**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**     **ActuarialEquivalent**............................................................................................................................................... 2

**2.2**     **AdministrativeCommittee**.................................................................................................................................... 2

**2.3**     **Affiliate**..................................................................................................................................................................... 2

**2.4**     **Beneficiary**............................................................................................................................................................... 3

**2.5**     **Board**......................................................................................................................................................................... 3

**2.6**     **Changein Control**.................................................................................................................................................. 3

**2.7**     **Changein Control Period**..................................................................................................................................... 4

**2.8**     **Company**................................................................................................................................................................... 4

**2.9**     **CompensationCommittee**..................................................................................................................................... 5

**2.10**   **Compensation**.......................................................................................................................................................... 5

**2.11**   **Disability**.................................................................................................................................................................. 5

**2.12**   **EarlyRetirement Date**........................................................................................................................................... 5

**2.13**   **Employer**................................................................................................................................................................... 5

**2.14**   **FinalAverage Monthly Compensation**................................................................................................................ 6

**2.15**   **FrozenRetirement Benefit**.................................................................................................................................... 7

**2.16**   **FrozenSurvivor Benefit**......................................................................................................................................... 8

**2.17**   **NormalForm of Benefit**......................................................................................................................................... 8

**2.18**   **NormalRetirement Assumed Years of Participation**.......................................................... ............................ 8

**2.19**   **NormalRetirement Date**....................................................................................................................................... 8

**2.20**   **Participant**............................................................................................................................................................... 8

**2.21**   **PlanYear**................................................................................................................................................................. 8

**2.22**   **Retirement**.............................................................................................................................................................. 9

**2.23**   **RetirementPlan**.................................................................................................................................................... 9

**2.24**   **SecurityPlan Retirement Benefit**...................................................................................................................... 9

**2.25**   **TargetRetirement Percentage**........................................................................................................................... 9

**2.26**   **TerminationDate**................................................................................................................................................... 9

**2.27**   **Yearsof Participation**......................................................................................................................................... 10

**ARTICLE III**     **PARTICIPATIONAND VESTING**..................................................................................................... 11

**3.1**     **Eligibilityand Participation**.............................................................................................................................. 11

**3.2**     **Vesting**.................................................................................................................................................................. 11

**3.3**     **Changein Employment Status**.......................................................................................................................... 11

**3.4**     **Non-ParticipatingAffiliate**............................................................................................................................... 12

**ARTICLE IV**     **BENEFITELECTION**............................................................................................................................ 13

**4.1**     **BenefitElection**................................................................................................................................................... 13

**4.2**     **Commencementof Benefits**.............................................................................................................................. 13

**ARTICLE V**      **SURVIVORBENEFITS**........................................................................................................................ 14

**5.1**     **Pre-retirementSurvivor Benefits**................................................................................................................... 14

**5.2**     **Post-terminationSurvivor Benefit**.................................................................................................................. 15

**5.3**     **SurvivorBenefit Election for Participants Prior to December 1, 1994.**.................................................. 16

**5.4**     **Suicide**.................................................................................................................................................................. 16

**ARTICLE VISECURITY PLAN RETIREMENT BENEFITS**........................................................................  ............... 17

**6.1**     **NormalRetirement Benefit**............................................................................................................................... 17

**6.2**     **EarlyRetirement Benefit**................................................................................................................................... 18

**6.3**     **EarlyRetirement Factor**.................................................................................................................................... 18

**6.4**     **EarlyTermination Benefits**.............................................................................................................................. 19

----

 

 

 

 

 

**6.5**     **TerminationAfter Change in Control**................................................................................................................... 20

**6.6**     **Formof Payment**........................................................................................................................................................ 20

**ARTICLE VII**        **OTHERRETIREMENT PROVISIONS**.............................................................................    .............. 21

**7.1**     **Disability**..................................................................................................................................................................... 21

**7.2**     **WithholdingPayroll Taxes**..................................................................................................................................... 21

**7.3**     **Paymentto Guardian**................................................................................................................................... ............ 21

**7.4**     **AcceleratedDistribution**......................................................................................................................................... 22

**ARTICLE VIII**       **BENEFICIARYDESIGNATION**...............................................................................................    ....... 23

**8.1**     **BeneficiaryDesignation for Participant Not Eligible for Frozen Survivor Benefit**..............................   ... 23

**8.2**     **BeneficiaryDesignation for Participant Eligible for Frozen Survivor Benefit**.........................................   24

**8.3**     **BeneficiaryDesignation at Commencement of Benefits**.................................................................................. 26

**8.4**     Effectof Payment...................................................................................................................................................... 26

**ARTICLE IX**     **ADMINISTRATION**................................................................................................................................... 27

**9.1**     **AdministrativeCommittee Duties**........................................................................................................................ 27

**9.2**     **Indemnityof Administrative Committee**............................................................................................................. 28

**ARTICLE X**      **CLAIMSPROCEDURE**............................................................................................................................ 29

**10.1**   **Claim**......................................................................................................................................................................... 29

**10.2**   **Denialof Claim**........................................................................................................................................................ 29

**10.3**   **Reviewof Claim**....................................................................................................................................................... 29

**10.4**   **FinalDecision**.......................................................................................................................................................... 30

**ARTICLE XI**     **TERMINATION,SUSPENSION OR AMENDMENT**.....................................................................   .. 31

**11.1**   **Termination,Suspension or Amendment of Plan**............................................................................................. 31

**11.2**   **Changein Control**.................................................................................................................................................. 32

**ARTICLE XII**        **MISCELLANEOUS**..............................................................................................................................32

**12.1**   **UnfundedPlan**..........................................................................................................................................................32

**12.2**   **UnsecuredGeneral Creditor**................................................................................................................................32

**12.3**   **TrustFund**................................................................................................................................................................ 33

**12.4**   **Nonassignability**...................................................................................................................................................... 33

**12.5**   **Nota Contract of Employment**............................................................................  ................................................. 33

**12.6**   **GoverningLaw**......................................................................................................................................................... 34

**12.7**   **Validity**...................................................................................................................................................................... 34

**12.8**   **Notice**......................................................................................................................... ............................................... 34

**12.9**   **Successors**................................................................................................................................................................ 34

**12.10****Section409A**............................................................................................................................................................. 35

 

 

 

----

 

 

 

 

 

**                                                    IDAHOPOWER COMPANY**

**                  SECURITY PLAN FOR SENIOR MANAGEMENTEMPLOYEES I**

**                                                   AMENDED AND RESTATED**

**                                              EFFECTIVE NOVEMBER20, 2008**

 

                                                                    **ARTICLEI**

**                                                  PURPOSE;EFFECTIVE DATE**

The purpose of this Security Plan forSenior Management Employees I (the "Plan") is to provide supplementalretirement benefits for certain key employees of Idaho Power Company, itssubsidiaries and affiliates.  It is intended that the Plan will aid in attractingindividuals of exceptional ability and retain those critical to the operationof the Company by providing them with these benefits.  The effective date ofthis restatement shall be November 20, 2008.

 

*PAGE**1**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

 

                                                                   **ARTICLEII**

**                                                                 DEFINITIONS**

As used in this Plan, the followingterms shall be defined as stated in this Article, as interpreted by theAdministrative Committee pursuant to its authority granted by Section 9.1 ofthis Plan.

**2.1       Actuarial Equivalent**.  "Actuarial Equivalent"shall mean equivalence in value between two (2) or more forms and/or times ofpayment based on a determination by an actuary chosen by the Company usinggenerally accepted actuarial assumptions, methods and factors as used in the RetirementPlan which may be amended from time to time.

For purposes of Section 7.4,Actuarial Equivalent shall be calculated using the Pension Benefit GuarantyImmediate Rate as of the month preceding distribution plus 1% and the mortalitytable specified in the Retirement Plan which may be amended from time to time.

**2.2       Administrative Committee**.  "AdministrativeCommittee" shall mean the Administrative Committee appointed by theCompensation Committee pursuant to Section 9.1 hereof to administer thePlan.

**2.3       Affiliate**.**** “Affiliate” shall mean a businessentity that is affiliated in ownership with the Company or an Employer and isrecognized as an Affiliate by the Company for the purposes of this Plan.

 

*PAGE**2**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**2.4       Beneficiary**.  "Beneficiary" shall meanthe person, persons or entity designated by the Participant pursuant to ArticleVIII to receive any benefits payable under the Plan.  Each such designationshall be made in a written instrument filed with the Administrative Committeeand shall become effective only when received, accepted and acknowledged inwriting by the Administrative Committee or its designee.

**2.5       Board**.  "Board" shall mean theBoard 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 thanone person acting as a group, acquires ownership of stock of IDACORP, Inc.that, together with all other stock held by such person or persons, constitutesmore than 50% of the total fair market value or total voting power of the stockof IDACORP, Inc.

(b)        any person, or more thanone person acting as a group, acquires (or has acquired during the 12 monthperiod ending on the date of the most recent acquisition by such person orpersons) ownership of thirty-five percent (35%) or more of the voting stock ofIDACORP, Inc.

 

*PAGE**3**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

(c)        any person, or more thanone person acting as a group, other than an Affiliate of IDACORP (as such termis defined in Rule 12b-2 of the Securities Exchange Act of 1934), acquires (orhas acquired during the 12 month period ending on the date of the most recentacquisition by such person or persons) assets from IDACORP, Inc. that have a totalfair market value equal to or more than forty percent (40%) of the total grossfair market value of all the assets of the corporation immediately prior tosuch acquisition or acquisitions.  (For this purpose, gross fair market valuemeans the value of the assets of the corporation, or the value of the assetsbeing disposed of, determined without regard to any liabilities associated withsuch assets). 

(d)       a majority of members ofthe Board of Directors of IDACORP, Inc. is replaced during any twelve (12)month period, such that, individuals who at the beginning of such periodconstitute the Board of IDACORP, Inc. cease for any reason to constitute amajority thereof, unless the appointment or election of each new director wasendorsed by a majority of the directors in office prior to such appointment orelection.  

(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 determiningwhether there has been a change in control.

**2.7       Change in Control Period**.  "Change in ControlPeriod" shall mean the period beginning with a Change in Control asdefined in Section 2.6 and ending with the earlier of: (i) Termination Date ofthe Change in Control as determined by the Compensation Committee or (ii) 24months following the consummation of a Change in Control.

**2.8       Company**.  "Company" shall mean theIdaho Power Company, an Idaho corporation, its successors and assigns.

 

*PAGE**4**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**2.9       Compensation Committee**.****  "Compensation Committee"shall mean the Board committee assigned responsibility for administeringexecutive 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 waspaid) paid to a Participant and considered to be "wages" for purposesof federal income tax withholding.  Compensation shall be calculated beforereduction for any amounts deferred by the Participant pursuant to any plansponsored 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 meanthat a Participant is eligible to receive benefits under the Long-TermDisability 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 orafter such Participant's:

(i)                attainment of agefifty-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 meanthe Company and any business affiliated with the Company that employs personswho are approved by the Board or the Administrative Committee for participationin this Plan.

 

*PAGE**5**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**2.14     Final Average MonthlyCompensation**.  "Final Average Monthly Compensation" shall mean theCompensation received by the Participant during any sixty (60) consecutivemonths (during the last ten (10) years of employment) for which theParticipant's compensation was the highest divided by sixty (60).  Indetermining Final Average Monthly Compensation, annual bonuses shall beallocated equally to the months in which they were paid.  Final Average MonthlyCompensation shall not include any Compensation payable to a Participantpursuant to a written severance agreement with the Employer.  Notwithstandingthe 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**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**2.15     Frozen Retirement Benefit**.  "Frozen RetirementBenefit" shall mean the benefit accrued as of November 30, 1994, under the Idaho Power Company Security Plan for Senior Management Employees asamended and restated May 1, 1990.  The Frozen Retirement Benefit shall becalculated using compensation through November 30, 1994, and actual age at commencement of benefits.  All Participants are 100% vested in their FrozenRetirement 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 effectunder the May 1, 1990 restatement.  The Frozen Retirement Benefit shall includethe Participant's salary reduction with interest as provided in Section 5.5 ofthe Idaho Power Company Security Plan for Senior Management Employees asamended and restated May 1, 1990.  In addition, the Frozen Retirement Benefitshall also include any benefit payable from the Idaho Power CompanySupplemental 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 theSERP.  Effective November 30, 1994, there shall be no additional employeecontributions or salary reductions under this Plan. The Frozen RetirementBenefit accrued shall not be reduced due to the failure to complete salaryreductions for the final benefit class if such failure resulted from removingthe salary reduction requirement from the Plan effective November 30,1994.  

 

*PAGE**7**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**2.16     Frozen Survivor Benefit**.  "Frozen Survivor Benefit" shall mean the survivor benefitaccrued as of November 30, 1994, under Article IV of the Idaho PowerCompany Security Plan for Senior Management Employees as amended and restatedMay 1, 1990.  The Frozen Survivor Benefit shall be calculated usingcompensation through November 30, 1994.  All Participants are 100% vestedin 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'ssalary reduction with interest as provided in Section 5.5 of the IdahoPower Company Security Plan for Senior Management Employees as amended andrestated May 1, 1990.  Effective November 30, 1994, there shall be noadditional employee contributions or salary reductions under this Plan.  Inaddition, the Frozen Survivor Benefit shall also include any benefit payablefrom the Idaho Power Company Supplemental Employee Retirement Plan (SERP)before August 1, 1996 Restatement.  The Participant’s age, service andcompensation at termination shall be used in determining this additional FrozenSurvivor Benefit from the SERP.  The Frozen Survivor Benefit accrued shall notbe reduced due to the failure to complete salary reductions for the finalbenefit class if such failure resulted from removing the salary reductionrequirement from the Plan effective November 30, 1994.

**2.17     Normal Form of Benefit**.  "Normal Form of Benefit" shall mean the normalform of monthly retirement benefit provided under Section 3.01 of theRetirement Plan.

**2.18     Normal Retirement AssumedYears of Participation**.****“Normal Retirement AssumedYears of Participation” shall be twelve (12) month periods, and portionsthereof, which shall begin on the earlier of the date an individual, who hasbeen designated by the Employer, is approved by the Administrative Committee,pursuant to Section 3.1, or the date designated by the AdministrativeCommittee, and shall end on the date the Participant would attain age sixty-two(62).

**2.19     Normal Retirement Date**.  "Normal Retirement Date" shall mean aParticipant’s Termination Date if the termination occurs on or after the datethe Participant attains age sixty-two (62).

**2.20     Participant**.  "Participant" shall mean any individual who is participatingin or has participated in this Plan as provided in Article III.

**2.21     Plan Year**.  "Plan Year" shall meanthe calendar year effective November 30, 1994.

 

*PAGE**8**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**2.22     Retirement**.  "Retirement" shall meantermination of a Participant's employment with the Employer at theParticipant's Early Retirement Date or Normal Retirement Date, as applicable.

**2.23     Retirement Plan**.  "Retirement Plan" shall mean The Retirement Planof Idaho Power Company as may be amended from time to time.

**2.24     Security Plan RetirementBenefit**.  "Security Plan Retirement Benefit" shall mean the benefitdetermined under Article VI of this Plan.

**2.25     Target RetirementPercentage**.  "Target Retirement Percentage" shall equal six percent (6%)for each of the first ten (10) Years of Participation plus an additional onepercent (1%) for each Year of Participation, exceeding ten (10). The maximumTarget Retirement Percentage shall be seventy-five percent (75%).

**2.26     Termination Date**.  "Termination Date" shall mean the actual date a Participant’semployment with the Employer terminates by resignation, discharge, death,Retirement or by any other method.

 

*PAGE**9**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**2.27     Years of Participation**.  "Years of Participation" shall be twelve (12)month periods, and portions thereof, which shall begin on the earlier of thedate an individual, who has been designated by the Employer, is approved by theAdministrative Committee, pursuant to Section 3.1, or the date designated bythe Administrative Committee, and shall end on the earliest of a Participant’sTermination Date, the date the Participant experiences a change in status, asprovided in Sections 3.3 and 3.4, or December 31, 2004.  Partial Years of Participation, if any, shall be used in determining benefits under this Plan.

 

*PAGE**10**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

                                                                  **ARTICLEIII**

**                                               PARTICIPATION AND VESTING**

**3.1       Eligibility**.** **Eligibility to participatein this Plan is limited to those key employees of the Employer who are designated,from time to time, by the Employer subject to approval of the AdministrativeCommittee.

**3.2       Vesting**.  A Participant shall be one hundredpercent (100%) immediately vested.

**3.3       Change in EmploymentStatus**.  If the Employer determines that aParticipant's employment performance or classification is no longer at a levelwhich deserves participation in this Plan, but does not terminate theParticipant's employment with the Employer, participation herein andeligibility to receive benefits hereunder shall be limited to the Participant'saccrued benefit as of the date of the change in employment status.  In such anevent, the benefits payable to the Participant shall be based solely on the Participant'sYears of Participation and Final Average Monthly Compensation as of such date.The benefit shall be calculated under the early retirement provisions pursuantto Sections 6.2 and 6.3(a), with commencement of benefit not earlier thanthe later of the Termination Date or the Participant’s Early Retirement Date.

 

*PAGE**11**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**3.4       Non-ParticipatingAffiliate**.****  A Participant, who subsequently istransferred to an affiliated company that does not provide for participation inthis Plan, may be allowed to continue participation under the Plan subject tothe approval of the Administrative Committee.  A Participant who is not allowedto continue participation in this Plan will not have benefits determined norreceive benefits under Article VI until his or her Termination Date.

 

*PAGE**12**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**ARTICLEIV**

**                                                          BENEFITELECTION**

**4.1       Benefit Election**.  Participants in this Plan prior to December 1, 1994 or, if the Participant is deceased, the Beneficiary of suchParticipant, must elect to receive in the 30-day period immediately prior toreceipt of any benefits under this Plan, (a) the Frozen Benefit (the FrozenRetirement Benefit or Frozen Survivor Benefit); or (b) the benefit accrued underthis Plan as in effect after November 30, 1994.  

A Participant may at any time priorto death or commencing benefits elect pursuant to Section 5.3(b) that upontheir death before commencing benefits, the Frozen Survivor Benefit be paid tothe designated Beneficiaries.  This election may be revoked by the Participantat any time. This election requires spousal consent if the Participant ismarried.  

**4.2       Commencement of Benefits**.  A Participant or a Beneficiaryshall determine the date when benefits shall commence within the timeauthorized by the Plan.

 

 

*PAGE**13**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

                                                                   **ARTICLEV**

**                                                         SURVIVORBENEFITS**

**5.1       Pre-retirement SurvivorBenefits**.  If a Participant dies whileemployed by the Employer, the Employer shall pay a survivor benefit to suchParticipant's Beneficiary as follows:

(a)        Amount.  Thepre-termination survivor benefit shall be equal to sixty-six and two-thirdspercent (66 2/3%) of the retirement benefit calculated under Article VIassuming retirement occurred at the later of age sixty-two (62) or date ofdeath.  Final Average Monthly Compensation shall be determined as of the dateof the Participant's death.  For purposes of this section (a),the RetirementPlan benefit shall be the vested accrued benefit determined as of December 31, 2004. 

(b)        Payment.  If theParticipant is married on the date of death, the benefits shall be paid to thespouse of the Participant for the life of the spouse beginning on the first dayof the month coincident with or following the date of death.  If the spouse'sdate of birth is more than ten (10) years after the Participant's date ofbirth, the monthly benefit shall be reduced using the Actuarial Equivalentfactors to reflect the number of years over ten (10) the spouse is younger thanthe Participant.  If the Participant is unmarried on the date of death, thebenefit shall be paid to the Participant's Beneficiary in a lump sum that isthe Actuarial Equivalent of the value of a death benefit payable to an assumedspouse the same age as the Participant.

 

*PAGE**14**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**5.2       Post-terminationSurvivor Benefit**.

(a)        DeathPrior to Commencement of Benefits.  If a Participant dies prior to commencementof benefits but after reaching a Termination Date:

(i)         Amount.  Theamount of the post-termination survivor benefit shall be equal to sixty-six andtwo thirds percent (66 2/3%) of the retirement benefit payable to theParticipant.

(ii)        Payment.  If theParticipant is married on the date of death, the benefits shall be paid to thespouse of the Participant for the life of the spouse beginning on the first dayof the month coincident with or following the date of death.  If the spouse'sdate of birth is more than ten (10) years after the Participant's date ofbirth, the monthly benefit shall be reduced using Actuarial Equivalent factorsto reflect the number of years over ten (10) the spouse is younger than theParticipant.  If the Participant is unmarried on the date of death, the benefitshall be paid to the Participant's Beneficiary in a lump sum that is theActuarial Equivalent of the value of a death benefit payable to an assumedspouse the same age as the Participant.

(b)        Death After Commencementof Benefits.  If a Participant dies after commencement of benefits, asurvivor benefit will be paid only if, and to the extent provided for, underthe form of benefit elected by the Participant pursuant to Sections 6.6.

 

*PAGE**15**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**5.3       Survivor BenefitElection for Participants Prior to December 1, 1994**.** **

(a)        Death Prior toCommencing Benefits and Making Frozen Survivor Benefit Election.  Asdescribed in Section 4.1, if a Participant who participated in this Plan priorto December 1, 1994 dies prior to commencing benefits, the Beneficiary of theParticipant must elect to receive (a) the Frozen Survivor Benefit; or (b) thebenefit accrued under Section 5.1 of this plan as in effect after November 30, 1994.  If the Participant was unmarried at the time of the Participant'sdeath and more than one primary Beneficiary has been designated, theBeneficiaries shall be deemed to have elected the benefit of highest valuebased on the Actuarial Equivalent basis specified in Section 2.1 of this Plan.

(b)        Election of FrozenSurvivor Benefit Prior to Commencing Benefits.  A Participant may at anytime prior to commencing benefits elect that, upon their death beforecommencing benefits, the Frozen Survivor Benefit be paid to the designatedBeneficiary(ies).  This election, including the Beneficiary(ies) designation,requires spousal consent if married.  This election may be revoked by theParticipant at any time.  If this election is made and the Participant diesbefore commencing benefits, the Frozen Survivor Benefit shall be paid to theBeneficiary(ies) in lieu of the survivor benefits described in Sections 5.1 and5.2.

**5.4       Suicide**.  In the event a Participant commitssuicide within one (1) year of initially entering this Plan, no benefits shallbe payable hereunder to the Participant's Beneficiaries.

 

*PAGE**16**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

 

**ARTICLE VI**

**SECURITY PLAN RETIREMENT BENEFITS**

**6.1       Normal RetirementBenefit**.  If a Participant’s employment withthe Employer terminates at a Normal Retirement Date, the Employer shall pay tothe Participant a monthly Security Plan Retirement Benefit beginning the firstday of the month following the Normal Retirement Date.  Payment of this benefitcannot be deferred.  The monthly Security Plan Retirement Benefit shall equalthe Target Retirement Percentage multiplied by the Participant's Final AverageMonthly Compensation, less the amount of the Participant's vested accrued retirement benefit as of December 31, 2004 under the Retirement Plan Normal Form of Benefit regardless of the formactually selected by the Participant under the Retirement Plan. 

 

*PAGE**17**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**6.2       Early Retirement Benefit**.  If a Participant’s employment withthe Employer terminates at an Early Retirement Date, the Employer shall pay tothe Participant a monthly Security Plan Retirement Benefit beginning the firstday of the month following the Early Retirement Date. Payment of this benefitcannot be deferred. The monthly Security Plan Retirement Benefit shall be equalto the Target Retirement Percentage, multiplied by the Early Retirement Factorand by the Participant's Final Average Monthly Compensation, less the amount ofthe Participant's vested accrued retirement benefit asof December 31, 2004 under the Retirement Plan Normal Form of Benefitpayable at the Participant’s Early Retirement Date. 

**6.3       Early Retirement Factor**.********If a Participant’s employment with an Employerterminates before the Participant's Normal Retirement Date, the TargetRetirement Percentage shall be multiplied by one (1) of the following EarlyRetirement Factors.

(a)        If termination occurs withapproval or if the Participant’s employment with the Employer terminates withina Change in Control Period, the Early Retirement Factor shall be as describedbelow:

|  

**Exact Age When Payments Begin** | ** **

**Early Retirement Factor** |
|-------------------------------------------|-----------------------------------------|
| ** **

62                            |  

100%                            |
|  

61                                |  

96%                             |
|  

60                                |  

92%                             |
|  

59                                |  

87%                             |
|  

58                                |  

82%                             |
|  

57                                |  

77%                             |
|  

56                                |  

72%                             |
|  

55                                |  

67%                             |

 

 

*PAGE**18**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

Early Retirement Factors will be prorated to reflectretirement based upon completed months rather than an exact age.

(b)        If termination occurswithout approval and the Participant has not terminated within a Change inControl Period, the Early Retirement Factor shall be the factor described in(a) above, times a fraction equal to the Participant's Years of Participationat termination divided by the Participant’s Normal Retirement Assumed Years ofParticipation.

 (c)       Authorization to grantapproval for early retirement is vested with the Compensation Committee forelected officers of the Employer and with the Chief Executive Officer of theEmployer for non-officers.

**6.4       Early TerminationBenefits**.  If a Participant’s employment withthe Employer terminates prior to his or her death, prior to his or her EarlyRetirement Date, and not within a Change in Control Period, the Employer shallpay to the Participant, commencing on the first day of the month following theParticipant’s fifty-fifth (55th) birthday, the Security Plan Retirement Benefitas determined under this section.

(a)        The Target RetirementPercentage shall be calculated based upon the Years of Participation and thenmultiplied by a fraction equal to the Participant's actual Years ofParticipation divided by the Participant’s Normal Retirement Assumed Years ofParticipation.  The adjusted Target Retirement Percentage shall be multipliedby the factor described in Section 6.3(a) for each month between theParticipant's benefits commencement date (age 55) and age sixty-two (62).

 

*PAGE**19**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

(b)        The Early TerminationBenefit shall be offset by the Retirement Plan Normal Form of Benefit ,determined as of December 31, 2004 payable on the date of benefit commencement(age 55) regardless of service.

**6.5       Termination After Changein Control**.****  If a Participant’s employmentterminates within the Change in Control Period prior to his or her NormalRetirement Date, the Participant shall receive, beginning on the later of theattainment of age fifty-five (55) or the Participant's actual termination date,the Early Retirement Benefit calculated with the Early Retirement Factors setforth in 6.3(a).

**6.6       Form ofPayment**.  The Security Plan RetirementBenefit shall be paid as a single life annuity for the lifetime of theParticipant.

                        (a)        The Participant may alsoelect to receive Actuarial Equivalent payments in one of the forms of benefitlisted below:

(i)         A joint and survivorannuity with payments continued to the surviving spouse at an amount equal totwo-thirds (2/3) of the Participant's benefit.

(ii)        A joint and survivorannuity with payments continued to the surviving spouse at an amount equal tothe Participant's benefit.

(iii)               A single lifeannuity, if the Participant had previously elected one of the joint andsurvivor annuity options listed above.

 

*PAGE**20**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

                                    **ARTICLE VII**

**                                           OTHERRETIREMENT PROVISIONS**

**7.1       Disability**.  During a period of Disability, aParticipant will continue to accrue Years of Participation, and Compensationshall be credited to a Participant who is receiving Disability benefits at thefull time equivalent rate of pay that was being earned immediately prior tobecoming disabled. 

**7.2       Withholding PayrollTaxes**.  The Employer shall withhold frompayments made hereunder any taxes required to be withheld from a Participant'swages under federal, state or local law.

**7.3       Payment to Guardian**.  If a Plan benefit is payable to aminor or a person declared incompetent or to a person incapable of handling thedisposition of property, the Administrative Committee may direct payment ofsuch Plan benefit to the guardian, legal representative or person having thecare and custody of the minor, incompetent or incapable person.  TheAdministrative Committee may require proof of incompetence, minority,incapacity or guardianship, as it may deem appropriate, prior to distributionof the Plan benefit.  The distribution shall completely discharge theAdministrative Committee and the Employer from all liability with respect tosuch benefit.

 

*PAGE**21**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**7.4       Accelerated Distribution**.  Notwithstanding any otherprovision of the Plan, a Participant shall be entitled to receive, upon writtenrequest to the Administrative Committee, a lump sum distribution equal to ninetypercent (90%) of the Actuarial Equivalent accrued Security Plan RetirementBenefit, as of the date thirty (30) days after notice is given to theAdministrative Committee.  The remaining balance of ten percent (10%) shall beforfeited by the Participant.  The amount payable under this section shall bepaid in a lump sum with ten (10) days following the thirty (30) day periodoutlined above.  If a Participant requests and obtains an accelerateddistribution under this Section 7.4 and remains employed by the Employer,participation will cease and there will be no future benefit accruals underthis Plan.  Following the death of a Participant, the Beneficiary may, at anytime, request an accelerated distribution under this section.  If the deceasedParticipant named multiple Beneficiaries, then all named Beneficiaries mustconsent to and request an accelerated distribution.  The benefit payable to theBeneficiary shall be equal to ninety percent (90%) of the Actuarial Equivalentof the Security Plan Retirement Benefit payable to the Beneficiary.  Payment ofan accelerated distribution pursuant to this Section 7.4 shall completelydischarge the Employer's obligation to the Participant and any Beneficiariesunder this Plan. Distribution of the Frozen Retirement Benefit and the FrozenSurvivor Benefit may not be accelerated.

 

*PAGE**22**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

 

                                                                 **ARTICLEVIII**

**                                                 BENEFICIARYDESIGNATION**

**8.1       Beneficiary Designationfor Participant Not Eligible for Frozen Survivor Benefit**.  If the Participant is married, theBeneficiary shall be the Participant's spouse.  Each unmarried Participantshall have the right, at any time, to designate any person or persons asBeneficiary or Beneficiaries (both primary as well as contingent) to whompayment under this Plan shall be made in the event of the Participant's deathprior to the discharge of the Employer's obligation under this plan. 

Any Beneficiarydesignation may be changed by a Participant by the filing of a written formprescribed by the Administrative Committee.  The filing of a new Beneficiarydesignation form will cancel all Beneficiary designations previously filed. Any finalized divorce or marriage (other than common law) of a Participantsubsequent to the date of filing of a Beneficiary designation form shallautomatically revoke the prior designation.  If a Participant fails todesignate a Beneficiary as provided above, or if the Beneficiary designation isrevoked by marriage or divorce, without execution of a new designation, or ifall designated Beneficiaries predecease the Participant or die prior tocomplete distribution of the Participant's benefits, then Participant'sdesignated Beneficiary shall be deemed to be the person or persons survivingthe Participant in the first of the following classes in which there is asurvivor, share and share alike:

 

*PAGE**23**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

(a)        the Participant'ssurviving spouse;

(b)        theParticipant's children, except that if any of the children predecease theParticipant but leave issue surviving, the issue shall take by right ofrepresentation;

(c)        the Participant's personalrepresentative (executor or administrator).

**8.2       Beneficiary Designationfor Participant Eligible for Frozen**

**Survivor Benefit**.

(a)        Frozen Survivor BenefitElected.  If the Participant elects the Frozen Survivor Benefit pursuant toSection 5.3(b), the Participant shall designate any person or persons asBeneficiary or Beneficiaries (both primary as well as contingent) to whompayment of the Frozen Survivor Benefit shall be made in the event of theParticipant's death prior to commencement of benefits under this Plan.  If theParticipant is married, designation of a Beneficiary other than the spouseshall require spousal consent.  Any future change in Beneficiary shall alsorequire spousal consent.

(b)        **F**rozenSurvivor Benefit Not Elected by Married Participant.  If the Participantdoes not elect the Frozen Survivor Benefit pursuant to Section 5.3(b) and theParticipant is married, the Participant's spouse shall be the Beneficiary towhom payment of the Frozen Survivor Benefit shall be made in the event of theParticipant's death prior to the commencement of benefits under the Plan.

 

*PAGE**24**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**(c)       **Frozen Survivor Benefit Not Electedby Unmarried Participant.  If the Participant does not elect the Frozen Survivor Benefit pursuantto Section 5.3(b) and the Participant is unmarried, the Participant shall designateany person or persons as Beneficiary(ies) (both primary as well as contingent)to whom payment of the Frozen Survivor Benefit shall be made in the event ofthe Participant's death prior to the commencement of benefits under this Plan.

Any Beneficiary designation may bechanged by a Participant by filing a written form prescribed by theAdministrative Committee.  The filing of a new Beneficiary designation formwill cancel all Beneficiary designations previously filed.

Any finalized divorce ormarriage (other than common law) of a Participant subsequent to the date offiling a Beneficiary designation form shall automatically revoke the priordesignation unless the Frozen Survivor Benefit has been elected pursuant toSection 5.3(b) and a nonspouse beneficiary designated.  If a Participant failsto designate a Beneficiary as provided above, or if the Beneficiary designationis revoked by marriage or divorce, without execution of a new designation, orif all designated Beneficiaries predecease the Participant or die prior tocomplete distribution of the Participant's benefits, then Participant'sdesignated Beneficiary shall be deemed to be the person or persons survivingthe Participant in the first of the following classes in which there is asurvivor, share and share alike:

(a)        the Participant'ssurviving spouse;

(b)        the Participant'schildren, except that if any of the children predecease the Participant butleave issue surviving, the issue shall take by right of representation;

(c)        the Participant's personalrepresentative (executor or administrator).

 

*PAGE**25**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**8.3       Beneficiary Designationat Commencement of Benefits**.  Notwithstanding any Beneficiarydesignation made pursuant to Sections 8.1. and 8.2, a Participant who commencesretirement benefits under Article VI shall: 

(a)        If they elect the FrozenRetirement Benefit, designate a Beneficiary or Beneficiaries (primary as wellas contingent) to whom any remainder of the payments shall be made in the eventof their death prior to receiving 180 payments.

(b)        If they elect the benefitaccrued under Article VI as in effect after November 30, 1994, the Beneficiary shall be the spouse pursuant to an election under Section 6.6.  If noelection has been made under Section 6.6(b), no benefits are payable upon theParticipant's death.

**8.4**       **Effect of Payment**.  The payment to the Beneficiaryshall completely discharge Employer's obligations under this Plan.

 

*PAGE**26**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

                                                    **ARTICLE IX**

**                                                            ADMINISTRATION**

**9.1       Administrative CommitteeDuties**.  This Plan shall be administered byan Administrative Committee, which shall be the Chief Executive Officer of theCompany and the Fiduciary Committee approved by the Compensation Committee. The Administrative Committee shall have the authority to make, amend, interpretand enforce all appropriate rules and regulations for the administration ofthis Plan and decide or resolve any and all questions including interpretationsof this Plan, as may arise in connection with the Plan.  A majority vote of theAdministrative Committee members shall control any decision.

In the administration of this Plan,the Administrative Committee may, from time to time, employ agents and delegateto them such administrative duties as it sees fit and may from time to timeconsult with counsel who may be counsel to the Employer.

Subject to Article X, thedecision or action of the Administrative Committee in respect of any questionsarising out of, or in connection with, the administration, interpretation andapplication of the Plan and the rules and regulations promulgated hereundershall be final and conclusive and binding upon all persons having any interestin the Plan.

 

*PAGE**27**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**9.2       Indemnity ofAdministrative Committee**.  To the extent permitted byapplicable law, the Employer shall indemnify, hold harmless and defend theAdministrative Committee against any and all claims, loss, damage, expense orliability arising from any action or failure to act with respect to this Plan,provided that the Administrative Committee was acting in accordance with theapplicable standard of care.  The indemnity provisions set forth in thisArticle shall not be deemed to restrict or diminish in any way any otherindemnity available to the Administrative Committee members in accordance withthe Articles or By-laws of the Company.

 

*PAGE**28**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

 

                                                                   **ARTICLEX**

**                                                         CLAIMSPROCEDURE**

**10.1     Claim**.  Any person claiming a benefit,requesting an interpretation or ruling under the Plan, or requestinginformation under the Plan shall present the request in writing to theAdministrative Committee who shall respond in writing as soon as practicable.

**10.2     Denial of Claim**.  If the claim or request is denied,the written notice of denial shall state:

(a)        the reason for denial,with specific reference to the Plan provisions where applicable on which thedenial is based;

(b)        a description of anyadditional material or information required and an explanation of why it isnecessary; and

(c)        an explanation of thePlan's claims review procedure.

**10.3     Review of Claim**.  Any person whose claim or requestis denied or who has not received a response within thirty (30) days mayrequest a review by notice given in writing to the Administrative Committee. The claim or request shall be reviewed by the Administrative Committee who may,but shall not be required to, grant the claimant a hearing.  On review, theclaimant may have representation, examine pertinent documents, and submitissues and comments in writing.

 

*PAGE**29**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**10.4     Final Decision**.  The decision on review shallnormally be made within sixty (60) days.  If an extension of time is requiredfor a hearing or other special circumstances, the claimant shall be notifiedand the time limit shall be one hundred twenty (120) days.  The decision shallbe in writing and shall state the reason and any relevant Plan provisions.  Alldecisions on review shall be final and bind all parties concerned.

 

*PAGE**30**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

                                                **ARTICLEXI**

**                                TERMINATION, SUSPENSION ORAMENDMENT**

**11.1     Termination, Suspensionor Amendment of Plan**.  The Board may, in its solediscretion, terminate or suspend this Plan at any time or from time to time, inwhole or in part.  The Compensation Committee may amend this Plan at any timeor from time to time.  Any amendment may provide different benefits or amountsof benefits from those herein set forth.  However, no such termination,suspension or amendment or other action with respect to the Plan shalladversely affect the benefits of Participants which have accrued prior to suchaction, the benefits of any Participant who has previously retired, or thebenefits of any Beneficiary of a Participant who has previously died. Furthermore, no termination, suspension or amendment shall alter theapplicability of the vesting schedule in Section 3.2 with respect to aParticipant's accrued benefit at the time of such termination, suspension oramendment.

 

*PAGE**31**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**11.2     Change in Control**.  Notwithstanding Section 11.1above, during a Change in Control Period, neither the Board nor theAdministrative Committee may terminate this Plan with regard to accruedbenefits of current Participants.  No amendment may be made to the Plan duringa Change in Control Period which would adversely affect the accrued benefits ofcurrent Participants, the benefits of any Participant who has retired, or theBeneficiary of any Participant who has died.  The Plan shall continue tooperate and be effective with regard to all current or retired Participants andtheir Beneficiaries during any Change in Control Period.

**ARTICLEXII**

**MISCELLANEOUS**

**12.1     UnfundedPlan**.  This Plan is intended to be anunfunded plan maintained primarily to provide deferred compensation benefitsfor a select group of "management or highly compensated employees"within the meaning of Sections 201, 301 and 401 of the Employee RetirementIncome Security Act of 1974, as amended ("ERISA"), and therefore tobe exempt from the provisions of Parts 2, 3 and 4 of Title I ofERISA.

**12.2     UnsecuredGeneral Creditor**.  Participants and theirBeneficiaries, heirs, successors and assigns shall have no legal or equitablerights, interest or claims in any property or asset of the Employer, nor shallthey be Beneficiaries of, or have any rights, claims or interests in any lifeinsurance policies, annuity contracts or the proceeds therefrom owned or whichmay be acquired by the Employer.  Except as may be provided inSection 12.3, such policies, annuity contracts or other assets of theEmployer shall not be held under any trust for the benefit of Participants,their Beneficiaries, heirs, successors or assigns, or held in any way ascollateral security for the fulfilling of the obligation of the Employer underthis Plan.  Any and all of the Employer's assets and policies shall be, andremain, the general, unpledged, unrestricted assets of the Employer.  TheEmployer's obligation under the Plan shall be that of an unfunded and unsecuredpromise to pay money in the future.

 

*PAGE**32**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**12.3     Trust Fund**.  The Employer shall be responsiblefor the payment of all benefits provided under the Plan.  At its discretion,the Employer may establish one or more trusts, with such trustees as the Boardmay approve, for the purpose of providing for the payment of such benefits. Such trust or trusts may be irrevocable, but the assets thereof shall besubject to the claims of the Employer's creditors.  To the extent any benefitsprovided under the Plan are actually paid from any such trust, the Employershall have no further obligation with respect thereto, but to the extent not sopaid, such benefits shall remain the obligation of, and shall be paid by, theEmployer.

**12.4     Nonassignability**.  Neither a Participant nor anyother person shall have any right to commute, sell, assign, transfer, pledge,anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey inadvance of actual receipt the amounts, if any, payable hereunder, or any partthereof, which are, and all rights to which are, expressly declared to beunassignable and nontransferable.  No part of the amount payable shall, priorto actual payment, be subject to seizure or sequestration for the payment ofany debts, judgments, alimony or separate maintenance owed by a Participant orany other person, nor be transferable by operation of law in the event of Participant's or any other person's bankruptcy or insolvency.

**12.5     Not a Contract ofEmployment**.  The terms and conditions of thisPlan shall not be deemed to constitute a contract of employment between theEmployer and the Participant, and the Participant (or Participant'sBeneficiary) shall have no rights against the Employer except as may otherwisebe specifically provided herein.  Moreover, nothing in this Plan shall bedeemed to give a Participant the right to be retained in the service of theEmployer or to interfere with the right of the Employer to discipline ordischarge the Participant at any time.

 

*PAGE**33**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**12.6     Governing Law**.  The provisions of this Plan shallbe construed, interpreted and governed in all respects in accordance with theapplicable federal law and, to the extent not preempted by such federal law, inaccordance with the laws of the State of Idaho without regard to the principlesof conflicts of laws.

**12.7     Validity**.  If any provision of this Planshall be held illegal or invalid for any reason, the remaining provisions shallnevertheless continue in full force and effect without being impaired orinvalidated in any way.

**12.8     Notice**.  Any notice or filing required orpermitted to be given  under the Plan shall be sufficient if in writing andhand delivered, or sent by registered or certified mail or fax.  The noticeshall be deemed given as of the date of delivery or, if delivery is made bymail, as of the date shown on the postmark on the receipt for registration orcertification.

**12.9     Successors**. Subject to Section 11.1, the provisions of this Plan shall bind and inureto the benefit of the Employer and its successors and assigns.  The termsuccessors as used herein shall include any corporate or other business entitywhich shall, whether by merger, consolidation, purchase or otherwise acquireall or substantially all of the business and assets of the Employer, andsuccessors of any such corporation or other business entity.

 

*PAGE**34**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----

 

 

 

 

 

**12.10   Section409A**.  Notwithstanding anything to the contrary containedherein, (a) the Frozen Retirement Benefit and the Frozen Survivor Benefit maynot be elected after December 31, 2004, and (b) the amount payable to aParticipant or Beneficiary under the Plan shall in no event exceed an amountequal to (x) plus (y), where (x) equals the present value of the amount towhich the Participant would have been entitled under the Plan if theParticipant's Termination Date had been December 31, 2004, and the Participanthad received (i) a payment of the benefits available from the Plan on theearliest possible date allowed under the Plan to receive a payment of benefitsfollowing the Termination Date and (ii) the benefits in the form with themaximum value, determined using reasonable actuarial assumptions and methods(the "Grandfathered Benefit") and (y) equals any increase, due solelyto the passage of time, in the present value of the future payments to whichthe Participant has obtained a legally binding right, the present value ofwhich constituted the Grandfathered Benefit.  Thus, for each year, there willbe an increase (determined using the same interest rate used to determine theGrandfathered Benefit) resulting from the shortening of the discount periodbefore the future payments are made, plus, if applicable, an increase in thepresent value resulting from the Participant's survivorship during the year. For avoidance of doubt, in no event shall the Grandfathered Benefit beincreased based on increases in Compensation after December 31, 2004, changesin the Participant's Early Retirement Factor after December 31, 2004 or theoccurrence of a Change in Control after December 31, 2004.  It is intended thatthe benefits payable under this Plan be exempt from Section 409A of the Code asamounts deferred before January 1, 2005, and this Section 12.10 shall beinterpreted accordingly.

*PAGE**35**—SECURITYPLAN FOR SENIOR MANAGEMENT EMPLOYEES*

 

----