SECURITY PLAN FOR SENIOR MANAGEMENT EMPLOYEES II

 

 

 

 

 

 

 

 

 

 

 

IDAHO POWER COMPANY

 

SECURITY PLAN FOR
SENIOR MANAGEMENT EMPLOYEES II

 

 

 

 

 

 

 

 

 

 

 

 

Effective January 1, 2005

(Amended and Restated November 20, 2008)

 

 

 

 

table of contents

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ARTICLE I......... PURPOSE; EFFECTIVE DATE..................................................................... 1

ARTICLE II........ DEFINITIONS............................................................................................... 1

2.1...... Actuarial Equivalent.............................................................................................. 1

2.2...... Administrative Committee..................................................................................... 1

2.3...... Affiliate................................................................................................................ 1

2.4...... Beneficiary........................................................................................................... 1

2.5...... Board.................................................................................................................. 2

2.6...... Change in Control................................................................................................ 2

2.7...... Change in Control Period..................................................................................... 3

2.8...... Code................................................................................................................... 3

2.9...... Company............................................................................................................. 3

2.10.... Compensation Committee.................................................................................... 3

2.11.... Compensation..................................................................................................... 3

2.12.... Disability.............................................................................................................. 3

2.13.... Early Retirement Date........................................................................................... 3

2.14.... Employer.............................................................................................................. 4

2.15.... Final Average Monthly Compensation................................................................... 4

2.16.... Normal Form of Benefit........................................................................................ 4

2.17.... Normal Retirement Date....................................................................................... 4

2.18.... Participant............................................................................................................ 4

2.19.... Plan Year............................................................................................................. 4

2.20.... Retirement................................................................ ........................................... 4

2.21.... Retirement Plan.................................................................................................... 4

2.22.... Security Plan Retirement Benefit........................................................................... 4

2.23.... Separation from Service....................................................................................... 4

2.24.... Target Retirement Percentage............................................................................... 4

2.25.... Termination Date.................................................................................................. 4

2.26.... Years of Participation........................................................................................... 4

ARTICLE III...... PARTICIPATION AND VESTING......................  ........................................ 5

3.1...... Eligibility.............................................................................................................. 5

3.2...... Vesting................................................................................................................ 5

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table of contents
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3.3...... Change in Employment Status............................................................................... 5

3.4...... Non-Participating Affiliate..................................................................................... 5

ARTICLE IV...... SURVIVOR BENEFITS................................................................................. 5

4.1...... Pre-termination Survivor Benefits.......................................................................... 5

4.2...... Post-termination Survivor Benefit.......................................................................... 6

ARTICLE V........ SECURITY PLAN RETIREMENT BENEFITS.................... ........................ 7

5.1...... Normal Retirement Benefit.................................................................................... 7

5.2...... Early Retirement Benefit........................................................................................ 7

5.3...... Early Retirement Factor......................................................................................... 8

5.4...... Early Termination Benefits............................................................ ........................ 8

5.5...... Separation from Service After Change in Control...........................  .. ................... 9

5.6...... Form of Payment............................................................................. .................... 9

5.7...... Code Section 162(m) Delay............................................................................... 10

5.8...... Payment to Specified Employees........................................................................ 10

ARTICLE VI...... OTHER RETIREMENT PROVISIONS........................................ .............. 10

6.1...... Disability........................................................................................................... 10

6.2...... Withholding Payroll Taxes................................................................................. 10

6.3...... Payment to Guardian......................................................................................... 10

ARTICLE VII..... BENEFICIARY DESIGNATION...................................................  ........... 11

7.1...... Beneficiary Designation...................................................................................... 11

7.2...... Effect of Payment.............................................................................................. 11

ARTICLE VIII... ADMINISTRATION.................................................................................... 11

8.1...... Administrative Committee Duties........................................................................ 11

8.2...... Indemnity of Administrative Committee....................................................   ........ 12

ARTICLE iX...... CLAIMS PROCEDURE............................................................................... 12

9.1...... Claim................................................................................................................. 12

9.2...... Denial of Claim.................................................................................................. 12

9.3...... Review of Claim.................................................................................... ........... 12

9.4...... Final Decision................................................................................................... 13

ARTICLE X........ TERMINATION, SUSPENSION OR AMENDMENT.................... ......... 13

10.1.... Termination, Suspension or Amendment of Plan........................................ ........ 13

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table of contents
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10.2.... Change in Control............................................................................................... 13

ARTICLE XI...... MISCELLANEOUS...................................................................................... 13

11.1.... Unfunded Plan.................................................................................................... 13

11.2.... Unsecured General Creditor............................................................................... 13

11.3.... Trust Fund.......................................................................................................... 14

11.4.... Nonassignability.................................................................................................. 14

11.5.... Not a Contract of Employment........................................................................... 14

11.6.... Governing Law................................................................................................... 14

11.7.... Validity............................................................................................................... 14

11.8.... Notice................................................................................................................. 14

11.9.... Successors........................................................................................................... 14

 

 

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IDAHO POWER COMPANY
SECURITY PLAN FOR SENIOR MANAGEMENT EMPLOYEES II

EFFECTIVE JANUARY 1, 2005

(Amended and Restated November 20, 2008)

 

ARTICLE I

PURPOSE; EFFECTIVE DATE

The purpose of this Security Plan for Senior Management Employees II (the "Plan") is to provide supplemental retirement benefits for certain key employees of Idaho Power Company, its subsidiaries and affiliates.  It is intended that the Plan will aid in attracting individuals of exceptional ability and retain those critical to the operation of the Company, by providing them with these benefits.  The effective date of this Plan is January 1, 2005.  It is intended to be compliant with Section 409A of the Internal Revenue Code, which was added by the American Jobs Creation Act of 2004, effective January 1, 2005.  It continues the program of supplemental retirement benefits provided under the Security Plan for Senior Management Employees I, which provides benefits that are grandfathered under Section 409A of the Internal Revenue Code.

ARTICLE II

DEFINITIONS

As used in this Plan, the following terms shall be defined as stated in this Article, as interpreted by the Administrative Committee pursuant to its authority granted by Section 8.1 of this Plan.

2.1              Actuarial Equivalent .  "Actuarial Equivalent" shall mean equivalence in value between two (2) or more forms and/or times of payment based on a determination by an actuary chosen by the Company using generally accepted actuarial assumptions, methods and factors as used in the Retirement Plan of Idaho Power Company which may be amended from time to time.

2.2              Administrative Committee .   "Administrative Committee" shall mean the Fiduciary Committee appointed by the Compensation Committee pursuant to Section 8.1 hereof and the Chief Executive Officer of the Company.

2.3              Affiliate .   "Affiliate" shall mean a business entity that is affiliated in ownership with the Company or an Employer and is recognized as an Affiliate by the Company for the purposes of this Plan.

2.4              Beneficiary .   "Beneficiary" shall mean the person, persons or entity designated by the Participant pursuant to Article VII to receive any benefits payable under the Plan.  Each such designation shall be made in a written instrument filed with the Administrative Committee and shall become effective only when received, accepted and acknowledged in writing by the Administrative Committee or its designee.

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2.5              Board .   "Board" shall mean the Board of Directors of the Company.

2.6              Change in Control .   "Change in Control" shall mean any of the following events:

2.6.1        any person (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the "Exchange Act") and as used in Section 13(d) of the Exchange Act, excluding (a) IDACORP, Inc. or any Subsidiary, (b) a corporation or other entity owned, directly or indirectly, by the stockholders of IDACORP, Inc. immediately prior to the transaction in substantially the same proportions as their ownership of stock of IDACORP, Inc., (c) an employee benefit plan (or related trust) sponsored or maintained by IDACORP, Inc. or any Subsidiary or (d) an underwriter temporarily holding securities pursuant to an offering of such securities ("Exchange Act Person")) is the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 20% or more of the combined voting power of the then outstanding voting securities eligible to vote generally in the election of directors of IDACORP, Inc.; provided, however, that no Change in Control will be deemed to have occurred as a result of a change in ownership percentage resulting solely from an acquisition of securities by IDACORP, Inc.;

2.6.2        consummation of a merger, consolidation, reorganization or share exchange, or sale of all or substantially all of the assets, of IDACORP, Inc. or the Company (a "Qualifying Transaction"), unless, immediately following such Qualifying Transaction, all of the following have occurred: (a) all or substantially all of the beneficial owners of IDACORP, Inc. immediately prior to such Qualifying Transaction beneficially own in substantially the same proportions, directly or indirectly, more than 50% of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the corporation or other entity resulting from such Qualifying Transaction (including, without limitation, a corporation or other entity which, as a result of such transaction, owns IDACORP, Inc. or all or substantially all of IDACORP, Inc.'s assets either directly or through one or more subsidiaries) (as the case may be, the "Successor Entity"), (b) no Exchange Act Person is the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 20% or more of the combined voting power of the then outstanding voting securities eligible to vote generally in the election of directors of the Successor Entity and (c) at least a majority of the members of the board of directors of the Successor Entity are Incumbent Directors;

2.6.3        a complete liquidation or dissolution of IDACORP, Inc. or the Company; or

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2.6.4        within a 24-month period, individuals who were directors of the Board of Directors of IDACORP, Inc. (the "IDACORP Board of Directors") immediately before such period ("Incumbent Directors") cease to constitute at least a majority of the directors of the IDACORP Board of Directors; provided, however, that any director who was not a director of the IDACORP Board of Directors at the beginning of such period shall be deemed to be an Incumbent Director if the election or nomination for election of such director was approved by the vote of at least two-thirds of the directors of the IDACORP Board of Directors then still in office (a) who were in office at the beginning of the 24-month period or (b) whose election or nomination for election was so approved, in each case, unless such individual was elected or nominated as a result of an actual or threatened election contest or as a result of an actual or threatened solicitation of proxies or consents by or on behalf of any Exchange Act Person other than the IDACORP Board of Directors.

For avoidance of doubt, transactions for the purpose of dividing the Company's assets into separate distribution, transmission or generation entities or such other entities as IDACORP, Inc. or the Company may determine shall not constitute a Change in Control unless so determined by the IDACORP Board of Directors.  For purposes of this definition, the term "Subsidiary" shall mean any corporation of which more than 50% of the outstanding stock having ordinary voting power to elect a majority of the board of directors of such corporation is now or hereafter owned, directly or indirectly, by IDACORP, Inc.

2.7              Change in Control Period .   "Change in Control Period" shall mean the period beginning with a Change in Control, as defined in Section 2.6, and ending 24 months following the consummation of a Change in Control. 

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

2.9              Company .   "Company" shall mean the Idaho Power Company, an Idaho corporation, its successors and assigns.

2.10          Compensation Committee .   "Compensation Committee" shall mean the Board committee assigned responsibility for administering executive compensation.

2.11          Compensation .   "Compensation" shall mean the base salary and annual bonus (not to exceed one (1) times base salary for the year in which the bonus was paid) paid to a Participant and considered to be "wages" for purposes of federal income tax withholding.  Compensation shall be calculated before reduction for any amounts deferred by the Participant pursuant to any plan sponsored by the Employer which permits deferral of current compensation.  Compensation does not include long-term incentive compensation in any form, expense reimbursements, or any form of non-cash compensation or benefits.   A Participant who elects an accelerated distribution under the Security Plan for Senior Management Employees I, shall not be credited with any additional Compensation under this Plan beginning on the effective date of the accelerated distribution.

2.12          Disability .   "Disability" shall mean that a Participant is eligible to receive benefits under the Long-Term Disability Program maintained by the Employer.

2.13          Early Retirement Date .   "Early Retirement Date" shall mean a Participant's Termination Date, if such Termination Date occurs on or after such Participant's:

2.13.1    attainment of age fifty-five (55); or

2.13.2    completion of thirty (30) years of Credited Service under the Retirement Plan but prior to Participant's Normal Retirement Date.

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2.14          Employer .   "Employer" shall mean the Company and any business affiliated with the Company that employs persons who are designated by the Board or the Administrative Committee for participation in this Plan.

2.15          Final Average Monthly Compensation .   "Final Average Monthly Compensation" shall mean the Compensation received by the Participant during any sixty (60) consecutive months (during the last ten (10) years of employment) for which the Participant's compensation was the highest divided by sixty (60).  In determining Final Average Monthly Compensation, annual bonuses shall be allocated equally to the months in which they were paid.  Final Average Monthly Compensation shall not include any Compensation payable to a Participant pursuant to a written severance agreement with the Employer.

2.16          Normal Form of Benefit .   "Normal Form of Benefit" shall mean the normal form of monthly retirement benefit provided under Section 3.01 of the Employer's Retirement Plan.

2.17          Normal Retirement Date .   "Normal Retirement Date" shall mean a Participant's Termination Date if the Termination Date occurs on or after the date the Participant attains age sixty-two (62).

2.18          Participant .   "Participant" shall mean any individual who is participating in or has participated in this Plan as provided in Article III.

2.19          Plan Year .   "Plan Year" shall mean the calendar year.

2.20          Retirement .   "Retirement" shall mean a Participant's Separation from Service at the Participant's Early Retirement Date or Normal Retirement Date, as applicable.

2.21          Retirement Plan .   "Retirement Plan" shall mean The Retirement Plan of Idaho Power Company as may be amended from time to time.

2.22          Security Plan Retirement Benefit .   "Security Plan Retirement Benefit" shall mean the benefit determined under Article V of this Plan.

2.23          Separation from Service .  "Separation from Service" shall mean "separation from service," as that term is used in Section 409A(a)(2)(A)(i) of the Code.

2.24          Target Retirement Percentage .   "Target Retirement Percentage" shall equal six percent (6%) for each of the first ten (10) Years of Particip