Document:

Exhibit 10.1

 

(Section III (a)(i) below was
corrected to include SJWTX, Inc.)

 

SJW CORP.

 

AMENDED AND RESTATED

 

DEFERRED RESTRICTED STOCK
PROGRAM

 

(As Amended and Restated on December 6, 2007)

 

I.             PURPOSE.

 

A.            The objective of the
Deferred Restricted Stock Program (the “Program”) is to promote the long-term
success of  SJW Corp. (the “Corporation”)
and its subsidiaries by linking incentive opportunities for non-employee
members of the Board of Directors of the Corporation (the “Board”) to the
performance of the Corporation and its subsidiaries.

 

B.            The Program functions
as a special formula-grant subprogram under the Corporation’s Long-Term
Incentive Plan (the “Plan”) which is to provide equity compensation to the
non-employee Board members for their services as members of the Board and as
members of the boards of directors of certain of the Corporation’s
subsidiaries.  The Program shall be
subject to the express terms and provisions of the Plan, as amended from time
to time.

 

C.            The provisions of this
December 6, 2007 restatement shall be effective as of January 1, 2008
and shall at that time supersede the provisions of the June 1, 2006
restatement.  Effective January 1,
2008, no new awards of deferred restricted stock shall be made under the
Program with respect to Board service after December 31, 2007.

 

II.            ELIGIBILITY.

 

Prior to January 1,
2008, the following individuals were eligible to participate in the Program
over their period of continued service as Board members (the “Participants”):

 

(i)            any individual who was first elected or
appointed to the Board as a non-employee Board member on or after the date of
the 2003 annual meeting of the Corporation’s shareholders (“New Director”), and

 

(ii)           any non-employee Board member who was first elected
or appointed to the Board as a non-employee Board member prior to such date and
elected, by written notice to the Corporation no later than August 31,
2003, to convert from the Director’s Pension Plan to the Program (an “Existing
Director”).

 

 

III.          AWARDS OF DEFERRED
RESTRICTED STOCK. 

 

A.            Prior to January 1,
2008, annual grants of deferred restricted stock (“Deferred Restricted Stock”)
were made under the Program in accordance with the following provisions:

 

(i)            Annual Awards to New Directors.  Each New Director received his or her initial
annual award of Deferred Restricted Stock on the first business day of January next
following his or her completion of at least six (6) months of service as a
Board member measured from the date of his or her initial election or appointment
to the Board and was eligible to receive subsequent annual awards  of Deferred Restricted Stock on the first
business day of January in each of the next (9) succeeding calendar
years, provided he or she remained a non-employee member of the Board through
such date.(1)  The number of shares of Common Stock underlying each annual
Deferred Restricted Stock award was equal to that number of shares (rounded to
the nearest whole share) determined by dividing (a) the Aggregate Annual
Retainer Fee for the calendar year in which the award was made by (b) the
Fair Market Value per share of the Corporation’s Common Stock on the date of the
award.  For purposes of such calculation
and the calculation under III.A(ii) below, the Aggregate Annual Retainer
Fee was the sum of the annual retainer fees, at the levels in effect as of the
date of the award, for service on the Board and for service on the board of
directors of each of the following subsidiaries of the Corporation:  San Jose Water Company, SJWTX, Inc. and
SJW Land Company.

 

(ii)           Annual Awards to Existing Directors.   Each Existing
Director received his or her annual award of Deferred Restricted Stock on the first
business day of January each calendar year during his or her period of
continued service as a non-employee Board member,(2) with the number of
shares of Common Stock underlying each such award to be determined in the same
manner as under Section A(i) of this Article III;(3) provided, however, that the total
number of such annual awards which an Existing Director was entitled to receive
pursuant to this Section III.A(ii) was limited to ten (10) less
the number of full years of service credit that such Existing Director had
under the Director Pension Plan immediately prior to the 2003 Annual Meeting.

 

(iii)          Conversion Grant to Existing Directors.  For an Existing Director who elected to
participate in the Program, the benefits that such Existing Director had
accrued under the Director’s Pension Plan (based on full years of service) were
converted into an additional grant of Deferred Restricted Stock on September 1,
2003.  The number of shares subject to
such grant was determined 

 

(1) Prior to June 1, 2006, the
annual awards of Deferred Restricted Stock were made on the third business day
following the date of each Annual Shareholders Meeting.

 

(2) Prior to June 1, 2006, the
annual awards of Deferred Restricted Stock were made on the third business day
following the date of each Annual Shareholders Meeting.

 

(3) The initial awards under the Program
were made at the 2004 Annual Meeting. However, if the Existing Director had a
partial year of credit under the Director Pension Plan that equaled or exceeded
6 months of service credit, then the initial annual award to that Participant
was made under the Program on September 1, 2003.

 

2

 

first by multiplying (a) $27,000 (the Annual Retainer Fee as of the
date of the 2003 Annual Stockholders Meeting) by (b) the whole number of
years of service credit under the Director’s Pension Plan as of the date of the
2003 Annual Meeting and then by dividing the dollar amount so obtained by the
Fair Market Value per share of the Corporation’s Common Stock on September 1,
2003.  An Existing Director who elected
to participate in the Program shall have no further rights under the Director
Pension Plan.  If a portion of the
benefit accrued by an Existing Director under the Director Pension Plan as of
the 2003 Annual Stockholders Meeting was owed to another person under a domestic
relations order, the Existing Director’s conversion election did not apply to
such portion, in which case the calculation of the number of shares under the
conversion grant was proportionately reduced.

 

(iv)          Deferred Restricted Stock Account.  A “Deferred Restricted Stock Account” has
been established for each New Director and each Existing Director, and all awards
of Deferred Restricted Stock made to such director have been credited to such
account.  The right of a New or Existing
Director to receive shares credited to such account shall be an unfunded and
unsecured right of a general creditor.

 

B.            No New Awards.  Effective January 1, 2008, no new awards
of Deferred Restricted Stock shall be made to any New Director or Existing
Director with respect to service rendered after December 31, 2007 as a
member of the Board or as a member of the board of directors of any of the
Corporation’s subsidiaries.

 

IV.          DIVIDEND RIGHTS.

 

A.            Effective through December 31,
2017 or such earlier date as the Deferred Restricted Stock may be distributed,
each Participant shall have the following dividend equivalent rights with
respect to the Deferred Restricted Stock credited to his account under the
Program:

 

(i)            Each time a dividend is paid on the
outstanding Common Stock while one or more shares of Deferred Restricted Stock remain
credited to the Participant’s Deferred Restricted Stock Account, that Account will
be credited with a dollar amount equal to the dividend paid per share
multiplied by the number of shares at the time credited to such Account and not
otherwise distributed prior to the record date for the dividend. As of the
first business day in January of each year, the cash dividend equivalents
so credited to the Deferred Restricted Stock Account for the immediately preceding
calendar year will be converted into additional shares of deferred restricted
stock by dividing (a) those cash dividend equivalent amounts by (b) the
average of the Fair Market Value per share of Common Stock on each of the dates
in the immediately preceding year on which dividends were paid.

 

(ii)           The Participant’s dividend equivalent rights
with respect to the Deferred Restricted Stock credited to his Deferred
Restricted Stock Account shall remain in effect only through December 31,
2017 or any earlier date the shares credited to the Participant’s Deferred
Restricted Stock Account may be distributed to him pursuant to the special
distribution election set forth in Section IV.B 

 

3

 

below. Accordingly, the Participant’s existing dividend equivalent
rights shall in no event continue beyond the conversion of the cash equivalent
dividends credited to his Deferred Restricted Stock Account for the 2017
calendar year, which will occur on the first trading day in January 2018.  All amounts attributable to the Participant’s
continuing dividend equivalent rights hereunder shall be credited to his Deferred
Restricted Stock Account in accordance with the provisions of subparagraph (i) above.

 

B.            In conjunction with
the phase-out of the dividend equivalent rights on the Deferred Restricted
Stock Accounts, each Participant shall have until December 31, 2007 in
which to make an election to receive a distribution from his Deferred
Restricted Stock Account in either (i) a lump sum distribution in any
calendar year within the ten (10)-year period from the 2009 calendar year to the
2018 calendar year or (ii) an installment distribution effected over a
five (5) or ten (10) year period within that  ten (10)-year period. The amount
distributable from such Deferred Restricted Account would be equal to the
number of shares of Deferred Restricted Stock credited to that account as of December 31,
2007 plus the number of additional shares of Deferred Restricted Stock subsequently
credited to that account by reason of the dividend equivalent rights existing
on those deferred shares during the period prior to their distribution. The
actual distribution shall be made in January of each applicable year and
will be in the form of shares of Common Stock issued under the Plan. If an
installment distribution is elected, then the number of shares to be
distributed each January will be determined by dividing the total number
of shares of Deferred Restricted Stock credited to the Participant’s Deferred
Restricted Stock Account at that time by the remaining number of installments,
including the current installment. Alternatively, the Participant may defer the
distribution of his Deferred Restricted Stock Account until his cessation of
service as a Board member and receive such distribution in accordance with Section V
below. The appropriate form for making a distribution election pursuant to this
Section IV.B shall be provided to each Participant prior to the December 31,
2007 deadline for making such election. Such election shall be treated as an
initial payment election under Section 409A of the Code in accordance with
the transitional relief provided by Internal Revenue Service Notice 2006-79 and
shall only have force and effect if the Participant continues in Board service
through the completion of the 2007 calendar year.

 

V.            VESTING AND
DISTRIBUTION OF SHARES.

 

A.            The shares of Deferred
Restricted Stock credited to the Deferred Restricted Stock Account as an annual
award to a New Director pursuant to Section III.A(i) or as an annual award
to an Existing Director pursuant to Section III.A(ii) are fully
vested at all times.

 

B.            The shares of Deferred
Restricted Stock credited to the Deferred Restricted Stock Account as a
conversion grant to an Existing Director pursuant to Section III.A(iii) have  fully vested and are no longer subject to
forfeiture.

 

4

 

C.            The shares of Deferred
Restricted Stock currently credited to the Deferred Restricted Stock Accounts
as a result of the dividend equivalent rights under Section IV above are
fully vested, and any new shares of Deferred Restricted Stock subsequently
credited to the Participant’s Deferred Restricted Stock Account as a result of
such dividend equivalent rights will also be fully vested.  All such shares resulting from the
Participant’s dividend equivalent rights shall be distributed as part of the
Participant’s Deferred Restricted Account in accordance with either Section 
IV.B above or Section V.G below.

 

D.            Unless the Participant
has made a special distribution election pursuant to Section IV.B, the distribution
of the deferred shares of Common Stock credited to his  Deferred Restricted Stock Account (whether
attributable to the annual awards made pursuant to Section III or the
dividend equivalent rights provided under Section IV) shall be made or
commence on the thirtieth (30th) day following the Participant’s cessation of
service as a member of the Corporation’s Board of Directors or as soon as
administratively practicable after such scheduled distribution date, but in no
event later than the end of the calendar year in which such cessation of Board service
occurs or (if later) the fifteenth (15th) day of the third (3rd) calendar month
following the date of such cessation of Board service.  The distribution shall be in the form of
shares of Common Stock and shall be made either in a single lump sum or in up
to ten (10) annual installments, as the Participant may elect either at
the time of his or her initial award of Deferred Restricted Stock hereunder or
pursuant to the special distribution election described in Section V.G
below.

 

E.             All shares of Common
Stock distributed under the Program shall be drawn from the Common Stock
reserved for issuance under the Plan. Accordingly, the share reserve under the
Plan shall be reduced by any and all shares of Common Stock distributed under
the Program.

 

F.             In the event any
amount attributable to the Participant’s dividend equivalent rights is to be
distributed before the date that amount is to be converted into shares of Deferred
Restricted Stock in accordance with Section IV, that amount shall be
distributed in cash.

 

G.            Each Participant who
does not make a special distribution election under Section IV.B with respect
to his Deferred Restricted Account and who will accordingly be subject to the
distribution commencement date provisions of Section V.A may make a new
election as to the method of distribution of his Deferred Restricted Stock
Account (lump sum or up to ten (10) annual installments) in accordance
with the transitional relief under Section 409A of the Code provided by
Internal Revenue Service Notice 2006-79. 
Such election must be made no later than December 31, 2007 and
shall be treated as an initial payment election under Section 409A of the
Code.  However, such election shall not
change the payment date of any distribution that would otherwise be made to the
Participant during the 2007 calendar year or cause a payment to be made to him
under the Program during the 2007 calendar year that would otherwise be made in
a later calendar year.

 

5

 

VI.          DEFINED TERMS.

 

All
capitalized terms in this document, to the extent not expressly defined herein,
shall have the meaning assigned to them in the Plan.

 

VII.         MISCELLANEOUS.

 

This Program
and the Deferred Restricted Stock awards made hereunder are made and granted
pursuant to the Plan and are in all respects limited by and subject to the
terms of the Plan, this Program and the Conversion Form, if applicable. 

 

6Exhibit 10.1

 

Form of Agreement for Performance Unit or
Share Awards to Executive Officers

 

SUBJECT:  MESSAGE FROM GEORGE BUCKLEY: YOUR 3M 2008
PERFORMANCE SHARE AWARD

 

FIRST &
LAST NAME       EMPLOYEE #

 

The purpose of
this letter is to provide you with the number of contingent shares actually
assigned to you as your 2008 award.  The
number of contingent shares was calculated by dividing the target value of your
performance share award by the FMV of 3M stock on February 29, 2008
($xx.xx).

 

The Compensation
Committee of the Board of Directors has approved the following 3M Performance
Share award to be issued under the Performance Unit Plan (PUP) effective March 1,
2008:

 

	
  AWARD
  YEAR:

  	
   

  	
  2008

  
	
   

  	
   

  	
   

  
	
  AWARD
  DESCRIPTION:

  	
   

  	
  ANNUAL
  AWARD

  
	
   

  	
   

  	
   

  
	
  TARGET
  VALUE:

  	
   

  	
  $xxx,xxx

  
	
   

  	
   

  	
   

  
	
  NUMBER
  OF CONTINGENT SHARES:

  	
   

  	
  x,xxx

  

 

Performance Shares
issued under the PUP are a significant part of your total compensation as a 3M
executive.  Performance Shares reward
your leadership and commitment in managing 3M’s business for sustainability and
improved results over time.

 

The 2008 award
will compensate you for the results we achieve against corporate financial
goals over the three-year period 2008, 2009 and 2010.  The maximum payout will be 2 times the number
of contingent shares assigned to you at the time of the award.  Your 2008 award will be governed by the
provisions of the PUP plan document, and will be paid out in March 2011
unless you elected to defer the payout under the 3M Deferred Compensation Plan.

 

As was the case last year, the two performance
measures for the 2008 award are Economic Profit Growth and Organic Sales Growth
versus the Worldwide Industrial Production Index.  For more information about the metrics and
how Performance Shares issued under the PUP Plan will work, please review the
brochure entitled “Understanding Your 3M Performance Shares Issued Under the
Performance Unit Plan — For 2008 Awards”, which was sent to you via an earlier
email.

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