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exh10-5.htm

     

     

    
      

      

    

    
      EXHIBIT
10.5

      

      EXECUTION
COPY

      

      AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

      

      

      This
Amended and Restated Employment Agreement, dated as of February 25, 2008, amends
and restates the employment agreement originally entered into as of April 21,
1999, and is by and between MidAmerican Energy Holdings Company, an Iowa
corporation (the Company”), and Patrick J. Goodman (the Executive).

      

      RECITALS

      

      The
Company desires to employ the Executive as its Senior Vice President and Chief
Financial Officer on the terms set forth in this Agreement, and the Executive
desires to accept such employment.

      

      Accordingly,
the Company and the Executive agree as follows:

      

      AGREEMENT

      

      Section
1.    Defined
Terms.  Terms used but not defined in this Agreement will have the
meanings ascribed to them in Exhibit A to this Agreement.

      

      Section
2.            Emp1oyment.

      

      (a)           The
Company will employ the Executive as, and the Executive will
act as the Senior Vice President and Chief Financial Officer of the Company,
subject to and upon the terms set forth in this Agreement, for the Term of
Employment.

      

      (b)           The
Executive’s primary place of employment will be Des Moines, Iowa.

      

      Section
3.           Duties.

      

      (a)           The
Executive (i) will perform and discharge the duties incident to and consistent
with his title of Senior Vice President and Chief Financial Officer, and (ii)
will perform and discharge such other duties, and will have such other
authority, as are delegated to him by the Chairman of the Board of the Company
(hereinafter referred to as the “Chairman of the Board”). In performing such
duties, the Executive will report directly to, and be subject to the direction
of, the Chairman of the Board.

      

      (b)           The
Executive will act, without any compensation in addition to the compensation
payable pursuant to this Agreement, as an officer or member, of the board of
directors of any subsidiary of the Company, if so appointed or
elected.

      

      (c)           During
the Term of Employment the Executive (i) will devote his entire time, attention
and energies during normal business hours to the business of the Company and its
subsidiaries and (ii) will not, without the written consent of the Chairman of
the Board, perform any services for any other Person or engage in any other
business or professional activity, whether or not performed or engaged in for
profit.

       

       

      
        
          
          

        

        
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      (d)           Notwithstanding
subsection 3(c), the Executive, without the consent of the Chairman of the
Board, may (i) purchase securities issued by, or otherwise passively invest his
personal or family assets in, any other company or business within the
constraints imposed by the Code of Business Conduct referred to below, and (ii)
engage in governmental, political, educational or charitable activities, but
only to the extent that those activities (A) are not inconsistent with any
direction of the Chairman of the Board or any duties under this Agreement, and
(B) do not interfere with the devotion by the Executive of his entire time,
attention and energies during normal business hours to the business of the
Company.

      

      Section
4.           Compensation.

      

      (a)           During
the Term of Employment, the Company will pay the Executive a base salary at an
annual rate of $220,000, in substantially equal periodic payments in accordance
with the Company’s practices for executive employees, as determined from time to
time by the Chairman of the Board.

      

      (b)           The
Chairman of the Board will review the salary payable to the Executive at least
annually beginning in the fourth fiscal quarter of 2007. The Chairman of the
Board, in his discretion, may increase the salary of the Executive from time to
time, but may not reduce the salary of the Executive below the amount set forth
in subsection 4(a) above.

      

      (c)           During
the Term of Employment, the Executive shall be eligible for consideration for an
annual incentive merit bonus, for the Executive’s performance during the fiscal
year of the Company in an amount determined by the Chairman of the Board in his
discretion, by reference to the accomplishment by the Executive of goals
established by the Chairman of the Board for the related fiscal year. The
Executive shall also be eligible to be paid other bonuses for each fiscal year
as determined by the Chairman of the Board. The Executive’s annual incentive
merit bonus, together with all such other bonuses paid or payable for the fiscal
year (including any amounts for which receipt is otherwise deferred pursuant to
a plan or arrangement with the Company), is referred to herein as “Annual Bonus
Compensation.”

      

      (d)           The
Company will reimburse the Executive, subject to compliance by the Executive
with the Company’s customary reimbursement practices, for all reasonable and
necessary out-of-pocket expenses incurred by the Executive on behalf of the
Company in the course of its business.

      

      (e)           The
Company may reduce any payments made to the Executive under this Agreement by
any required federal, state or local government withholdings or deductions for
taxes or similar charges, or otherwise pursuant to law, regulation or
order.

      

      (f)           Any
base salary payable to the Executive for any period of employment of less than
one year during the Term of Employment will be reduced to reflect the actual
number of days of employment during the period except as provided in Sections
8(b) and 8(c).

       

      
        
          
          

        

        
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      Section
5.           Other
Benefits.

      

      (a)           During
the Term of Employment, the Executive and his dependents may participate in and
receive benefits under any employee benefit plan which the Company makes
generally available to its employees and their families, including any pension,
life insurance, medical benefits, dental benefits or disability plan, but only
to the extent that the Executive or his dependents otherwise satisfies the
standards established for participation in the plan. The terms of Executive’s
existing option agreements, as amended, remain unaffected hereby, except as set
forth in Sections 8(b) and 8(c) hereof.

      

      (b)           The
Executive may take up to three weeks of vacation during each full calendar year
during the Term of Employment at a time mutually convenient to the Executive and
the Company, without loss of compensation or other benefits under this
Agreement.

      

      Section
6.           Confidentiality
and Post-Employment Restrictions.

      

      (a)           The
Executive acknowledges that the Company and its Affiliates have confidential
information and trade secrets, whether written or unwritten, with respect to
carrying on their business, including sensitive marketing, bidding,
technological and engineering information and data, names of past, present and
prospective customers or partners of and vendors or suppliers to the Company and
its Affiliates, working relationships with governmental agencies and officials,
methods of pricing contracts and income and expenses associated therewith, the
international business strategy and relative ranking of opportunities in various
countries, negotiated prices and offers outstanding, credit terms and status of
accounts and the terms or circumstances of any current or prospective business
arrangements between the Company and its Affiliates and any third parties
(“Confidential Information and Trade Secrets”). As used in this Agreement, the
term Confidential Information and Trade Secrets does not include (i) information
which becomes generally available to the public other than as a result of a
disclosure by the Executive, (ii) information which becomes available to the
Executive on a nonconfidential basis from a source other than the Company or its
Affiliates, or (iii) information known to the Executive prior to any disclosure
to him by the Company or its Affiliates. The Executive further acknowledges that
the Executive possesses a high degree of knowledge of the independent energy
industry and, in particular, has committed to a longstanding relationship with
the Company and its Affiliates as an employee and officer, which has allowed,
and will continue to allow, him access to the Company’s Confidential Information
and Trade Secrets. Accordingly, any employment by the Executive with another
employer in the independent energy industry or participation by him as a
substantial investor in any such industry may necessarily involve disclosure of
the Company’s Confidential Information and Trade Secrets. Consequently, the
Executive agrees that, if he voluntarily resigns his employment with the Company
for any reason other than (i) a breach of this Agreement by the Company, or (ii)
for Good Reason, he shall not at any time during the two-year period after such
resignation, directly or indirectly accept employment by or invest in (except as
a passive investor in a public corporation or in a publicly issued partnership
interest which, in either event, would not exceed an ownership interest of 2% of
the outstanding equity or partnership interest) in any person, firm,
corporation, partnership, joint venture or business which is engaged in the
production or marketing of steam or electrical energy or the distribution or
supply of electricity or natural gas (in each case in the States of Iowa,
Illinois, Nebraska, South Dakota, Kansas, Missouri, Minnesota or Wisconsin) or
which otherwise directly competes with the business of the Company or its
Affiliates and, further, the Executive agrees that, to avoid the risk of
disclosing or improperly using Confidential Information or Trade Secrets, he
shall not directly, or indirectly, provide consulting or advisory services to
any of such independent energy or utility businesses which conduct business in
such States or otherwise directly compete with the Company or its Affiliates.
The preceding sentence notwithstanding, Executive shall not be precluded from
accepting employment or providing services to Peter Kiewit Sons’, Inc. or any
Affiliate thereof.

       

      
        
          
          

        

        
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      (b)           Without
the written consent of the Chairman of the Board, the Executive will not, during
and for three years after the Term of Employment, (i) disclose any Confidential
Information and Trade Secrets of the Company or any Affiliate of the Company to
any Person (other than the Company, directors, officers or employees of the
Company, its Affiliates or duly authorized agents, attorneys or other
representatives thereof), or (ii) otherwise make use of any Confidential
Information and Trade Secrets other than in connection with authorized dealings
with or by the Company and its Affiliates.

      

      (c)           For
a period of three years after the Term of Employment, the Executive shall
neither directly nor indirectly solicit, on behalf of another employer, the
employment of, or hire or cause another employer to hire, any person who is then
currently employed by the Company or an Affiliate thereof, or otherwise induce,
on behalf of another employer, such person to leave the employment of the
Company or an Affiliate thereof without the prior written approval of the
Chairman of the Board.

      

      (d)           The
Executive will hold, on behalf of the Company and its Affiliates and as the
property of the Company and its Affiliates, all memoranda, manuals, books,
papers, letters, documents, computer discs, data and software and other similar
property obtained during the course of his employment by the Company or its
Affiliates and relating to the Company’s or its Affiliates business, and will
return such property to the Company or its Affiliates at any time upon demand by
the Chairman of the Board and, in any event, within five calendar days after the
end of the Term of Employment.

      

      (e)           During
the Term of Employment, Executive agrees to comply in all material respects with
the Company’s Code of Business Conduct and Berkshire Hathaway’s Code of Business
Conduct and all future amendments and restatements to such policy and to deliver
an executed Certificate of Compliance with respect thereto upon request by the
Company.

      

      (f)           If
any of the provisions of, or covenants contained in, this Section 6 are
hereafter construed to be invalid or unenforceable in any jurisdiction, the same
shall not affect the remainder of the provisions or the enforceability thereof
in any other jurisdiction, which shall be given full effect, without regard to
the invalidity or unenforceability in such other jurisdiction. If any of the
provisions of, or covenants contained in, this Section 6 are held to be
unenforceable in any jurisdiction because of the duration or geographical scope
thereof, the parties agree that the court making such determination shall have
the power to reduce the duration or geographical scope of such provision or
covenant and, in its reduced form, such provision or covenant shall be
enforceable; provided, however, that the determination of such court shall not
affect the enforceability of this Section 6 in any other
jurisdiction.

       

      
        
          
          

        

        
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      Section
7.           Termination
of Employment.

      

      (a)           The
employment of the Executive under this Agreement will terminate on the earliest
of: (i) written notice by the Executive of his resignation other than for Good
Reason; (ii) the day the Company gives to the Executive written notice of
termination without Cause; (iii) the day the Company gives to the Executive
written notice of termination for Cause; (iv) the Permanent Disability of the
Executive; (v) the death of the Executive; or (vi) written notice by the
Executive of his resignation for Good Reason.

      

      (b)           If
the employment of the Executive is terminated under this Agreement for any
reason whatsoever, the obligations of the Executive under Section 6 will remain
in full force and effect to the extent provided therein, and the termination
will not abrogate any rights or remedies of the Company or the Executive with
respect to any breach of the Agreement, except as expressly provided in Section
8.

      

      Section
8.           Payment Upon
Termination.

      

      (a)           If
the employment of the Executive is terminated pursuant to subsections (i) or
(iii) of Section 7(a), the Company will pay to the Executive, within 30 calendar
days, any base salary and reimbursable expenses pursuant to Section 4(a) and
Section 4(d) which are accrued but unpaid through the Termination
Date.

      

      (b)           If
the employment of the Executive is terminated pursuant to subsections (ii),
(iv), (v) or (vi) of Section 7 (a), the Company will pay the Executive, subject
to the Executive’s compliance in all material respects with his post-termination
obligations under Section 6, (i) within 30 calendar days, any base salary and
reimbursable expenses which are accrued and unpaid through such date, (ii)
within one month after the month of his Termination Date, a single lump sum
equal to twice his annual base salary then in effect pursuant to Section 4 and
(iii) within one month after the month of his Termination Date, a single lump
sum equal to two times the average Annual Bonus Compensation payable to the
Executive in respect of the two fiscal years immediately preceding the year in
which the Executive’s employment with the Company terminates (with any such year
for which no bonus was payable included in such two year average as a
zero).

      

      In
addition, in the event of any such termination, subject to the Executive’s
compliance in all material respects with his post-termination obligations under
Section 6, the Company agrees that (x) the Company stock options previously
granted to Executive will continue to vest according to their terms within such
next 24 months (beginning with the month following the month in which the
Termination Date occurs, after which time the unvested remainder will lapse) and
such vested options may be exercised within the remaining term of such options
as provided in the respective option agreements, and (y) the Company shall
continue in effect for Executive, for a period of twelve months after the date
of any such termination, the life insurance, medical benefits and dental
benefits available to the Executive and his dependents on the date of such
termination, subject to such employee contributions and other terms and
conditions as are applicable to active employees generally and subject to
subsequent modification or termination of such plans to the extent such
subsequent actions are also applicable to active employees generally; provided
that such plan benefits shall terminate earlier on the date, if any, that
comparable benefits are made available to the Executive by any new
employer.

       

      
        
          
          

        

        
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      (c)           Reserved.

      

      (d)           If
the employment of the Executive is terminated pursuant to subsections (ii) or
(vi) of Section 7 (a), any Performance Accelerated Stock Options (“PASOs”) held
by the Executive on the Termination Date will become vested and immediately
exercisable on such Termination Date and shall otherwise remain exercisable for
their term in accordance with the terms thereof.

      

      (e)           If
the employment of the Executive is terminated for any reason, then without
further action by the Company, the Board or any committee thereof, the Executive
may exercise any vested stock options (including any vested PASOs) held by the
Executive pursuant to existing procedures approved by the Compensation Committee
for cashless exercise, by surrendering previously owned shares, electing to have
the Company withhold shares otherwise deliverable upon exercise of such options,
or by providing an irrevocable direction to a broker to sell shares and deliver
all or a portion of the proceeds to the Company, in any case in an amount equal
to the aggregate exercise price and any tax withholding obligation attendant to
the exercise.

      

      Section
8A.        Certain Additional Payments
by the Company.

      

      (a)           Anything
in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment, distribution, waiver of Company rights,
acceleration of vesting of any stock options or restricted stock, or any other
payment or benefit in the nature of compensation to or for the benefit of the
Executive, alone or in combination (whether such payment, distribution, waiver,
acceleration or other benefit is made pursuant to the terms of this Agreement or
any other agreement, plan or arrangement providing payments or benefits in the
nature of compensation to or for the benefit of the Executive, but determined
without regard to any additional payments required under this Section 8A) (a
“Payment) would be subject to the excise tax imposed by Section 4999 of the Code
(or any successor provision) or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then the Executive shall be entitled to receive an additional
payment (a “Gross-Up Payment”) in an amount such that after payment by the
Executive of all taxes with respect to the Gross-Up Payment (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and Excise Tax imposed upon the Gross-up Payment, the Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Payments. Any Gross-Up Payment made by the Company to the Executive with
respect to any Excise Tax paid by the Executive shall be made by the Company as
soon as administratively feasible after the determination of such Excise Tax,
but in no case later than by the end of the calendar year following the calendar
year in which the Executive makes the Excise Tax payment.

       

      
        
          
          

        

        
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      (b)           Subject
to the provisions of Section 8A(c), all determinations required to be made under
this Section 8A, including whether and when a Gross-Up Payment is required and
the amount of such Gross-Up Payment and the assumptions to be utilized in
arriving at such determination, shall be made by Deloitte and Touche LLP, or
such other nationally recognized accounting firm then auditing the accounts of
the Company (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and the Executive within 15 business days of
the receipt of notice from the Executive that there has been a Payment, or such
earlier time as is requested by the Company. In the event that the Accounting
Firm is unwilling or unable to perform its obligations pursuant to this Section
8A, the Executive shall appoint another nationally recognized accounting firm to
make the determinations required hereunder (which accounting firm shall then be
referred to hereunder as the Accounting Firm). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment,
determined pursuant to this Section 8A, shall be paid by the Company to the
Executive within five days of the receipt of the Accounting Firm’s
determination. Any determination by the Accounting Firm shall be binding upon
the Company and the Executive. The parties hereto acknowledge that, as a result
of the potential uncertainty in the application of Section 4999 of the Code (or
any successor provision) at the time of the initial determination by the
Accounting Firm hereunder, it is possible that the Company will not have made
Gross-Up Payments which should have been made consistent with the calculations
required to be made hereunder (an “Underpayment”). In the event that the Company
exhausts its remedies pursuant to Section 8A(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Executive.

      

      (c)           The
Executive shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Company of
the Gross-Up Payment. Such notification shall be given as soon as practicable
but no later than 20 business days after the Executive is informed in writing of
such claim and shall apprise the Company of the nature of such claim and the
date on which such claim is requested to be paid. The Executive shall not pay
such claim prior to the expiration of the 30-day period following the date on
which he gives such notice to the Company (or such shorter period ending on the
date that any payment of taxes with respect to such claim is due). If the
Company notifies the Executive in writing prior to the expiration of such period
that it desires to contest such claim, the Executive shall:

      

      
        	
                 
      

              	
                (i)

              	
                give
      the Company any information reasonably requested by the Company relating
      to such claim,

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                take
      such action in connection with contesting such claim as the Company shall
      reasonably request in writing from time to time, including, without
      limitation, accepting legal representation with respect to such claim by
      an attorney reasonably selected by the
Company,

              

      

       

       

      
        
          
          

        

        
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                 (iii)

              	
                cooperate
      with the Company in good faith in order effectively to contest such claim,
      and

              

      

      

      
        	
                 
      

              	
                 (iv)

              	
                permit
      the Company to participate in any proceedings relating to such
      claim;

              

      

       

       

      provided,
however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax
basis, for any Excise Tax or income tax (including interest and penalties with
respect thereto) imposed as a result of such representation and payment of costs
and expenses. Without limiting the foregoing provisions of this Section 8A(c),
the Company shall control all proceedings taken in connection with such contest
and, at its sole option, may pursue or forgo any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of
such claim and may, at its sole option, either direct the Executive to pay the
tax claimed and sue for a refund or contest the claim in any permissible manner,
and the Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Company shall determine; provided, however, that any
extension of the statute of limitations relating to payment of taxes for the
taxable year of the Executive with respect to which such contested amount is
claimed to be due is limited solely to such contested amount. Furthermore, the
Company’s control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and the Executive shall be
entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.

      

      Except as
provided herein and to the extent necessary to give full effect to the
provisions of this Amendment, the terms of the Employment Agreement shall remain
in full force and effect.

      

      Section
8B.        Restrictions on Payment to
“Specified Employees” under Section 409A of the Internal Revenue
Code.   In the event any payment to be made under this Employment
Agreement is subject to the provisions of Section 409A of the Internal Revenue
Code (and is not otherwise exempt under applicable guidance issued under Section
409A), if such payment is due to the separation from service of the Executive
(other than because of death), and if the Executive is a "specified employee"
(as defined in Section 409A of the Internal Revenue Code) at the time of
separation from service, such payment shall not be made until the date that is 6
months following the date of separation from service.  In the event of
any such delay in payment, interest shall be added to the delayed payment
utilizing the interest rate on 1-year constant maturity U.S. Treasury Notes as
published by the Federal Reserve Board (or its successor) in Statistical Release
H.15 (or its successor) corresponding to the date that payment would have been
made if the delay hereunder had not occurred.

      

      Section
9.           Remedies.

      

      
        
          
          

        

        
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      (a)           The
Company will be entitled, if it elects, to enjoin any breach or threatened
breach of, or enforce the specific performance of, the obligations of the
Executive under Sections 3 or 6, without showing any actual damage or that
monetary damages would be inadequate. Any such equitable remedy will not be the
sole and exclusive remedy for any such breach, and the Company may pursue other
remedies for such a breach.

      

      (b)           Any
court proceeding to enforce this Agreement may be commenced in federal courts,
or in the absence of federal jurisdiction the state courts, located in Omaha,
Nebraska. The parties submit to the jurisdiction of such courts and waive any
objection which they might have to pursuit of any such proceeding in any such
court.

      

      (c)           Except
to the extent that the Company elects to seek injunctive relief in accordance
with subsection 9(a), any controversy or claim arising out of or relating to
this Agreement or the validity, interpretation, enforceability or breach of this
Agreement will be submitted to arbitration in Omaha, Nebraska, in accordance
with the then existing rules of the American Arbitration Association, and
judgment upon the award rendered in any such arbitration may be entered in any
court having jurisdiction.

      

      Section
10.         Assignment. Neither the
Company nor the Executive may sell, transfer or otherwise assign their rights,
or delegate their obligations, under this Agreement, provided that the Company
shall require any successor to all or substantially all of the business, stock
or assets of the Company to expressly assume the Company’s rights and
obligations hereunder.

      

      Section
11.         Unfunded Benefits. All
compensation and other benefits payable to the Executive under this Agreement
will be unfunded, and neither the company nor any affiliate of the Company will
segregate any assets to satisfy any obligation of the Company under this
Agreement. The obligations of the Company to the Executive are not the subject
of any guarantee or other assurance of any Person other than the
Company.

      

      Section
12.         Severability. Should
any provision, paragraph, clause or portion thereof of this Agreement be
declared or be determined by any court or arbitrator of competent jurisdiction
to be illegal, unenforceable or invalid, the validity or enforceability of the
remaining parts, terms or provisions shall not be affected thereby and said
illegal or invalid part, term or provision shall be deemed not to be a part of
this Agreement. Alternatively, the court or arbitrator having jurisdiction shall
have the power to modify such illegal, unenforceable or invalid provision so
that it will be valid and enforceable, and, in any case, the remaining
provisions of this Agreement shall remain in full force and effect.

      

      Section
13.         
Miscellaneous.

      

      (a)           This
Agreement may be amended or modified only by a writing executed by the Executive
and the Company.

      

      (b)           This
Agreement will be governed by and construed in accordance with the internal laws
of the State of Nebraska.

       

      
        
          
          

        

        
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      (c)           This
Agreement constitutes the entire agreement of the Company and the Executive with
respect to the matters set forth in this Agreement and supersedes any and all
other agreements between the Company and the Executive relating to those
matters.

      

      (d)           Any
notice required to be given pursuant to this Agreement will be deemed given (i)
when delivered in person or by courier or (ii) on the third calendar day after
it is sent by facsimile, with written confirmation of receipt, if to the
Company, to: Chairman of the Board, MidAmerican Energy Holdings Company at 1111
S. 103rd St.,
Omaha, Nebraska 68124, fax number (402) 231-1658, and, if to the Executive, at
MidAmerican Energy Holdings Company, 666 Grand Avenue, Des Moines, Iowa 50303,
fax number (515) 242-4031 or to such other address as may be subsequently
designated by the Company or the Executive in writing to the other
party.

      

      (e)           A
waiver by a party of a breach of this Agreement will not constitute a waiver of
any other breach, prior or subsequent, of this Agreement.

      

      

      

      IN
WITNESS WHEREOF, the Company and the Executive have entered into this Agreement
as of February 25, 2008.

       

      

      
        
          	 	MIDAMERICAN
      ENERGY HOLDINGS COMPANY	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ 
      Douglas L. Anderson	 
	 	 	 Douglas
      L. Anderson	 
	 	 	 Senior
      Vice President and General Counsel	 
	 	 	 	 

        

      

       

      

        
          	 	EXECUTIVE:	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ 
      Patrick J. Goodman	 
	 	 	 Patrick
      J. Goodman	 
	 	 	 	 
	 	 	 	 

        

      

       

       

       

      
        
           

        

        
           
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      EXHIBIT
A

      

      Defined
Terms

      

      

      “Affiliate”
means, with respect to a Person1 (a) any
Person directly or indirectly owning, controlling, or holding power to vote 10%
or more of the outstanding voting securities of the Person; (b) any Person 10%
or more of whose outstanding voting securities are directly or indirectly owned,
controlled or held with power to vote by the Person; (c) any Person directly or
indirectly controlling, controlled by or under common control with, the Person;
and (d) any officer or director of the Person, or of any Person directly or
indirectly controlling the Person, controlled by the Person or under common
control with the Person. As used in this definition, “control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person.

      

      “Agreement”
means this Amended and Restated Employment Agreement,dated as of February 25,
2008, amending and restating the employment agreement  originally
entered into as of April 21, 1999, by and between the Company and the Executive,
as it may be amended from time to time in accordance with its
terms.

      

      “Board”
means the Board of Directors of the Company.

      

      “Cause”
means any or all of the following:

      

      
        	
                (a)

              	
                the
      willful and continued failure by the Executive to perform substantially
      the services and duties contemplated by this Agreement (other than any
      such failure resulting from the Executive’s incapacity due to
      disability);

              

      

      

      
        	
                (b)

              	
                the
      willful engaging by the Executive in gross misconduct which is injurious
      to the business or reputation of the Company in any material
      respect;

              

      

      

      
        	
                (c)

              	
                the
      gross negligence of the Executive in performing the services contemplated
      by this Agreement which is injurious to the business or reputation of the
      Company in any material respect; or

              

      

      

      
        	
                (d)

              	
                Executive’s
      conviction of, or pleading guilty or no contest to, a felony involving
      moral turpitude.

              

      

      

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

      

      “Company”
means MidAmerican Energy Holdings Company, an Iowa corporation, and any
successor or assign permitted under the Agreement

      

      “Disability”
means, with respect to the Executive, a condition of any medically determinable
physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months and the
Executive (i) is unable to engage in any substantial gainful activity or (ii)
has been receiving income replacement benefits for a period of not less than 3
months under a group long term disability insurance policy covering employees of
the Company.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      “Good
Reason” means any of the following events: (i) the failure by the Company to pay
to the Executive, for a material period of time and in a material amount,
compensation due and payable by the Company under Section 4 (a) of this
Agreement; (ii) any reduction by the Company of the title, office, duties or
authority of the Executive in any material respect; or (iii) any relocation of
the Executive’s primary place of employment to a location more than 25 miles
from Des Moines, Iowa.

      

      “Permanent
Disability” means a Disability which has continued for at least six consecutive
calendar months.

      

      “Person”
means any natural person, general partnership, limited partnership, corporation,
joint venture, trust, business trust, or other entity.

      

      “Term of
Employment” means the period of time beginning on April 21, 1999, and ending on
the fifth anniversary of such date, unless earlier terminated pursuant to
Section 7(a) or automatically extended pursuant to the following sentence. The
Term of Employment will be automatically extended for one year on each
anniversary of the date of this Agreement beginning on the fifth anniversary
unless the Executive has given the Company, or the Company has given the
Executive, a notice declining automatic extension at least 365 calendar days
before the anniversary.

      

      “Termination
Date” means the date of termination of employment of the Executive pursuant to
Section 7 of this Agreement.

       

       

      12exh10-9.htm

    
      
 

    EXHIBIT
10.9

    

    

    

    

    MIDAMERICAN
ENERGY HOLDINGS COMPANY

    EXECUTIVE
VOLUNTARY DEFERRED COMPENSATION PLAN

    (Restated
effective as of January 1, 2007)

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    MIDAMERICAN
ENERGY HOLDINGS COMPANY

    EXECUTIVE
VOLUNTARY DEFERRED COMPENSATION PLAN

    

    

    MidAmerican
Energy Holdings Company hereby amends and restates the MidAmerican Energy
Holdings Company Executive Voluntary Deferred Compensation Plan (“Plan”) for the
benefit of certain Employees. The primary purpose of the Plan is to allow
employees to defer compensation. 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, 2007 and
2008).  The Plan was originally established effective July 1,
1999.

    

    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, as described in Section
4.03(A).

    

    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, and annual incentive bonuses (other than
Employer long-term incentive awards).  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,  2007 and
2008).

    

    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 (other than persons employed by PacifiCorp,
HomeServices of America, Inc. or any subsidiary of either
corporation).

    

    1.14           
“Employer” means
MidAmerican Energy Holdings Company, an Iowa corporation, and, with respect to
Participants who are employees of an affiliate of MidAmerican Energy Holdings
Company, Employer also means any such affiliate; provided, however, that with
respect to all matters involving administration of the Plan, including the
authority to designate Employees who are Participants in the Plan and to amend
and terminate the Plan, Employer shall only mean MidAmerican Energy Holdings
Company. With respect to the obligation to make payments to any Participant
under the Plan, Employer shall mean MidAmerican Energy Holdings Company and the
Employer who employs the Participant, but not any other Employer.  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.

    

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

    

    1.20           
“Plan” means the
MidAmerican Energy Holdings Company 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.

    

    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 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 President 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 President may also notify a Participant 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 purposes 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 Employer 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 election, the Employer 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
Employer 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 of 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
Employer 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 of the calendar year 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.

    

    (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.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (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 Employer 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 payment under the Plan 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 Employer 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
$50,000 (the amount set forth as the mandatory cash-out limit in the Plan prior
to this Plan’s restatement). The Employer will make any payment under this
Section 4.03(D) as soon as administratively feasible following Separation from
Service.

    

    4.04           
Withholding.
The Employer that employs the Participant at the time of payment or employed the
Participant immediately prior to a Separation from Service (with such Employer
including such payment on a Form W-2 issued by the Employer to the Participant)
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.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    4.05           
Administration of
Payment Date(s). The Employer shall 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 (2 1⁄2) 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 the 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. 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.

    

    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.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    6.02           
Not Employment
Contract. This Plan is not a contract for employment between an 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
Employer 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 Employer 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:

    

    (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 Employer makes no payments under the Plan in the
12 months following the Plan termination date other than payments the Employer
would have made under the Plan irrespective of Plan termination; (iii) the
Employer makes all payments under the Plan within 24 months following the Plan
termination date; and (iv) the Employer within 3 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.

    

    (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.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    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 & CEO and
the President of the Employer 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
receipt, or if given or made by certified mail, as of 3 business days after
mailing.

    

    6.06           
Administration.
The Employer will administer and interpret the Plan, including making a
determination of the Vested Accrued Benefit due any Participant or Beneficiary
under the Plan. 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 Employer 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 Employer 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 any Employee designated by the Employer 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
Employee.

    

    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).

    

    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 employing the Participant will report Deferred Compensation for
Participants on Form W-2 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:

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              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 President of MidAmerican Energy Holdings Company, who
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.  If the claim is made by the
President of MidAmerican Energy Holdings Company, the claim or request shall be
reviewed by the Chairman of the Board of Directors of MidAmerican Energy
Holdings Company.  If the claim is made by the Chairman of the Board
of Directors of MidAmerican Energy Company, the claim or request shall be
reviewed by the Compensation Committee of the Board of Directors of MidAmerican
Energy Company.

    

    (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.

    

    (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:

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              (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           
Governing
Law.   The provisions of the Plan shall be construed and
interpreted according to the laws of the State of Iowa, 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.

    

    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, 2007 AND 2008 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 Deferred Compensation
under the Plan, whether vested on or before or after December 31,
2004.  There are not “grandfathered amounts” under the Plan pursuant
to Applicable Guidance.  All Deferred Compensation amounts under the
Plan   are “409A Amounts”.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    7.02           
2005, 2006, 2007 and
2008 Operational Rules. The following provisions apply to the Plan during
the 2005, 2006, 2007 and 2008 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,  2007 and 2008 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, 2008, 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, 2008, may
make a new payment election as to any previously deferred 409A Amount, except
that a Participant cannot in 2006, 2007 or 2008 change payment elections with
respect to payments that the Participant would otherwise receive in the year of
the new payment election, or to cause payments to be made in the year of the new
payment election that are otherwise scheduled to be made after the year of the
new payment election. 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 reflects Amendment No. 1 to the Plan executed
December 21, 2005.

    

    (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 Employer 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
reflects Amendment No. 1 to the Plan executed December 21, 2005.

    

    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, MidAmerican Energy Holdings Company has caused this instrument
to be signed by its duly authorized officer on this 25th day of February, 2008.

    

    MIDAMERICAN ENERGY HOLDINGS
COMPANY

    

    

    By:  /s/    Gregory E. Abel

            Gregory
E. Abel, President

    

     

     

    12

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