Document:

exv10wa

 

EXHIBIT 10(A)

May 21, 2002

Mr. Donald L. “Pat” Shalmy

379 Placer Creek Lane

Henderson NV 89014

Dear Pat,

On behalf of the Board of Directors, I am pleased to offer you employment as Senior Vice President,
Nevada Power. Your work location will be at Sierra Pacific — Nevada Power headquarters in Las
Vegas, Nevada. You will report directly to me in this position. We expect that you will assume
your duties as soon as possible.

Your starting base salary in this position will be $300,000. You will also be eligible for an
annual cash incentive, Short Term Incentive Program (STIP), of 45% (target) of your base salary.
Payment of the Short Term Incentive is at the discretion of the Board of Directors and is based on
corporate, business unit and personal performance. Actual payout may vary from 0% to 150% of
target. Your participation for 2002 will be prorated from your start date.

Long-term incentives for this position are in accordance with the plan approved by the shareholders
and administered by the Board of Directors. At this time, long-term incentives consist of
Non-Qualified Stock Options (NQSO’s) and performance shares. For your position the long-term
incentive is targeted at 75% of your base salary, 60% delivered through NQSO’s and 40% delivered
through Performance Shares. The NQSO’s vest one-third per year and are fully vested after the
third year. Performance shares have a three-year term and are earned based on measures established
by the Board for each grant. You will also be eligible to participate on a pro-rata basis (31 of
36 months) in the 2002-2004 Performance Share grant made earlier this year. In addition you will
also be able to participate in the 2001-2003 Performance Share grant for the remaining 19 of the
original 36 months.

As a special inducement for you to join SPR, the Board has also authorized the following
incentives. A one-time signing bonus of $25,000, gross amount before taxes. In addition, you will
receive a special stock option grant of 25,000 NQSO’s at a strike price to be set based on the
closing stock price on the day you accept this offer by signing it and informing me that you have
done so. These options will vest at the end of one year, or upon change of control if such an
event were to occur before the end of one year. As a Senior Vice President, you will be expected
to achieve and maintain one and a half times your annual compensation in SPR stock. You will have
five years to achieve this level.

Should an event occur on or before December 31, 2002, which would constitute a change of control or
potential change of control (as defined under the terms of company’s senior executive change of
control plan), and if your employment is terminated or you are notified that it will be terminated,
you will be eligible to receive one year’s base pay plus target annual incentive, upon termination,
unless your employment is terminated for (1) reasons relating to moral turpitude, (2) conviction of
any crime amounting to a felony, or (3) on you own volition and without actually being requested to
resign by the Board. This payment shall be conditioned on the execution of appropriate releases in
favor of the Company for any and all claims connected with or arising out of your employment or
termination and will require continued maintenance of confidential and proprietary information, a
non-compete for one year and agreement not to disparage the Company. Beginning January 1, 2003 you
will be eligible for inclusion within the company’s senior executive change of control plan.

 

 

You will be eligible to participate in the Company’s Supplemental Executive Retirement Plan (SERP)
and eligible for benefits under this Plan including a maximum benefit of 50% of your Final Average
Earnings

The Company will also provide you life insurance coverage of $400,000 contingent upon completion of
a physical exam performed by a doctor selected by our insurance carrier. This will be in addition
to a $1,000,000 policy in the event that you die while traveling on Company business and company
provided group life insurance equivalent to 1.5 times your annual salary.

You will be eligible for all regular employee benefits including a 401K plan that matches employee
contributions dollar for dollar up to 6% and SPR’s Deferred Compensation Plan. You will receive a
perquisite allowance of $15,000 to cover such expenses as a car, tax preparation and club
memberships. You will receive paid time off (PTO) based on your total years of professional work
experience (40). Your annual paid time off allowance will be 33.4 days, plus 11 paid holidays. In
2002, PTO will be pro rated based on your hire date.

In addition to the benefits described above, in the event you are terminated for reasons other than
(1) reasons relating to moral turpitude, (2) conviction of any crime amounting to a felony, or (3)
on you own volition and without actually being requested to resign by the Board, you will receive
within thirty days of termination, one year of base salary. This payment shall be conditioned on
the execution of appropriate releases in favor of the Company for any and all claims connected with
or arising out of your employment or termination and will require continued maintenance of
confidential and proprietary information, a non-compete for one year and agreement not to disparage
the Company.

As is Sierra’s policy, all hiring offers are contingent on a drug analysis test. We can arrange for
you to have this test at a time and place convenient for you. Also you will need to provide us
proof of U.S. Citizenship on your first day of work. This could include a copy of your Birth
Certificate, Driver’s License or Social Security Card.

The position being offered to you is one of trust and confidence. In accepting the position you
are agreeing that, in addition to any other limitation and regardless of the circumstances or any
future limitation of your employment, you will not communicate to any person, firm or other entity
any knowledge relating to documents, transactions or any other confidential knowledge which you
might acquire with respect to the business of Sierra Pacific Resources or any of its affiliated
companies.

To indicate acceptance of this offer, please sign below and return one signed original of this
letter to me as soon as possible. If you have questions about elements of this offer, you may call
me or discuss them with Victor H. Peña, Senior Vice President and CAO.

On behalf of the board and the senior officers of the company, I am delighted that you have
accepted the opportunity to join Nevada Power and the Sierra Pacific team. We believe, with your
leadership, expertise and dedication we will accomplish great results for our shareholders,
customers, employees and communities. Welcome!

Sincerely,

Walter M. Higgins

	 	 	 	 	 
	 

	 	Accepted:
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Donald L. “Pat” Shalmy	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Dateexv10wb

 

EXHIBIT
10(B)

      William D. Rogers was elected to his
current position of  Corporate Senior Vice President, Chief Financial Officer and Treasurer of
Sierra Pacific Resources on February 15, 2007.  No formal offer letter or contract for employment
was entered into with Mr. Rogers, as he was previously employed by the Company.  However, Mr.
Rogers was verbally communicated his salary, benefits and employment arrangement.  The annual
salary communicated to Mr. Rogers was $300,000.  Additionally, Mr. Rogers is eligible for an
annual cash incentive, Short Term Incentive Program (STIP), of 50% (target) of his base salary.
Actual payout may vary from 0% to 150% of target.  Mr. Rogers’ long term incentive plan is
targeted at 86% of his base salary.  Mr. Rogers is eligible to participate in the Company’s
Supplemental Executive Retirement Plan.  Mr. Rogers is also eligible for all regular employee
benefits including a 401K plan that matches employee contributions dollar for dollar up to 6%
and SPR’s Deferred Compensation Plan, medical benefits and paid time off.  He will also receive
a perquisite allowance of $15,000 to cover such expenses as a car, tax preparation and club
memberships.  Furthermore, Mr. Rogers was offered a housing allowance for $2,000 per month.exv10wc

 

EXHIBIT 10(C)

     Jeff Ceccarelli, as Corporate Senior Vice President, Service Delivery and Operations of Sierra
Pacific Resources and President of Sierra Pacific Power Company has no formal offer letter or
contract for employment with Sierra Pacific Resources or Sierra Pacific Power Company. However,
Mr. Ceccarelli was verbally communicated his salary, benefits and employment arrangement. The
annual salary communicated to Mr. Ceccarelli was $350,000. Additionally, Mr. Ceccarelli is
eligible for an annual cash incentive, Short Term Incentive Program (STIP), of 50% (target) of his
base salary. Actual payout may vary from 0% to 150% of target. Mr. Ceccarelli’s long term
incentive plan is targeted at 86% of his base salary. Mr. Ceccarelli is eligible to participate in
SPR’s Supplemental Executive Retirement Plan. Mr. Ceccarelli is also eligible for all regular
employee benefits including a 401K plan that matches employee contributions dollar for dollar up to
6% and SPR’s Deferred Compensation Plan, medical benefits and paid time off. He will also receive
a perquisite allowance of $15,000 to cover such expenses as a car, tax preparation and club
memberships. Furthermore, Mr. Ceccarelli was offered a housing allowance for $42,000 to maintain a
home in Las Vegas.exv10wd

 

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EXHIBIT 10(D)

May 9, 2007

Mr. Michael W. Yackira

2305 Pearl Crest Drive

Las Vegas NV 89134

Dear Michael,

     On behalf of the Board of Directors, I am pleased to offer you a promotion to
the position: President and Chief Executive Officer for Sierra Pacific
Resources. You will also serve as Chief Executive Officer of the utility
companies, Nevada Power Company and Sierra Pacific Power Company (“The Company”
or “The Companies’). Your primary work location will be at
Sierra Pacific —
Nevada Power headquarters in Las Vegas, Nevada. You will report directly to
the Board of Directors in this position. You will assume these
responsibilities on August 1, 2007 and will serve until replaced, removed, or
reelected to the position by the Board of Directors. The job will involve
regular business travel, especially within Nevada, California, the Western
U.S., New York, Washington D.C. and occasionally, international. The board
intends to eliminate the Chief Operating Officer position effective with your
assumption of this new position.

     The Board of Directors has determined that it intends, until further notice, to
split the positions of Chief Executive Officer and Chairman of the Board. This
is a step taken to more closely align our governance practices with those
considered “best practice” within American publicly-traded companies. The
Board of Directors has asked Walter M. Higgins to continue to serve as Chairman
of the Board of Directors, as a non-executive chairman, until further notice.

     Your starting base salary as President and Chief Executive Officer will be
$600,000. You will be eligible for an annual cash Short-Term Incentive Program
(STIP) payment of 75% (target) of your base salary. Payment of the Short-Term
Incentive is at the discretion of the Board of Directors and is based on
corporate, business unit, and personal performance. Actual payout may vary
from 0% to 150% of target. Except for retirement, death, or disability, an
employee must be employed on the date STIP is paid to be eligible to receive
it.

     Long-term incentives for this position are in accordance with the plan approved
by the shareholders and administered by the Board of Directors. For your
position, the long-term incentive is targeted at 150% of your base salary. The
provisions of each grant and of the plan are the same as those previously
communicated to you as President and Chief Operating Officer (“LTIP”).

     As a special performance incentive, the Board has also authorized a grant of
200,000 non-qualified stock options (NQSO’s) at a strike price set this date,
May 9, 2007. These options will vest in increments of 1/3 on each of the next
three anniversaries of this date.

     As CEO, you will be expected to achieve and maintain two times your annual
salary in SPR stock. You will have five years to achieve this level.
(Restricted stock grants count toward meeting the requirement.)

     In addition to the benefits described above, in the event you are terminated
for reasons other than (1) reasons relating to moral turpitude, (2) conviction
of any crime amounting to a felony, or (3) on your own volition and without
actually being requested to resign by the Board, you will be eligible to
receive one year’s base pay plus target incentive, within 30 days of

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termination. This payment shall be conditioned on the execution of appropriate
releases in favor of the Company for any and all claims connected with or
arising out of your employment or termination and will require continued
maintenance of confidential and proprietary information, a non-compete for one
year, and agreement not to disparage the Company. This payment would not be
made if you otherwise receive any other severance, disability, or retirement
payments from the Company, including a change in control plan payment. You
further understand and agree that, in the event that you choose to terminate
your employment with the Company, you relinquish and forfeit any and all
unvested NQSO’s granted under this agreement, together with all unvested grants
under the LTIP.

     You will continue to be eligible to participate in the Company’s Supplemental
Executive Retirement Plan (SERP) and eligible for benefits under this Plan.
For purposes of calculating SERP, 2 years will be added to your years of
service if you continue to be employed with SPR until age 62 or beyond.

     You will continue to be eligible for the normal Sierra Pacific Resources senior
officer change in control protection as has been put in place for the senior
officers by the Board of Directors. The current plan expires on December 31,
2007 and the board will be considering soon how to replace or renew that plan.
The board reserves the right to change the provisions of that plan to be
consistent with competitive industry practice. However, your benefits will be
no worse than those offered to the senior officers of the company.

     The company agrees to pay the premiums on an executive life insurance policy
for you, such policy to have a death benefit equal to $1,000,000. This
executive life insurance will be in addition to a business travel insurance
policy for which the company will also pay the premiums; such business travel
insurance policy will provide a death benefit equal to $1,000,000 in the event
you die as a result of a travel-related cause while traveling on company
business. You will also be able to participate in the company’s group life
insurance plan, which currently provides group life insurance coverage with a
death benefit equal to 1.5 times you annual salary.

     You will be eligible for all regular employee benefits including a 401K plan
that matches employee contributions dollar for dollar up to 6% (subject to IRS
limitations), and SPR’s Deferred Compensation Plan.

     You will receive a perquisite allowance of $30,000 to cover such expenses as
having a Las Vegas based automobile for business use and tax preparation. The
board is currently considering whether or not to continue to provide the
perquisite allowance benefit, and if so in what form. In the event the benefit
is discontinued, the board reserves the right to move the sum being paid into
your base salary.

     You will also be provided memberships in appropriate business and social clubs
in the Las Vegas and Reno areas as are needed to completely carry out your
duties as CEO.

     You will receive paid time off (PTO) in accordance with our current standard
company practice based on your years of professional work experience.

     You will receive a housing allowance of $5000 per month to cover the cost of
maintaining a Reno area residence and a company vehicle for your use while in
Northern Nevada, both so long as you are employed by the Company.

     The confidentiality agreement contained in your offer letter of 2003 will
continue in force.

     You further agree that in the event that your employment with the Company
terminates, by you or the Company, or mutually, you will not solicit or
recruit, either directly or indirectly, any current officer or employee of
Sierra Pacific Resources or any of its subsidiaries for a period of 24 months.

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     The Board of Directors is pleased and excited at the prospect of having you
serve as President and Chief Executive Officer of Sierra Pacific Resources. We
believe you are well prepared for this important challenge and ready to do
great work for our shareholders, our employees, our customers and the
communities we serve.

     To indicate acceptance of this offer, please sign below and return one signed
original of this letter to me as soon as possible. If you have questions about
elements of this offer, you may call me.

Sincerely,

Phillip G. Satre

Lead Independent Director

Sierra Pacific Resources Board of Directors

Accepted:

__________________________________

Michael W. Yackira

Date_______________________________

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