Exhibit 10(h)(xxix)
IDAHO POWER COMPANY
SECURITY PLAN FOR
SENIOR MANAGEMENT EMPLOYEES II
Effective January 1, 2005
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......................................................................................... 2
2.8...... Company................................................................................................................. 2
2.9...... Compensation Committee......................................................................................... 2
2.10.... Compensation.......................................................................................................... 2
2.11.... Disability.................................................................................................................. 3
2.12.... Early Retirement Date............................................................................................... 3
2.13.... Employer................................................................................................................. 3
2.14.... Final Average Monthly Compensation....................................................................... 3
2.15.... Key Employee......................................................................................................... 3
2.16.... Normal Form of Benefit............................................................................................ 3
2.17.... Normal Retirement Date........................................................................................... 3
2.18.... Participant................................................................................................................ 3
2.19.... Plan Year................................................................................................................. 3
2.20.... Retirement................................................................................................................ 3
2.21.... Retirement Plan........................................................................................................ 4
2.22.... Security Plan Retirement Benefit............................................................................... 4
2.23.... Target Retirement Percentage................................................................................... 4
2.24.... Termination Date...................................................................................................... 4
2.25.... Years of Participation............................................................................................... 4
ARTICLE III........ PARTICIPATION AND VESTING................................................................. 4
3.1...... Eligibility................................................................................................................... 4
3.2...... Vesting..................................................................................................................... 4
3.3...... Change in Employment Status................................................................................... 4
3.4...... Non-Participating Affiliate......................................................................................... 5
ARTICLE IV........ BENEFIT ELECTION...................................................................................... 5
ARTICLE V......... SURVIVOR BENEFITS................................................................................... 5
5.1...... Pre-retirement Survivor Benefits............................................................................... 5
5.2...... Post-termination Survivor Benefit.............................................................................. 5
ARTICLE VI........ SECURITY PLAN RETIREMENT BENEFITS................................................ 6
6.1...... Normal Retirement Benefit........................................................................................ 6
6.2...... Early Retirement Benefit........................................................................................... 6
6.3...... Early Retirement Factor............................................................................................ 6
6.4...... Early Termination Benefits........................................................................................ 7
6.5...... Termination After Change in Control......................................................................... 7
6.6...... Form of Payment...................................................................................................... 7
6.7...... Code §162(m) Delay............................................................................................... 8
ARTICLE VII....... OTHER RETIREMENT PROVISIONS............................................................ 8
7.1...... Disability.................................................................................................................. 8
7.2...... Withholding Payroll Taxes........................................................................................ 8
7.3...... Payment to Guardian................................................................................................ 8
7.4...... Hardship Distribution................................................................................................ 9
ARTICLE VIII...... BENEFICIARY DESIGNATION................................................................... 10
8.1...... Beneficiary Designation........................................................................................... 10
8.2...... Effect of Payment................................................................................................... 10
ARTICLE IX........ ADMINISTRATION...................................................................................... 10
9.1...... Administrative Committee Duties............................................................................ 10
9.2...... Indemnity of Administrative Committee................................................................... 11
ARTICLE X......... CLAIMS PROCEDURE................................................................................. 11
10.1.... Claim..................................................................................................................... 11
10.2.... Denial of Claim....................................................................................................... 11
10.3.... Review of Claim..................................................................................................... 11
10.4.... Final Decision......................................................................................................... 11
ARTICLE XI........ TERMINATION, SUSPENSION OR AMENDMENT.................................. 12
11.1.... Termination, Suspension or Amendment of Plan...................................................... 12
11.2.... Change in Control.................................................................................................. 12
ARTICLE XII....... MISCELLANEOUS....................................................................................... 12
12.1.... Unfunded Plan........................................................................................................ 12
12.2.... Unsecured General Creditor................................................................................... 12
12.3.... Trust Fund............................................................................................................. 12
12.4.... Nonassignability..................................................................................................... 13
12.5.... Not a Contract of Employment............................................................................... 13
12.6.... Governing Law....................................................................................................... 13
12.7.... Validity.................................................................................................................. 13
12.8.... Notice.................................................................................................................... 13
12.9.... Successors............................................................................................................. 14
IDAHO POWER COMPANY
SECURITY PLAN FOR SENIOR MANAGEMENT EMPLOYEES II
EFFECTIVE JANUARY 1, 2005
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, amended and restated effective November 20, 2003, and as amended by the First Amendment thereto, which froze that Plan as of December 31, 2004.
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.
2.5 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, 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.
2.6.2 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.
2.6.3 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 1933), 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).
2.6.4 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.
2.6.5 any event described in 2.6.1 through 2.6.4 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."
2.12.1 attainment of age fifty-five (55); or
2.12.2 completion of thirty (30) years of Credited Service under the Retirement Plan but prior to Participant's Normal Retirement Date.
2.19 Plan Year. "Plan Year" shall mean the calendar year.
ARTICLE III
PARTICIPATION AND VESTING
3.2 Vesting. A Participant shall be one hundred percent (100%) immediately vested.
3.4
4.1 Benefits Elections. In the event a Participant who was a participant prior to December 1, 1994, in the Security Plan for Senior Management Employees I, or, if the Participant is deceased, the Beneficiary of such Participant, elects to receive the Frozen Benefit (the Frozen Retirement Benefit or Frozen Survivor Benefit, as defined in Plan I) under Plan I, no benefits shall be payable under this Plan.
5.1.1 Amount. The pre-termination survivor benefit shall be equal to sixty-six and two-thirds percent (66 2/3%) of the retirement benefit calculated under Section 6.1 assuming retirement occurred at the later of age sixty-two (62) or date of death. Final Average Monthly Compensation and the Retirement Plan benefit shall be determined as of the date of the Participant's death. For purposes of this section (a), the Retirement Plan benefit shall be the accrued benefit determined as of the date of death as defined in the Retirement Plan.
5.1.2 Payment. If the Participant is married on the date of death, the benefits shall be paid to the spouse of the Participant for the life of the spouse beginning on the first day of the month coincident with or following the date of death. If the spouse's date of birth is more than ten (10) years after the Participant's date of birth, the monthly benefit shall be reduced using the Actuarial Equivalent factors to reflect the number of years over ten (10) the spouse is younger than the Participant. If the Participant is unmarried on the date of death, the benefit shall be paid to the Participant's Beneficiary in a lump sum that is the Actuarial Equivalent of the value of a death benefit payable to an assumed spouse the same age as the Participant.
5.2 Post-termination Survivor Benefit.
5.2.1 Death Prior to Commencement of Benefits. If a Participant dies prior to commencement of benefits but after reaching a Termination Date:
(a) Amount. The amount of the post-termination survivor benefit shall be equal to sixty-six and two thirds percent (66 2/3%) of the retirement benefit payable to the Participant.
(b) Payment. If the Participant is married on the date of death, the benefits shall be paid to the spouse of the Participant for the life of the spouse beginning on the first day of the month coincident with or following the date of death. If the spouse's date of birth is more than ten (10) years after the Participant's date of birth, the monthly benefit shall be reduced using Actuarial Equivalent factors to reflect the number of years over ten (10) the spouse is younger than the Participant. If the Participant is unmarried on the date of death, the benefit shall be paid to the Participant's Beneficiary in a lump sum that is the Actuarial Equivalent of the value of a death benefit payable to an assumed spouse the same age as the Participant.
5.2.2 Death After Commencement of Benefits. If a Participant dies after commencement of benefits, a survivor benefit will be paid only if, and to the extent provided for, under the form of benefit elected by the Participant pursuant to Sections 6.6.
ARTICLE VI
SECURITY PLAN RETIREMENT BENEFITS
Exact Age When Payments Begin | Early Retirement Factor |
62 | 100% |
61 | 96% |
60 | 92% |
59 | 87% |
58 | 82% |
57 | 77% |
56 | 72% |
55 | 67% |
Early Retirement Factors will be prorated to reflect retirement based on completed months rather than exact age.
6.4.1 The Target Retirement Percentage shall be calculated based upon the Years of Participation and then multiplied by a fraction equal to the Participant's actual Years of Participation divided by the Years of Participation the Participant would have had at the Normal Retirement Date if the Participant had continued to be employed by the Employer to age sixty-two (62). The adjusted Target Retirement Percentage shall be multiplied by the factor described in Section 6.3 for each month between the Participant's benefits commencement date (age 55) and age sixty-two (62).
6.4.2 The Early Termination Benefit shall be offset by the Retirement Plan Normal Form of Benefit payable on the date of benefit commencement (age 55) regardless of service, and by the Participant's retirement benefit, if any, under the Security Plan for Senior Management Employees I (which was frozen as of December 31, 2004) payable as a single life annuity .
6.6.1 The Participant may also elect to receive Actuarial Equivalent payments in one of the forms of benefit listed below:
(a) A joint and survivor annuity with payments continued to the surviving spouse at an amount equal to two-thirds (2/3) of the Participant's benefit.
(b) A joint and survivor annuity with payments continued to the surviving spouse at an amount equal to the Participant's benefit.
(c) A single life annuity, if the Participant had previously elected one of the joint and survivor annuity options listed above.
6.6.2 If the Actuarial Equivalent of the Security Plan Retirement Benefit is less than $10,000, the Administrative Committee may direct that the Participant's benefit be paid as a lump sum; provided that such lump sum payment shall be made on or before the later of (i) December 31 of the calendar year in which occurs the Participant's Termination Date or (ii) the date 2 1/2 months after the Participant's Termination Date.
6.6.3 The election to receive benefits in a different form of payment may be made at any time prior to commencement of payment.
6.8 Payment to Key Employee. Notwithstanding the provisions in Sections 6.1, 6.2, 6.4 and 6.5 with respect to the commencement of payment of benefits, payment to a Key Employee shall be delayed for six months from the Key Employee's Termination Date, and the first payment shall include payments accumulated during the delay.
ARTICLE VII
OTHER RETIREMENT PROVISIONS
7.4.1 Financial hardship. An unforeseeable emergency is a severe financial hardship of a Participant resulting from one or more of the following causes:
(a) An illness or accident of the Participant, Participant's spouse, or dependent (as defined in Section 152(a) of the Code);
(b) Loss of the Participant's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance); or
(c) Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant or Beneficiary.
A distribution on account of unforeseeable emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant's assets, to the extent the liquidation of such assets would not cause severe financial hardship.
7.4.2 Withdrawal Applications. The Administrative Committee shall establish guidelines and procedures for implementing withdrawals. An application shall be written, be signed by the Participant and include a statement of facts causing the financial hardship and any other facts required by the Administrative Committee.
7.4.3 Limitations. The payment date shall be fixed by the Administrative Committee. The Administrative Committee may require a minimum advance notice and may limit the amount, time and frequency of withdrawals.
ARTICLE VIII
BENEFICIARY DESIGNATION
Any Beneficiary designation may be changed by a Participant by the filing of a written form prescribed by the Administrative Committee. The filing of a new Beneficiary designation form will cancel all Beneficiary designations previously filed. Any finalized divorce or marriage (other than common law) of a Participant subsequent to the date of filing of a Beneficiary designation form shall automatically revoke the prior designation. If a Participant fails to designate a Beneficiary as provided above, or if the Beneficiary designation is revoked by marriage or divorce, without execution of a new designation, or if all designated Beneficiaries predecease the Participant or die prior to complete distribution of the Participant's benefits, then Participant's designated Beneficiary shall be deemed to be the person or persons surviving the Participant in the first of the following classes in which there is a survivor, share and share alike:
8.1.1 the Participant's surviving spouse;
8.1.2 the Participant's children, except that if any of the children predecease the Participant but leave issue surviving, the issue shall take by right of representation;
8.1.3 the Participant's personal representative (executor or administrator).
In the administration of this Plan, the Administrative Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit and may from time to time consult with counsel who may be counsel to the Employer.
Subject to Article X, the decision or action of the Administrative Committee in respect of any questions arising out of, or in connection with, the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan.
10.2 Denial of Claim. If the claim or request is denied, the written notice of denial shall state:
10.2.1 the reason for denial, with specific reference to the Plan provisions where applicable on which the denial is based;
10.2.2 a description of any additional material or information required and an explanation of why it is necessary; and
10.2.3 an explanation of the Plan's claims review procedure.
ARTICLE XI
TERMINATION, SUSPENSION OR AMENDMENT
IDAHO POWER COMPANY
By: /s/ J LaMont Keen
Chief Executive Officer
By: /s/ Thomas R. Saldin
Secretary
Dated: May 8, 2006