IDAHO POWER
COMPANY
SECURITY PLAN FOR
SENIOR MANAGEMENT EMPLOYEES
I
Amended and Restated
Effective December 31, 2004
TABLE OF CONTENTS
ARTICLE I
PURPOSE; EFFECTIVE DATE
................................................................................................................
1
ARTICLE II
DEFINITIONS .............................................................................................................................................
2
2.1
Actuarial Equivalent ...............................................................................................................................................
2
2.2
Administrative Committee
....................................................................................................................................
2
2.3
Affiliate .....................................................................................................................................................................
2
2.4
Beneficiary ...............................................................................................................................................................
3
2.5
Board .........................................................................................................................................................................
3
2.6
Change in Control ..................................................................................................................................................
3
2.7
Change in Control Period
.....................................................................................................................................
4
2.8
Company ...................................................................................................................................................................
4
2.9
Compensation Committee
.....................................................................................................................................
5
2.10
Compensation
..........................................................................................................................................................
5
2.11
Disability
..................................................................................................................................................................
5
2.12
Early Retirement
Date ...........................................................................................................................................
5
2.13
Employer
...................................................................................................................................................................
5
2.14
Final Average Monthly
Compensation ................................................................................................................
6
2.15
Frozen Retirement
Benefit ....................................................................................................................................
7
2.16
Frozen Survivor
Benefit .........................................................................................................................................
8
2.17
Normal Form of
Benefit .........................................................................................................................................
8
2.18
Normal Retirement Assumed
Years of Participation ..........................................................
............................ 8
2.19
Normal Retirement
Date .......................................................................................................................................
8
2.20
Participant
...............................................................................................................................................................
8
2.21
Plan Year
.................................................................................................................................................................
8
2.22
Retirement
..............................................................................................................................................................
9
2.23
Retirement Plan
....................................................................................................................................................
9
2.24
Security Plan Retirement
Benefit ......................................................................................................................
9
2.25
Target Retirement
Percentage ...........................................................................................................................
9
2.26
Termination
Date ...................................................................................................................................................
9
2.27
Years of
Participation .........................................................................................................................................
10
ARTICLE III
PARTICIPATION AND VESTING
.....................................................................................................
11
3.1
Eligibility and Participation
..............................................................................................................................
11
3.2
Vesting ..................................................................................................................................................................
11
3.3
Change
in Employment Status ..........................................................................................................................
11
3.4
Non-Participating Affiliate
...............................................................................................................................
12
ARTICLE IV
BENEFIT ELECTION ............................................................................................................................
13
4.1
Benefit Election ...................................................................................................................................................
13
4.2
Commencement of Benefits
..............................................................................................................................
13
ARTICLE V
SURVIVOR BENEFITS ........................................................................................................................
14
5.1
Pre-retirement Survivor Benefits
...................................................................................................................
14
5.2
Post-termination Survivor Benefit
..................................................................................................................
15
5.3
Survivor Benefit Election for Participants Prior
to December 1, 1994 . ..................................................
16
5.4
Suicide ..................................................................................................................................................................
16
ARTICLE VISECURITY PLAN
RETIREMENT BENEFITS ........................................................................
............... 17
6.1
Normal Retirement Benefit
...............................................................................................................................
17
6.2
Early
Retirement Benefit ...................................................................................................................................
18
6.3
Early
Retirement Factor ....................................................................................................................................
18
6.4
Early
Termination Benefits ..............................................................................................................................
19
6.5
Termination After Change in Control
...................................................................................................................
20
6.6
Form
of Payment ........................................................................................................................................................
20
ARTICLE VII
OTHER RETIREMENT PROVISIONS
.............................................................................
.............. 21
7.1
Disability .....................................................................................................................................................................
21
7.2
Withholding Payroll Taxes
.....................................................................................................................................
21
7.3
Payment to Guardian ...................................................................................................................................
............ 21
7.4
Accelerated Distribution
.........................................................................................................................................
22
ARTICLE VIII
BENEFICIARY DESIGNATION
...............................................................................................
....... 23
8.1
Beneficiary Designation for Participant Not
Eligible for Frozen Survivor Benefit .............................. ...
23
8.2
Beneficiary Designation for Participant Eligible
for Frozen Survivor Benefit .........................................
24
8.3
Beneficiary Designation at Commencement of
Benefits ..................................................................................
26
8.4
Effect
of Payment ......................................................................................................................................................
26
ARTICLE IX
ADMINISTRATION ...................................................................................................................................
27
9.1
Administrative Committee Duties
........................................................................................................................
27
9.2
Indemnity of Administrative
Committee .............................................................................................................
28
ARTICLE X
CLAIMS PROCEDURE ............................................................................................................................
29
10.1
Claim
.........................................................................................................................................................................
29
10.2
Denial of Claim
........................................................................................................................................................
29
10.3
Review of Claim
.......................................................................................................................................................
29
10.4
Final Decision
..........................................................................................................................................................
30
ARTICLE XI
TERMINATION, SUSPENSION OR
AMENDMENT .....................................................................
.. 31
11.1
Termination, Suspension or
Amendment of Plan .............................................................................................
31
11.2
Change in
Control ..................................................................................................................................................
32
ARTICLE XII
MISCELLANEOUS ..............................................................................................................................32
12.1
Unfunded Plan
..........................................................................................................................................................32
12.2
Unsecured General
Creditor ................................................................................................................................
32
12.3
Trust Fund
................................................................................................................................................................
33
12.4
Nonassignability ......................................................................................................................................................
33
12.5
Not a Contract of
Employment ............................................................................
................................................. 33
12.6
Governing Law
.........................................................................................................................................................
34
12.7
Validity
......................................................................................................................................................................
34
12.8
Notice
.........................................................................................................................
............................................... 34
12.9
Successors
................................................................................................................................................................
34
12.10
Section 409A
.............................................................................................................................................................
35
IDAHO POWER COMPANY
SECURITY PLAN FOR SENIOR MANAGEMENT EMPLOYEES I
AMENDED AND RESTATED
EFFECTIVE NOVEMBER 20, 2008
ARTICLE I
PURPOSE; EFFECTIVE DATE
The purpose of this
Security Plan for Senior Management Employees I (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 restatement shall be November 20,
2008.
PAGE 1—SECURITY PLAN FOR SENIOR MANAGEMENT
EMPLOYEES
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 9.1 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
which may be amended from time to time.
For purposes of
Section 7.4, Actuarial Equivalent shall be calculated using the
Pension Benefit Guaranty Immediate Rate as of the month preceding
distribution plus 1% and the mortality table specified in the
Retirement Plan which may be amended from time to time.
2.2
Administrative Committee . "Administrative
Committee" shall mean the Administrative Committee appointed by the
Compensation Committee pursuant to Section 9.1 hereof to
administer the Plan.
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.
PAGE 2—SECURITY PLAN FOR SENIOR MANAGEMENT
EMPLOYEES
2.4
Beneficiary . "Beneficiary" shall
mean the person, persons or entity designated by the Participant
pursuant to Article VIII 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.
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:
(a)
any person, or more than one person acting as a group, acquires
ownership of stock of IDACORP, Inc. that, together with all other
stock held by such person or persons, constitutes more than 50% of
the total fair market value or total voting power of the stock of
IDACORP, Inc.
(b)
any person, or more than one person acting as a group, acquires (or
has acquired during the 12 month period ending on the date of the
most recent acquisition by such person or persons) ownership of
thirty-five percent (35%) or more of the voting stock of IDACORP,
Inc.
PAGE 3—SECURITY PLAN FOR SENIOR MANAGEMENT
EMPLOYEES
(c)
any person, or more than one person acting as a group, other than
an Affiliate of IDACORP (as such term is defined in Rule 12b-2 of
the Securities Exchange Act of 1934), acquires (or has acquired
during the 12 month period ending on the date of the most recent
acquisition by such person or persons) assets from IDACORP, Inc.
that have a total fair market value equal to or more than forty
percent (40%) of the total gross fair market value of all the
assets of the corporation immediately prior to such acquisition or
acquisitions. (For this purpose, gross fair market value
means the value of the assets of the corporation, or the value of
the assets being disposed of, determined without regard to any
liabilities associated with such assets).
(d)
a majority of members of the Board of Directors of IDACORP, Inc. is
replaced during any twelve (12) month period, such that,
individuals who at the beginning of such period constitute the
Board of IDACORP, Inc. cease for any reason to constitute a
majority thereof, unless the appointment or election of each new
director was endorsed by a majority of the directors in office
prior to such appointment or election.
(e)
any event described in (a) through (d) above occurs with respect to
the Company, except that IDACORP, Inc. and its Affiliates shall not
be considered persons for purposes of determining whether there has
been a change in control.
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 with the earlier of: (i)
Termination Date of the Change in Control as determined by the
Compensation Committee or (ii) 24 months following the consummation
of a Change in Control.
2.8
Company . "Company" shall mean
the Idaho Power Company, an Idaho corporation, its successors and
assigns.
PAGE 4—SECURITY PLAN FOR SENIOR MANAGEMENT
EMPLOYEES
2.9
Compensation Committee . "Compensation
Committee" shall mean the Board committee assigned responsibility
for administering executive compensation.
2.10
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.
2.11
Disability . "Disability" shall mean
that a Participant is eligible to receive benefits under the
Long-Term Disability Program maintained by the Employer.
2.12
Early Retirement Date . "Early Retirement
Date" shall mean a Participant's Termination Date, if such
termination occurs on or after such Participant's:
(i)
attainment of age fifty-five (55); or
(ii)
completion of thirty (30) years of Credited Service under the
Retirement Plan
but prior to
Participant's Normal Retirement Date.
2.13
Employer . "Employer" shall mean
the Company and any business affiliated with the Company that
employs persons who are approved by the Board or the Administrative
Committee for participation in this Plan.
PAGE 5—SECURITY PLAN FOR SENIOR MANAGEMENT
EMPLOYEES
2.14
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. Notwithstanding the
foregoing, because the benefits payable under this Plan are frozen
as of December 31, 2004, Compensation paid after that date shall
not be taken into account.
PAGE 6—SECURITY PLAN FOR SENIOR MANAGEMENT
EMPLOYEES
2.15
Frozen Retirement Benefit . "Frozen Retirement
Benefit" shall mean the benefit accrued as of November 30, 1994,
under the Idaho Power Company Security Plan for Senior Management
Employees as amended and restated May 1, 1990. The
Frozen Retirement Benefit shall be calculated using compensation
through November 30, 1994, and actual age at commencement of
benefits. All Participants are 100% vested in their Frozen
Retirement Benefit as of November 30, 1994. The Frozen
Retirement Benefit shall be paid in the form and manner set forth
in this Plan prior to the November 30, 1994 amendment including the
early retirement reduction factors in effect under the May 1, 1990
restatement. The Frozen Retirement Benefit shall include the
Participant's salary reduction with interest as provided in Section
5.5 of the Idaho Power Company Security Plan for Senior Management
Employees as amended and restated May 1, 1990. In addition,
the Frozen Retirement Benefit shall also include any benefit
payable from the Idaho Power Company Supplemental Employee
Retirement Plan (SERP) before August 1, 1996 Restatement. The
Participant’s age, service and compensation at August 1,
1996, shall be used in determining this additional Frozen
Retirement Benefit from the SERP. Effective November 30,
1994, there shall be no additional employee contributions or salary
reductions under this Plan. The Frozen Retirement Benefit accrued
shall not be reduced due to the failure to complete salary
reductions for the final benefit class if such failure resulted
from removing the salary reduction requirement from the Plan
effective November 30, 1994.
PAGE 7—SECURITY PLAN FOR SENIOR MANAGEMENT
EMPLOYEES
2.16
Frozen Survivor Benefit . "Frozen Survivor
Benefit" shall mean the survivor benefit accrued as of November 30,
1994, under Article IV of the Idaho Power Company Security
Plan for Senior Management Employees as amended and restated
May 1, 1990. The Frozen Survivor Benefit shall be
calculated using compensation through November 30, 1994.
All Participants are 100% vested in their Frozen Survivor Benefit
as of November 30, 1994. The Frozen Survivor Benefit shall be
paid in the form and manner set forth in this Plan prior to the
November 30, 1994 amendment. The Frozen Survivor Benefit
shall include the Participant's salary reduction with interest as
provided in Section 5.5 of the Idaho Power Company Security
Plan for Senior Management Employees as amended and restated
May 1, 1990. Effective November 30, 1994, there
shall be no additional employee contributions or salary reductions
under this Plan. In addition, the Frozen Survivor Benefit
shall also include any benefit payable from the Idaho Power Company
Supplemental Employee Retirement Plan (SERP) before August 1, 1996
Restatement. The Participant’s age, service and
compensation at termination shall be used in determining this
additional Frozen Survivor Benefit from the SERP. The Frozen
Survivor Benefit accrued shall not be reduced due to the failure to
complete salary reductions for the final benefit class if such
failure resulted from removing the salary reduction requirement
from the Plan effective November 30, 1994.
2.17
Normal Form of Benefit . "Normal Form of
Benefit" shall mean the normal form of monthly retirement benefit
provided under Section 3.01 of the Retirement Plan.
2.18
Normal Retirement Assumed Years of Participation
. “Normal
Retirement Assumed Years of Participation” shall be twelve
(12) month periods, and portions thereof, which shall begin on the
earlier of the date an individual, who has been desi
