The Maricopa Arizona Officer Long-Term Incentive Compensation Plan is a specialized compensation program designed to provide incentives and rewards for officers of Southern California Edison Co. who are based in Maricopa, Arizona. The plan aims to attract and retain talented individuals by offering long-term incentives that align with the company's strategic goals and shareholder interests. Under this plan, officers in Maricopa, Arizona, may be eligible for various types of incentives, including performance-based stock options, restricted stock units (RSS), and cash bonuses. These incentives are typically awarded based on predetermined performance objectives and are subject to vesting periods to ensure long-term engagement and commitment. 1. Performance-based stock options: This type of incentive offers officers the opportunity to purchase company stock at a predetermined price (the exercise price) over a specified period. The number of stock options awarded is determined by individual and company performance criteria, such as financial targets, growth metrics, or customer satisfaction goals, among others. 2. Restricted stock units (RSS): RSS are grants of company stock given to officers that carry certain restrictions, such as a vesting period. Once the RSS vest, officers receive the full value of the shares, depending on the company's stock price at that time. RSS may be subject to additional performance or tenure-based conditions. 3. Cash bonuses: In addition to stock-based incentives, officers under this plan may also receive cash bonuses based on various performance metrics, such as meeting or exceeding revenue targets, cost-saving initiatives, safety achievements, or successful completion of major projects. These bonuses provide immediate financial rewards and serve as a motivator for exceptional performance. The Maricopa Arizona Officer Long-Term Incentive Compensation Plan is carefully structured to align the interests of officers with the long-term success of Southern California Edison Co. Through these incentives, the company aims to drive performance, enhance employee retention, and attract top talent to further grow the organization's presence in Maricopa, Arizona. By offering a mix of stock-based rewards and cash bonuses, the plan provides a balanced approach to recognizing and rewarding exceptional contributions made by officers in achieving corporate objectives.