive&#146;s
possession prior to the date hereof or prior to its being furnished to the
Executive by or on behalf of the Company, provided that the source of such
information was not bound by a confidentiality agreement with or other
contractual, legal or fiduciary obligation of confidentiality to the Company or
any other party with respect to such information, (3)&nbsp;becomes available to
the Executive on a non-confidential basis from a source other than the Company,
provided that such source is not bound by a confidentiality agreement with or
other contractual, legal or fiduciary obligation of confidentiality to the
Company or any other party with respect to such information, or (4)&nbsp;was
independently developed the Executive without reference to the Confidential
Information.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Subsidiary</u>&#148; means any
corporation or other business organization of which the securities having a
majority of the normal voting power in electing the board of directors or
similar governing body of such entity are, at the time of determination, owned
by the Company directly or indirectly through one or more Subsidiaries.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Solicit</u>&#148; means any direct or
indirect communication of any kind whatsoever, regardless of by whom initiated,
inviting, advising, encouraging or requesting any person or entity, in any
manner, with respect to any action.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(j)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">The provisions of this Section&nbsp;11
shall survive the expiration or termination of the Term.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Successors;
Binding Agreement</u>.</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(a)</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">The Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be </font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">15</font></p>

<div style="color:black;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='15',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mm-03.htm',USER='105576',CD='Dec 30 06:57 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="color:black;margin:0in 0in .0001pt;text-align:center;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">required to perform it if no such succession
had taken place.&#160; As used in this
Agreement, &#147;<u>Company</u>&#148; shall mean the Company as hereinbefore defined and,
except in determining under Section&nbsp;8(h)&nbsp;hereof whether or not any
Change in Control of the Company has occurred, any successor to its business
and/or assets as aforesaid which executes and delivers the agreement provided
for in this Section&nbsp;12 or which otherwise becomes bound by all the terms
and provisions of this Agreement by operation of law.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This
Agreement and all rights of the Executive hereunder shall inure to the benefit
of and be enforceable by the Executive&#146;s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.&#160; If the Executive should die
while any amounts would still be payable to him hereunder if he had continued
to live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to the Executive&#146;s devisee,
legatee, or other designee or, if there be no such designee, to the Executive&#146;s
estate.</font></p>

<p style="color:black;margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" color="black" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Notice</u>.&#160; For the purposes of this Agreement, notices,
demands and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given when delivered or (unless
otherwise specified) mailed by United States certified or registered mail,
return receipt requested, postage prepaid, addressed as follows:</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.5in;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the
Executive:</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.5in;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.5in;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Andres Gluski</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">44004 Highwood Ct. NW<br>
Washington, DC 20007</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to the Company:</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The AES Corporation</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4300 Wilson Blvd.Arlington, VA 22203</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn:&#160;&#160;&#160;&#160;&#160;&#160; Board
of Directors</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or to such other address as any party may have furnished to the other
in writing in accordance herewith, except that notices of change of address
shall be effective only upon receipt.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Miscellaneous</u>.&#160; No provisions of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing signed by the Executive and such officer of the Company as
may be specifically designated by the Board.&#160;
If the Company determines in good faith, and after consultation with
Executive, that any amounts to be paid to Executive under this Agreement are
subject to Section&nbsp;409A, then the Company may, to the extent necessary,
adjust the form and/or the timing of such payments as determined to be
necessary or advisable to be in compliance with Section&nbsp;409A. The Company
and Executive acknowledge and agree to cooperate with each other, in good
faith, to modify or amend any provision of this Agreement to the extent
necessary or advisable to ensure that this Agreement complies </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='16',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mm-03.htm',USER='105576',CD='Dec 30 06:57 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with Section&nbsp;409A (or an
exception thereto) and that any payments or benefits under this Agreement are
not subject to tax, interest and penalties under Section&nbsp;409A.&#160; No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.&#160; No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not set forth expressly in this Agreement.&#160;
The validity, interpretation, construction and performance of this Agreement
shall be governed by the laws of the State of Delaware without regard to its
conflicts of law principles.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Validity</u>.&#160; The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain in
full force and effect.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Counterparts</u>.&#160; This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Injunctive Relief</u>.&#160; The Executive acknowledges that he has
carefully read and considered all the terms and conditions of this Agreement,
including the restraints imposed upon him pursuant to Section&nbsp;11
hereof.&#160; The Executive agrees that said
restraints are necessary for the reasonable and proper protection of the
Company and that each and every one of the restraints is reasonable in respect
to subject matter, length of time and geographic area.&#160; The Executive further acknowledges that, were
he to breach any of the covenants contained in Section&nbsp;11 hereof, the
damage to the Company would be irreparable.&#160;
The Executive therefore agrees that the Company, in addition to any
other remedies available to it, and notwithstanding any provision of this
Agreement to the contrary, shall be entitled to seek preliminary and permanent
injunctive relief against any breach or threatened breach by the Executive of
any of said covenants, without having to post bond.&#160; The parties further agree that, in the event
that any provisions of Section&nbsp;11 hereof shall be determined by any court
of competent jurisdiction to be unenforceable by reason of its being extended
over too great a time, too large a geographic area or too great a range of activities,
such provision shall be deemed to be modified to permit its enforcement to the
maximum extent permitted by law.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Resolution of Disputes</u>.&#160; Any disputes arising under or in connection
with this Agreement shall be resolved by binding arbitration, to be held in
Arlington, Virginia in accordance with the rules&nbsp;and procedures of the
American Arbitration Association.&#160;
Judgment upon the award rendered by the arbitrator(s)&nbsp;may be
entered in any court having jurisdiction thereof.&#160; All costs and expenses of any arbitration or
court proceeding (including fees and disbursements of counsel) shall be borne
by the respective party incurring such costs and expenses; <u>provided</u>,
that the Company shall reimburse the Executive for such reasonable costs and
expenses in the event he substantially prevails in such arbitration or court
proceeding; and further provided, that if the events to which such dispute
relates occurred on or after a Change in Control, the Executive shall be
reimbursed by the Company for all such reasonable costs and </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='17',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mm-03.htm',USER='105576',CD='Dec 30 06:57 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">expenses incurred by the
Executive in seeking good faith to enforce his rights hereunder.&#160;&#160; Notwithstanding the foregoing, the Company
shall be entitled to seek equitable relief pursuant to Section&nbsp;17 hereof
without otherwise waiving the right to exclusive arbitration of all other
disputes.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Release</u>.&#160; The Company shall not be required to make any
payment pursuant to Section&nbsp;8 hereof in connection with the termination of
Executive&#146;s employment (other than by reason of death) unless and until the
Executive executes a standard form of release, provided by the Company, within
forty-five (45) days after the Date of Termination, and does not revoke such
release within the seven-day revocation period..</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Entire Agreement</u>.&#160; This Agreement sets forth the entire
agreement of the parties hereto in respect of the subject matter contained
herein and supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto; and any prior
agreement of the parties hereto in respect of the subject matter contained
herein is hereby terminated and canceled.&#160;
In the event of any inconsistency between any provision of this
Agreement and any provision applicable to the Executive in any plan, program,
policy or other agreement of the Company, the provisions of this Agreement
shall control to the extent that such provisions of this Agreement are more
favorable to the Executive.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties have executed
this Agreement as of the Effective Date.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXECUTIVE</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:48.74%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THE AES CORPORATION</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:46.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Andres Gluski</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:44.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Jay L. Kloosterboer</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:46.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Andres Gluski</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:44.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jay L. Kloosterboer, Executive Vice</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in 0in 0in 0in;width:46.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.42%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President, Business Excellence</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='18',FILE='C:\JMS\105576\08-27657-2\task3283374\27657-2-mm-03.htm',USER='105576',CD='Dec 30 06:57 2008' -->


</body>

</html>
</TEXT>
</DOCUMENT>
</SUBMISSION>
