Exhibit 10.27 (incorrectly titled "Amendment No. 3 in 10-K for the year ended December 31, 2002) CALIFORNIA WATER SERVICE COMPANY SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AMENDMENT NO. 2 WHEREAS, California Water Service Company (the "Company") maintains the California Water Service Company Supplemental Executive Retirement Plan (the "Plan"), for the benefit of a select group of the company's management and highly compensated employees; WHEREAS, the Board of Directors has amended the Plan to decrease the number of years required for full vesting in the Plan from 35 years to 15 years; NOW, THEREFORE, effective as of January 1, 2003, the Plan is hereby amended as follows: 3. The table in Section 5.1(a) of the Plan used to determine participants' "Normal Retirement Benefits" under the Plan is restated to read as follows: Years of Service Percentage ---------------- ---------- 5 20.00% 6 24.00 7 28.00 8 32.00 9 36.00 10 40.00 11 44.00 12 48.00 13 52.00 14 56.00 15 60.00 IN WITNESS WHEREOF, to record the adoption of this Amendment No. 2, the Company has caused it to be executed this 4th day of April , 2003 CALIFORNIA WATER SERVICE COMPANY, A CALIFORNIA CORPORATION By: /s/ Richard Nye By: /s/ Christine McFarlane - -------------------------------- -------------------------------------- Richard Nye Christine McFarlane Title: Vice President, CFO Title: Vice President, Human Resources