Exhibit 10.2
SECOND AMENDMENT TO
PINNACLE WEST CAPITAL CORPORATION
ARIZONA PUBLIC SERVICE COMPANY
SUNCOR DEVELOPMENT COMPANY
AND
EL DORADO INVESTMENT COMPANY
DEFERRED COMPENSATION PLAN
Pinnacle West Capital Corporation ("Pinnacle West"), pursuant to
the power granted to it by Section 11.2 of the above-named plan (the "Plan"),
hereby amends the Plan, effective as of January 1, 1994, by making the following
deletions and additions:
I. Section 3.6 is deleted in its entirety and a new Section 3.6 is added
to read as follows:
"3.6 Installment Distributions. In the event a benefit is paid in
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installments under Articles 5, 6, or 8, installment payment amounts
shall be determined in the following manner:
(a) Interest Rate. The interest rate to be used to calculate
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installment payment amounts shall be a fixed interest rate that is
determined by averaging the Crediting Rates for the Plan Year in
which a Participant becomes eligible to receive a benefit and the
four (4) preceding Plan Years. If a Participant has completed fewer
than five (5) Plan Years, this average shall be determined using
the Crediting Rates for the Plan Years during which the Participant
participated in the Plan.
(b) Installment Payments. For purposes of calculating installment
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payment amounts, each annual installment payment, starting with the
first payment [which for this purpose is deemed to be paid as of
the date that the Participant becomes eligible to receive a benefit
under this Plan (the "Eligibility Date")] and continuing thereafter
for each additional year that starts on the anniversary of the
Eligibility Date until the Participant's Account Balance is paid in
full, shall be deemed to have been paid prior to the crediting of
interest for that year. (The result of this is that interest
crediting shall be made after taking into account the annual
installment payment for that year.)
(c) Amortization. Based on the interest rate determined in accordance
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with Section 3.6(b) above, the Participant's Account Balance shall
be amortized in equal installment payments over the term of the
specified payment period. The resulting number shall be the
installment payment that is to be paid each year."
II. The First Sentence of Section 5.2 is deleted in its entirety and a new
first sentence of Section 5.2 is added to read as follows:
"A Participant, in connection with his or her commencement of
participation in the Plan, shall elect on an Election Form to receive the
Retirement Benefit in a lump sum or in equal annual payments over a
period of 5, 10 or 15 years (the latter determined in accordance with
Section 3.5 above)."
III. Except as specifically provided herein, the remaining provisions of the
Plan, as previously amended, shall remain in full force and effect.
Pinnacle West has caused this Amendment to be signed by its duly
authorized officer as of January 1, 1994.
Pinnacle West Capital Corporation
By: Faye Widenmann
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Its: Vice President
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