Document:

Exhibit 10.21

RESTRICTED STOCK
UNIT ISSUANCE AGREEMENT

RECITALS

A.    The Board
has adopted the Plan for the purpose of retaining the services of selected
Employees and consultants and other independent advisors who provide services
to the Corporation (or any Parent or Subsidiary).

B.     Participant
is to render valuable services to the Corporation (or a Parent or Subsidiary),
and this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the Corporation’s issuance of an
equity incentive award under the Plan designed to retain Participant’s
continued service.

C.     All capitalized terms in this Agreement shall have the meaning
assigned to them in the attached Appendix A.

NOW, THEREFORE, it is hereby agreed as follows:

1.   Grant of Restricted Stock Units.   The
Corporation hereby awards to Participant, as of the Award Date, Restricted
Stock Units under the Plan. Each Restricted Stock Unit which vests during
Participant’s period of Service shall entitle Participant to receive one share
of Common Stock on the applicable vesting date. The number of shares of Common
Stock subject to the awarded Restricted Stock Units, the applicable vesting
schedule for those shares, the applicable date or dates on which those vested
shares shall become issuable to Participant and the remaining terms and
conditions governing the award (the “Award”) shall be as set forth in this
Agreement.

	
  Award Date:

  	
   

  	
                      ,
           

  
	
  Number of Shares

  Subject to Award:

  	
   

  	
                shares
  of Common Stock (the “Shares”)

  
	
  Vesting Schedule:

  	
   

  	
  The Shares shall vest in
  a series of [three (3) successive equal annual] installments upon
  Participant’s completion of each year of Service over the [three (3)-year]
  period measured from the Award Date. However, the Shares may be subject to
  accelerated vesting in accordance with the provisions of Paragraphs 4 and 6
  below.

  
	
  Issuance Schedule:

  	
   

  	
  Each Share in which
  Participant vests in accordance with the provisions of this Agreement
  (including the foregoing Vesting Schedule) shall be issued, subject to the
  Corporation’s collection of all applicable Withholding Taxes, on the date
  that particular Share vests (the “Issue Date”) or as soon after that
  scheduled Issue Date as administratively practicable, but in no event later
  than the close of the calendar year in which such Issue Date occurs or (if
  later) the fifteenth day of the third calendar month following such Issue
  Date. The applicable Withholding Taxes are to be collected pursuant to the
  procedure set forth in Paragraph 8 of this Agreement.

  

 

2.   Limited Transferability.   Prior
to actual receipt of the Shares which vest and become issuable hereunder,
Participant may not transfer any interest in the Award or the underlying
Shares. Any Shares which vest hereunder but which otherwise remain unissued at
the time of Participant’s death may be transferred pursuant to the provisions
of Participant’s will or the laws of inheritance or to Participant’s 

designated beneficiary or
beneficiaries of this Award. Participant may also direct the Corporation to
issue the stock certificates for any Shares which in fact vest and become
issuable under the Award during his or her lifetime to one or more designated
family members or a trust established for Participant and/or his or her family
members. Participant may make such a beneficiary designation or certificate
directive at any time by filing the appropriate form with the Plan
Administrator or its designee.

3.   Cessation of Service.   Except
as otherwise provided in Paragraph 4 or Paragraph 6 below, should Participant
cease Service for any reason prior to vesting in one or more Shares subject to
this Award, then the Award shall be immediately cancelled with respect to those
unvested Shares, and the number of Restricted Stock Units will be reduced
accordingly. Participant shall thereupon cease to have any right or entitlement
to receive any Shares under those cancelled units.

4.   Accelerated Vesting.

A.     Upon (i) the
termination of the Participant’s Service by reason of death or Permanent
Disability, (ii) the Participant’s resignation from Service for Good
Reason or (iii) the Corporation’s termination of the Participant’s Service
other than for Good Cause, all the Restricted Stock Units at the time subject
to this Award shall immediately vest, and the Participant shall thereupon
become entitled to the Shares underlying those vested units.

B.     The Shares
to which the Participant becomes entitled pursuant to Paragraph 4.A shall be
issued on the date of such cessation of Service or as soon as administratively
practicable thereafter, subject to the Corporation’s collection of the
applicable Withholding Taxes, but in no event later than the close of the
calendar year in which such cessation of Service occurs or (if later) the
fifteenth (15th) day of the third (3rd) calendar month following the date of
such cessation of Service.

C.     The
accelerated vesting provisions of this Paragraph 4 shall apply and be effective
whether such cessation of Service occurs before or after the consummation of a
Change in Control transaction.

5.   Stockholder Rights.

A.     Except as
set forth in Paragraph 5.B below, the holder of this Award shall not have any
stockholder rights, including voting or dividend rights, with respect to the
Shares subject to the Award until the Participant becomes the record holder of
those Shares following their actual issuance upon the Corporation’s collection
of the applicable Withholding Taxes.

B.     Notwithstanding
the foregoing, should any dividend or other distribution, whether regular or
extraordinary and whether payable in cash, securities or other property, be
declared and paid on the outstanding Common Stock at any time while the Shares
subject to this Award remain unvested and unissued (i.e., those Shares are not
otherwise issued and outstanding for purposes of entitlement to the dividend or
distribution), then a special book account shall be established for the
Participant and credited with a dollar amount equal to the dividend paid per
share of outstanding Common Stock multiplied by the number of unvested Shares subject to this
Award at the time such dividend was paid. On the last business day of December each
year, the cash dividend equivalent amounts so credited to the account for that
year shall be distributed to the Participant, subject to the Corporation’s
collection of the applicable Withholding Taxes. In no event shall any cash
dividend equivalents be paid on any vested but unissued Shares subject to this
Award.

6.   Change in Control.

A.     Any
Restricted Stock Units subject to this Award at the time of a Change in Control
may be assumed by the successor entity or otherwise continued in full force and
effect or may be replaced with a cash retention program of the successor entity
which preserves the Fair Market Value of any Restricted Stock Units subject to
the Award at the time of the Change in Control and provides for subsequent
payout of that value in accordance with the vesting provisions applicable to
the Award. In 

 2
 

the event of such
assumption or continuation of the Award or such replacement of the Award with a
cash retention program, no accelerated vesting of the Restricted Stock Units
shall occur at the time of the Change in Control.

B.     In the
event the Award is assumed or otherwise continued in effect, the Restricted
Stock Units subject to the Award will be adjusted immediately after the
consummation of the Change in Control so as to apply to the number and class of
securities into which the Shares subject to those units immediately prior to
the Change in Control would have been converted in consummation of that Change
in Control had those Shares actually been issued and outstanding at that time. To
the extent the actual holders of the outstanding Common Stock receive cash
consideration for the Common Stock in consummation of the Change in Control,
the successor corporation may, in connection with the assumption or
continuation of the Restricted Stock Units subject to the Award at that time,
substitute one or more shares of its own common stock with a fair market value
equivalent to the cash consideration paid per share of Common Stock in the
Change in Control transaction, provided such shares are registered under the
federal securities laws and readily tradable on an established securities
exchange.

C.     If the
Restricted Stock Units subject to this Award at the time of the Change in
Control are not assumed or otherwise continued in effect or replaced with a
cash retention program in accordance with Paragraph 6.A above, then those units
shall vest immediately upon the effective date of the Change in Control. The
Shares subject to those vested units shall be issued immediately upon vesting
(or otherwise converted into the right to receive the same consideration per
share of Common Stock payable to the other stockholders of the Corporation in
consummation of that Change in Control and distributed at the same time as such
stockholder payments), subject to the Corporation’s collection of applicable
Withholding Taxes pursuant to the provisions of Paragraph 8.

D.     This
Agreement shall not in any way affect the right of the Corporation to adjust,
reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its
business or assets.

7.   Adjustment in Shares.   In the event of
any of the following transactions affecting the outstanding shares of Common
Stock as a class without the Corporation’s receipt of consideration: any stock
split, stock dividend, spin-off transaction, recapitalization, extraordinary
dividend or distribution, combination of shares, exchange of shares or other
similar transaction affecting the outstanding Common Stock as a class without
the Corporation’s receipt of consideration or in the event of any merger,
consolidation or reorganization, equitable adjustments shall be made to the
total number and/or class of securities issuable
pursuant to this Award. Such adjustments shall be made in such manner as the
Plan Administrator deems appropriate in order to reflect such change and
thereby preclude a dilution or enlargement of benefits hereunder. In
determining the appropriate adjustments, the Plan Administrator shall take into
account any amounts credited to the Participant’s book account under Paragraph
5.B in connection with such transaction, and the determination of the Plan Administrator
shall be final, binding and conclusive. In
the event of a Change in Control, the adjustments (if any) shall be made in
accordance with the provisions of Paragraph 6.

8.   Collection of Withholding Taxes.

A.     The
Corporation shall collect the applicable Withholding Taxes with respect to the
Shares which vest and become issuable hereunder through an automatic share
withholding procedure pursuant to which the Corporation will withhold, at the
time of such vesting, a portion of the Shares with a Fair Market Value
(measured as of the applicable vesting date) equal to the amount of those
taxes; provided, however, that the
amount of any Shares so withheld shall not exceed the amount necessary to
satisfy the Corporation’s required withholding obligations using the minimum
statutory withholding rates for federal and state purposes that are applicable
to supplemental taxable income.

 3
 

B.     Notwithstanding
the foregoing provisions of Paragraph 8.A, the employee portion of the federal,
state and local employment taxes required to be withheld by the Corporation in
connection with the vesting of the Shares (the “Employment Taxes”) shall in all
events be collected from the Participant no later than the last business day of
the calendar year in which the Shares vest hereunder. Accordingly, to the
extent the Issue Date for one or more vested Shares is to occur in a year
subsequent to the calendar year in which those Shares vest, the Participant
shall, on or before the last business day of the calendar year in which the
Shares vest, deliver to the Corporation a check payable to its order in the
dollar amount equal to the Employment Taxes required to be withheld with
respect to those Shares.

C.     Except as
otherwise provided in Paragraph 6 and Paragraph 8.A, the settlement of all
Restricted Stock Units which vest under the Award shall be made solely in
shares of Common Stock. In no event, however, shall any fractional shares be
issued. Accordingly, the total number of shares of Common Stock to be issued
pursuant to that Award shall, to the extent necessary, be rounded down to the
next whole share in order to avoid the issuance of a fractional share.

9.   Deferred Issue Date.   Notwithstanding
any provision to the contrary in this Agreement, no Shares (or other property)
which become issuable by reason of Participant’s Separation from Service shall
actually be issued to Participant prior to the earlier
of (i) the expiration of the six (6)-month period measured from the date
of his or her Separation from Service or (ii) the date of his or her
death, if Participant is deemed at the time of such Separation from Service to
be a “key employee” within the meaning of that term under Code Section 416(i) and such delayed issuance is
otherwise required in order to avoid a prohibited distribution under Code Section 409A(a)(2).
Upon the expiration of the applicable Code Section 409A(a)(2) deferral
period, all Shares (or other property) deferred pursuant to this Paragraph 9
shall be issued in a lump sum to Participant.

10.   Compliance with Laws and
Regulations.   The issuance of shares of Common Stock
pursuant to the Award shall be subject to compliance by the Corporation and
Participant with all applicable requirements of law relating thereto and with
all applicable regulations of any stock exchange (or the Nasdaq National
Market, if applicable) on which the Common Stock may be listed for trading at
the time of such issuance.

11.   Notices.   Any
notice required to be given or delivered to the Corporation under the terms of
this Agreement shall be in writing and addressed to the Corporation at its
principal corporate offices. Any notice required to be given or delivered to
Participant shall be in writing and addressed to Participant at the address
indicated below Participant’s signature line on this Agreement. All notices
shall be deemed effective upon personal delivery or upon deposit in the U.S.
mail, postage prepaid and properly addressed to the party to be notified.

12.   Successors and Assigns.   Except
to the extent otherwise provided in this Agreement, the provisions of this
Agreement shall inure to the benefit of, and be binding upon, the Corporation
and its successors and assigns and Participant, Participant’s assigns, the
legal representatives, heirs and legatees of Participant’s estate and any
beneficiaries of the Award designated by Participant.

13.   Construction.   This
Agreement and the Award evidenced hereby are made and granted pursuant to the
Plan and are in all respects limited by and subject to the terms of the Plan. All
decisions of the Plan Administrator with respect to any question or issue
arising under the Plan or this Agreement shall be conclusive and binding on all
persons having an interest in the Award.

14.   Governing Law.   The
interpretation, performance and enforcement of this Agreement shall be governed
by the laws of the State of California without resort to that State’s
conflict-of-laws rules.

15.   Employment at Will.   Nothing
in this Agreement or in the Plan shall confer upon Participant any right to
continue in Service for any period of specific duration or interfere with or
otherwise restrict in any 

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way the rights of the
Corporation (or any Parent or Subsidiary employing or retaining Participant) or
of Participant, which rights are hereby expressly reserved by each, to
terminate Participant’s Service at any time for any reason, with or without
cause.

IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and year first indicated above.

	
  

  	
   

  	
  SJW CORP.

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
  PARTICIPANT

  
	
   

  	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 5

APPENDIX A

DEFINITIONS

The following
definitions shall be in effect under the Agreement:

A.    Agreement  shall mean this Restricted
Stock Unit Issuance Agreement.

B.     Award shall mean the award of
Restricted Stock Units made to Participant pursuant to the terms of the
Agreement.

C.     Award Date shall mean the date the
Restricted Stock Units are awarded to Participant pursuant to the Agreement and
shall be the date indicated in Paragraph 1 of the Agreement.

D.    Board shall mean the Corporation’s
Board of Directors.

E.     Change in Control shall mean any
change in control or ownership of the Corporation which occurs by reason of one
or more of the following events:

(i)    the
acquisition, directly or indirectly by any person or related group of persons
(as such term is used in Sections 13(d) and 14(d) of the Exchange
Act), but other than the Corporation or a person that directly or indirectly
controls, is controlled by, or is under control with, the Corporation or an
employee benefit plan maintained by any such entity, of beneficial ownership
(as defined in Rule 13d-3 of the Exchange Act) of securities of the
Corporation that results in such person or related group of persons
beneficially owning securities representing 30% or more of the combined voting
power of the Corporation’s then-outstanding securities;

(ii)   a merger,
recapitalization, consolidation, or other similar transaction to which the
Corporation is a party, unless securities representing at least 50% of the
combined voting power of the then-outstanding securities of the surviving
entity or a parent thereof are immediately thereafter beneficially owned,
directly or indirectly and in substantially the same proportion, by the persons
who beneficially owned the Corporation’s outstanding voting securities
immediately before the transaction;

(iii)  a sale,
transfer or disposition of all or substantially all of the Corporation’s
assets, unless securities representing at least 50% of the combined voting
power of the then-outstanding securities of the entity acquiring the Corporation’s
assets or parent thereof are immediately thereafter beneficially owned,
directly or indirectly and in substantially the same proportion, by the persons
who beneficially owned the Corporation’s outstanding voting securities
immediately before the transaction;

(iv)  a merger,
recapitalization, consolidation, or other transaction to which the Corporation
is a party or the sale, transfer, or other disposition of all or substantially
all of the Corporation’s assets if, in either case, the members of the Board
immediately prior to consummation of the transaction do not, upon consummation
of the transaction, constitute at least a majority of the board of directors of
the surviving entity or the entity acquiring the Corporation’s assets, as the
case may be, or a parent thereof (for this purpose, any change in the
composition of the board of directors that is anticipated or pursuant to an
understanding or agreement in connection with a transaction will be deemed to
have occurred at the time of the transaction); or

(v)    a change
in the composition of the Board over a period of thirty-six (36) consecutive
months or less such that a majority of the Board members ceases by reason of
one or more contested elections for Board membership, to be comprised of
individuals who either (a) have been Board members since the beginning of
such period or (b) have been elected or nominated for election as Board
members during such period by at least a majority of the Board members who were
described in clause (a) or who were previously so elected or approved and
who were still in office at the time the Board approved such election or
nomination;

 A-1
 

provided that no
Change in Control shall occur if the result of the transaction is to give more
ownership or control of the Corporation to any person or related group of
persons who hold securities representing more than thirty percent (30%) of the
combined voting power of the Corporation’s outstanding securities as of March 3,
2003.

F.     Code  shall mean the Internal Revenue
Code of 1986, as amended.

G.    Common Stock shall mean the shares
of the Corporation’s common stock.

H.    Corporation shall mean SJW Corp., a
California corporation, and any successor corporation to all or substantially
al of the assets or voting stock of SJW Corp. which shall by appropriate action
adopt the Plan and/or assume the Award.

I.      Disability shall mean the
Participant’s permanent and total disability as determined pursuant to Section 22(e)(3) of
the Code.

J.      Employee shall mean an individual
who is in the employ of the Corporation (or any Parent or Subsidiary), subject
to the control and direction of the employer entity as to both the work to be
performed and the manner and method of performance.

K.    Fair Market Value per share of
Common Stock on any relevant date shall be determined in accordance with the
following provisions:

(i)    If the
Common Stock is at the time listed or admitted to trading on the Nasdaq Global
Market, the Fair Market Value shall be the closing selling price per share on
the date in question, as such price is reported by the National Association of
Securities Dealers for that particular Stock Exchange. If there is no reported
closing selling price for the Common Stock on the date in question, then the
closing selling price on the last preceding date for which such quotation
exists shall be determinative of Fair Market Value.

(ii)   If the
Common Stock is at the time listed or admitted to trading on any other Stock
Exchange, then the Fair Market Value shall be the closing selling price per
share on the date in question on that Stock Exchange, as such price is
officially quoted in the composite tape of transactions on such exchange. If
there is no reported sale of Common Stock on such Stock Exchange on the date in
question, then the Fair Market Value shall be the closing selling price on the
exchange on the last preceding date for which such quotation exists.

L.     Good Cause shall be deemed to exist
if, and only if: (i) Participant engages in acts or omissions that result
in substantial harm to the business or property of the Corporation or any
Parent or Subsidiary and that constitute dishonesty, intentional breach of
fiduciary obligation or intentional wrongdoing, or (ii) Participant is
convicted of a criminal violation involving fraud or dishonesty.

M.    Good Reason shall mean the
occurrence of any of the following events without Participant’s express written
consent: (i) his removal from any of the following positions:               
and             ,
or any other significant change in the nature or the scope of his authority or
overall working environment; (ii) the assignment to Participant of duties
materially inconsistent with his duties, responsibilities and status as             
and             ;
(iii) a reduction in Participant’s rate of base salary or target annual
bonus,  other than a reduction in an amount
not in excess of fifteen percent (15%) of either his base salary or the sum of
his base salary and target annual bonus pursuant to a uniform reduction in the
base salary or target bonus payable to all senior executives of the Corporation
to which Participant and the Executive Compensation Committee have mutually
agreed and which occurs prior to a Change in Control; (iv) a change by the
Corporation by [fifty-five (55)]  miles or more
of the principal location at which Participant is required to perform
Participant’s services hereunder or [(v) a material breach by the
Corporation of any of its obligations under its employment agreement with the
Participant dated             ,
       (or any successor 

 A-2
 

agreement) which remains
uncured for more than thirty (30) days following Participant’s written notice
to the Board in which Participant specifically identifies the material breach
which has occurred].

N.    1934 Act shall mean the Securities
Exchange Act of 1934, as amended.

O.    Participant shall mean the person to
whom the Award is made pursuant to the Agreement.

P.     Parent  shall mean any corporation
(other than the Corporation) in an unbroken chain of corporations ending with
the Corporation, provided each corporation in the unbroken chain (other than
the Corporation) owns, at the time of the determination, stock possessing fifty
percent (50%) or more of the total combined voting power of al classes of stock
in one of the other corporations in such chain.

Q.    Plan  shall mean the Corporation’s
Long Term Incentive Plan.

R.    Plan Administrator shall mean either
the Board or a committee of the Board acting in its capacity as administrator
of the Plan.

S.     Restricted Stock Unit  shall mean
each unit subject to the Award which shall entitle Participant to receive one (1) share
of Common Stock upon the vesting of that unit.

T.     Separation from Service  shall mean
Participant’s termination of Service under the circumstances which are deemed
to constitute a separation from service within the meaning of Code Section 409A
and the applicable Treasury Regulations thereunder.

U.    Service shall mean Participant’s
performance of services for the Corporation (or any Parent or Subsidiary) in
the capacity of an Employee, a non-employee member of the Board or a consultant
or independent advisor. Participant shall be deemed to cease Service
immediately upon the occurrence of either of the following events:  (i) Participant no longer performs
services in any of the foregoing capacities for the Corporation (or any Parent
or Subsidiary) or (ii) the entity for which Participant performs such
services ceases to remain a Parent or Subsidiary of the Corporation, even
though Participant may subsequently continue to perform services for that
entity. Service shall not be deemed to cease during a period of military leave,
sick leave or other personal leave approved by the Corporation; provided, however, that except to
the extent otherwise required by law or expressly authorized by the Plan
Administrator or the Corporation’s written leave of absence policy, no Service
credit shall be given for vesting purposes for any period Participant is on a
leave of absence.

V.    Stock Exchange  shall mean the
American Stock Exchange, the Nasdaq Global Market or the New York Stock
Exchange.

W.   Subsidiary shall mean any
corporation (other than the Corporation) in an unbroken chain of corporations
beginning with the Corporation, provided each corporation (other than the last
corporation) in the unbroken chain owns, at the time of the determination,
stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

X.    Withholding Taxes  shall mean the
federal, state and local income and employment taxes required to be withheld by
the Corporation in connection with the vesting and concurrent issuance of the
shares of Common Stock under the Award.

 A-3EXHIBIT 10.22

SJW CORP.

RESTRICTED STOCK
UNIT ISSUANCE AGREEMENT

RECITALS

A.    The Board
has adopted the Plan for the purpose of retaining the services of selected
Employees of the Corporation (or any Parent or Subsidiary).

B.     Participant
is to render valuable services to the Corporation (or a Parent or Subsidiary),
and this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the Corporation’s issuance of an
equity incentive award under the Plan designed to retain Participant’s
continued service.

C.     All
capitalized terms in this Agreement shall have the meaning assigned to them in
the attached Appendix A.

NOW, THEREFORE, it is hereby
agreed as follows:

1.   Grant of Restricted Stock Units.   The
Corporation hereby awards to the Participant, as of the Award Date, Restricted
Stock Units under the Plan. Except as otherwise provided in this Agreement, the
Restricted Stock Units shall vest upon the attainment of a pre-established
performance objective tied to total shareholder return measured over a
specified period, provided the Participant continues in Service through the
completion date of that measurement period. Each Restricted Stock Unit which so
vests shall entitle the Participant to receive one share of Common Stock on the
specified issue date. The number of shares of Common Stock subject to the
awarded Restricted Stock Units, the applicable performance target for the
vesting of those shares, the alternative and special vesting provisions which
may become applicable to such shares, the date on which the vested shares shall
become issuable to Participant and the remaining terms and conditions governing
the award (the “Award”) shall be as set forth in this Agreement.

AWARD SUMMARY

	
  Award Date:

  	
   

  	
                        ,
  20    

  
	
  Number of Shares Subject
  to Award:

  	
   

  	
                  
  shares of Common Stock (the “Shares”)

  
	
  Vesting Schedule:

  	
   

  	
  The Shares shall vest
  upon the attainment of the Performance Objective set forth in attached
  Schedule I, provided the Participant continues in Service through the
  completion of the Measurement Period. However, the Shares may also vest in
  accordance with the alternative vesting provisions of Paragraph 4 of this
  Agreement and the special vesting provisions of Paragraph 6 of this
  Agreement.

  

 

	
  Issuance Schedule

  	
   

  	
  Except as otherwise
  expressly provided in this Agreement, the Shares in which the Participant
  vests in accordance with the provisions of this Agreement (including the
  foregoing Vesting Schedule) will become issuable on the date (the “Issue
  Date”) upon which occurs the earliest
  of the following dates or events: (i)                  ,
  20   , (ii) the date of the Participant’s
  cessation of Service or (iii) the closing date of a Change in Control
  transaction which results in the accelerated vesting of the Restricted Stock
  Units pursuant to Paragraph 6(c) of this Agreement. The actual issuance
  of the Shares shall be subject to the Corporation’s collection of all
  applicable Withholding Taxes and shall be effected on the applicable Issue
  Date or as soon as administratively practicable thereafter, but in no event
  later than the close of the calendar year in which such Issue Date occurs or
  (if later) the fifteenth (15th) day of the third (3rd) calendar month
  following such Issue Date. The procedures pursuant to which the applicable
  Withholding Taxes are to be collected are set forth in Paragraph 8 of this
  Agreement.

  

 

2.   Limited Transferability.   Prior
to actual receipt of the Shares which vest and become issuable hereunder, the
Participant may not transfer any interest in the Award or the underlying
Shares. Any Shares which vest hereunder but which otherwise remain unissued at
the time of the Participant’s death may be transferred pursuant to the
provisions of the Participant’s will or the laws of inheritance or to the
Participant’s designated beneficiary or beneficiaries of this Award. The
Participant may also direct the Corporation to issue the stock certificates for
any Shares which in fact vest and become issuable under the Award during his or
her lifetime to one or more designated family members or a trust established
for the Participant and/or his or her family members. The Participant may make
such a beneficiary designation or certificate directive at any time by filing
the appropriate form with the Plan Administrator or its designee.

3.   Cessation of Service.   Except
as otherwise provided in Paragraph 4 below, should the Participant cease
Service for any reason prior to the completion of the Measurement Period, then
the Restricted Stock Units subject to this Award shall be immediately cancelled,
and the Participant shall cease to have any right or entitlement to receive any
Shares under those cancelled units.

4.   Alternative Vesting.

(a)    Should any
of the following events occur prior to the completion of the Measurement
Period: (i) the termination of the Participant’s Service by reason of
death or Permanent Disability, (ii) the Participant’s resignation from
Service for Good Reason  or (iii) the
Corporation’s termination of the Participant’s Service other than for Good
Cause, then all the Restricted Stock Units shall immediately vest, and the
Participant shall thereupon become entitled to the Shares underlying those
vested units.

(b)   The Shares
to which the Participant becomes entitled pursuant to Paragraph 4(a) shall
be issued on the Issue Date triggered by his cessation of Service. Such
issuance shall be subject to the Corporation’s collection of the applicable
Withholding Taxes.

5.   Stockholder Rights.   The
holder of this Award shall not have any stockholder rights, including voting or
dividend rights, with respect to the Shares subject to the Award until the
Participant becomes the record holder of those Shares following their actual
issuance upon the Corporation’s collection of the applicable Withholding Taxes.

6.   Change of Control.

(a)    Any Restricted
Stock Units subject to this Award at the time of a Change in Control may be
assumed by the successor entity or otherwise continued in full force and effect
or may be replaced 

 2
 

with a cash retention
program of the successor entity which preserves the Fair Market Value of any
unvested shares of Common Stock subject to the Award at the time of the Change
in Control and provides for subsequent payout of that value in accordance with
the same vesting provisions and Issue Date requirements applicable to the Award.
No accelerated vesting of the Restricted Stock Units shall occur in the event
of such assumption or continuation of the Award or such replacement of the
Award with a cash retention program. However, the vesting provisions in effect
for the Award following the Change in Control shall no longer be tied to the
attainment of the Performance Objective set forth in Schedule I and shall
instead be converted into the following Service-vesting schedule:

(i)    The Award
(whether in its assumed or continued form or as converted into a cash retention
program) shall vest in full upon the Participant’s continuation in Service
through                     ,
20   . Following the completion of such Service vesting
period, the securities, cash or other property underlying the vested Award
shall be issued on the applicable Issue Date.

(ii)   Should any
of the following events occur after such Change in Control but prior to                     ,
20   : (A) the termination of the Participant’s
Service by reason of death or Permanent Disability, (B) the Participant’s
resignation from Service for Good Reason 
or (C) the termination of the Participant’s Service other than for
Good Cause, then the Award shall immediately vest in full, and the securities,
cash or other property underlying the Award shall be issued on the Issue Date
triggered by such cessation of Service.

(b)   In the
event the Award is assumed or otherwise continued in effect, the Restricted
Stock Units subject to the Award will be adjusted immediately after the consummation
of the Change in Control so as to apply to the number and class of securities
into which the Shares subject to those units immediately prior to the Change in
Control would have been converted in consummation of that Change in Control had
those Shares actually been issued and outstanding at that time. To the extent
the actual holders of the outstanding Common Stock receive cash consideration
for their Common Stock in consummation of the Change in Control, the successor
corporation may, in connection with the assumption or continuation of the Stock
Units subject to the Award at that time, substitute one or more shares of its
own common stock with a fair market value equivalent to the cash consideration
paid per share of Common Stock in the Change in Control transaction, provided
such shares are registered under the federal securities laws and readily
tradable on an established securities exchange.

(c)    If the
Restricted Stock Units subject to this Award at the time of the Change in
Control are not so assumed or otherwise continued in effect or replaced with a
cash retention program under Paragraph 4(a), then those units will vest
immediately prior to the closing of the Change in Control. The Shares subject
to those vested units will be issued on the Issue Date triggered by such
accelerated vesting (or will otherwise be converted into the right to receive
the same consideration per share of Common Stock payable to the other
stockholders of the Corporation in consummation of that Change in Control and
distributed at the same time as such stockholder payments), subject to the
Corporation’s collection of the applicable Withholding Taxes pursuant to the
provisions of Paragraph 8.

(d)   This
Agreement shall not in any way affect the right of the Corporation to adjust,
reclassify, reorganize or otherwise change its capital or business structure or
to merge, consolidate, dissolve, liquidate or sell or transfer all or any part
of its business or assets.

7.   Adjustment in Shares.   In
the event of any of the following transactions affecting the outstanding shares
of Common Stock as a class without the Corporation’s receipt of consideration:
any stock split, stock dividend, spin-off transaction, recapitalization,
extraordinary dividend or distribution, combination of shares, exchange of
shares or other similar transaction affecting the outstanding Common Stock as a
class without the Corporation’s receipt of consideration or in the event of any
merger, consolidation or reorganization, equitable adjustments shall be made to
the total number and/or class of securities issuable 

 3
 

pursuant
to this Award. Such adjustments shall be made in such manner as the Plan
Administrator deems appropriate in order to reflect such change and thereby
preclude a dilution or enlargement of benefits hereunder. However, in the event
of a Change in Control, the adjustments (if any) shall be made in accordance
with the provisions of Paragraph 6.

8.   Issuance of Shares of Common Stock/Collection of
Withholding Taxes.

(a)    On the
applicable Issue Date, the Corporation shall issue to or on behalf of the
Participant a certificate (which may be in electronic form) for the applicable
number of underlying shares of Common Stock, subject, however, to the
Corporation’s collection of the applicable Withholding Taxes.

(b)   The
Corporation shall collect the applicable Withholding Taxes with respect to the
vested Shares issued hereunder through an automatic share withholding procedure
pursuant to which the Corporation will withhold, at the time of such issuance,
a portion of the  Shares with a Fair
Market Value (measured as of the Issue Date) equal to the amount of those taxes;
provided, however, that the amount
of any Shares so withheld shall not exceed the amount necessary to satisfy the
Corporation’s required tax withholding obligations using the minimum statutory
withholding rates for federal and state tax purposes that are applicable to
supplemental taxable income. In the event payment is made in a form other than
the Shares, the Corporation shall collect from the Participant the applicable
Withholding Taxes pursuant to such procedures as the Corporation deems
appropriate under the circumstances.

(c)    Notwithstanding
the foregoing provisions of Paragraph 8(b), the employee portion of the
federal, state and local employment taxes required to be withheld by the
Corporation in connection with the vesting of the Shares (the “Employment Taxes”)
shall in all events be collected from the Participant no later than the last
business day of the calendar year in which the Shares vest hereunder. Accordingly,
to the extent the Issue Date for one or more vested Shares is to occur in a
year subsequent to the calendar year in which those Shares vest, the
Participant shall, on or before the last business day of the calendar year in
which the Shares vest, deliver to the Corporation a check payable to its order
in the dollar amount equal to the Employment Taxes required to be withheld with
respect to those Shares.

(d)   Except as
otherwise provided in Paragraph 6(c) and Paragraph 8(b), the settlement of
all Restricted Stock Units which vest under the Award shall be made solely in
shares of Common Stock. In no event, however, shall any fractional shares be
issued. Accordingly, the total number of shares of Common Stock to be issued
pursuant to the Award shall, to the extent necessary, be rounded down to the
next whole share in order to avoid the issuance of a fractional share.

9.   Deferred Issue Date.   Notwithstanding
any provision to the contrary in this Agreement, no Shares (or other property)
which become issuable or payable hereunder by reason of the Participant’s
Separation from Service shall actually be issued to the Participant prior to
the earlier of (i) the expiration
of the six (6)-month period measured from the date of his Separation from
Service or (ii) the date of his death, if the Participant is deemed at the
time of such Separation from Service to be a “key employee” within the meaning
of that term under Code Section 416(i) and
such delayed issuance is otherwise required in order to avoid a prohibited
distribution under Code Section 409A(a)(2). Upon the expiration of the
applicable Code Section 409A(a)(2) deferral period, all Shares (or
other property) deferred pursuant to this Paragraph 9 shall be issued in a lump
sum to the Participant.

10.   Compliance with Laws and
Regulations.   The issuance of shares of Common Stock
pursuant to the Award shall be subject to compliance by the Corporation and
Participant with all applicable requirements of law relating thereto and with
all applicable regulations of any stock exchange on which the Common Stock may
be listed for trading at the time of such issuance.

 4
 

11.   Notices.   Any
notice required to be given or delivered to the Corporation under the terms of
this Agreement shall be in writing and addressed to the Corporation at its
principal corporate offices. Any notice required to be given or delivered to
Participant shall be in writing and addressed to Participant at the address
indicated below Participant’s signature line on this Agreement. All notices
shall be deemed effective upon personal delivery or upon deposit in the U.S.
mail, postage prepaid and properly addressed to the party to be notified.

12.   Successors and Assigns.   Except
to the extent otherwise provided in this Agreement, the provisions of this
Agreement shall inure to the benefit of, and be binding upon, the Corporation
and its successors and assigns and Participant, Participant’s assigns, the
legal representatives, heirs and legatees of Participant’s estate and any
beneficiaries of the Award designated by Participant.

13.   Construction.   This
Agreement and the Award evidenced hereby are made and granted pursuant to the
Plan and are in all respects limited by and subject to the terms of the Plan. All
decisions of the Plan Administrator with respect to any question or issue
arising under the Plan or this Agreement shall be conclusive and binding on all
persons having an interest in the Award.

14.   Governing Law.   The
interpretation, performance and enforcement of this Agreement shall be governed
by the laws of the State of California without resort to that State’s
conflict-of-laws rules.

15.   Employment at Will.   Nothing
in this Agreement or in the Plan shall confer upon Participant any right to
continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Corporation (or any Parent or
Subsidiary employing or retaining Participant) or of Participant, which rights
are hereby expressly reserved by each, to terminate Participant’s Service at
any time for any reason, with or without cause.

IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and year first indicated above.

	
  

  	
   

  	
  SJW CORP.

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
  [PARTICIPANT]

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 5

APPENDIX A

DEFINITIONS

The following
definitions shall be in effect under the Agreement:

A.    Agreement shall mean this Restricted
Stock Unit Issuance Agreement.

B.     Award shall mean the award of
Restricted Stock Units made to the Participant pursuant to the terms of this
Agreement.

C.     Award Date shall mean the date the
Restricted Stock Units are awarded to Participant pursuant to the Agreement and
shall be the date indicated in Paragraph 1 of the Agreement.

D.    Board shall mean the Corporation’s
Board of Directors.

E.     Change in Control shall mean any
change in control or ownership of the Corporation which occurs by reason of one
or more of the following events:

(i)    the
acquisition, directly or indirectly by any person or related group of persons
(as such term is used in Sections 13(d) and 14(d) of the Exchange
Act), other than the Corporation or a person that directly or indirectly
controls, is controlled by, or is under, control with the Corporation or an
employee benefit plan maintained by any such entity, of beneficial ownership
(as defined in Rule 13d-3 of the Exchange Act) of securities of the
Corporation which, when added to other acquisitions effected by such person or
related group during the twelve (12)-month period ending with the most recent
acquisition, represent thirty-five percent (35%) or more of the total combined
voting power of the Corporation’s then-outstanding securities;

(ii)   a merger,
recapitalization, consolidation, or other similar transaction to which the
Corporation is a party, unless securities representing more than 50% of the
combined voting power of the then-outstanding securities of the surviving
entity or a parent thereof are immediately thereafter beneficially owned,
directly or indirectly and in substantially the same proportion, by the persons
who beneficially owned the Corporation’s outstanding voting securities
immediately before the transaction;

(iii)  a sale,
transfer or disposition of all or substantially all of the Corporation’s
assets, unless securities representing at least 50% of the combined voting
power of the then-outstanding securities of the entity acquiring the
Corporation’s assets or parent thereof are immediately thereafter beneficially owned,
directly or indirectly and in substantially the same proportion, by the persons
who beneficially owned the Corporation’s outstanding voting securities
immediately before the transaction;

(iv)  a merger,
recapitalization, consolidation, or other transaction to which the Corporation
is a party or the sale, transfer, or other disposition of all or substantially
all of the Corporation’s assets if, in either case, the members of the Board
immediately prior to consummation of the transaction do not, upon consummation
of the transaction, constitute at least a majority of the board of directors of
the surviving entity or the entity acquiring the Corporation’s assets, as the
case may be, or a parent thereof (for this purpose, any change in the
composition of the board of directors that is anticipated or pursuant to an
understanding or agreement in connection with a transaction will be deemed to
have occurred at the time of the transaction); or

(v)    a change
in the composition of the Board over a period of twelve (12) consecutive months
or less such that a majority of the Board members ceases by reason of one or
more contested elections for Board membership, to be comprised of individuals
who either (a) have been Board members since the beginning of such period
or (b) have been elected or nominated for election as Board members during
such period by at least a majority of the Board members who were described in
clause (a) or who were previously so elected or approved and who were
still in office at the time the Board approved such election or nomination;

 A-1
 

provided that no Change in Control shall occur if the
result of the transaction is to give more ownership or control of the
Corporation to any person or related group of persons who hold securities
representing thirty-five percent (35%) or more of the combined voting power of
the Corporation’s outstanding securities as of March 3, 2003.

F.     Code shall mean the Internal
Revenue Code of 1986, as amended.

G.    Common Stock shall mean
shares of the Corporation’s common stock.

H.    Corporation shall mean SJW
Corp., a California corporation, and any successor corporation to all or
substantially all of the assets or voting stock of SJW Corp. which shall by
appropriate action adopt the Plan and/or assume the Award.

I.      Employee shall mean an
individual who is in the employ of the Corporation (or any Parent or Subsidiary),
subject to the control and direction of the employer entity as to both the work
to be performed and the manner and method of performance.

J.      Fair Market Value per share
of Common Stock on any relevant date shall be determined in accordance with the
following provisions:

(i)    If the Common Stock is at the time listed or admitted to trading
on the Nasdaq Global Market, the Fair Market Value shall be the closing selling
price per share on the date in question, as such price is reported by the
National Association of Securities Dealers for that particular Stock Exchange.
If there is no reported closing selling price for the Common Stock on the date
in question, then the closing selling price on the last preceding date for
which such quotation exists shall be determinative of Fair Market Value.

(ii)   If the Common Stock is at the time listed or
admitted to trading on any other Stock Exchange, then the Fair Market Value
shall be the closing selling price per share on the date in question on that
Stock Exchange, as such price is officially quoted in the composite tape of
transactions on such exchange. If there is no reported sale of Common Stock on
such Stock Exchange on the date in question, then the Fair Market Value shall
be the closing selling price on the exchange on the last preceding date for
which such quotation exists.

K.    Good Cause shall be deemed to
exist if, and only if: (i) Participant engages in acts or omissions that
result in substantial harm to the business or property of the Corporation or any
Parent or Subsidiary and that constitute dishonesty, intentional breach of
fiduciary obligation or intentional wrongdoing or (ii) Participant is
convicted of a criminal violation involving fraud or dishonesty.

L.     Good Reason shall mean the
occurrence of any of the following events without Participant’s express written
consent: (i) his removal from any of the following positions:                      
and                  ,
or any other significant change in the nature or the scope of his authority or
overall working environment; (ii) the assignment to Participant of duties
materially inconsistent with his duties, responsibilities and status as                     
and                     ;
(iii) a reduction in Participant’s rate of base salary or target annual
bonus,  other than a reduction in an amount
not in excess of fifteen percent (15%) of either his base salary or the sum of
his base salary and target annual bonus pursuant to a uniform reduction in the
base salary or target bonus payable to all senior executives of the Corporation
to which Participant and the Executive Compensation Committee have mutually
agreed and which occurs prior to a Change in Control; (iv) a change by the
Corporation by [fifty-five] ([55])  miles or more
of the principal location at which Participant is required to perform
Participant’s services hereunder or [(v) a material breach by the
Corporation of any of its obligations under its employment agreement with the
Participant dated                      ,
        (or any successor agreement)
which remains uncured for more than thirty (30) days following Participant’s
written notice to the Board in which Participant specifically identifies the
material breach which has occurred].

M.    Measurement Period shall mean the
period over which the Performance Objective is to be measured. That period
shall be the           -year
period measured from                   ,
20    to                   ,
20   .

 A-2
 

N.    1934 Act shall mean the Securities
Exchange Act of 1934, as amended from time to time.

O.    Participant shall mean the person to
whom the Award is made pursuant to the Agreement.

P.     Parent shall mean any corporation
(other than the Corporation) in an unbroken chain of corporations ending with
the Corporation, provided each corporation in the unbroken chain (other than
the Corporation) owns, at the time of the determination, stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

Q.    Performance Objective shall the
attainment of the total shareholder return objective set forth in attached
Schedule I, as calculated over the specified Measurement Period.

R.    Permanent Disability  shall mean the
Participant’s inability to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment expected to result
in death or to be of continuous duration of twelve (12) months or more.

S.     Plan shall mean the Corporation’s
Long-Term Incentive Plan.

T.     Plan Administrator shall mean either
the Board or a committee of the Board acting in its capacity as administrator
of the Plan.

U.    Restricted Stock Unit shall mean
each unit subject to this Award which shall entitle the Participant to receive
one share of Common Stock under the Plan at a designated time following the
vesting of that unit.

V.    Separation from Service shall mean
the Participant’s termination of Service under circumstances which are deemed
to constitute a separation from service within the meaning of Code Section 409A
and the applicable Treasury Regulations thereunder.

W.   Service shall mean the Participant’s
performance of services for the Corporation (or any Parent or Subsidiary) in
the capacity of an Employee, a non-employee member of the board of directors or
a consultant or independent advisor. For purposes of this Agreement,
Participant shall be deemed to cease Service immediately upon the occurrence of
the either of the following events: (i) Participant no longer performs
services in any of the foregoing capacities for the Corporation (or any Parent
or Subsidiary) or (ii) the entity for which Participant performs such
services ceases to remain a Parent or Subsidiary of the Corporation, even
though Participant may subsequently continue to perform services for that entity.
Service shall not be deemed to cease during a period of military leave, sick
leave or other personal leave approved by the Corporation, provided the period
of any such leave does not exceed six (6) months or such longer duration
for which the Participant is provided with re-employment rights by law or by
written agreement with the Corporation. Except to the extent otherwise required
by law or expressly authorized by the Plan Administrator or the Corporation’s
written leave of absence policy, no Service credit shall be given for purposes
of the Service-vesting provisions of the Agreement for any period Participant
is on a leave of absence.

X.    Stock Exchange shall mean the
American Stock Exchange, the Nasdaq Global Market or the New York Stock
Exchange.

Y.    Subsidiary shall mean any
corporation (other than the Corporation) in an unbroken chain of corporations
beginning with the Corporation, provided each corporation (other than the last
corporation) in the unbroken chain owns, at the time of the determination,
stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

Z.     Withholding Taxes shall mean
the federal, state and local income and employment taxes required to be
withheld by the Corporation in connection with the vesting and concurrent
issuance of the Shares.

 A-3
 

SCHEDULE I

PERFORMANCE
OBJECTIVE

 A-4

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