Document:

Exhibit 10.5

                              EMPLOYMENT AGREEMENT

         This Employment  Agreement is entered into as of April 21, 1999, 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. Employment.

                  (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 or such other place as is determined, prior to a Change in Control,
in good faith by the  Chairman of the Board and Chief  Executive  Officer of the
Company  (hereinafter  referred to as the  "Chairman of the Board") to be in the
best interests of the Company.

         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. In performing such duties,  the Executive will report directly to, and be
subject to the  direction  of, the  Chairman of the Board.  Prior to a Change in
Control,  the Executive's  title and duties may in good faith be modified by 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.
<PAGE>

                  (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.

                  (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 Policy 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 $250,000,  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
1999. 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 preceding  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."
<PAGE>

                  (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).

         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,

<PAGE>

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,  if
the Executive's  resignation occurs upon or after a Change in Control,  he shall
not be precluded from accepting employment or providing services to Peter Kiewit
Sons', Inc. or any Affiliate thereof.
<PAGE>

                  (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  predecessor's  Policy of Business
Conduct  attached  hereto as  Exhibit  A (all  references  in such  Exhibit A to
"CalEnergy"  being  deemed to refer to the Company and its  Affiliates)  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.
<PAGE>

         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) or (v) of Section 7(a) prior to a Change in Control,
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) commencing one month after the month
of his Termination  Date, 24 monthly  payments each equal to 1/24 of a sum equal
to twice his annual base  salary then in effect  pursuant to Section 4 and (iii)
commencing  one month  after  the  month of his  Termination  Date,  24  monthly
payments each equal to 1/24 of a 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).
<PAGE>

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, dental benefits
and disability plan 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.

                  (c) If the  employment  of the  Executive is  terminated on or
after a Change in Control  pursuant to  subsections  (ii),  (iv), (v) or (vi) of
Section 7(a), the Executive shall receive the same payments,  additional  option
vesting and benefits continuation  described in Section 8(b) hereof, except that
the monthly  payments  described in clauses (ii) and (iii) of the first sentence
of Section 8(b) shall be  aggregated  and paid to Executive in a single lump sum
without any discount to reflect present value.

                  (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 after a Change in Control,  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 Stock Option  Committee  for cashless  exercise,  by

<PAGE>

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.

                  (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

<PAGE>

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,

                 (iii)     cooperate with the  Company  in good  faith  in order
                           effectively to contest such claim, and
<PAGE>

                  (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 if the Company directs the Executive to pay
such claim and sue for a refund,  the Company  shall  advance the amount of such
payment to the Executive,  on an  interest-free  basis,  and shall indemnify and
hold the  Executive  harmless,  on an  after-tax  basis,  from any Excise Tax or
income tax (including  interest or penalties with respect  thereto) imposed with
respect to such  advance or with  respect to any imputed  income with respect to
such  advance;  and  further  provided  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.

                  (d) If,  after  the  receipt  by the  Executive  of an  amount
advanced  by the  Company  pursuant  to Section  8A(c),  the  Executive  becomes
entitled to receive any refund with respect to such claim,  the Executive  shall
(subject to the Company's  complying  with the  requirements  of Section  8A(c))
promptly  pay to the  Company  the  amount  of such  refund  (together  with any
interest paid or credited thereon after taxes applicable thereto). If, after the
receipt by the  Executive  of an amount  advanced  by the  Company  pursuant  to
Section 8A(c), a determination  is made that the Executive shall not be entitled
to any refund  with  respect to such claim and the  Company  does not notify the
Executive in writing of its intent to contest such denial of refund prior to the
expiration  of 30 days  after such  determination,  then such  advance  shall be
forgiven  and shall not be required to be repaid and the amount of such  advance
shall offset, to the extent thereof,  the amount of Gross-Up Payment required to
be paid."
<PAGE>

                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 9.  Remedies.

                  (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 may 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.
<PAGE>

         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.

          (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 302 South 36th Street, Suite 400, Omaha, Nebraska 68131, 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 April 21, 1999.
<PAGE>

                                   MIDAMERICAN ENERGY HOLDINGS COMPANY

                                   By:
                                            Steven A. McArthur
                                            Senior Vice President

                                   EXECUTIVE:

                                   By:
                                            Patrick J. Goodman

<PAGE>
                                    EXHIBIT A
                                  Defined Terms

         "Affiliate" means, with respect to a Person, (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 Employment Agreement dated 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.

         "Change in Control" means (i) approval by the Company's stockholders of
(A) the dissolution of the Company, (B) a merger or consolidation of the Company
where the Company is not the surviving corporation, except for a transaction the
principal  purpose  of which is to  change  the state in which  the  Company  is
incorporated,  (C) a reverse  merger in which the Company  survives as an entity
but in which  securities  possessing  more than 50 percent of the total combined
voting power of the Company's  securities are transferred to a person or persons

<PAGE>

different from those who hold such securities immediately prior to the merger or
(D) the sale or other  disposition of all or substantially  all of the Company's
assets;  (ii) the direct or indirect  acquisition by any Person or related group
of  Persons  (other  than  an  acquisition  from  or  by  the  Company  or  by a
Company-sponsored  employee  benefit  plan  or  by a  Person  that  directly  or
indirectly  controls,  is controlled  by, or is under common  control with,  the
Company)  of  beneficial  ownership  (within  the  meaning  of Rule 13d-3 of the
Securities Exchange Act of 1934, as amended) of securities  possessing more than
50 percent  of the total  combined  voting  power of the  Company's  outstanding
voting  securities;  or (iii) a change in the  composition  of the Board  over a
period of  thirty-six  (36)  months or less  such that a  majority  of the Board
members cease, by reason of one or more contested elections for Board membership
or by one or more actions by written consent of stockholders, to be comprised of
individuals  who  either  (A) have been  Board  members  continuously  since the
beginning of such period or (B) have been  elected or nominated  for election as
Board  members  during such  period by at least a majority of the Board  members
described  in clause (A) who were still in office at the time such  election  or
nomination was approved by the Board.

         "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,  that the Executive
has become  physically  or mentally  incapacitated  or disabled so that,  in the
reasonable  judgment of majority of the  Chairman of the Board,  he is unable to
perform his duties under this  Agreement and such other services as he performed
on behalf of the Company before incurring such incapacity or disability.

         "Good  Reason"  means  any of the  following  events,  but only if such
event(s)  occur on,  after or in  connection  with a Change in Control:  (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 Omaha, Nebraska.

         "Permanent  Disability"  means a Disability  which has continued for at
least six consecutive calendar months.
<PAGE>

         "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.Exhibit 10.61

                           MIDAMERICAN ENERGY COMPANY

                               RESTATED EXECUTIVE

                           DEFERRED COMPENSATION PLAN

                                    ARTICLE I

                            ESTABLISHMENT AND PURPOSE

1.1  Background  of Plan.  MidAmerican  Energy  Company  presently  maintains  a
deferred  compensation  plan for selected  employees and also maintains  certain
deferred  compensation plans of predecessor  employers.  This Plan shall replace
those  arrangements,  effective January 1, 1999, and is known as the MidAmerican
Energy Company Restated Executive Deferred Compensation Plan (the "Plan").

The Plan shall be maintained as an unfunded plan of deferred  compensation for a
select group of management or highly compensated employees. The Plan, therefore,
is intended to be exempt from the participation, vesting, funding, and fiduciary
requirements of Title I of the Employee Retirement Income Security Act of 1974.

1.2 Purpose of Plan.  The purpose of this Plan is to provide  certain  employees
with an additional way to defer portions of their compensation. The plan is also
intended to provide  Participants  with an effective means of deferring all or a
portion of short-term incentive bonus payments they are entitled to receive.

1.3  Applicability  of Plan.  The  provisions  of this  Plan are  applicable  to
Employees who are employed by an Employer on or after January 1, 1999, and, with
respect to amounts  deferred  under any  Predecessor  Plan,  are  applicable  to
participants who still have account balances under any such Plan.

1.4 Merger of Predecessor Plans. For ease of administration,  and in recognition
of the need to change earnings credit and method of valuation in the Predecessor
Plans in light of the  anticipated  acquisition of MidAmerican  Energy  Holdings
Company  by  CalEnergy  Company,  Inc.  (through  a merger  of a  subsidiary  of
CalEnergy with and into MidAmerican  Energy Holdings Company  ("Merger")),  each
Predecessor Plan is hereby merged into the Plan, effective January 1, 1999.

                                    ARTICLE 2

                                   DEFINITIONS

Whenever  used in this Plan,  the  following  terms shall have the  meanings set
forth below unless  otherwise  expressly  provided.  When the defined meaning is
intended,  the term is  capitalized.  The definition of any term in the singular
shall also include the plural, whichever is appropriate in the context.

<PAGE>

2.1  Account.   Account  means  the  bookkeeping  account  maintained  for  each
Participant that represents the  Participant's  total interest under the Plan as
of any  Valuation  Date.  An Account  shall  consist of the sum of  deferrals of
Salary and Bonus  credited  pursuant  to section  4.1,  and any gains and losses
credited on these  amounts.  It shall also consist of any  accounts  transferred
from   Predecessor   Plans.  A  Participant   shall  have  a  fully  vested  and
nonforfeitable interest at all times in his or her Account.

2.2 Affiliate.  Affiliate  means any  corporation,  association,  joint venture,
proprietorship  or partnership  while it is connected  with the Company  through
stock ownership,  common control,  membership in an affiliated service group, or
otherwise within the meaning of Code section 414(b), (c), (m) and (o).

2.3  Beneficiary.  Beneficiary  means the  person or persons  designated  by the
Participant to receive any benefits payable from the Participant's Account after
his or her death.  Each  Participant  shall designate his or her Beneficiary (or
change this  designation) at a time and in a manner  specified by the Committee.
If no person is designated as a Beneficiary,  if a designation is revoked, or if
no designated Beneficiary survives the Participant, the Beneficiary shall be the
Participant's estate.

2.4  Bonus.  Bonus  means  the  cash  portion  of the  Participant's  short-term
incentive bonus award payable to a Participant on account of services  performed
by the Participant.

2.5 Code. Code means the Internal Revenue Code of 1986, as amended, or as it may
be amended from time to time.  A reference  to a particular  section of the Code
shall also include the regulations promulgated under such section.

2.6 Committee.  Committee means the  Compensation  Committee  established by the
Board of Directors of the MidAmerican Energy Holdings Company.

2.7 Company. Company means MidAmerican Energy Company.

2.8 Employee. Employee means any person who is employed by an Employer.

2.9 Employer. Employer means the Company and any Affiliate that elects to become
a party to the Plan with the approval of the Company.

2.10  Investment  Fund.  Investment  Fund means an investment  benchmark or fund
designated  by the  Committee  as an  investment  medium  for  the  hypothetical
investment of a Participant's  Account.  As of January 1, 1999, there shall be a
choice between the S&P 500 Stock Index Benchmark,  the Lehman Brothers Aggregate
Bond Index  Benchmark  and the Stable Fund Fixed Rate  Benchmark.  The Committee
shall have the  discretion to establish and terminate  investment  benchmarks or
funds as it may deem appropriate.
<PAGE>

         (a)      S&P 500 Stock  Index  Benchmark  means the S&P 500 Stock Index
                  Value as  published by Standard and Poor as of the end of each
                  business day, including dividends reinvested.

         (b)      Lehman  Brothers  Aggregate  Bond  Index  Benchmark  means the
                  Aggregate Bond Index Value as published by Lehman  Brothers as
                  of the end of each business day.

         (c)      Stable Fund Fixed Rate Benchmark  shall be an account in which
                  the credits in the account do not fluctuate in value,  and the
                  values in the account  are  credited  with an annual  interest
                  rate,  compounded annually.  The annual interest rate shall be
                  set for each calendar year based on the one-year U.S. Treasury
                  Bill rate on  October  15 in the prior  year (or the  previous
                  business day if October 15 is not a business day), except that
                  for 1999, the rate shall be 4.3%.

2.11  Participant.  Participant  means an Employee who has met and  continues to
meet the eligibility  requirements  described in section 3.1 and who has elected
to defer  amounts  under the Plan.  It also  means any  person  with an  account
balance under this Plan.

2.12  Plan.  Plan means  this  MidAmerican  Energy  Company  Restated  Executive
Deferred Compensation Plan, as it may be amended from time to time.

2.13 Plan Year. Plan Year means the calendar year.

2.14  Predecessor  Plan. The following plans shall  individually be considered a
Predecessor Plan and collectively shall be considered the Predecessor Plans:

                   (a) MidAmerican  Energy Company Deferred  Compensation Plan -
                   Executives

                   (b)  Deferred  Compensation  Plan for  Executives  of Midwest
                   Resources Inc. and Subsidiaries

                   (c)  Midwest   Resources  Inc.  -  Iowa  Resources  Inc.  and
                   Subsidiaries - Executive Incentive  Compensation Plan Revised
                   and Amended (1/29/92 latest revision). (This Plan consists of
                   both the Iowa  Resources  Inc.  Executive  Incentive  Plan in
                   existence  prior to the  merger of Iowa  Resources  Inc.  and
                   Midwest  Energy  Company  and  the  Midwest   Resources  Inc.
                   Executive Incentive Plan after such merger.)
<PAGE>

                   (d)  Midwest  Power  Systems  1993  Key  Executive  Incentive
                   Compensation Plan

                   (e)  Midwest   Resources  Inc.  -  Iowa  Resources  Inc.  and
                   Subsidiaries - Executive  Deferred  Compensation Plan Revised
                   and Amended

                   (f)  Non-Cash  Bonus  Award  Plan for  Executives  of Midwest
                   Resources Inc.

2.15 Retirement Date. The date the Participant  chooses as his or her retirement
date under the terms of the  Company's  cash balance  defined  benefit  plan, or
successor  plan,  which can be either  the  normal  retirement  date or an early
retirement date under such plan.

2.16  Salary.  Salary  means  the  Participant's  regular  basic  wage  from the
Employer,  exclusive of any Bonus,  and determined  before reduction for amounts
deferred  pursuant to the Plan,  and before  reduction for any salary  reduction
contributions  made on the  Participant's  behalf under a plan maintained by the
Company or an Affiliate under Code section 125 or 401(k).

2.17  Terminated  for Cause.  Terminated  for Cause  means the  Participant  was
terminated by an Employer because the Participant:

                   (a) committed an act of fraud,  embezzlement,  theft or other
                   criminal act(s) constituting a felony;

                   (b) was grossly  negligent in the  performance  of any or all
                   material  terms of his or her  employment  for reasons  other
                   than the  Employee's  death,  disability,  retirement and the
                   Employee  failed to cure any defect in performance  within 10
                   days of receiving written notice regarding such defect;

                   (c) committed an act of gross  misconduct in the  performance
                   of his or her duties or is guilty of any  conduct  which,  in
                   the  reasonable   opinion  of  the   Committee,   brings  the
                   Participant,  the  Company  or  any  Affiliate  into  serious
                   disrepute; or

                   (d) breached the terms of an  employment  agreement in effect
                   between the Participant and Employer.
<PAGE>

2.18 Valuation Date. Valuation Date means the last business day of each calendar
year and any other date that the Committee  selects in its sole  discretion  for
the revaluation and adjustment of Accounts.

                                    ARTICLE 3

                          ELIGIBILITY AND PARTICIPATION

3.1 Eligibility. An Employee shall be eligible to participate in this Plan if he
or she is a  member  of a select  group  of  management  or  highly  compensated
employees who is approved for participation by the Committee.

3.2      Participation.

                   (a)  Commencement  of  Participation.  An  Employee  who  has
                   satisfied  the  eligibility  requirements  of section 3.1 may
                   enroll in the Plan by making the elections  described in this
                   Plan. This enrollment  shall be effective as of the first day
                   of  any  Plan  Year  after  the  Employee   satisfies   these
                   eligibility  requirements,  provided  that he or she is still
                   eligible to participate under section 3.1.

                   (b) Duration of  Participation.  A Participant shall continue
                   to be an active  Participant  until he or she  ceases to meet
                   the eligibility  requirements under section 3.1.  Thereafter,
                   he or she shall be an inactive  Participant  and shall retain
                   all the rights described under this Plan, except the right to
                   elect any further  deferrals  of Bonus or Salary  until he or
                   she again becomes an active  Participant.  A Participant  who
                   has  head his or her  account  balance  transferred  from any
                   Predecessor  Plan  shall  not be  eligible  to make  elective
                   deferrals  unless  he or  she  is  otherwise  eligible  under
                   section 3.1.

                                    ARTICLE 4

                               DEFERRAL ELECTIONS

4.1 Amount of Deferral.  Prior to the beginning of each Plan Year, a Participant
may elect to defer up to --

                   (a) 50 percent  (in  increments  of 1 percent)  of the Salary
                   that would otherwise be payable to the Participant during the
                   Plan Year; and

                   (b) 100  percent  (in  increments  of 1 percent) of the Bonus
                   that would otherwise be payable to the Participant during the
                   Plan Year.

Each  deferral of Salary  and/or  Bonus  shall be credited to the  Participant's
Account as of the business day on which the cash would have otherwise been paid.
If the closing of the Merger  occurs in 1999,  the deferral  election  filed for
1999 shall  terminate  with respect to Salary payable after such date unless the
Company  affirmatively elects to continue this Plan for new deferrals after such
date.
<PAGE>

4.2 Change or  Revocation  of  Deferral.  After the  beginning of a Plan Year, a
Participant  may not increase,  decrease or revoke the amount of Salary or Bonus
deferred for that Plan Year under section 4.1.

                                    ARTICLE 5

                             PARTICIPANTS' ACCOUNTS

5.1 Investment of Accounts. With respect to each deferral election a Participant
makes  under   Section   4.1,  the   Participant   shall  elect  in  writing  to
hypothetically  deem to have the deferrals made on his or her behalf invested in
any one or more of the  Investment  Funds in 1 percent  increments.  The account
value for each  amount  deferred  shall be  determined  based on the  Investment
Fund's value on the date the amount  deferred  would have otherwise been payable
to the Participant.

5.2 Investment  Changes for Predecessor  Plans. With respect to account balances
in each Predecessor  Plan, if the valuation of any account is dependent upon the
book value or fair market value of MidAmerican  Energy  Holdings  Company common
stock,  or if earnings  on an account are  determined  by the  dividend  rate on
MidAmerican  Energy  Holdings  Company  common stock (other than a rate that has
been fixed as of a certain  date and is not  subject to  further  change),  each
Participant who has such an account balance shall file an election form with the
Committee prior to the closing date of the Merger, designating,  pursuant to the
procedures in section 5.1, the Investment  Funds in which such account is deemed
to be invested. To the extent the value of an account, as of the closing date of
the Merger, is based on the value of MidAmerican  Energy Holdings Company common
stock,  the value of each stock unit in any such  account  shall be deemed to be
$27.15,  plus any dividend paid to shareholders  of MidAmerican  Energy Holdings
Company  common  stock  through the closing  date of the Merger.  In any account
based on a fixed value with  crediting of interest only, but which varies in the
interest  rate  credited  from time to time,  interest on the  account  shall be
credited  through  date of  closing  of the  Merger.  Amounts  converted  to the
Investment  Funds as of the closing date of the Merger shall be converted  based
on the  Investment  Fund  benchmark  values  on the date of  closing.  As to any
Participant's account transferred from a Predecessor Plan with a fixed value and
fixed  interest  rate credited to the account  (i.e.  debentures  under the Iowa
Resources Inc. Executive Deferred  Compensation Plan), the Participant's account
balance  shall  continue to reflect  such fixed  value and shall  continue to be
credited with the fixed interest rate, unless the Participant elects to have his
or her account value related to such fixed  investment  converted to one or more
of the  Investment  Funds  pursuant to the  procedure set forth above within the
time frame specified above.
<PAGE>

5.3  Contingency  of Merger.  In the event the Merger does not take place,  then
with respect to amounts deferred for 1999, such amounts shall be reconverted, as
of  January  1,  1999,  to the forms of deemed  investments  as  existed  in the
MidAmerican  Energy Company  Executive  Deferred  Compensation Plan prior to the
establishment of this Plan, with each affected Participant filing an appropriate
election  form as to the  investment  for the  amounts  deferred  for  1999.  In
addition,  with respect to investment  changes for Predecessor Plans as provided
in Section 5.2, in the event the Merger does not take place,  the  provisions of
Section 5.2 shall become null and void and the account  balances  transferred to
this Plan from the Predecessor  Plans shall continue in the same form and deemed
investments as in the Predecessor Plans.  However,  all other provisions of this
Plan, including, but not limited to payment provisions in Article 6, shall apply
to such accounts.

5.4 Changes in Investments. A Participant may change the hypothetical investment
allocation  in his or her account no more than once during any calendar  quarter
by  filing  an   appropriate   form  with  the  Committee  (or  its   designated
administrative  representative)  specifying  the  change to be made.  The change
shall be processed  effectively  as of the fifth (5th)  business  day  following
receipt  of  the   change   request  by  the   Committee   (or  its   designated
representative).

5.5      Valuation of Accounts.

                   (a) Allocation of Gains and Losses.  A Participant's  Account
                   shall be  adjusted as of each  Valuation  Date to reflect any
                   gains or losses  that would have been  credited or debited to
                   the Account if it had  actually  been  invested in the manner
                   described in section 5.1. Accounts where an investment change
                   request  has  been  received  between  these  dates  will  be
                   credited or charged for any investment  gains or losses since
                   the last  Valuation  Date through the  effective  date of the
                   investment change.

                   (b)  Charges  Against   Account.   Any  payments  made  to  a
                   Participant or  Beneficiary  under Article 6 shall be charged
                   against the Participant's Account.

                   (c) Annual Report to  Participant.  An annual report shall be
                   provided to each Participant showing the value of the account
                   balances as of the beginning and end of the year.

5.6  Financing.  The  benefits  under this Plan shall be paid out of the general
assets of the Employer,  except to the extent they are paid from the assets of a
grantor trust established by an Employer to pay these benefits.
<PAGE>

5.7 Unsecured Interest. No Participant shall have any interest whatsoever in any
specific asset of the Employer.  To the extent that any person  acquires a right
to receive  payments  under this Plan,  this right shall be no greater  than the
right of any unsecured general creditor of the Employer.

5.8  Nontransferability.  In no event shall an Employer make any payments  under
this Plan to any assignee or creditor of a Participant or Beneficiary.  Prior to
the time of payment  hereunder,  no Participant  or  Beneficiary  shall have any
right by way of anticipation or otherwise to assign or otherwise  dispose of any
interest  under  this Plan,  nor shall  rights be  assigned  or  transferred  by
operation of law.

                                    ARTICLE 6

                               PAYMENT OF ACCOUNTS

6.1      Payments to Participants.

                   (a) Retirees  Receiving  Payments  Under  Predecessor  Plans.
                   Those  Participants   receiving  annual  payments  under  any
                   Predecessor  Plan or Plans shall  continue to be paid for the
                   remaining term as originally approved by the Committee.

                   (b)  Participants  Retiring  Before  January  1,  2001.  With
                   respect to any  Participant  whose  Retirement  Date is after
                   December 31, 1998,  but before January 1, 2001, the following
                   shall be applicable with respect to payment of benefits:

                   (1) At the election of the Committee,  upon consultation with
                   the  Participant,  payment  shall be made in a lump sum or in
                   annual  installments.  The Committee's decision shall be made
                   as  soon  as  practical  prior  to or  immediately  following
                   Retirement Date. The Committee's  decision shall also specify
                   the year of payment in the case of a lump sum  payment or the
                   year of the first payment in the case of annual installments.

                   (2)  If  annual   installments  are  selected,   each  annual
                   installment  shall be not less  than an  amount  equal to the
                   value of the  account  at the  beginning  of the Plan Year in
                   which  distribution  is  to  be  made  divided  by  the  life
                   expectancy of the  Participant  at the beginning of such Plan
                   Year (or the joint life  expectancy  of the  Participant  and
                   spouse  if  the   Participant   is   married).   Each  annual
                   installment  payment  shall be made within  fifteen (15) days
                   following the first day of each Plan Year.
<PAGE>

                   (3) If an  election  is made to  receive a lump sum  payment,
                   payment shall be made within  fifteen (15) days following the
                   first  day of the Plan Year in which  payment  is to be made,
                   and the amount of the lump sum payment  shall be equal to the
                   value of the account as of December 31 of the preceding  Plan
                   Year.

                   (4) In the  event  of the  death of a  Participant  occurring
                   either before the  commencement of payment or before the full
                   balance  of the  Participant's  account  has been  paid,  the
                   unpaid  balance of Deferred  Compensation  shall be paid in a
                   lump  sum  to the  Participant's  designated  beneficiary  or
                   estate.  Payment  shall  be  made  within  thirty  (30)  days
                   following the date of death.

                   (5) All payments  shall be made in cash and no payments shall
                   be made prior to retirement.

                   (c)  Participants  Retiring  After  December 31,  2000.  With
                   respect to any  Participant  whose  Retirement  Date is after
                   December 31, 2000,  the following  shall be  applicable  with
                   respect to payment of benefits:

                   (1) The  Participant  may file an election with the Committee
                   as  to  the  method  and  timing  of  benefits  at  any  time
                   (including  during  employment),  but no  later  than 30 days
                   following his or her Retirement  Date,  specifying the method
                   (lump sum or substantially  equal annual  installments over a
                   period not exceeding the life  expectancy of the  Participant
                   or the joint life  expectancy of the  Participant  and his or
                   her  designated  beneficiary)  and  the  timing  of  payments
                   (specifying  the Plan  Year for  receipt  of lump sum or Plan
                   Year of first installment payment); provided however the lump
                   sum payment or the first  installment  payment  cannot be any
                   later  than the Plan  Year  following  the year in which  the
                   Participant  turns age 70 1/2. An election  may be changed at
                   any time  prior to  Retirement  Date  (subject  to the  rules
                   below) by filing a new election with the Committee.

                   (2) The first annual  payment or the lump sum payment  cannot
                   be  any  earlier  than  the  January   following   the  third
                   anniversary  of the  date of the  Participant's  most  recent
                   election filed with the Committee.
<PAGE>

                   (3) If termination  of employment  does not occur until after
                   the date selected by the  Participant  for a lump sum payment
                   or the date of the  first  annual  payment,  payment  will be
                   postponed   until  the  January   following   termination  of
                   employment.

                   (4) If a  Participant  has not filed an election as of thirty
                   (30) days following  Retirement Date, payment will be made in
                   ten (10)  annual  installments  beginning  in the  Plan  Year
                   following  the  year in which  the  Participant  reaches  age
                   sixty-five  (65), or in a lump sum in the Plan year following
                   age 65 if the account  value is less than  $100,000 as of his
                   or her Retirement Date.

                   (5)  If  annual   installments  are  selected,   each  annual
                   installment  shall be not less  than an  amount  equal to the
                   value of the  account  at the  beginning  of the Plan Year in
                   which  distribution  is  to  be  made  divided  by  the  life
                   expectancy of the  Participant  at the beginning of such Plan
                   Year (or the joint life  expectancy  of the  Participant  and
                   spouse  if  the   Participant   is   married).   Each  annual
                   installment  payment  shall be made within  fifteen (15) days
                   following the first day of each Plan Year.

                   (6) If an  election  is made to  receive a lump sum  payment,
                   payment shall be made within  fifteen (15) days following the
                   first  day of the Plan Year in which  payment  is to be made,
                   and the amount of the lump sum payment  shall be equal to the
                   value of the account as of December 31 of the preceding  Plan
                   Year.

                   (7) In the  event  of the  death of a  Participant  occurring
                   either before the  commencement of payment or before the full
                   balance  of the  Participant's  account  has been  paid,  the
                   unpaid  balance of Deferred  Compensation  shall be paid in a
                   lump  sum  to the  Participant's  designated  beneficiary  or
                   estate.  Payment  shall  be  made  within  thirty  (30)  days
                   following the date of death.

                   (8) All payments shall be made in cash.

6.2  Payments  After  Termination  of  Employment  but Prior to  Retirement.  No
payments  shall  be made  after  termination  of  employment  but  prior  to the
Participant's Retirement Date except as follows:

                   (a)  Pursuant  to  a  valid  election  form  filed  with  the
                   Committee under subsection 6.1(c)(1) above;
<PAGE>

                   (b)  Pursuant  to an  unforeseen  hardship as approved by the
                   Committee under the guidelines in section 6.3 below; or

                   (c) In the case of  Termination  for Cause  payment  shall be
                   made  in a  lump  sum in  January  following  termination  of
                   employment.

6.3 In-Service Withdrawal.

                   (a) Generally,  a Participant  may not receive a distribution
                   from  the  Participant's  Account  prior  to  the  applicable
                   distribution date under section 6.1.  However,  the Committee
                   may, in its sole and absolute discretion, allow a Participant
                   to withdraw all or part of his or her Account in the event of
                   an unforeseen  financial  hardship.  The amount withdrawn may
                   not  exceed  the  amount  needed  to  satisfy  the  financial
                   hardship, less all amounts that are reasonably available from
                   other sources.

                   (b) For purposes of this section,  a "financial  hardship" is
                   an  unforeseeable  emergency  resulting  from  a  sudden  and
                   unexpected illness of the Participant or a dependent, loss of
                   the Participant's  property due to casualty, or other similar
                   circumstances   arising  from  events  that  are  beyond  the
                   Participant's control.

6.4 Lump Sum Payment After Annual Installments Begin. Once annual payments begin
to a  Participant,  payments  may not be  accelerated  except  in the case of an
unforeseen  financial  hardship  as approved  by the  Committee  pursuant to the
guidelines in section 6.3 above.

                                    ARTICLE 7

                                 ADMINISTRATION

7.1 Administration.  The Plan shall be administered by the Committee. A majority
of the members of the Committee at the time in office shall  constitute a quorum
for the transaction of business.  All resolutions and other actions taken by the
Committee  at any meeting  shall be by a majority  vote of those  present at the
meeting.  Upon the unanimous  concurrence  in writing of all Committee  members,
action of the Committee may be taken other than at a meeting.

The Committee  shall have all powers  necessary or  appropriate to carry out the
provisions  of the  Plan.  It may,  from time to time,  establish  rules for the
administration  of the Plan and the  transaction  of the  Plan's  business.  The
Committee may  designate  one or more  employees of the Company to carry out the
day to day administration of the Plan.
<PAGE>

The  Committee  shall  have the  exclusive  right to make  any  finding  of fact
necessary  or  appropriate  for any purpose  under the Plan  including,  but not
limited to, the determination of eligibility for and amount of any benefit.

The  Committee  shall  have the  exclusive  right to  interpret  the  terms  and
provisions of the Plan and to determine any and all questions  arising under the
Plan or in connection with its  administration,  including,  without limitation,
the  right to  remedy  or  resolve  possible  ambiguities,  inconsistencies,  or
omissions by general rule or particular  decision,  all in its sole and absolute
discretion.

All  findings of fact,  determinations,  interpretations  and  decisions  of the
Committee shall be conclusive and binding upon all persons having or claiming to
have any  interest  or right  under  the Plan  and  shall be given  the  maximum
possible deference allowed by law.

7.2 Appeals from Denial of Claims.  If any claim for benefits  under the Plan is
wholly or partially denied, the claimant shall be given notice in writing of the
denial.  This notice  shall be in writing,  within a  reasonable  period of time
after  receipt of the claim by the  Committee.  This period  shall not exceed 90
days after receipt of the claim, except that if special circumstances require an
extension of time,  written  notice of the  extension  shall be furnished to the
claimant and an additional 90 days will be considered reasonable.

This notice  shall be written in a manner  calculated  to be  understood  by the
claimant and shall set forth the following information:

                   (a) the specific reasons for the denial;

                   (b) specific  reference to the Plan  provisions  on which the
                   denial is based;

                   (c) a description of any  additional  material or information
                   necessary  for the  claimant  to  perfect  the  claim  and an
                   explanation of why this material or information is necessary;

                   (d) an  explanation  that  a  full  and  fair  review  by the
                   Committee of the decision  denying the claim may be requested
                   by the  claimant or an  authorized  representative  by filing
                   with the Committee,  within 60 days after the notice has been
                   received, a written request for the review; and

                   (e) if this  request  is so filed,  an  explanation  that the
                   claimant or an authorized representative may review pertinent
                   documents  and submit  issues and comments in writing  within
                   the same 60-day period specified in subsection (d).
<PAGE>

The decision of the Committee upon review shall be made promptly,  and not later
than 60 days after the  Committee's  receipt of the request  for review,  unless
special circumstances require an extension of time for processing.  In this case
the claimant  shall be so notified,  and a decision shall be rendered as soon as
possible,  but not later than 120 days after  receipt of the request for review.
If the claim is denied, wholly or in part, the claimant shall be given a copy of
the decision promptly.  The decision shall be in writing, shall include specific
reasons for the denial,  shall include specific references to the pertinent Plan
provisions  on which  the  denial is based,  and  shall be  written  in a manner
calculated to be understood by the claimant.

7.3 Tax  Withholding.  The  Employer  or the  trustee  under any  grantor  trust
established  to pay benefits may withhold  from any payment  under this Plan any
federal, state or local taxes required by law to be withheld with respect to the
payment and any sum the Employer or trustee may reasonably estimate as necessary
to cover any taxes for which  they may be liable and that may be  assessed  with
regard to the  payment.  With  respect to any  FICA/Medicare  taxes on  deferred
amounts  which may be due prior to payment of benefits  hereunder,  the Employer
may  withhold  the  Participant's  share of such taxes from other income due the
Participant by the Employer.

7.4 Expenses.  All expenses incurred in the  administration of the Plan shall be
paid by the Employers.

                                    ARTICLE 8
                       ADOPTION OF THE PLAN BY AFFILIATE;
                      AMENDMENT AND TERMINATION OF THE PLAN

8.1  Adoption  of the Plan by  Affiliate.  An  Affiliate  may  adopt the Plan by
appropriate  action  of  its  board  of  directors  or  authorized  officers  or
representatives, subject to the approval of the Company's board of directors.

8.2 Amendment and  Termination.  The Company hereby reserves the right to amend,
modify or terminate the Plan at any time,  and for any reason,  by action of its
board of directors.  However, no amendment or termination shall adversely affect
benefits accrued prior to the date of the amendment or termination.

                                    ARTICLE 9
                            MISCELLANEOUS PROVISIONS
<PAGE>

9.1 No Contract of Employment.  Nothing contained in the Plan shall be construed
to give any  Participant  the right to be retained in the service of an Employer
or to interfere  with the right of an Employer to discharge a Participant at any
time.

9.2  Severability.  If any  provision  of this  Plan  shall be held  illegal  or
invalid,  the illegality or invalidity shall not affect its remaining parts. The
Plan shall be  construed  and  enforced  as if it did not contain the illegal or
invalid provision.

9.3  Successors.  All obligations of the Company under the Plan shall be binding
upon and inure to the  benefit of any  successor  to the  Company,  whether  the
existence  of such  successor  is the direct or  indirect  result of a merger or
reorganization  involving the Company or the purchase or other  acquisition,  of
all or substantially all of the business or assets of the Company.

9.4 Applicable  Law. Except to the extent  preempted by applicable  federal law,
this Plan shall be governed by and construed in accordance  with the laws of the
State of Iowa.

IN WITNESS WHEREOF,  MidAmerican Energy Company has caused this instrument to be
executed  by  its  duly  authorized  officer  effective  as of  the  ___  day of
_________________, 1999.

                                                     MIDAMERICAN ENERGY COMPANY

                                                     By________________________

                                                     Its ______________________

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