EXHIBIT 10.4

 

[img1.gif]

INTERNAL CORRESPONDENCE

 

Effective Date:

 

May 30, 2005

To:

 

Richard Peach

From:

 

Judi Johansen

Subject:

 

Retention Agreement

You have been identified as being critical to our success as we proceed through
the challenges and work associated with the Finance, Rebasing and Sarbanes
initiatives. To encourage you to continue your employment through this period,
the Company is offering you the following special payments (“Retention Bonus”):

 

•

A payment in the amount of $80,000 (less applicable withholding) on June 1,
2006.

 

•

A payment in the amount of $80,000 (less applicable withholding) on June 1,
2007.

Performance Milestone:

 

1.

During the defined period, the employee is to identify successors for the
critical roles within the employee’s organization, including the employee’s
role, and ensure the development and implementation of risk mitigation plans for
each of those roles. The risk mitigation plan must include: (1) specific actions
to build capability and knowledge in individuals who will be readily able to
assume the roles on an interim basis by the end of the defined period and (2)
the identification, mentoring and development of successors to prepare them for
the roles. The purpose of this is to begin building a solid internal development
structure for future growth and succession within the Finance team. The employee
is expected to provide leadership over the development of these plans and to be
personally engaged in the implementation of the plans, and performance against
this milestone will be evaluated by the PacifiCorp CEO.

This retention award will be included in your paycheck at the time of payment.
The above dates reflect PacifiCorp pay dates.

Payments comprising the Retention Bonuses are subject to applicable payroll
deductions and tax withholding and may constitute taxable income to you. You are
responsible for all tax obligations and should consult with your own tax advisor
regarding the tax treatment of the Retention Bonuses.

In addition to the performance milestone noted above, in order to be eligible
for the first payment, you must remain employed in your present department
within PacifiCorp through May 30, 2006 and maintain an acceptable level of
performance (as determined by management) during this period. In order to be
eligible for the second payment, you must remain within the ScottishPower group
through May 30, 2007 and maintain an acceptable level of performance (as
determined by management). If you leave the Company voluntarily or involuntarily
for cause prior to these dates, or transfer out of your present department
voluntarily, you will automatically forfeit all rights to any unpaid Retention
Bonuses. If you are terminated involuntarily due to displacement following a
workforce reduction prior to any unpaid Retention Bonuses, you will be paid the
amount of any unpaid Retention Bonus specified in this memo at the time of
termination. You must also meet the other terms and conditions identified in
this memorandum.

 

 

--------------------------------------------------------------------------------

Page 2

Retention Agreement – Peach

This offer is considered confidential. As a condition to receiving the Retention
Bonus, you agree to keep confidential the terms and conditions of this
memorandum as well as the content of discussions pertaining to the offer of the
Retention Bonus and this memorandum. You may, however, discuss the offer of the
Retention Bonus and this memorandum with your attorney, financial advisor or
immediate family members on a confidential basis. Should you have any questions
about this memorandum you may contact me or Erich Wilson in the Compensation
department.

Again, thank you for your many contributions to date. I am pleased to be able to
demonstrate our appreciation and recognition of your skills and contributions to
the Company in this way. Please acknowledge your acceptance of this offer by
signing and returning the enclosed copy of this memorandum.

 

       

/s/ Judi Johansen

 

 

/s/ Richard Peach

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

Judi Johansen

 

 

Richard Peach

       

May 2, 2005

 

 

April 28, 2005

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

Date

 

 

Date

 

--------------------------------------------------------------------------------