EXHIBIT B
SCEcorp
OFFICER LONG-TERM INCENTIVE COMPENSATION PLAN
As Amended and Restated Effective (April 16, 1992)
WHEREAS, the 1987 Long-Term Incentive Compensation Plan (the "1987 Plan")
was approved by the shareholders of Southern California Edison Company effective
January 15, 1987; and
WHEREAS, SCEcorp assumed sponsorship of the 1987 Plan with the formation
of the holding company approved by the shareholders of Southern California Edison
Company on April 21, 1988; and
WHEREAS, it is deemed desirable to amend and restate the Plan as the SCEc orp
Officer Long-Term Incentive Compensation Plan;
NOW, THEREFORE, the SCEcorp Officer Long-Term Incentive Compensation
Plan has been amended and restated by the Board of Directors of SCEcorp contingent
upon its approval by the shareholders of SCEcorp at their annual meeting on April 16,
1992 subject to the following terms and conditions:
1.Purpose. The purpose of the SCEcorp Officer Long-Term Incentive
Compensation Plan is to improve the long-term financial and operational performance
of SCEcorp and its affiliates by providing eligible Participants a financial incent ive
which reinforces and recognizes long-term corporate, organizational and individual
performance and accomplishments. The Plan is intended to promote the interests of
SCEcorp and its shareholders by encouraging eligible Participants to acquire stock or
increase their proprietary interest in SCEcorp.
2.Definitions. Whenever the following terms are used in this Plan, they will have
the meanings specified below unless the context clearly indicates the contrary:
"Board of Directors" or "Board" means the Board of Directors of SCEcorp.
"Cash Equivalent" means a stock-based award payable in cash only granted
pursuant to Section 14.
"Code" means the Internal Revenue Code of 1986, as amended.
"Committee" means the Compensation Committee of the Board of Directors
excluding those members ineligible to administer this Plan as determined under
Section 4.
"Common Stock" means the common shares of SCEcorp.
"Company" means SCEcorp or the SCEcorp affiliate employing the
Participant.
"Dividend Equivalent" means the additional amount of cash or Common
Stock as described in Section 12.
"Eligible Person" or "Participant" means an officer of the Company whose
participation has been approved by the Committee, including without limitation,
executive officers under Section 16 of the Securities Exchange Act of 1934, as
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1994 Jefren Publishing Company, Inc. 18-268A
amended, but excluding those persons participating in the SCEcorp Management
Long-Term Incentive Compensation Plan.
"Fair Market Value" means the average of the highest and lowest sale prices
for the Common Stock as reported in the western edition of The Wall Street
Journal for the New York Stock Exchange Composite Transactions for the date as
of which such determination is made.
"Former Rule 16b-3" means Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended,
and effective until May 1, 1991.
"Holder" means a person holding an Incentive Award.
"Incentive Award" means any award which may be made under the Plan by
the Committee.
"Incentive Stock Option" means an option as defined under Section 422A of
the Code granted pursuant to Section 7 of the Plan.
"Nonqualified Stock Option" means an option, other than an Incentive Stock
Option, granted pursuant to Section 6 of the Plan.
"Option" means either a Nonqualified Stock Option or Incentive Stock
Option.
"Performance Award" means an award granted pursuant to Section 10 which
may be based on stock value, book value, or other specific performance criteria.
"Plan" means the Officer Long-Term Incentive Compensation Plan as set
forth herein, which may be amended from time-to-time.
"Restricted Stock" means Common Stock granted or awarded pursuant to
Section 8 of the Plan, which is nontransferable and subject to substantial risk of
forfeiture until restrictions lapse.
"Rule 16b-3" means Rule 16b-3 promulgated by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended, and
effective May 1, 1991.
"Stock Appreciation Equivalent" means an award based on Common Stock
appreciation or other specific performance criteria which is granted pursuant to
Section 11.
"Stock Appreciation Right" or "Right" means a right granted pursuant to
Section 9 of the Plan.
"Stock Payment" means a payment pursuant to Section 13 in shares of
Common Stuck to replace all or any portion of the compensation (other than base
salary) that would otherwise become payable to a Participant in cash.
3. Aggregate Awards Under Plan. Pursuant to the terms of the Plan, and subject to
the provisions of this Section 3 and Section 16 of the Plan, the aggregate number of
shares of Common Stock that may be issued or transferred pursuant to Incentive
Awards, and the total aggregate value of Incentive Awards other than Dividend
Equivalents which are payable in a form other than Common Stock, will not exceed 1.5
million shares, or the fair market value of such shares as determined on the dat es of
payment of the Incentive Awards. On an annual basis, as long as any Incentive Awards
are outstanding and have not been paid, Dividend Equivalents payable in cash will not
exceed the annual dividend payable on 1.5 million shares of Common Stock.The shares to be delivered under the Plan will be made available, at the discretion
of the Board or Committee, either from authorized but unissued shares of Common
Stock or from previously issued shares of Common Stock reacquired by SCEcorp
including shares purchased on the open market.
If any Incentive Award expires, is forfeited, is cancelled, or otherwise terminates
for any reason other than upon exercise or payment, the shares of Common Stock
(provided the Participant receives no benefit of ownership) or equivalent value that
could have been delivered will not be charged against the limitations provided a bove
and may again be made subject to Incentive Awards. However, shares subject to Stock
Appreciation Rights settled in cash will not be charged against the share li mitations
provided above, but only against the fair market value limitation.
4.Administration. The Plan will be administered by the Committee, which will
consist of those directors on the Compensation Committee of the Board who, (i) as
long as Former Rule 16b-3 is elected to apply to this Plan, are not eligible to rec eive
Incentive Awards under the Plan at the time he or she exercises discretion in
administering the Plan, and have not been eligible for selection for at least one year
prior thereto to receive Incentive Awards or Common Stock pursuant to the Plan, or
any other plan of SCEcorp or any of its affiliates entitling the Participants there in to
acquire Common Stock, Stock Appreciation Rights, or Options of SCEcorp or any of
its affiliates, other than plans permitted by Former Rule 16b-3, or, (ii) from the time
Rule 16b-3 is elected to apply to this Plan, during the one year prior to service a s an
administrator of the Plan, or during such service, have not been granted or awarded
Incentive Awards or Common Stock pursuant to the Plan or any other plan of SCEcorp
or any of its affiliates, other than plans permitted by Rule 16b-3. To the extent t he
members of the Compensation Committee of the Board satisfying the above criteria a re
fewer than three in number and Former Rule 16b-3 is elected to apply to this Plan, t he
Board shall appoint additional directors until at least three members are qualifi ed to
administer this Plan. From the time Rule 16-3b is elected to apply to the Pla n, the
Board shall ensure at least two members are qualified to administer the Plan.
The Committee has, and may exercise, such powers and authority of the Board as
may be necessary or appropriate for the Committee to carry out its functions as
described in the Plan. The Committee has sole authority in its discretion to determine
the Officers to whom, and the time or times at which, Incentive Awards may be
granted, the nature of the Incentive Award, the number of shares of Common Stock or
the amount of cash that makes up each Incentive Award, the pricing and amount of any
Incentive Award, the objectives, goals and performance criteria (which need not be
identical) utilized to measure the value of Incentive Awards, the form of payment (ca sh
or Common Stock or a combination thereof) payable upon the event or events giving
rise to payment of an Incentive Award, the vesting schedule of any Incentive Award,
the term of any Incentive Award, and such other terms and conditions applicable to
each individual Incentive Award as the Committee shall determine. The Comm ittee
may grant at any time new Incentive Awards to a Participant who has previously
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1994 Jefren Publishing Company, Inc. 18-268A
received Incentive Awards whether such prior Incentive Awards are still outstanding,
have previously been exercised in whole or in part, or are cancelled in connection with
the issuance of new Incentive Awards. The purchase price or initial value of the
Incentive Awards may be established by the Committee without regard to the existi ng
Incentive Awards or such other grants. Further, the Committee may, with the consent
of a Participant, amend the terms of any existing Incentive Award previously granted
to include or amend any provisions which could be incorporated in such an Incentive
Award at the time of such amendment.
The Committee has the sole authority to interpret the Plan, to determine the terms
and provisions of the Incentive Award agreements, and to make all determinations
necessary or advisable for the administration of the Plan. The Committee has authorit y
to prescribe, amend, and rescind rules and regulations relating to the Plan. All
interpretations, determinations, and actions by the Committee will be final, c onclusive,
and binding upon all parties. Any action of the Committee with respect to the
administration of the Plan shall be taken pursuant to a majority vote or by the
unanimous written consent of its members. The Committee may delegate to one or
more agents such nondiscretionary administrative duties as it may deem advisable.
No member of the Board or the Committee or agent or designee thereof will be
liable for any action or determination made in good faith by the Board or the
Committee with respect to the Plan or any transaction arising under the Plan.
5.Eligibility and Date of Grant. The Committee has authority, in its sole
discretion, to determine and designate from time-to-time those Eligible Persons who
are to be granted Incentive Awards, the type of Incentive Awards to be granted, the
times at which Incentive Awards will be granted, the prices of Incentive Awards
(which may be any lawful consideration determined by the Committee), the amount of
any Incentive Award, and the number of shares of Common Stock or the amount of
cash subject to each Incentive Award.
Each Incentive Award will be evidenced by a written instrument signed by
SCEcorp and the Participant and may include any other terms and conditions consistent
with the Plan as the Committee may in its discretion determine. The dat e of grant of an
Incentive Award will be the date of the Agreement between the Company and the
Participant.
6.Nonqualified Stock Options. The Committee may approve the grant of
Nonqualified Stock Options to Eligible Persons, subject to the following terms and
conditions:
(a) The purchase price of Common Stock under each Nonqualified Stock
Option may not be less than one hundred percent of the Fair Market Value of the
Common Stock on the date the Nonqualified Stock Option is granted.
(b) No Nonqualified Stock Option may be exercised after ten years and one
day from the date of grant.
(c) Upon the exercise of a Nonqualified Stock Option, the purchase price
will be payable in full in cash and/or its equivalent, such as Common Stock,
acceptable to SCEcorp. Any shares so assigned and delivered to SCEcorp in
payment or partial payment of the purchase price will be valued at their Fair
Market Value on the exercise date.
(d) No fractional shares will be issued pursuant to the exercise of a
Nonqualified Stock Option. Only cash payments will be made in lieu of fractional
shares. 7. Incentive Stock Options. The Committee may approve the grant of Incentive
Stock Options to Eligible Persons, subject to the following terms and conditions:
(a) The purchase price of each share of Common Stock under an Incentive
Stock Option will be at least equal to the Fair Market Value of a share of the
Common Stock on the date of grant; provided, however, that if a Participant, at the
time an Incentive Stock Option is granted, owns stock representing more than ten
(10%) percent of the total combined voting power of all classes of stock of
SCEcorp (as defined in Section 425(e) or (d) of the Code), then the exercise price
of each share of Common Stock subject to such Incentive Stock Option shall be at
least one hundred and ten (110%) percent of the Fair Market Value of such share
of Common Stock, as determined in the manner stated in this paragraph.
(b) No Incentive Stock Option may be exercised after ten (10) years from the
date of the grant. Each Incentive Stock Option granted under this Plan shall also
be subject to earlier termination as provided in this Plan.
(c) Upon the exercise of an Incentive Stock Option, the purchase price will be
payable in full in cash and/or its equivalent, such as Common Stock, acceptable to
SCEcorp. Any shares so assigned and delivered to SCEcorp in payment or partial
payment of the purchase price will be valued at their Fair Market Value on the
exercise date.
(d) The Fair Market Value (determined at the time the Incentive Stock Option
is granted) of the shares of Common Stock for which any Participant may be
granted Incentive Stock Options that are first exercisable during any one calendar
year (including Incentive Stock Options under all plans of the Company) will not
in the aggregate exceed One Hundred Thousand ($100,000) Dollars.
(e) No fractional share will be issued pursuant to the exercise of an Incentive
Stock Option. Only cash payments will be made in lieu of fractional shares. 8. Restricted Stock. The Committee may approve the grant or award of Restricted
Stock to Eligible Persons subject to the conditions of this Section 8.
(a) All shares of Restricted Stock granted or awarded pursuant to the Plan
(including any shares of Restricted Stock received by the Holder as a result of
stock dividends, stock splits, or any other forms of adjustment) will be subject to
the following restrictions:
(i) The shares may not be sold, transferred, or otherwise alienated or
hypothecated until the restrictions are removed or expire.
(ii) The Committee may require the Holder to enter into an escrow
agreement providing that the certificates representing Restricted Stock
granted or awarded pursuant to the Plan will remain in the physical custody of
an escrow holder or SCEcorp until all restrictions are removed or expire.
(iii) Each certificate representing Restricted Stock granted or awarded
pursuant to the Plan will bear a legend making appropriate reference to the
restrictions imposed on the Restricted Stock.
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1994 Jefren Publishing Company, Inc. 18-268A
(iv) The Committee may impose restrictions on any shares granted or
awarded as it may deem advisable, including, without limitation, restrictions
designed to facilitate exemption from or compliance with the Securities
Exchange Act of 1934, as amended, with requirements of any stock exchange
upon which such shares or shares of the same class are then listed, and with
any blue sky or other securities laws applicable to such shares.
(b) The restrictions imposed under subparagraph (a) above upon Restricted
Stock will lapse in accordance with a schedule or other conditions as determined
by the Committee, subject to the provisions of Sections 18 and 19.
(c) Upon acceptance of the Restricted Stock offer, the purchase price, if any,
established by the Committee will be payable in full in cash and/or its e quivalent,
such as Common Stock, acceptable to SCEcorp.
(d) Subject to the provisions of subparagraph (a) above and Section 19, the
Holder will have all rights of a shareholder with respect to the Restricted Stock
granted or awarded, including the right to vote the shares and receive all dividends
and other distributions paid or made with respect thereto. 9. Stock Appreciation Rights. The Committee may approve the grant of Rights
related or unrelated to Options to Eligible Persons, subject to the following terms and
conditions:
(a) A Stock Appreciation Right may be granted:(i) at any time if unrelated to an option;
(ii) either at the time of grant, or at any time thereafter during the option
term if related to a Nonqualified Stock Option;
(iii) only at the time of grant if related to an Incentive Stock Option.
(b) A Stock Appreciation Right grant in connection with an Option will
entitle the Holder of the related Option, upon exercise of the Stock Appreciation
Right, to surrender such Option, or any portion thereof to the extent unexercised,
with respect to the number of shares as to which such Stock Appreciation Right is
exercised, and to receive payment of an amount computed pursuant to Section
9(d). Such Option will, to the extent surrendered, then cease to be exercisable.
(c) Subject to Section 9(g), a Stock Appreciation Right granted in connection
with an Option hereunder will be exercisable at such time or times, and only to the
extent that a related Option is exercisable, and will not be transferable e xcept to
the extent that such related Option may be transferable.
(d) Upon the exercise of a Stock Appreciation Right related to an Option, the
Holder will be entitled to receive payment of an amount determined by
multiplying:
(i) The difference obtained by subtracting the purchase price of a share
of Common Stock specified in the related Option from the Fair Market Value
of a share of Common Stock on the date of exercise of such Stock
Appreciation Right, by
(ii) The number of shares to which such Stock Appreciation Right has
been exercised.
(e) The Committee may grant Stock Appreciation Rights unrelated to Options
to Eligible Persons. Section 9(d) shall be used to determine the amount payable at
exercise of such Stock Appreciation Right(s) if Fair Market Value is not used,
except that Fair Market Value shall not be used if the Committee specified i n the
award that book value or another measure as deemed appropriate by the
Committee was to be used. In applying the formula in Section 9(d), the initial
share value specified in the Stock Appreciation Right award shall be used in lieu
of the price "specified in the related Option."
(f) Payment of the amount determined under Section 9(d) or (e) may be made
solely in whole shares of Common Stock in a number determined at their Fair
Market Value on the date of exercise of the Stock Appreciation Right or
alternatively, at the sole discretion of the Committee, solely in cash or in a
combination of cash and shares as the Committee deems advisable. If the
Committee decides to make full payment in shares of Common Stock, and the
amount payable results in a fractional share, no fractional share will be issued.
Payment for the fractional share will be made in cash only.
(g) The Committee may, at the time a Stock Appreciation Right is granted,
impose such conditions on the exercise of the Stock Appreciation Right as may be
required to satisfy the requirements of Former Rule 16b-3 and/or Rule 16b-3, as
applicable (or any other comparable provisions in effect at the time or times in
question). Without limiting the generality of the foregoing, the Committee may
determine that a Stock Appreciation Right may be exercised only during the
period beginning on the third business day and ending on the twelfth business day
following the publication of SCEcorp's quarterly and annual summarized financial
data. 10. Performance Awards. The Committee may approve Performance Awards to
Eligible Persons. Such awards may be based on Common Stock performance over a
period determined in advance by the Committee or any other measures as determined
appropriate by the Committee. Payment will be in cash unless replaced by a Stock
Payment in full or in part as determined by the Committee.
11.Stock Appreciation Equivalents. The Committee may approve Stock
Appreciation Equivalents to Eligible Persons. Such awards may be based on Common
Stock performance over a period determined in advance by the Committee, or any
other measures as determined appropriate by the Committee. Payment will be in cash
unless replaced by a Stock Payment in full or in part as determined by the Committee.
12.Dividend Equivalents. The Committee may approve Dividend Equivalents
based on the dividends declared on the Common Stock on record dates during the
period between the date an Incentive Award is granted and the date such Incentive
Award is exercised or paid. Dividend Equivalents may be awarded separately or in
connection with Incentive Awards payable, whether payable in cash or Common Stock.
Subject to Sections 3 and 16, such Dividend Equivalents shall be converted to cash or
additional shares by such formula and at such time as may be determined by the
Committee.
13.Stock Payments. The Committee may approve Stock Payments of Common
Stock to Eligible Persons for all or any portion of the compensation (other than base
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1994 Jefren Publishing Company, Inc. 18-268A
salary) that would otherwise become payable to a Participant in cash.
Notwithstanding anything to the contrary contained in this Plan, if the written
instrument signed by SCEcorp and the Holder evidencing any Incentive Award states
that the Incentive Award(s) will be paid in cash, the Committee may not make a Stock
Payment in lieu thereof, and the Incentive Award(s) will be redeemable or exercisable
by the Holder only for cash.
14.Cash Equivalents. The Committee may grant any Incentive Award permitted
under the Plan which is otherwise payable in stock in the form of a cash equivalent
award.
15.Deferral of Payment. The Committee may approve the deferral of any
payments which may become due under the Plan. Such deferrals shall be subject to any
conditions, restrictions or requirements as the Committee may determine.
16.Adjustment Provisions. Subject to the provisions of this Section 16 below, if
the outstanding shares of Common Stock are increased, decreased, or exchanged for a
different number or kind of shares or other securities, or if additional shares or new or
different shares or other securities are distributed with respect to such shares of
Common Stock or other securities, through merger, consolidation, sale of all or
substantially all of the property of SCEcorp, reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock split or other distribution with
respect to such shares of Common Stock or other securities, an appropriate and
proportionate adjustment may be made in (i) the maximum number and kind of shares
provided in Section 3 of the Plan, (ii) the number and kind of shares or other securities
subject to the then outstanding Incentive Awards, and (iii) the price for each share or
other unit of any other securities subject to the then outstanding Incentive Awards
without change in the aggregate purchase price or value as to which Incentive Awards
remain exercisable or subject to restrictions.
Despite the foregoing, upon dissolution or liquidation of SCEcorp, or upon a
reorganization, merger, or consolidation of SCEcorp with one or more corporations as
a result of which SCEcorp is not the surviving corporation, or upon the sale of all or
substantially all the property of SCEcorp, all Options, Stock Appreciation Rights, and
other Incentive Awards then outstanding under the Plan will be fully vested and
exercisable and all restrictions on Restricted Stock will immediately ce ase, unless
provisions are made in connection with such transaction for the continuance of the Plan
and the assumption of or the substitution for such Incentive Awards of new Options,
Stock Appreciation Rights, or other Incentive Awards, or Restricted Stock covering the
stock of a successor employer corporation, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kind of shares and prices.
Any adjustments pursuant to this Section will be made by the Committee, whose
determination as to what adjustments will be made and the extent thereof will be final,
binding, and conclusive. No fractional interest will be issued under the Plan on account
of any such adjustments. Only cash payments will be made in lieu of fractional shares.
17.General Provisions.
(a) With respect to any share of Common Stock issued or transferred under any
provision of the Plan, such shares may be issued or transferred subject to such
conditions, in addition to those specifically provided in the Plan, as the Committee may
direct.(b) Nothing in the Plan or in any instrument executed pursuant to the Plan will
confer upon any Holder any right to continue in the employ of the Company or affect
the right of the Company to terminate the employment of any Holder at any time with
or without cause.
(c) No shares of Common Stock will be issued or transferred pursuant to an
Incentive Award unless and until all then applicable requirements imposed by federal
and state securities and other laws, rules, and regulations and by any regulatory
agencies having jurisdiction, and by any stock exchanges upon which the Common
Stock may be listed, have been fully met. As a condition precedent to the issue of
shares pursuant to the grant or exercise of an Incentive Award, SCEcorp may require
the Holder to take any reasonable action to meet such requirements.
(d) No Holder (individually or as a member of a group) and no beneficiary or
other person claiming under or through such Holder will have any right, title, or
interest in or to any shares of Common Stock allocated or reserved under the Plan or
subject to any Incentive Award except as to such shares of Common Stock, if any, that
have been issued or transferred to such Holder.
(e) SCEcorp may make such provisions as it deems appropriate to withhold any
taxes which it determines it is required to withhold in connection with any Inc entive
Award. Subject to this Section 17(e), however, and without in anyway limiting the
generality of Section 9, the Committee, in its sole discretion and subject to such rules
as the Committee may adopt, may permit Participants to elect (i) ca sh settlement of any
Incentive Award, or (ii) to apply a portion of the shares of Common Stock they are
otherwise entitled to receive pursuant to an Incentive Award, or shares of Common
Stock already owned, to satisfy the tax withholding obligation arising from the receipt,
vesting, or exercise of any Incentive Award, as applicable.
(f) No Incentive Award and no right under the Plan, contingent or otherwise, will
be assignable or subject to any encumbrance, pledge, or charge of any nature, or
otherwise transferable (meaning, without limitation, that such Incentive Award or right
is exercisable during the Holder's lifetime only by him or her or by his or her guardian
or legal representative) except that, under such rules and regulations as SCEcorp ma y
establish pursuant to the terms of the Plan, a beneficiary may be designated with
respect to an Incentive Award in the event of death of a Holder of such Incentive
Award, and from the time Rule 16b-3 is elected to apply to this Plan, Incentive Awards
may be transferred pursuant to a qualified domestic relations order as defined by the
Code or Title I of the Employee Retirement Income Security Act, or the regulat ions
promulgated thereunder. If such beneficiary is the executor or administrator of the
estate of the Holder of such Incentive Award, any rights with respect to such Incentive
Award may be transferred to the person or persons or entity (including a trust) entitled
thereto under the will of the Holder of such Incentive Award, or, in the case of
intestacy, under the laws relating to intestacy.
(g) Notwithstanding Section 17(f), the Committee may, to the extent permitted by
applicable law and Former Rule 16b-3 and/or Rule 16b-3, as applicable, permit a
Holder to assign the rights to exercise Options or Rights to a trust or to exercise opti ons
or rights in favor of a trust, provided that, in the case of Incentive Stock Options, such
exercise in favor of a trust shall be permitted only if and to the extent t hat such exercise
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1994 Jefren Publishing Company, Inc. 18-268A
is not deemed to be a transfer to or exercise by someone other than the Holder in
contravention of Section 422A(b)(5) of the Code.
(h) Whenever a Holder is entitled to receive cash in lieu of a fractional share ,
recognizing that such payment may be deemed a sale of the underlying Common Stock
under Section 16 of the Securities Exchange Act of 1934, as amended, the Holder may
alternatively elect, at least six months in advance of the payment date, to receive the
cash payment or to forfeit his or her rights to such cash payment. This election will be
evidenced in the Incentive Award agreement.
(i) This Plan shall be governed by the laws of the State of California. 18.Amendment and Termination of the Plan. The Board of Directors or the
Committee will have the power, in its discretion, to amend, suspend, or terminate the
Plan at any time. No such amendment will, without approval of the shareholders of
SCEcorp to the extent required by law or the rules of any exchange upon which the
Common Stock is listed, and except as provided in Section 16 of the Plan:
(a) Materially modify the requirements as to eligibility for participation in
the Plan;
(b) Materially increase the benefits accruing to Eligible Persons under the
Plan; or
(c) Materially increase the number of securities which may be issued under
the Plan.
The Committee may, with the consent of a Holder, make such modifications in the
terms and conditions of any Incentive Award as it deems advisable or cancel the
Incentive Award (with or without consideration). No amendment, suspension, or
termination of the Plan will, without the consent of the Holder, alter, terminate, impair,
or adversely affect any right or obligation under any Incentive Award previously
granted under the Plan.
19. Termination of Employment.
(a) A Stock Appreciation Right or an Option held by a person who was an
employee at the time such Right or Option was granted will expire immediatel y if and
when the Holder ceases to be an employee, except as follows:
(i) If the employment of a Participant is terminated by the Company other
than for cause, then the Stock Appreciation Rights and Options will expire six
months thereafter unless the terms of the Incentive Award agreement specify
otherwise. For purposes of this provision, termination "for cause" shall include,
but shall not be limited to, termination because of dishonesty, criminal offense, or
violation of work rule, and shall be determined by, and in the sole discretion of,
the Company. During the six-month period, the Stock Appreciation Rights and
Options may be exercised in accordance with their terms, but only to the extent
exercisable on the date of termination of employment.
(ii) If a Participant dies or becomes permanently and totally disabled while
employed by the Company, the Stock Appreciation Rights and Options of the
Participant will expire three years after the date of death or permanent and t otal
disability unless the terms of the Incentive Award agreement specify otherwise. If
the Participant dies or becomes permanently and totally disabled within the six-
month period referred to in subparagraph (a) above, the Stock Appreciation Rights
and Options will expire six months after the date of death or permanent and total
disability, unless the terms of the Incentive Award agreement specify otherwise.
(b) In the event a Holder of other Incentive Awards ceases to be an employee, all
such Incentive Awards will terminate except in the case of retirement, death, or
permanent and total disability. To be eligible for the full amount of any such Ince ntive
Award, an individual must have been a Participant for the entire period to which the
Incentive Award applies. Pro-rata awards may be distributed to Participants who are
discharged or who terminate their employment for reasons other than incompetence,
misconduct or fraud, or who retired or became disabled during the incentive period, or
who were Participants for less than the full incentive period. A pro-rata award may be
made to a Participant's designated beneficiary in the event of death of a Partic ipant
during an incentive period prior to an award being made.
(c) The Committee may in its sole discretion determine, with respect to an
Incentive Award, that any Holder who is on a leave of absence for any reason will be
considered as still in the employ of the Company, provided that rights to such Incentive
Award during an unpaid leave of absence will be limited to the extent to which suc h
right was earned or vested at the commencement of such leave of absence.
(d) The Committee may vary the strict requirements of this Section 19 by
agreement at the time of grant, or on a case-by-case basis thereafter, as it deem s
appropriate and in the best interests of SCEcorp. The Committee may accelerat e the
vesting of all, or a portion of any Incentive Award, and may extend the above-
described exercise periods to as long as the term provided in the original Incentive
Award agreement.
20. Effective Date of Plan and Duration of Plan. This Plan as amended and
restated will become effective on the date specified by the Board of Directors of
SCEcorp, subject, however, to approval by the stockholders of SCEcorp at their next
annual meeting or at any adjournment thereof, within twelve (12) months following the
date of its adoption by the Board of Directors. Unless previously terminated by the
Board of Directors, the Plan will terminate April 16, 2002.
