Document:

exh10-1.htm

    
      

      

    

    
 

    EXHIBIT
10.1

     

     

    SUMMARY
OF KEY TERMS OF NAMED EXECUTIVE OFFICER AND EMPLOYEE DIRECTOR
COMPENSATION

    

    PacifiCorp’s
named executive officers (other than its Chairman and Chief Executive Officer,
Greg Abel) and its other employee directors each receive an annual salary
and participate in health insurance and other benefit plans on the same basis as
other employees, as well as certain other benefit plans described in
PacifiCorp’s Annual Report on Form 10-K. Mr. Abel is employed by
PacifiCorp’s parent company, MidAmerican Energy Holdings Company (“MEHC”) and is
not directly compensated by PacifiCorp. PacifiCorp reimburses MEHC for the cost
of Mr. Abel’s time spent on PacifiCorp matters, including compensation paid
to him by MEHC, pursuant to an intercompany administrative services agreement
among MEHC and its subsidiaries.

    

    Our
directors are employees of PacifiCorp, or in the case of Messrs. Abel,
Anderson and Goodman, employees of MEHC, and do not receive additional
compensation for service as a director.

    

    Our named
executive officers and directors employed by us are also eligible for a cash
incentive under the PacifiCorp Annual Incentive Plan (“AIP”) and participate in
MEHC’s Long-Term Incentive Partnership Plan (“LTIP”). A copy of the LTIP is
attached as Exhibit 10.11 to the MidAmerican Annual Report on
Form 10-K for the year ended December 31, 2007 and incorporated by
reference herein.

    

    Base
salary and target bonus opportunities for named executive officers and employee
directors for PacifiCorp’s fiscal year ending December 31, 2008 (excluding
Mr. Abel):

    

    
      	
              Name
      and Principal Position

            	
              Base
      Salary

            	 
      	
              AIP
      Target Opportunity

            
	 
      	 
      	 
      	
              (percentage
      of base salary)

            
	 
      	 
      	 
      	 
      
	
              David
      J. Mendez (a)

            	
              $     219,555

            	 
      	
                                              
      30%

            
	
              Senior
      Vice President and

            	 
      	 
      	 
      
	
              Chief
      Financial Officer

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              A.
      Richard Walje

            	
              345,000

            	 
      	
                                              
      50%

            
	
              President,
      Rocky Mountain Power

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              R.
      Patrick Reiten

            	
               258,000

            	 
      	
                                              
      30%

            
	
              President,
      Pacific Power

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              A.
      Robert Lasich

            	
              230,000

            	 
      	
                                              
      75%

            
	
              President,
      PacifiCorp Energy

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Brent
      E. Gale

            	
              280,000

            	 
      	
                               
      25%

            
	
              Director

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Natalie
      L. Hocken

            	
              176,000

            	 
      	
                               
      20%

            
	
              Director

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Mark
      C. Moench

            	
              212,382

            	 
      	
                               
      50%

            
	
              Director

            	 
      	 
      	 
      

    

     

    
      	
              (a)

            	
              On
      February 8, 2008, David J. Mendez, resigned as a director and officer of
      PacifiCorp, effective February 29,
2008.exh10-3.htm

    
      

      

    
      

      EXHIBIT 10.3

      

      

      

      

      

      

      PACIFICORP

      EXECUTIVE VOLUNTARY DEFERRED COMPENSATION PLAN

      (Restated effective as of January 1, 2007)

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      PACIFICORP

      EXECUTIVE
VOLUNTARY DEFERRED COMPENSATION PLAN

      

      

      PacifiCorp
hereby amends and restates the PacifiCorp Compensation Reduction Plan, most
recently restated effective as of January 1, 2002 (“Plan”) for the benefit
of certain Employees and other Participants. The primary purpose of the Plan is
to provide additional compensation to Participants upon termination of
employment or service with the Employer. The Employer will pay benefits under
the Plan only in accordance with the terms and conditions set forth in the Plan.
This Plan is a restated plan effective as of January 1, 2007 (See
Section 7.02 (A) for good faith compliance as to 409A Amounts
during 2005, 2006 and 2007).

      

      PREAMBLE

      

      Plan Type. The Plan is an
unfunded nonqualified deferred compensation plan maintained “primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees” (“top-hat plan”).

      

      Possible Nonuniformity.
The Employer need not provide the same Plan benefits or apply the same Plan
terms and conditions to all Participants, even as to Participants who are of
similar pay, title and other status with the Employer. The Employer may create a
separate exhibit for one or more Participants, specifying such terms and
conditions as are applicable to a given Participant. The Employer, in a separate
exhibit, may modify any Plan provision with respect to one or more
Participants.

      

      I. DEFINITIONS

      

      1.01           “Account” means the account
the Employer establishes under the Plan for each Participant and as applicable
means a Participant’s Elective Deferral Account, or Employer Contribution
Account. An Elective Deferral Account shall consist of subaccounts as selected
by the Participant, and which shall be a Retirement Account, an In-Service
Account and an Education Account.

      

      1.02           “Accrued Benefit” means
the total dollar amount credited to a Participant’s Account.

      

      1.03           “Applicable Guidance”
means Treasury Regulations issued pursuant to Code §409A, or other written
Treasury or IRS guidance regarding Code §409A, which is in addition to
IRS Notice 2005-1 (“Notice 2005-1”).

      

      1.04           “Base Salary” means a
Participant’s compensation consisting only of regular annual salary and
excluding any other compensation.

      

      1.05           “Beneficiary” means the person
or persons entitled to receive Plan benefits in the event of a Participant’s
death.

      

      1.06           “Code” means the Internal
Revenue Code of 1986, as amended.

      

      1.07           “Compensation” means Base
Salary, performance awards, annual incentive bonuses (other than Employer long
term incentive awards), and fees for serving as a member of an Advisory Board
(See definition of Participant below). Inclusion of any other forms of
compensation is subject to approval of the Employer.

      

      1.08           “Deferred Compensation”
means the Participant’s Account Balance attributable to Elective
Deferrals and Employer Contributions and includes Earnings on such amounts.
“Compensation Deferred” is Compensation that the Participant or the Employer has
deferred under this Plan.

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      1.09           “Earnings” means the notional
earnings, gain and loss applicable to a Participant’s Account as described in
Section 5.02.

      

      1.10           “Effective Date” of the
Plan as amended and restated is January 1, 2007 (See
Section 7.02 (A) for good faith compliance as to 409A Amounts
during 2005, 2006 and 2007.

      

      1.11           “Elective Deferral” means
Compensation a Participant elects to defer into the Participant’s Account under
the Plan.

      

      1.12           “Elective Deferral Account”
means the portion of a Participant’s Account attributable to Elective Deferrals
and Earnings thereon (and which shall consist of Retirement, In-Service and
Education subaccounts).

      

      1.13           “Employee” means a person
providing services to the Employer in the capacity of a common law employee of
the Employer.

      

      1.14           “Employer” means PacifiCorp,
an Oregon corporation. For purposes of determining whether there has been a
Separation from Service with the Employer, Employer means all entities with whom
the Employer would be considered a single employer under
Code §§ 414 (b) and (c).

      

      1.15           “Employer Contribution”
means amounts, if any, the Employer contributes or credits to an Account
under the Plan, excluding Elective Deferrals.

      

      1.16           “Employer Contribution Account”
means the portion of a Participant’s Account attributable to Employer
Contributions and Earnings thereon.

      

      1.17           “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended.

      

      1.18           “Participant” means an Employee
of the Employer who has met the eligibility requirements of Section 2.01
and who has accrued a benefit under the Plan, and Participant also means a
member of the Rocky Mountain Power Regional Advisory Board and a member of the
Pacific Power Regional Advisory Board (together the “Advisory Boards”) and
who has accrued a benefit under the Plan.

      

      1.19           “Performance-Based Compensation”
means such amounts described in Applicable Guidance.

      

      1.20           “Plan” means the PacifiCorp
Executive Voluntary Deferred Compensation Plan. For purposes of applying
Code §409A requirements: (i) this Plan is an account balance plan
under Applicable Guidance; (ii) this plan constitutes a separate plan for
each Participant; and (iii) except as the Plan otherwise provides, all
Deferred Compensation for a Participant is aggregated with that Participant’s
deferrals under any other account balance nonqualified deferred compensation
plan of the Employer in which the Participant participates. Employer
Contribution Accounts are considered to be part of a nonelective account balance
plan type and Elective Deferral Accounts are considered to be part of an
elective account balance plan type.

      

      1.21           “Retirement Age” means a
Participant’s attainment of age 55 or, for any Participant who was a Participant
in the Plan on December 31, 2006, age 50 with 5 “Years of Participation” in
the PacifiCorp Supplemental Executive Retirement Plan (the “SERP”), as such
term is defined in the SERP, and 15 “Years of Service” in the PacifiCorp
Retirement Plan, as such term is defined in the PacifiCorp Retirement
Plan.

      

      1.22           “Separation from Service”
means an Employee’s termination of employment with the Employer or as otherwise
defined in Applicable Guidance.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      1.23           “Specified Employee”
means a Participant who is described in Code §416(i), disregarding
paragraph (5) thereof. However, a Participant is not a Specified Employee
unless any stock of the Employer (or of a member of the same group of controlled
entities as Employer) is publicly traded on an established securities market or
otherwise.

      

      1.24           “Specified Time or Pursuant to a Fixed Schedule”
means a specific time or schedule (but not the occurrence of an event) as
a Participant payment election may specify, and otherwise as described in
Applicable Guidance.

      

      1.25           “Taxable Year” means the
12 consecutive month period ending each December 31.

      

      1.26           “Trust” means a trust described
in Section 5.01.

      

      1.27           “Unforeseeable Emergency”
means: (i) a severe financial hardship to the Participant resulting from a
sudden and unexpected illness or accident of the Participant, the Participant’s
spouse or a dependent (as defined in Code §152(a)) of the Participant;
(ii) loss of the Participant’s property due to casualty; or
(iii) other similar extraordinary and unforeseeable circumstances arising
as a result of events beyond the Participant’s control. The amount of the
distribution may not exceed the amount necessary to satisfy the Unforeseeable
Emergency plus taxes reasonably anticipated as a result of the distribution,
after taking into account the extent to which the hardship may be relieved
through reimbursement or compensation by insurance or otherwise or by
liquidation of the Participant’s assets, to the extent that liquidation of such
assets would not itself cause severe financial hardship.

      

      1.28           “Valuation Date” means the
last day of each calendar month and such other dates as the Employer may
determine.

      

      1.29           “Vested” means Deferred
Compensation which is not subject to a Substantial Risk of Forfeiture (as
defined in Applicable Guidance) or to a requirement to perform further services
for the Employer.

       

      II.
PARTICIPATION

      

      2.01           Participant Designated.
The Chairman of the Board of Directors of the Employer shall designate and
approve the Employees who are eligible to participate in the Plan, such
designation to be either by name, job title or other classification. The
Chairman may also notify any Participant, including any Advisory Board member,
that he or she is no longer eligible to make future deferrals into the Plan.
Such termination of eligibility shall be effective for compensation earned after
January 1 following such written notification to the individual. However,
until final distribution has been made to such person from his or her Accounts,
for all other purposed under the Plan the person shall still be considered a
Participant.

      

      2.02           Elective Deferrals.
Participants may make separate Elective Deferrals to their Accounts with respect
to Base Salary and Compensation that is not Base Salary. All elections to defer
shall terminate upon Separation from Service, Disability (as defined in
Applicable Guidance) or a distribution based on an Unforeseeable
Emergency.

      

      (A)           
Limitations.
The maximum Elective Deferral for Base Salary is 50%. There is no limit for
Compensation that is not Base Salary. The minimum Elective Deferral for any type
of Compensation is 1%.

      

      (B)           
Form and Timing.
A Participant must make his/her Elective Deferral election on an election form
the Employer provides for that purpose. Unless otherwise provided in this
Section 2.02, a Participant must deliver his/her election to the Employer
prior to the beginning of the Taxable Year for which it is to go into effect (or
at such other time as Applicable Guidance may provide), at which time the
election shall become irrevocable.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      (C)           
New Participant.
If an Employee first becomes a Participant on a date which is not the first day
of a Taxable Year, the Participant must make and deliver his/her Elective
Deferral election for that Taxable Year not later than 30 days after the
Participant becomes a Participant. The election may apply only to Compensation
for services the Participant performs subsequent to the date the Participant
delivers the election to the Employer. For Compensation that is earned for a
specified performance period, including an annual bonus, and where the new
Participant makes an Elective Deferral election after the service period
commences, the Employer will pro rate the election by multiplying the
performance based Compensation by the ratio of the number of days left in the
performance period at the time of the election, over the total number of days in
the entire performance period.

      

      (D)           
Election Duration.
A Participant’s Elective Deferral election applies only to the Participant’s
Compensation earned in the next Taxable Year following the Taxable Year in which
the Participant makes the election. A Participant, subject to Plan requirements
regarding election timing, including those in Article VII, may make a new
election, or revoke or modify an existing election effective no earlier than for
the next Taxable Year.

      

      2.03           Employer Contributions.
In each Taxable Year, the Employer may make discretionary Employer Contributions
for any or all Participants, which need not be uniform among
Participants.

      

      2.04           Allocation Conditions.
There are no conditions generally applicable to receive an allocation of
Employer Contributions, unless the Employer establishes conditions with respect
to a particular discretionary Employer Contribution.

      

      2.05           Timing. The Employer
may elect to make any Employer Contribution for a Taxable Year at such times as
Code §409A or Applicable Guidance may permit.

      

      2.06           Administration. The
Employer will administer all Employer Contributions in the same manner as
Elective Deferrals, except as the Plan otherwise provides. The Employer will
credit any Elective Deferrals to a Participant’s Account as soon as practicable
after the date the amount of the Elective Deferral would otherwise have become
due and payable to the Participant and will credit any Employer Contributions to
a Participant’s Account as soon as practicable after the date of the amount of
the Employer Contribution is determined. Any Employer Contribution is not
subject to an immediate Participant right to elect a cash payment in lieu of the
Employer Contribution and such amounts are payable only in accordance with the
Plan terms.

       

      III. VESTING AND FORFEITURE

      

      3.01   Vesting Schedule.
Participants shall always be immediately one hundred percent (100%) Vested
in their Elective Deferral Accounts. The Employer may separately establish a
vesting schedule for any Employer Contributions.

      

      3.02   Application of Forfeitures.
A Participant will forfeit any non-Vested Accrued Benefit upon Separation from
Service. The Employer will keep all forfeitures.

      

      IV. BENEFIT PAYMENTS

      

      4.01           Separation from Service or Death.
The Plan will pay to the Participant the Vested Accrued Benefit held in the
Participant’s Account following the earlier of the Participant’s Separation from
Service or death. Payment will commence at the time and payment will be made in
the form and method specified under Section 4.03. In the event of the
Participant’s death, the Plan will pay to the Participant’s Beneficiary the
Participant’s Vested Accrued Benefit or any remaining amount thereof if benefits
to the Participant already have commenced, in accordance with the Participant’s
election.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (A)           
Distribution to Specified Employees.
Notwithstanding anything to the contrary in the Plan or in a Participant payment
election, the Plan may not distribute to a Specified Employee, based on
Separation from Service, earlier than 6 months following Separation from Service
(or if earlier, upon the Specified Employee’s death).

      

      4.02           Other Payment Events.
In addition to the payment events under Section 4.01, the Plan will pay to
a Participant all or any part of the Participant’s Account: (i) at a
Specified Time or Pursuant to a Fixed Schedule elected by the Participant with
respect to Education and In-Service subaccounts; or (ii) based upon an
Unforeseeable Emergency. Payment will commence at the time and payment will be
made in the form and method specified under Section 4.03.

      

      4.03           Form, Timing and
Method/ Payment Election. All distributions will be in cash.
Subject to the provisions of this paragraph, a Participant shall make an initial
payment election as to the method of payment under Section 4.03(A) and may
make a change to an election under Section 4.03(B). Until the Plan
completely distributes a Participant’s Vested Accrued Benefit, the Plan will
continue to credit the Participant’s Account with Earnings, in accordance with
Section 5.02. Except as provided below, a Participant may elect either a
lump sum payment or substantially equal annual installments (not to
exceed 10) with respect to a Retirement subaccount and an In-Service
subaccount. If no election is made as to method, payment shall be made in a lump
sum. Distribution from an Education subaccount may only be made in
4 substantially equal annual installments. Distributions from a Retirement
Account as a result of Separation from Service after Retirement Age shall be
made (or commence) in January following the calendar year in which Separation
from Service occurs. Distributions from an In-Service subaccount, an Education
subaccount, or a Retirement subaccount, when a Separation from Service occurs
prior to Retirement Age (including death prior to Retirement Age), shall be made
as soon as administratively feasible following the date of Separation from
Service (or death), and shall be made in a lump sum payment (except that
payments from the remaining account balance in an Education subaccount or
In-Service subaccount, where payments have already commenced prior to Separation
from Service, shall continue to be made under the schedule then in effect). If
Separation from Service occurs after Retirement Age and before commencement of
distribution from an In-Service subaccount or Education subaccount, any such
subaccount shall be added to the Retirement subaccount and distributed
accordingly. Payments made because of Unforeseeable Emergency shall be made (or
commence) as soon as administratively feasible following such event. In the
event of death after attaining Retirement Age or after payments from an Account
have begun, a lump sum payment to the Beneficiary shall be made as soon as
administratively feasible after date of death if the Participant had previously
elected a lump sum distribution to the Beneficiary pursuant to
Section 4.03(A) (initial payment election) or pursuant to
Section 4.03(B)(1) (change to payment election). Disability shall not be
treated as a distribution event if Separation from Service has not
occurred.

      

      (A)           
Initial Payment Election.
A Participant, as to an In-Service subaccount shall make an initial payment
election with respect to a Specified Time and Pursuant to a Fixed Schedule at
the time of the Participant’s first Elective Deferral election into such
subaccount. A Participant, as to an Education subaccount, shall make an initial
election with respect to a Specified Time at the time of the Participant’s first
Elective Deferral election into such subaccount (the Fixed Schedule being
4 substantially equal annual payments). As to a Retirement subaccount, a
Participant shall make an initial payment election as to a method of payment
(Fixed Schedule) at the time of his or her first deferred election into such
subaccount (the Specified Time being the date following Separation of Service as
provided in Section 4.03 above). A Participant shall make any permissible
initial payment election on a form the Employer provides for that purpose. At
the time of any such first Elective Deferral election into any Account, a
Participant may elect to have a lump sum payment made to his or her Beneficiary
in lieu of the form of payment that otherwise has been selected for payout
during the Participant’s life.

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      (B)           
Changes to Payment Election.
A Participant may change the Participant’s initial payment election (or change
election) as to any or all Deferred Compensation (but only as to timing of start
of payments for an Education subaccount and form of payments for a Retirement
subaccount), including any Plan default payment applicable in the absence of an
election. Any such change election must comply with this Section 4.03(B). A
Participant must make any change election on a form the Employer provides for
such purpose.

      

      (1)              Conditions on Changes to Payment Elections.
Any Participant change election: (i) may not take effect until at least
12 months following the date of the change election; (ii) must result
in the first payment under the change election being made not earlier than
5 years following the date upon which the originally-elected payment would
have been made (except if payment is on account of death, or Unforeseeable
Emergency); and (iii) if the change election relates to a Participant’s
previous election of a Specified Time or Pursuant to a Fixed Schedule, the
Participant must make the change election not less than 12 months prior to
the date of the first scheduled payment under the election being changed (or, in
the case of installment payments treated as a single payment, 12 months
prior to the date the first amount was scheduled to be paid).

      

      (2)              Definition of “Payment.”
Except as otherwise provided in Section 4.03(B)(3), a “payment” for
purposes of applying Section 4.03(B)(1) is each separately identified
amount the Plan is obligated to pay to a Participant on a determinable date and
includes amounts paid for the benefit of the Participant. An amount is
“separately identified” only if the Employer can objectively determine the
amount.

      

      (3)              Installment Payments.
As set forth in Applicable Guidance, and for purposes of making a change to a
payment election under this Section 4.03(B), a series of installment
payments will be treated as a single payment. For purposes of this
Section 4.03(B)(3), a “series of installment payments” means payment of a
series of substantially equal periodic amounts to be paid over a predetermined
number of years, except to the extent that any increase in the payment amounts
reflects reasonable Earnings through the date of payment.

      

      (4)              Coordination with Anti-Acceleration
Rule. In applying Section 4.03(C), “payment” means as described in
Sections 4.03(B)(2) and (3). A Participant under a payment change
election may change the form of payment to a more rapid schedule (including a
change from installments to a lump-sum payment) without violating
Section 4.03(C), provided any such change remains subject to the payment
change election provisions under this Section 4.03(B). Accordingly, if the
Participant’s payment change election modifies the payment method from
installments to a lump-sum payment, a payment change election must satisfy
Section 4.03(B)(1) measured from the first installment payment. If a
payment change election only modifies the timing of an installment payment, the
payment change election must apply to each installment and must satisfy
Section 4.03(B) measured from each installment payment.

      

      (C)            
No
Acceleration. Neither the Employer nor the Participant may accelerate the
time or schedule of any Plan payment except as Applicable Guidance may permit.
For this purpose, the following are not an acceleration: (i) a payment
required under a domestic relations order under Code §414(p)(1)(B);
(ii) a payment required under a certificate of divestiture under
Code §1043(b)(2); or (iii) a payment to pay the FICA tax (and income
tax withholding related to the FICA) on the Deferred Compensation.

      

      (D)           
Cash-Out Upon
Separation. Notwithstanding a Participant’s payment election or any
contrary Plan terms, the Plan will distribute in a single cash payment the
entire Vested Accrued Benefit of a Participant who has incurred a Separation
from Service where the Participant’s Vested Accrued Benefit does not exceed
$10,000. The Employer will make any payment under this Section 4.03(D) as
soon as administratively feasible following Separation from
Service.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      4.04           Withholding. The
Employer will withhold from any payment made under the Plan and from any amount
taxable under Code §409A, all applicable taxes, and any and all other
amounts required to be withheld under federal, state or local law, including
Notice 2005-1 and Applicable Guidance.

      

      4.05           Administration of Payment Date(s).
The Employer may cause the Plan or Trust to pay a Participant’s Vested Accrued
Benefit on any date that is administratively feasible following any Plan
specified payment date or date of any authorized distribution event or the date
specified in any valid payment election, but in no event later than two and
one-half (21⁄2) months following any such date; and provided further that the
Participant shall not be permitted, directly or indirectly, to designate the
taxable year of the payment.

      

      V. TRUST ELECTION AND PLAN EARNINGS

      

      5.01           Unfunded Plan/Trust Election.
The Employer intends this Plan to be an unfunded plan that is wholly or
partially exempt under ERISA. No Participant, Beneficiary or successor thereto
has any legal or equitable right, interest or claim to any property or assets of
the Employer, including assets held in any Account under the Plan except as the
Plan otherwise permits. The Employer’s obligation to pay Plan benefits is an
unsecured promise to pay. If the Employer elects to create a Trust, the
applicable provisions of the Plan continue to apply, including those of this
Section 5.01. The Trustee will pay Plan benefits in accordance with the
Plan terms or upon the Employer’s direction consistent with Plan terms. The
Employer intends to make notional contributions in lieu of actual contributions
to the Plan, and the Employer, therefore, may elect not to invest any Plan
contributions. If the Employer elects to invest any Plan contributions, such
investments may be held for the Employer’s benefit in providing for the
Employer’s obligations under the Plan or for such other purposes as the Employer
may determine. Any assets held in Plan Accounts remain subject to claims of the
Employer’s general creditors and no Participant’s or Beneficiary’s claim to Plan
assets has any priority over any general unsecured creditor of the
Employer.

      

      (A)           
Restriction on Trust
Assets. If an Employer establishes, directly or indirectly, a Trust (or
any other arrangement Applicable Guidance may describe), the Trust and the Trust
assets must be and must remain located within the United States, except with
respect to a Participant who performs outside the United States substantially
all services giving rise to the Deferred Compensation, in which case the
Employer may, in its sole discretion, choose to establish a Trust outside the
United States to cover the obligations of Participants who perform outside the
United States substantially all services giving rise to the Deferred
Compensation . The Trust may not contain any provision limiting the Trust assets
to the payment of Plan benefits upon a Change in the Employer’s Financial Health
(as defined in Applicable Guidance), even if the assets remain subject to claims
of the Employer’s general creditors. For this purpose, the Employer, upon a
Change in the Employer’s Financial Health, may not transfer Deferred
Compensation to the Trust. Any Trust the Employer establishes under this Plan
shall be further subject to Applicable Guidance, compliance with which is
necessary to avoid the transfer of assets to the Trust being treated as a
transfer of property under Code § 83.

      

      5.02          
Notional Earnings.
The Employer, under the Plan, periodically will credit notional Plan
contributions with a determinable amount of notional Earnings (at a specified
fixed or floating interest rate or other specified index or indices based on
established and published financial investment benchmarks) to each Participant’s
Account. The Participant has the right to direct the investment of the
Participant’s Account pursuant to conditions established by the Employer. This
right is limited strictly to investment direction and the Participant will not
be entitled to the distribution of any Account asset except as the Plan
otherwise permits. Except as otherwise provided in the Plan or Trust, all Plan
assets, including all incidents of ownership, at all times will be the sole
property of the Employer.

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

         

        VI. MISCELLANEOUS

      

      

      6.01           No Assignment.
Except with respect to a payment required under a domestic relations order under
Code §414(p)(l)(B), no Participant or Beneficiary has the right to
anticipate, alienate, assign, pledge, encumber, sell, transfer, mortgage or
otherwise in any manner convey in advance of actual receipt, the Participant’s
Account. Prior to actual payment, a Participant’s Account is not subject to the
debts, judgments or other obligations of the Participant or Beneficiary and is
not subject to attachment, seizure, garnishment or other process applicable to
the Participant or Beneficiary.

      

      6.02           Not Employment Contract.
This Plan is not a contract for employment between the Employer and any Employee
who is a Participant. This Plan does not entitle any Participant to continued
employment with the Employer, and benefits under the Plan are limited to payment
of a Participant’s Vested Accrued Benefit in accordance with the terms of the
Plan.

      

      6.03           Amendment and Termination.

      

      (A)           
Amendment. The
Chairman of the Board of Directors of the Company reserves the right to amend
the Plan at any time to comply with Code §409A, Notice 2005-1,
Prop. Treas. Reg. §1.409A and other Applicable Guidance or for any
other purpose, provided that such amendment will not result in taxation to any
Participant under Code §409A. Except as the Plan and Applicable Guidance
otherwise may require, the Chairman may make any such amendments effective
immediately.

      

      (B)           
Termination.
The Employer, by action of the Board, may terminate, but is not required to
terminate, the Plan and distribute Plan Accounts under the following
circumstances; provided, however, that with respect to termination under
subsections (2), (3) and (4) below, the Employer must receive written
approval of such termination from any Participant who was a Participant in the
Plan on the effective date of the closing of the transaction that resulted in
the acquisition of the Employer by MidAmerican Energy Holdings Company, and
provided further that failure to obtain approval from any such Participant shall
result only in the continuation of the Plan for such Participant and shall not
affect termination of the Plan with respect to all other Participants (This
proviso shall not limit the Employer from terminating the right to make future
contributions to the Plan.):

      

      (1)            
Dissolution/Bankruptcy.
The Employer may terminate the Plan within 12 months following a
dissolution of a corporate Employer taxable under Code §331 or with
approval of a Bankruptcy court under 11 U.S.C. §503(b)(1)(A), provided
that the Deferred Compensation is paid to the Participants and is included in
the Participants’ gross income in the latest calendar year: (i) in which
the plan termination occurs; (ii) in which the amounts no longer are
subject to a Substantial Risk of Forfeiture (as defined in Applicable Guidance);
or (iii) in which the payment is administratively feasible.

      

      (2)            
Change in
Control. The Employer may terminate the Plan within the 30 days
preceding or the 12 months following a Change in Control (as defined in
Applicable Guidance) provided the Employer distributes all Plan Accounts (and
must distribute the accounts under any substantially similar Employer plan which
plan the Employer also must terminate) within 12 months following the Plan
termination.

      

      (3)            
Other. The
Employer may terminate the Plan for any other reason in the Employer’s
discretion provided that: (i) the Employer also terminates all Aggregated
Plans (as defined in Applicable Guidance)in which any Participant also is a
participant; (ii) the Plan makes no payments in the 12 months
following the Plan termination date other than payments the Plan would have made
irrespective of Plan termination; (iii) the Plan makes all payments within
24 months following the Plan termination date; and (iv) the Employer
within years following the Plan termination date does not adopt a new plan
covering any Participant that would be an Aggregated Plan.

      

      (4)            
Applicable Guidance
and Plan Types. The Employer may terminate the Plan under such other
circumstances as Applicable Guidance may permit. In addition, for purposes of
plan termination, the portion of the Plan representing Employer Contribution
Accounts shall be considered to be a nonelective account balance plan type and
the portion of the Plan representing Elective Deferral Accounts shall be
considered to be an elective account balance plan type.

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (C)           
Effect on Vesting.
Any Plan amendment or termination will not reduce the Vested Accrued Benefit
held in any Participant Account at the date of the amendment or termination and
also may not accelerate vesting except as may be permitted without subjecting
any Participant to taxation under Code §409A.

      

      (D)           
Cessation of Future Contributions.
The Employer may elect at any time to amend the Plan to cease future Elective
Deferrals as of the next taxable year. In such event, the Plan remains in effect
(except those provisions permitting the frozen contribution type) until all
Accounts are paid in accordance with the Plan terms, or, if earlier, upon the
Employer’s termination of the Plan.

      

      6.04           Severability. If any
provision of the Plan is determined by a proper authority to be invalid, the
remaining portions of the Plan will continue in effect and will be interpreted
consistent with the elimination of the invalid provision.

      

      6.05           Notice and Elections.
Any notice required or permitted under the Plan shall be sufficient if in
writing and hand delivered or sent by registered or certified mail. Such notice
shall be deemed given as of the date of delivery or, if delivery is made by
mail, as of the date shown on the postmark on the receipt for registration or
certification. Mailed notice to the Chairman of the Board or to the Employer
shall be directed to the Employer’s address. Mailed notice to a Participant or
Beneficiary shall be directed to the individual’s last known address in the
Employer’s records. Any election made under the Plan must be in writing and
delivered (electronically, by facsimile, or by mail), to the Employer pursuant
to procedures established by the Employer. The Employer will prescribe the form
of any Plan notice or election to be given to or made by Participants. Any
notice or election will be deemed given or made as of the date of actual
receipts, or if given or made by certified mail, as of 3 business days
after mailing.

      

      6.06           Administration. This
Plan shall be administered by a committee (“Committee”). The Chairman of the
Board of Directors of the Employer shall constitute the sole member of the
Committee unless the Chairman appoints one or more other individuals to serve on
the Committee. The Committee shall have a chair, who shall be chosen from among
its members or who is the sole member of the Committee. As a condition of
receiving any Plan benefit to which a Participant or Beneficiary otherwise may
be entitled, a Participant or Beneficiary will provide such information and
perform such other acts as the Employer reasonably may request. The Committee
may retain agents to assist in the administration of the Plan and may delegate
to agents or to an officer of the Employer such duties as it sees fit. The
decision of the Committee or its designee concerning the administration of the
Plan is final and is binding upon all persons having any interest in the Plan.
The Employer will indemnify, defend and hold harmless members of the Committee
and any Employee designated by the Committee to assist in the administration of
the Plan from any and all loss, damage, claims, expense or liability with
respect to this Plan (collectively, “claims”) except claims arising from the
intentional acts or gross negligence of the Committee member or Employee
designated to assist in the administration of the Plan.

      

      6.07           Account Statements.
The Employer will provide each Participant with a statement of the Participant’s
Vested Accrued Benefit at least annually as of the last Valuation Date in the
Plan Year. The Employer also will provide Account statements to any Beneficiary
of a deceased Participant with a Vested Accrued Benefit remaining in the
Plan.

      

      6.08           Accounting. The
Employer will maintain for each Participant as is necessary for proper
administration of the Plan, an Elective Deferral Account (and Retirement,
In-Service and Education subaccounts) and an Employer Contribution Account (if
any Employer Contributions are made).

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      6.09           Costs and Expenses.
The Employer will pay the costs, expenses and fees associated with the operation
of the Plan, excluding those incurred by Participants or Beneficiaries. The
Employer will pay costs, expenses or fees charged by or incurred by the Trustee
only as provided in the Trust or other agreement between the Employer and the
Trustee.

      

      6.10           Reporting. The
Employer will report on Form W-2 Deferred Compensation for Participants who
were Employees when compensation was deferred and will report on
Form 1099-MISC Deferred Compensation for Participants who were not
Employees when compensation was deferred, all in accordance with
Notice 2005-1 and Applicable Guidance.

      

      6.11           Claims Procedure.

      

      (A)          
Claim. Any
person or entity claiming a benefit, requesting an interpretation or ruling
under the Plan (hereinafter referred to as "Claimant"), or requesting
information under the Plan shall present the request in writing to the Employer,
which shall respond in writing as soon as practicable.

      

      (B)           
Denial of Claim.
If the claim or request is denied, the written notice of denial shall
state:

      

      
        	
                 
      

              	
                1)

              	
                              The
      reasons for denial, which specific reference to the Plan provisions on
      which the denial is based;

              

      

      
        	
                 
      

              	
                2)

              	
                             
      A description of any additional material or information required and an
      explanation of why it is necessary;
and

              

      

      
        	
                 
      

              	
                3)

              	
                             
      An explanation of the Plan's claim review
  procedure.

              

      

      

      (C)           
Review of Claim
Denial. Any Claimant whose claim or request is denied or who has not
received a response within sixty (60) days may request a review by notice given
in writing to the Employer. Such request must be made within sixty (60) days
after receipt by the Claimant of the written notice of denial, or in the event
Claimant has not received a response sixty (60) days after receipt by the
Employer of Claimant's claim or request. The claim or request shall be reviewed
by the Board of Directors which may, but shall not be required to, grant the
Claimant a hearing. On review, the Claimant may have representation, examine
pertinent documents, and submit issues and comments in writing.

      

      (D)           
Final Decision.
The decision on review shall normally be made within sixty (60) days after
the Employer's receipt of Claimant's claim or request. If an extension of time
is required for a hearing or other special circumstances, the Claimant shall be
notified and the time limit shall be one hundred twenty (120) days. The
decision shall be in writing and shall state the reasons and the relevant Plan
provisions. All decisions on review shall be final and bind all parties
concerned.

      

      6.12          
Beneficiary Designation.

      

      (A)          
Beneficiary Designation.
Each Participant shall have the right, at any time, to designate one (1) or
more persons or entities as Beneficiary (both primary as well as secondary) to
whom benefits under the Plan shall be paid in the event of Participant’s death
prior to complete distribution of the Participant’s Incentive Account(s) or
Deferred Account balances. Each Beneficiary designation shall be in a written
form prescribed by the Company and shall be effective only when filed with the
Company during the Participant’s lifetime.

      

      (B)           
Changing Beneficiary.
Any Beneficiary designation may be changed by a Participant without the consent
of the previously named Beneficiary by the filing of a new Beneficiary
designation with the Company. The filing of a new designation shall cancel all
designations previously filed.

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      (C)            
Change in Marital Status.
If the Participant’s marital status changes after the Participant has designated
a Beneficiary, the following shall apply until such time as the Participant
submits a revised Beneficiary form.

      

      
        	
                (1)  

              	
                      
      If the Participant is married at death but was unmarried when the
      designation was made, the designation shall be
  void.

              

      

      

      
        	
                (2)  

              	
                      
      If the Participant is unmarried at death but was married when the
      designation was made:

              

      

      

      
        	
                (i)  

              	
                The
      designation shall be void if the former spouse was named as
      Beneficiary.

              

      

      
        	
                (ii)  

              	
                The
      designation shall remain valid if the spouse was not named and a
      non-spouse Beneficiary was named.

              

      

      

      
        	
                (3)  

              	
                      
      If the Participant was married when the designation was made and is
      married to a different spouse at
death:

              

      

      

      
        	
                (i)  

              	
                The
      designation shall be void if the former spouse was named as
      Beneficiary.

              

      

      
        	
                (ii)  

              	
                The
      designation shall remain valid if the former spouse was not named and a
      non-spouse Beneficiary was named.

              

      

      

      (D)           
No Beneficiary Designation.
If any Participant fails to designate a Beneficiary in the manner provided
above, if the designation is void, or if the Beneficiary designated by a
deceased Participant dies before the Participant or before complete distribution
of the Participant’s benefits, the Participant’s Beneficiary shall be the person
in the first of the following classes in which there is a survivor:

      
 

      (1)           The
Participant’s surviving spouse;

      

      (2)           The
Participant’s children (including stepchildren) in equal shares, except if any
of the children predeceases the Participant but leaves surviving issue, then
such issue shall take by right of representation the share the deceased child
would have taken if living;

      

      (3)           The
Participant’s estate.

      

      (E)            
Effect of Payment.
Payment to the Beneficiary or other proper legal representative of the
Beneficiary shall completely discharge the Company’s obligations under the Plan
and the Company may require a release to that effect from the Beneficiary or
other proper legal representative of the Beneficiary prior to the
distribution.

      

      (F)            
Minor or Incompetent Beneficiary.
If a Beneficiary is a minor or otherwise reasonably determined by the Employer
to be legally incompetent, the Employer may cause the Plan or Trust to pay the
Participant’s Vested Accrued Benefit to a guardian, trustee or other proper
legal representative of the Beneficiary.

      

      6.13           Successors and Assigns.
The provisions of the Plan shall be construed and interpreted according to the
laws of the State of Oregon, except as preempted by federal law.

      

      6.14           Protective Provisions.
A Participant will cooperate with the Employer by furnishing any and all
information requested by the Employer, in order to facilitate the payment of
benefits hereunder.

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      6.15           Successors and
Assigns. The provisions of this Plan shall bind and inure to the benefit
of the Employer and its successors and assigns. The term successors as used
herein shall include any corporate or other business entity which shall, whether
by merger, consolidation, purchase or otherwise acquire all or substantially all
of the business and assets of the Employer, and successors of any such
corporation or other business entity.

      

      VII. 2005, 2006 AND 2007 TRANSITION RULES
AND PROVISIONS APPLICABLE

      BECAUSE
PLAN WAS EFFECTIVE BEFORE 2005

      

      7.01           Code §409A
Amounts. The terms of this Plan control as to any Compensation Deferred
prior to January 1, 2005, in addition to all Compensation Deferred after
December 31, 2004. Thus, all amounts under the Plan are considered
“409A Amounts”.

      

      7.02           2005, 2006 and 2007 Operational Rules.
The following provisions apply to the Plan during the 2005, 2006 and 2007
Taxable Years, as specifically provided in each subsection.

      

      (A)          
Good Faith. As
to 409A Amounts, the Employer will operate the Plan during the 2005, 2006 and
2007 Taxable Years in good faith compliance in accordance with:
(i) Notice 2005-1; (ii) Code §409A; and (iii) any
Applicable Guidance . The Employer also may operate the Plan consistent with the
Prop. Treas. Reg. §1.409A before such regulations become effective and may
apply such regulations to the extent that they are inconsistent with
Notice 2005-1. Although the Employer intends this Plan document to comply
with the provisions of Notice 2005-1 and of Prop. Treas. Reg. §1.409A,
the Employer will not apply any Plan provision which is inconsistent therewith
and, by December 31, 2007, will amend any such provision to comply with
Applicable Guidance. The Employer and the Participants may not exercise
discretion under the Plan in a manner that would violate
Code §409A.

      

      (B)           
Participant’s Revised Deferral Election.
A Participant, on or before December 31, 2007, may make a new payment
election as to any previously deferred 409A Amount, except that a
Participant cannot in 2006 change payment elections with respect to payments
that the Participant would otherwise receive in 2006, or to cause payments to be
made in 2006 that are otherwise scheduled to be made after 2006, and a
Participant cannot in 2007 change payment elections with respect to payments
that the Participant would otherwise receive in 2007 or to cause payments to be
made in 2007 that are otherwise scheduled to be made after 2007. Any such
election must be a permissible election under Section 4.03(A), but an
election under this Section 7.02(B) is not treated as a change in the
timing or form of distribution and need not comply with Section 4.03(B) as
it applies to such changes.

      

      (C)           
2005 Deferral Election by March 15, 2005.
Notwithstanding Section 2.02, if the Plan was in existence on or before
December 31, 2004 (as described in Notice 2005-1, Q/A 21), a
Participant may make an Elective Deferral election as to 409A Amounts
earned for service to the Employer through December 31, 2005. A Participant
must make an election under this Section 7.02(C) no later than
March 15, 2005, and in accordance with the Plan terms as in effect on or
before December 31, 2005. The election applies only as to amounts not paid
or payable to the Participant at the time of the election. This Section applies
only to the 2005 Taxable Year and is applicable only if the Employer executed,
on or before January 1, 2006, a separate amendment to the Plan that
includes provisions similar to this subsection.

      

      (D)          
Cancellation of Election/Participation.
A Participant, on or before December 31, 2005, may elect to cancel any or
all existing Elective Deferral elections. The Plan will distribute to an
affected Participant all 409A Amounts subject to an election under this
7.02(D) and the Participant will include such amounts in income, in the 2005
Taxable Year, or if later, in the Taxable Year in which such amounts are Vested.
This section is applicable only if the Employer executed, on or before
January 1, 2006, a separate amendment to the Plan that includes provisions
similar to this subsection.

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      7.03           Incorporation of Applicable Guidance.
In the event of Applicable Guidance that is contrary to any Plan provision, the
Employer, as of the effective date of the Applicable Guidance, will operate the
Plan in conformance therewith and will disregard any inconsistent Plan
provision. Any such Applicable Guidance is deemed to be incorporated by
reference into the Plan and to supersede any contrary provision during any
period in which the Employer is permitted to comply operationally with the
Applicable Guidance and before a formal Plan amendment is required.

      

      

      IN WITNESS WHEREOF, PacifiCorp has
caused this instrument to be signed by its duly authorized officer on this
25th day
of February, 2008.

      
 

      
        
          	 
      	
                  PACIFICORP

                	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/
      Gregory E. Abel

                	 
      
	 
      	 
      	
                  Gregory
      E. Abel, Chairman of the Board of Directors

                	 
      

        

        
          
             

          

          
            13

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