Amendment to PG&E Corporation Short-Term Incentive and Bonus Programs

Summary

PG&E Corporation has amended all its current and future bonus plans with annual or shorter performance periods, effective January 1, 2009. The amendment specifies that payments under these plans will be made within two months and 15 days after the end of the calendar year (or PG&E’s taxable year, if different) in which the payments are no longer at risk of forfeiture, as defined by IRS Section 409A. This change ensures compliance with tax regulations regarding the timing of bonus payments.

EX-10.27 12 ex1027.htm AMENDMENT TO STIP & OTHER BONUS PROGRAMS - CORP ex1027.htm

EXHIBIT 10.27

[PG&E CORPORATION LETTERHEAD]

AMENDMENT TO SHORT-TERM INCENTIVE PROGRAMS

AND OTHER BONUS PROGRAMS

All current and future bonus plans of PG&E Corporation (“PG&E”) with an annual (or shorter) performance period (the “Plans”) are hereby amended as described below, effective January 1, 2009.

1. Payments under the Plans shall be made within two months and 15 days following the end of the calendar year in which such payments cease to be subject to a “substantial risk of forfeiture,” within the meaning of Section 409A of the Internal Revenue Code of 1986 (“Section 409A”). In the event that PG&E’s taxable year ceases to be the calendar year, then payments under the Plans shall be made within two months and 15 days following the later of the end of the calendar year or PG&E’s taxable year in which such payments cease to be subject to a “substantial risk of forfeiture,” within the meaning of Section 409A.

IN WITNESS WHEREOF, PG&E Corporation has caused this Plan to be executed by its Senior Vice President, Human Resources, at the direction of the Chief Executive Officer, on December 31, 2008.

		PG&E CORPORATION

	By:	JOHN R. SIMON
		John R. Simon
		Senior Vice President - Human Resources