Exhibit 10.3

AMENDMENT NO. 2

TO

PACIFICORP

COMPENSATION REDUCTION PLAN

2002 Restatement

 

PacifiCorp
an Oregon corporation
700 NE Multnomah
Portland, Oregon 97232

Company

The 2002 Restatement of the Plan, as amended by Amendment No. 1, is further
amended as follows:

1.

The provisions of 4.4 are changed and, as amended, read as follows:

4.4      A Participant shall be permitted to instruct the Committee to transfer
amounts from one Account to the other Account up to two times each year. Such
transfer shall be permitted upon receipt of permission to deal from the
Scottishpower plc Corporate Secretary’s Department. The minimum amount of each
transfer shall be $2,000. Transfers from the Stock Account must be designated in
whole shares.

2.

The provisions of 5.2 and 5.3 are changed and, as amended, read as follows:

5.2      Subject to 5.3, the Company shall periodically contribute to the Trust
the amounts necessary to purchase ADS Shares equal to the total balance of all
Stock Accounts. Such contributions shall be held in a separate fund within the
trust for the sole purpose of paying benefits under the Plan measured by Stock
Accounts, except as provided in the Trust document upon the Company’s
insolvency. The assets of such funds shall be invested by the trustee in ADS
Shares and the following shall apply:

(a)      Subject to (b), if the assets of such fund exceed the total balance of
all Stock Accounts, the excess shall be retained in the fund until reduced by
payment of benefits.

(b)      If a Participant instructs the Committee to transfer amounts from the
Participant’s Stock Account to the Participant’s Credit Account in accordance
with 4.4, ADS Shares with a value equal to the transfer amount shall be
liquidated and the proceeds shall be transferred to the fund described in 5.3.

5.3      The Company may, in its discretion, contribute amounts to the Trust to
be held in a separate fund for the sole purpose of paying benefits under the
Plan measured by the Credit Accounts described in 4.3, except as provided in the
Trust Document upon

 

 

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the Company’s insolvency. The assets of such funds shall be invested by the
trustee in accordance with instructions by the Committee and the following shall
apply:

(a)      Subject to (b), if the assets of such fund exceed the total balance of
all Credit Accounts, the excess shall be retained in the fund until reduced by
payment of benefits.

(b)      If a Participant instructs the Committee to transfer amounts from the
Participant’s Credit Account to the Participant’s Stock Account in accordance
with 4.4, the Company may instruct the Committee to use assets of such fund to
acquire ADS Shares in an amount equal to the transfer amount and to transfer the
ADS Shares to the fund described in 5.2. To the extent the assets are
insufficient to acquire the ADS Shares, the instruction shall have no effect and
the Company shall contribute to the Trust as provided in 5.2.

3.

The following new 10.5 is added to the Plan:

10.5    Subject to 10.2, effective upon the closing of any merger, acquisition,
share exchange, recapitalization, reorganization or any other transaction that
causes ADS Shares to become unavailable to the Company or to become
impracticable for purposes of providing benefits under the Plan, the balance of
the Participants’ Stock Accounts shall be transferred to the Credit Accounts for
the Participants. The Committee, in its discretion, shall determine whether or
not ADS Shares are reasonably available or impracticable and shall determine the
value of ADS Shares for purposes of transferring the Stock Account balances to
the Credit Accounts. ADS Shares shall, in any event, be presumed to be
impracticable if the Company is not affiliated with Scottishpower plc. If Stock
Account balances are transferred to Credit Accounts, Trust investments shall be
adjusted and provisions for distribution of ADS Shares to Participants shall be
ineffective. The provisions of 10.5 shall not limit the Company’s ability to
amend the Plan to provide for an arrangement similar to Stock Awards and Stock
Accounts under the Plan with respect to shares or similar securities of the
Company, or an affiliate of the Company, in place of the arrangements relating
to ADS Shares.

This Amendment shall be effective September 20, 2005.

 

Company

 

PACIFICORP

 

 

 

 

 

By:

/s/ Judi A. Johansen

 

 

 

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 Judi A. Johansen

 

 

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Print or type name

 

 

 
Date signed: 09/20/05

 

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