Document:

Settlement C

                                  STATE OF IOWA

                              IOWA UTILITIES BOARD

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IN RE:                         )        DOCKET NO. APP-96-1 AND
                               )                   RPU-96-8
MIDAMERICAN ENERGY COMPANY     )                   (CONSOLIDATED)
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                              SETTLEMENT AGREEMENT

                            ARTICLE I - INTRODUCTION

     On June 4, 1996,  MidAmerican Energy Company  (MidAmerican)  filed with the
Iowa  Utilities  Board  (Board) an  "Application  for  Adoption of  Market-Based
Pricing  Proposal."  In its  filing,  MidAmerican  requested  Board  approval of
certain waivers, procedures,  elimination of the energy adjustment clause (EAC),
and a series of six price  reductions  primarily  for the  residential  customer
class  totaling  approximately  $20 million  annually.  The Board  docketed  the
filing, identified as Docket No. APP-96-1, and set a procedural schedule.

     On August 1, 1996,  the Consumer  Advocate  Division of the  Department  of
Justice (OCA) filed a petition  pursuant to Iowa Code  (Section)476.3  (1995) to
reduce MidAmerican's electric rates by approximately $100 million.

     During its November 1996 billing  cycle,  MidAmerican  reduced its rates by
$8,698,806   annually  in  the  following   rate  classes  and  amounts:   South
Industrial/Large General Service - $214,246; East Residential - $2,352,988;  and
South Residential -

<PAGE>

$6,131,572.  In addition,  MidAmerican  provided its North Residential  customer
class  with a one time $10 bill  credit  ($1,359,300)  during  the same  billing
month.

     By  order  entered  September  6,  1996,  the  Board  consolidated  the two
proceedings.  Interventions were granted to Deere & Company, Aluminum Company of
America, Izaak Walton League of America, Iowa Energy Consumers,  Iowa Industrial
Intervenors,  Interstate Power Company,  IES Utilities,  Inc.,  Utilicorp United
Inc.,  Iowa   Association  of  Municipal   Utilities,   Iowa  Community   Action
Association,  Iowa Citizen  Action  Network,  Cargill,  Inc.,  and United States
Gypsum  Company.  Numerous  parties  have  filed  statements  or  testimony  and
sponsored evidence in the Consolidated Dockets.

                              ARTICLE II - PURPOSE

     This Settlement Agreement has been prepared and executed by the signatories
hereto for the purpose of resolving all issues among the signatories  except for
the issue of  whether  MidAmerican  should  be  authorized  to  create  and show
separately on utility  bills a Public  Programs  Charge for (1) electric  energy
efficiency  expenditures and deferrals pursuant to Section 476.6(19) of the Iowa
Code; (2) alternate energy  production  purchases  required by Section 476.43 of
the Code; (3) alternate energy revolving loan fund payments  required by Section
476.46 of the Code; and (4) new taxes or mandated expenditures.

     This Settlement  Agreement is applicable  only to Docket Nos.  APP-96-1 and
RPU-96-8.  This Settlement Agreement  supersedes the Stipulation  Regarding 1995
Income Tax

                                       -2-

<PAGE>

Expense filed by MidAmerican  and the OCA with the Board in these Dockets.  This
Settlement  Agreement  does not supersede the  agreement  between  MidAmerican's
predecessor,  Midwest Power  Systems,  and OCA dated October 20, 1994, a copy of
which is attached hereto as Appendix I.

     In  consideration  of the mutual  agreements  hereinafter  set  forth,  the
signatories stipulate as follows:

RATES

1.   The initial  reduction  (approximately  $8.5  million  annually for certain
     residential  customers  and  approximately  $200,000  annually  for certain
     industrial  customers),  already  implemented  in the November 1996 billing
     cycle,  will be  applied  retroactively  to August 1, 1996.  Interest  at a
     15.37% annual rate will apply to the refund amounts from August 1996 to the
     month the refund occurs.  No interest will be paid on the approximate $1.35
     million credit previously  provided to North system residential  customers.
     There will be no reallocation  of the initial  reduction among customers or
     classes.

2.   An additional base rate reduction of $25 million shall be made as follows:

           CLASS                            AMOUNT       EFFECTIVE DATE
           -----                            ------       --------------

     Residential                         $10 million    Consumption on and after
                                                        approval of settlement

     Residential                         $ 5 million    Consumption on and after
                                                        June 1, 1998
     Commercial/Small General Service    $ 4 million                   *
     Industrial/Large General Service    $ 6 million                   *

     -------------
     *These amounts shall be utilized for customer savings/price  reductions
     in  pilot  projects  such  as  unbundled  pricing/retail  access  or in
     negotiated  individual  contract prices for customers within the class.
     To the  extent  that by June 1,  1998 the Board  has  approved  a pilot
     project or projects,  if any, for the class that, in  combination  with
     individually  negotiated  rate  reductions,  will not  utilize the full
     amount of the rate

                                       -3-

<PAGE>

         reduction amount,  the remaining rate reduction amount shall be applied
         as an annual base rate  reduction for the class to be effective June 1,
         1998.

         The signatories  agree that there will be no pilot project required for
         the residential class before December 31, 2000.

         MidAmerican  may, at its option,  propose  pilot  projects or negotiate
         individual  contracts  with  customers  that  collectively  exceed  the
         amounts in the table above.  MidAmerican  shall not attempt at any time
         to recover  from other  retail  customers  any  reduction  in  electric
         revenues caused by any pilot project  approved between the date of this
         Settlement Agreement and June 1, 1998. With respect to any reduction in
         electric  revenues  resulting from any pilot project  approved  between
         June 1,  1998 and  December  31,  2000,  MidAmerican  may only  seek to
         recover such revenue  reductions from other  customers  within the same
         class  eligible  for the pilot  project.  With  respect to any  revenue
         reduction resulting from additional  negotiated  individual  contracts,
         MidAmerican  may  only  seek  to  recover  the  revenue   reduction  in
         accordance  with  paragraph  1 of the section  titled  "Waiver" of this
         Article II.

         MidAmerican  may allocate the rate  reductions  within a given class in
         such a manner as will reduce price  disparity  for  comparable  service
         within the given  class.  The tariffs  for the $10 million  residential
         rate reduction to be effective  upon Board approval of this  Settlement
         Agreement  are attached  hereto as Appendix II. The tariffs in Appendix
         II do not  include any of the costs that would be  recovered  through a
         Public Programs Charge and do not include the EAC factors  discussed in
         paragraph 3 below.  The  tariffs do include the initial  charge for the
         Cooper Nuclear Station cost tracking mechanism discussed in paragraph 4
         below. Proposed tariffs for the June 1, 1998 residential rate reduction
         and any  June 1,  1998  commercial  or  industrial  rate  reduction  as
         discussed above shall be provided to the parties by February 1, 1998.

3.       MidAmerican  will  eliminate the EAC on or prior to July 1, 1997.  Base
         rates for energy shall be increased at the time of the EAC  elimination
         by a roll-in  factor.  The factor  applicable  to former  Iowa-Illinois
         customers  shall be  0.8650  cents  per  kilowatt-hour  and the  factor
         applicable to former  Midwest Power Systems  customers  shall be 0.9151
         cents per kilowatt hour.

         On  February  1,  1999,  MidAmerican  will  file  with  the  Board  the
         calculation  of calendar year 1998 costs per kWh (1998 roll-in  factor)
         that would have been  eligible for EAC recovery if the EAC had remained
         in effect. If the calculated 1998 roll-in factor, calculated consistent
         with the method the 0.8650 cents per kilowatt hour was

                                       -4-

<PAGE>

         calculated in MidAmerican's filing in Docket No. APP-96-1, is less than
         0.7353  cents per kWh  (i.e.,  less than 85% of 0.8650  cents per kWh),
         base rates shall be reduced by the difference  between the 1998 roll-in
         factor and 0.7353 cents per kWh. If the calculated  1998 roll-in factor
         exceeds 0.9948 cents per kWh (i.e., 115% of 0.8650 cents per kWh), base
         rates shall be  increased  by the  difference  between the 1998 roll-in
         factor and 0.9948  cents per kWh.  Any  adjustment  shall be  effective
         prospectively  from March 1, 1999. The  methodology for normalizing the
         1998 nuclear refueling outage costs is attached hereto as Appendix III.

         The EAC or any  portion  thereof  may  only be  reinstated  with  Board
         approval.  With the  exception  of revenues  associated  with  required
         energy efficiency  expenditures,  alternate energy production  payments
         and alternate  energy loan fund  assessments,  all revenues  associated
         with  costs that would  have been  recovered  through  the EAC shall be
         included in the  calculation of revenues for the purpose of the sharing
         mechanism of paragraph 5.

4.       The cost tracking mechanism for capital additions for Cooper Nuclear
         Station for 1997 and beyond, outlined in OCA witness Fuhrman's rebuttal
         testimony at pages 44 through 46, will be implemented. However,
         MidAmerican will be allowed to earn both a return of and a return on
         capital additions at Cooper Nuclear Station that occur from January 1,
         1996 through the effective date of implementation of the tracking
         mechanism. MidAmerican will not include in the costs recovered through
         the tracking mechanism the following three types of costs: (1) AFUDC on
         1996 and January through May 1997 construction expenditures; (2)
         construction work-in-progress (CWIP) as of May 1997; and (3) AFUDC on
         CWIP. MidAmerican shall be allowed to include the foregoing costs in
         the calculation of the jurisdictional returns on common equity, as
         referenced in paragraph 5 below.

         The amounts  recovered  through the cost  tracking  mechanism  shall be
         allocated among classes using the "average and excess" methodology,  as
         applied to other  non-fuel  expenses  at Cooper  Nuclear  Station.  The
         tariffs for the cost tracking mechanism are attached hereto as Appendix
         IV.  OCA  reserves  the  right to object  to any  unreasonable  charges
         proposed or assessed under the tracker.

5.       In the event  MidAmerican earns more than a 12% return on common equity
         on jurisdictional electric operations in calendar year 1997, 1998, 1999
         or 2000,  50% of any  revenues  in excess of the 12%  earned  return on
         common  equity  shall be credited to  non-contract  customers  prior to
         April 1 of the  following  year.  The credit  amount shall be allocated
         among the residential, commercial/small general service and

                                       -5-

<PAGE>

         industrial/large general service classes to provide an equal percentage
         bill credit per class.

         MidAmerican shall use two-thirds of the revenues it retains above a 14%
         return on common equity on jurisdictional  electric operations in 1997,
         1998,  1999 or 2000 to  accelerate  the recovery of  regulatory  assets
         involving, first, D.O.E. Fees and, second, Debt Refinancing Costs.

         Except as  provided  in  paragraph 3 and except to recover the costs of
         energy  efficiency  expenditures  and  deferrals  pursuant  to  Section
         476.6(19) of the Code,  alternate energy production  purchases required
         by Section  476.43 of the Code,  alternate  energy  revolving loan fund
         payments  required  by  Section  476.46  of the Code  and new  taxes or
         mandated  expenditures,  MidAmerican commits not to seek an increase in
         its electric prices before December 31, 2000, unless its jurisdictional
         return on common equity on electric  operations in any 12-month  period
         falls below 9%. MidAmerican can continue to file for and recover energy
         efficiency costs as approved by the Board.

         The signatories commit not to request  commencement of a rate reduction
         proceeding  against  MidAmerican  prior to  December  31,  2000  unless
         MidAmerican's  jurisdictional  return  on  common  equity  on  electric
         operations  exceeds  14% after  reflecting  the  credits  to  customers
         provided for in this paragraph 5.

         After  December 31, 2000,  any signatory may file with the Board for an
         increase or decrease in MidAmerican's rates.

         The methodology to be used to calculate the  jurisdictional  returns on
         common equity on electric  operations is attached hereto as Appendix V.
         Results for 1997 and 1998 shall first be adjusted to assume a full year
         of the rate reductions provided for in paragraph 2 above.

         The above  sharing  arrangement  shall be a pilot  project  only and is
         limited solely to this proceeding.

WAIVERS

1.       The signatories to the Settlement Agreement support a waiver for
         MidAmerican of subsections 20.14(2), 20.14(3), 20.14(4)"d" and
         20.14(5) of the Board's flexible pricing rules. MidAmerican shall be
         able to negotiate non-standard prices, terms and

                                       -6-

<PAGE>

         conditions of service with any customer  based upon the cost of serving
         that  customer,  subject  to the  restrictions  of  this  paragraph.  A
         negotiated  price,  term or condition  need not be filed with the Board
         before it becomes  effective,  but MidAmerican  must continue to comply
         with the reporting requirements of subsections 20.14(4)"a", "b" and "c"
         of the Board's rules.  MidAmerican  shall not agree to a price,  except
         for competitive reasons,  below its expected short run marginal cost of
         serving the customer unless the Board approves.  MidAmerican  shall not
         be  required  to offer the same  price,  term or  condition  to another
         customer  simply  because  the  customer  makes the same end product or
         offers  the  same  service.  Upon the  written  joint  notification  of
         MidAmerican  and  the  customer  filed  with  the  Board  prior  to the
         effective date of the contract, the negotiated contractual  provisions:
         (1) can be for a term exceeding five years; and/or (2) shall be treated
         as confidential information.  MidAmerican shall not attempt at any time
         to recover from the other retail  customers  any  reduction in electric
         revenues caused by non-standard prices, terms and conditions of service
         negotiated  with a customer in a contract  executed  between January 1,
         1997 and June 1, 1998.  With respect to a contract  with a customer for
         non-standard prices, terms and conditions executed between June 1, 1998
         and  December  31,  2000,  MidAmerican  may only  seek to  recover  any
         associated  revenue reduction from other customers within the same rate
         class as the customer negotiating the contract.

         The flexible  pricing  arrangement as set forth in this paragraph shall
         be a pilot project only and is limited solely to this proceeding.

2.       The signatories to this Settlement Agreement support a procedure before
         the Board by which tariffs filed by MidAmerican that are optional for
         customers shall be allowed to become effective immediately upon filing
         with the Board. The signatories agree that unbundled pricing tariffs
         and a retail wheeling/direct access pilot project could be subject to
         suspension at the Board's discretion for no more than six months. The
         Board shall have the full authority to investigate the tariff option
         filings and to fashion appropriate remedies within its statutory
         authority at the conclusion of its investigation. MidAmerican agrees
         that it will not protest a decision by the Board to order appropriate
         refunds in those cases in which the Board determines it to be in the
         public interest; however, such refunds shall be without interest in
         recognition of the optional and consensual nature of the tariffs.
         MidAmerican shall not be required to reduce other rates, charges or
         prices to reflect anticipated revenues from the optional tariffs.

                                       -7-

<PAGE>

BUY-THROUGH OPTION

     MidAmerican  and any interested  signatories to this  Settlement  Agreement
will  collaborate  to develop a buy-through  option for  customers  served under
interruptible  electric  tariffs.  The signatories  agree to cooperate to obtain
Iowa  Utilities  Board  approval and any approvals for such  buy-through  option
required by the Board,  other regulators,  and the MidContinent Area Power Pool.
Any revenue loss shall be recovered,  if at all, from participating customers or
from a portion of the $6 million industrial and $4 million  commercial  flexible
rate and pilot project  amounts.  The OCA's  participation in the development of
the  buy-through  option  tariff  shall not be  construed  to  preclude  it from
submitting  testimony  challenging  those  parts  of the  tariff  with  which it
disagrees when the tariff is filed with the Board or other regulatory agency.

MARKET ACCESS SERVICE PILOT

     MidAmerican will engage in good faith  negotiations with the signatories to
develop a Market  Access  Service  Pilot for  industrial/large  general  service
customers.  The pilot will be optional for industrial customers. All signatories
will  cooperate  to achieve the  objective of filing the Market  Access  Service
Pilot  within  90 days  from the  effective  date of the  final  Board  order in
Consolidated  Docket Nos.  APP-96-1 and RPU-96-8.  Unless otherwise agreed to by
the  signatories,  the Market Access Service Pilot will comport with the outline
in Appendix VI, attached hereto.  The OCA's  participation in the development of
the Market

                                       -8-

<PAGE>

Access  Service  Pilot  shall not be  construed  to prelude  it from  submitting
testimony  challenging those parts of the Pilot with which it disagrees when the
Pilot is filed with the Board or other regulatory agency.

     MidAmerican  agrees that it will not seek to recover  from  residential  or
commercial/small  general service customers any reduction in revenues associated
with the Market Access Service Pilot.

                           ARTICLE III - JOINT MOTION

     Upon execution of this Settlement Agreement, the signatories shall file the
same with the Board,  together  with a joint  motion  requesting  that the Board
accept the Settlement  Agreement for the purpose of these Consolidated  Dockets,
without condition or modification.

                        ARTICLE IV - CONDITION PRECEDENT

     This Settlement  Agreement shall not become  effective unless and until the
Board accepts the same in its entirety without condition or modification.

                      ARTICLE V - PRIVILEGE AND LIMITATION

     This Settlement Agreement is made pursuant to Iowa Code (section)17A.10 and
199I.A.C.  (section)7.2(11).  The Settlement Agreement shall become binding upon
the signatories upon its execution;  provided,  however, that if this Settlement
Agreement  does not become  effective in  accordance  with Article IV above,  it
shall be null, void and privileged. This Settlement

                                       -9-

<PAGE>

Agreement is intended to relate only to the specific matters referred to herein.
No signatory  waives any claim or right which it may otherwise have with respect
to any matter not expressly provided for herein. No signatory shall be deemed to
have approved,  accepted,  agreed or consented to any ratemaking principle,  any
method  of cost of  service  determination,  or any  method  of cost  allocation
underlying the provisions of this Settlement Agreement or be prejudiced or bound
thereby  in any other  current  or  future  proceeding  before  any  agency.  No
signatory  shall directly or indirectly  refer to this  Settlement  Agreement as
precedent in any other current or future proceeding before the Board.

              ARTICLE VI - PROCEDURE APPLICABLE TO UNRESOLVED ISSUE

     The unresolved issue of whether  MidAmerican should be authorized to create
and show  separately on utility bills a Public Programs Charge shall continue to
be litigated on a schedule established by the Board. In the event the Board does
not approve the Public Programs Charge for  MidAmerican,  the signatories  agree
that   MidAmerican  may  seek  approval  of  an  alternative,   contemporaneous,
cost-tracking recovery mechanism for (1) electric energy efficiency expenditures
and  deferrals  (including  interruptible  rate  credits)  pursuant  to  Section
476.6(19) of the Iowa Code; (2) alternate energy production  purchases  required
by Section 476.43 of the Code; (3) alternate energy revolving loan fund payments
required  by  Section  476.46  of the  Code;  and  (4)  new  taxes  or  mandated
expenditures.

                                      -10-

<PAGE>

                             ARTICLE VII - EXECUTION

     To facilitate and expedite  execution,  the  Settlement  Agreement has been
executed  by the  signatories  in  multiple  conformed  copies  which,  when the
original  signature  pages  are  consolidated  into  a  single  document,  shall
constitute a  fully-executed  document  binding upon all the  signatories  to be
filed with the Iowa Utilities Board.

                                      -11-

<PAGE>

MIDAMERICAN ENERGY COMPANY

By:  /s/ Brent E. Gale

     ---------------------------------------
     Brent E. Gale

     Vice President-Law & Regulatory Affairs
     One RiverCenter Place
     106 East Second Street
     P.O. Box 4350
     Davenport, Iowa  52808
     319/333-8010

                                      -12-

<PAGE>

OFFICE OF CONSUMER ADVOCATE

By:  /s/ James R. Maret

     ------------------------------
     James R. Maret
     Leo J. Steffen, Attorney
     Ben Stead, Attorney
     Ronald Polle, Attorney
     Lucas State Office Building
     Des Moines, Iowa 50319
     515/281-5984

                                      -13-

<PAGE>

Signature page to "Settlement Agreement C" in Docket Nos. APP-96-1 and RPU-96-8,
In Re: MidAmerican Energy Company executed on February 26, 1997.

IOWA ENERGY CONSUMERS

By  /s/ Michael R. May

    ----------------------------------
    Michael R. May
    Suite 935 - Two Ruan Center
    601 Locust Street
    Des Moines, Iowa 50309

                                      -14-

<PAGE>

                              SETTLEMENT AGREEMENT

ALUMINUM COMPANY OF AMERICA

By  /s/ Richard P. Noland
    -----------------------------
    Richard P. Noland
    David I. Adelman
    Sutherland, Asbill & Brennan
    111 Congress Avenue
    Twenty-Third Floor
    Austin, Texas 78701-3350

    William H. Penniman
    Glen S. Howard
    Sutherland, Asbill & Brennan
    1275 Pennsylvania Avenue, N.W.
    Washington, D.C. 20004-2404

    Coralyn Benhart, Esq.
    1501 Alcoa Building
    Pittsburgh, Pennsylvania 15219

    Robert H. Gallagher
    Wells, Gallagher, Roeder & Millage
    1989 Spruce Hills Drive

    Bettendorf, Iowa 52722

                                      -15-

<PAGE>

DEERE & COMPANY

By  /s/ Kathleen R. Gibson
    -------------------------------
    Kathleen R. Gibson
    Deere & Company
    John Deere Road
    Moline, Illinois 61265

                                      -16-

<PAGE>

CARGILL INC.

By  /s/ M. Moelle

    --------------------------------
for Ronald L. Laumbach
    15407 McGinty Road West
    Wayzata, Minnesota 55391-2399

                                      -17-

<PAGE>

                              SETTLEMENT AGREEMENT

U.S. GYPSUM COMPANY

By  /s/ Richard P. Noland

    --------------------------------
    Richard P. Noland
    David I. Adelman
    Sutherland, Asbill & Brennan
    111 Congress Avenue
    Twenty-Third Floor
    Austin, Texas 78701-3350

                                      -18-

<PAGE>

INTERSTATE POWER COMPANY

By  /s/ Christopher B. Clark

    -------------------------------
    Christopher B. Clark
    1000 Main Street
    P.O. Box 769
    Dubuque, Iowa 52004-0769

                                      -19-

<PAGE>

IES UTILITIES, INC.

By  /s/ Jonathan Rogoff
    --------------------------------
    Jonathan Rogoff
    200 First Street, S.E.
    P.O. Box 351
    Cedar Rapids, Iowa 52406

                                      -20-<PAGE>

                                                                   EXHIBIT 10.14

                       WALKER INTERACTIVE SYSTEMS, INC.

                      1995 NONSTATUTORY STOCK OPTION PLAN
                           FOR NON-OFFICER EMPLOYEES

                            ADOPTED AUGUST 28, 1995
                    RATIFIED AND AMENDED SEPTEMBER 20, 1995
            AMENDED MAY 9, 1996, OCTOBER 20, 1997, AUGUST 5, 1998,
     NOVEMBER 9, 1998, APRIL 12, 1999, JUNE 25, 1999 AND NOVEMBER 12, 1999

1.   Purposes.

     (a)  The purpose of the Plan is to provide a means by which selected
Employees of and Consultants to the Company and its Affiliates who are not
Officers or Directors may be given an opportunity to purchase stock of the
Company. The Plan is also intended to provide a means by which the Company may
grant options to persons not previously employed by the Company as an inducement
essential to those persons entering employment contracts with the Company. Such
"inducement grants" may be made to any Employee, including persons who
ultimately are employed by the Company as Officers.

     (b)  The Company, by means of the Plan, seeks to retain the services of
persons who are now Employees or Consultants, to secure and retain the services
of new Employees and Consultants, and to provide incentives for such persons to
exert maximum efforts for the success of the Company and its Affiliates.

     (c)  The Company intends that the Options issued under the Plan shall be
only Nonstatutory Stock Options.
<PAGE>

2.   Definitions.

     (a)  "Affiliate" means any parent corporation or subsidiary corporation,
whether now or hereafter existing, as those terms are defined in Sections 424(e)
and (f) respectively, of the Code.

     (b)  "Board" means the Board of Directors of the Company.

     (c)  "Cause" means termination of an Employee's employment with the Company
for any of the following reasons as determined in good faith by the Company:

          (i)      an intentional act which materially injures the Company;

          (ii)     an intentional refusal or failure to follow lawful and
reasonable directions of the Board or the individual to whom the Employee
reports;

          (iii)    a willful and habitual neglect of duties; or

          (iv)     a conviction of a felony involving moral turpitude which is
reasonably likely to inflict or has inflicted material injury on the Company.

     (d)  "Change in Control" means:

          (i)      a dissolution, liquidation or sale of substantially all of
the assets of the Company;

          (ii)     a merger or consolidation in which the Company is not the
surviving corporation; or

          (iii)    a reverse merger in which the Company is the surviving
corporation but the shares of the Company's common stock outstanding immediately
preceding the merger are converted by virtue of the merger into other property,
whether in the form of securities, cash or otherwise.

     (e)  "Code" means the Internal Revenue Code of 1986, as amended.

                                       2
<PAGE>

     (f)  "Committee" means a Committee appointed by the Board in accordance
with subsection 3(c) of the Plan.

     (g)  "Company" means Walker Interactive Systems, Inc., a Delaware
corporation.

     (h)  "Consultant" means any person, including an advisor, engaged by the
Company or an Affiliate to render consulting services and who is compensated for
such services, provided that the term "Consultant" shall not include Directors.

     (i)  "Continuous Status as an Employee, Director or Consultant" means the
employment relationship, or service as a member of the Board or Consultant, is
not interrupted or terminated. The Board, in its sole discretion, may determine
whether Continuous Status as an Employee, Director or Consultant shall be
considered interrupted in the case of: (i) any leave of absence approved by the
Board, including sick leave, military leave, or any other personal leave; or
(ii) transfers between locations of the Company or between the Company,
Affiliates or their successors. Continuous Status as an Employee, Director or
Consultant shall not be deemed to have terminated merely because of a change in
the capacity in which a person renders service to the Company or an Affiliate,
whether such service is as an Employee, Officer, Director or Consultant, or a
change in the entity for which the person renders such service, provided that
there is no interruption in the person's service relationship with the Company
or an Affiliate.

     (j)  "Director" means a member of the Board.

     (k)  "Employee" means any person employed by the Company or any Affiliate
of the Company; provided that except as provided below, Officers and Directors
of the Company shall not be considered Employees for purposes of the Plan. An
Officer shall be considered an Employee for purposes of the grant under this
Plan of an Option to that Officer as an inducement essential to such Officer's
entering into an employment contract with the Company if such

                                       3
<PAGE>

Officer was not an Employee of the Company immediately prior to the date on
which such Option is granted.

     (l)  "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     (m)  "Fair Market Value" means, as of any date, the value of the common
stock of the Company determined as follows:

          (1)      If the common stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market, the Fair Market Value of a share of common stock shall be the
closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such system or exchange (or the exchange with the
greatest volume of trading in common stock) on the last market trading day prior
to the day of determination, as reported in the Wall Street Journal or such
other source as the Board deems reliable;

          (2)      If the common stock is quoted on the Nasdaq System (but not
on the Nasdaq National Market) or is regularly quoted by a recognized securities
dealer but selling prices are not reported, the Fair Market Value of a share of
common stock shall be the mean between the bid and asked prices for the common
stock on the last market trading day prior to the day of determination, as
reported in the Wall Street Journal or such other source as the Board deems
reliable;

          (3)      In the absence of an established market for the common stock,
the Fair Market Value shall be determined in good faith by the Board.

     (n)  "Involuntary Termination Without Cause" means an Employee's dismissal
or discharge other than for Cause. The termination of an Employee's employment
as a result of the

                                       4
<PAGE>

Employee's death or disability will not be deemed to be an Involuntary
Termination Without Cause.

     (o)  "Non-Employee Director" means a Director who either (i) is not a
current Employee or Officer of the Company or its parent or subsidiary, does not
receive compensation (directly or indirectly) from the Company or its parent or
subsidiary for services rendered as a consultant or in any capacity other than
as a Director (except for an amount as to which disclosure would not be required
under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act
("Regulation S-K")), does not possess an interest in any other transaction as to
which disclosure would be required under Item 404(a) of Regulation S-K, and is
not engaged in a business relationship as to which disclosure would be required
under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a "non-
employee director" for purposes of Rule 16b-3.

     (p)  "Nonstatutory Stock Option" means an Option not intended to qualify as
an Incentive Stock Option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

     (q)  "Officer" means a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder, or any other employee of the Company or an Affiliate
whom the Board or the Committee classifies as an "Officer."

     (r)  "Option" means a stock option granted pursuant to the Plan.

     (s)  "Option Agreement" means a written agreement between the Company and
an Optionee evidencing the terms and conditions of an individual Option grant.
Each Option Agreement shall be subject to the terms and conditions of the Plan.

                                       5
<PAGE>

     (t)  "Optionee" means a person to whom an Option is granted pursuant to the
Plan or, if applicable, such other person who holds an outstanding Option.

     (u)  "Plan" means this Walker Interactive Systems, Inc. 1995 Nonstatutory
Stock Option Plan for Non-Officer Employees.

     (v)  "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any successor to
Rule 16b-3, as in effect when discretion is being exercised with respect to the
Plan.

     (w)  "Securities Act" means the Securities Act of 1933, as amended.

3.   Administration.

     (a)  The Plan shall be administered by Compensation Committee of the Board
unless and until the Compensation Committee or the Board delegates
administration to a Committee, as provided in subsection 3(c).

     (b)  The Compensation Committee shall have the power, subject to, and
within the limitations of, the express provisions of the Plan:

          (1)      To determine from time to time which of the persons eligible
under the Plan shall be granted Options; when and how each Option shall be
granted; the provisions of each Option granted (which need not be identical),
including the time or times such Option may be exercised in whole or in part;
and the number of shares for which an Option shall be granted to each such
person.

          (2)      To construe and interpret the Plan and Options granted under
it, and to establish, amend and revoke rules and regulations for its
administration. The Compensation Committee, in the exercise of this power, may
correct any defect, omission or inconsistency in the Plan or in any Option
Agreement, in a manner and to the extent it shall deem necessary or expedient to
make the Plan fully effective.

                                       6
<PAGE>

          (3)      To amend the Plan or an Option as provided in Section 11 of
the Plan.

          (4)      Generally, to exercise such powers and to perform such acts
as the Compensation Committee deems necessary or expedient to promote the best
interests of the Company.

     (c)  The Board may delegate administration of the Plan to a committee
composed of not fewer than two (2) members (the "Committee"), all of the members
of which Committee may be, in the discretion of the Board, Non-Employee
Directors. If administration is delegated to a Committee, the Committee shall
have, in connection with the administration of the Plan, the powers theretofore
possessed by the Compensation Committee (and references in this Plan to the
Compensation Committee shall thereafter be to the Committee), subject, however,
to such resolutions, not inconsistent with the provisions of the Plan, as may be
adopted from time to time by the Compensation Committee. The Compensation
Committee may abolish the Committee at any time and revest in the Compensation
Committee the administration of the Plan. Notwithstanding anything in this
Section 3 to the contrary, the Board or the Compensation Committee may delegate
to a committee of one or more members of the Board the authority to grant
Options to persons who are not then subject to Section 16 of the Exchange Act.

     (e)  The Board shall at all times have the authority to arrogate to itself
any or all of the powers and responsibilities allocated to the Compensation
Committee or to the Committee under the Plan.

4.   Shares Subject To The Plan.

     (a)  Subject to the provisions of Section 10 relating to adjustments upon
changes in stock, the stock that may be sold pursuant to Options shall not
exceed in the aggregate three million six hundred thousand (3,600,000) shares of
the Company's common stock. If any

                                       7
<PAGE>

Option shall for any reason expire or otherwise terminate, in whole or in part,
without having been exercised in full, the stock not purchased under such Option
shall revert to and again become available for issuance under the Plan.

     (b)  The stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.

5.   Eligibility.

     (a)  Nonstatutory Stock Options may be granted under the Plan only to
Employees and Consultants.

     (b)  A Consultant shall not be eligible for the grant of a Nonstatutory
Stock Option if, at the time of grant, a Form S-8 Registration Statement under
the Securities Act ("Form S-8") is not available to register either the offer or
the sale of the Company's securities to such Consultant because of the nature of
the services that the Consultant is providing to the Company, or because the
Consultant is not a natural person, or as otherwise provided by the rules
governing the use of Form S-8, unless the Company determines both (i) that such
grant (A) shall be registered in another manner under the Securities Act (e.g.,
on a Form S-3 Registration Statement) or (B) does not require registration under
the Securities Act in order to comply with the requirements of the Securities
Act, if applicable, and (ii) that such grant complies with the securities laws
of all other relevant jurisdictions.

6.   Option Provisions.

     Each Option shall be in such form and shall contain such terms and
conditions as the Compensation Committee shall deem appropriate. The provisions
of separate Options need not be identical, but each Option shall include
(through incorporation of provisions hereof by reference in the Option or
otherwise) the substance of each of the following provisions:

                                       8
<PAGE>

     (a)  Term.  No Option shall be exercisable after the expiration of ten (10)
years from the date it was granted.

     (b)  Price.  The exercise price of each Nonstatutory Stock Option shall be
not less than eighty-five percent (85%) of the Fair Market Value of the stock
subject to the Option on the date the Option is granted.

     (c)  Consideration.  The purchase price of stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes and
regulations, in one or more of the following forms: (i) in cash at the time the
Option is exercised, (ii) at the discretion of the Compensation Committee or the
Committee, by delivery to the Company of other common stock of the Company, or
(iii) pursuant to a program developed under Regulation T as promulgated by the
Federal Reserve Board which results in the receipt of cash (or check) by the
Company prior to the issuance of the stock.

     (d)  Transferability.  A Nonstatutory Stock Option shall not be
transferable except by will or by the laws of descent and distribution or
pursuant to a qualified domestic relations order satisfying the requirements of
Rule 16b-3 and the rules thereunder (a "QDRO"), and shall be exercisable during
the lifetime of the person to whom the Option is granted only by such person or
any transferee pursuant to a QDRO. The person to whom the Option is granted may,
by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the Optionee,
shall thereafter be entitled to exercise the Option.

     (e)  Vesting.  The total number of shares of stock subject to an Option
may, but need not, be allotted in periodic installments (which may, but need
not, be equal). The Option Agreement may provide that from time to time during
each of such installment periods, the

                                       9
<PAGE>

Option may become exercisable ("vest") with respect to some or all of the shares
allotted to that period, and may be exercised with respect to some or all of the
shares allotted to such period and/or any prior period as to which the Option
became vested but was not fully exercised. The Option may be subject to such
other terms and conditions on the time or times when it may be exercised (which
may be based on performance or other criteria) as the Board may deem
appropriate. The provisions of this subsection 6(e) are subject to any Option
provisions governing the minimum number of shares as to which an Option may be
exercised.

     (f)  Securities Law Compliance. The Company may require any Optionee, or
any person to whom an Option is transferred under subsection 6(d), as a
condition of exercising any such Option, (1) to give written assurances
satisfactory to the Company as to the Optionee's knowledge and experience in
financial and business matters and/or to employ a purchaser representative
reasonably satisfactory to the Company who is knowledgeable and experienced in
financial and business matters, and that he or she is capable of evaluating,
alone or together with the purchaser representative, the merits and risks of
exercising the Option; and (2) to give written assurances satisfactory to the
Company stating that such person is acquiring the stock subject to the Option
for such person's own account and not with any present intention of selling or
otherwise distributing the stock. The foregoing requirements, and any assurances
given pursuant to such requirements, shall be inoperative if (i) the issuance of
the shares upon the exercise of the Option has been registered under a then
currently effective registration statement under the Securities Act, or (ii) as
to any particular requirement, a determination is made by counsel for the
Company that such requirement need not be met in the circumstances under the
then applicable securities laws. The Company may, upon advice of counsel to the
Company, place legends on stock certificates issued under the Plan as such
counsel deems necessary or appropriate in order

                                       10
<PAGE>

to comply with applicable securities laws, including, but not limited to,
legends restricting the transfer of the stock.

     (g)  Termination of Service. In the event an Optionee's Continuous Status
as an Employee, Director or Consultant terminates (other than upon the
Optionee's death or disability), the Optionee may exercise his or her Option (to
the extent that the Optionee was entitled to exercise it at the date of
termination) but only within such period of time ending on the earlier of (i)
the date three (3) months after the termination of the Optionee's Continuous
Status as an Employee, Director or Consultant or such longer or shorter period
specified in the Option Agreement, or (ii) the expiration of the term of the
Option as set forth in the Option Agreement. If, after termination, the Optionee
does not exercise his or her Option within the time specified in the Option
Agreement, the Option shall terminate, and the shares covered by such Option
shall revert to and again become available for issuance under the Plan.

     An Optionee's Option Agreement may also provide that if the exercise of the
Option following the termination of the Optionee's Continuous Status as an
Employee, Director or Consultant (other than upon the Optionee's death or
disability) would result in liability under Section 16(b) of the Exchange Act,
then the Option shall terminate on the earlier of (i) the expiration of the term
of the Option set forth in the Option Agreement, or (ii) the tenth (10th) day
after the last date on which such exercise would result in such liability under
Section 16(b) of the Exchange Act.  Finally, an Optionee's Option Agreement may
also provide that if the exercise of the Option following the termination of the
Optionee's Continuous Status as an Employee, Director or Consultant (other than
upon the Optionee's death or disability) would be prohibited at any time solely
because the issuance of shares would violate the registration requirements under
the Securities Act, then the Option shall terminate on the earlier of (i) the
expiration of the

                                       11
<PAGE>

term of the Option set forth in the first paragraph of this subsection 6(g), or
(ii) the expiration of a period of three (3) months after the termination of the
Optionee's Continuous Status as an Employee, Director or Consultant during which
the exercise of the Option would not be in violation of such registration
requirements.

     (h)  Disability of Optionee.  In the event an Optionee's Continuous Status
as an Employee, Director or Consultant terminates as a result of the Optionee's
disability, the Optionee may exercise his or her Option (to the extent that the
Optionee was entitled to exercise it at the date of termination), but only
within such period of time ending on the earlier of (i) the date twelve (12)
months following such termination (or such longer or shorter period specified in
the Option Agreement), or (ii) the expiration of the term of the Option as set
forth in the Option Agreement. If, at the date of termination, the Optionee is
not entitled to exercise his or her entire Option, the shares covered by the
unexercisable portion of the Option shall revert to and again become available
for issuance under the Plan. If, after termination, the Optionee does not
exercise his or her Option within the time specified herein, the Option shall
terminate, and the shares covered by such Option shall revert to and again
become available for issuance under the Plan.

     (i)  Death of Optionee.  In the event of the death of an Optionee during,
or within a period specified in the Option after the termination of, the
Optionee's Continuous Status as an Employee, Director or Consultant, the Option
may be exercised (to the extent the Optionee was entitled to exercise the Option
at the date of death) by the Optionee's estate, by a person who acquired the
right to exercise the Option by bequest or inheritance or by a person designated
to exercise the option upon the Optionee's death pursuant to subsection 6(d),
but only within the period ending on the earlier of (i) the date eighteen (18)
months following the date of death (or

                                       12
<PAGE>

such longer or shorter period specified in the Option Agreement), or (ii) the
expiration of the term of such Option as set forth in the Option Agreement. If,
at the time of death, the Optionee was not entitled to exercise his or her
entire Option, the shares covered by the unexercisable portion of the Option
shall revert to and again become available for issuance under the Plan. If,
after death, the Option is not exercised within the time specified herein, the
Option shall terminate, and the shares covered by such Option shall revert to
and again become available for issuance under the Plan.

     (j)  Early Exercise.  The Option may, but need not, include a provision
whereby the Optionee may elect at any time while an Employee, Director or
Consultant to exercise the Option as to any part or all of the shares subject to
the Option prior to the full vesting of the Option. Any unvested shares so
purchased may be subject to a repurchase right in favor of the Company or to any
other restriction the Board determines to be appropriate.

     (k)  Withholding.  To the extent provided by the terms of an Option
Agreement, the Optionee may satisfy any federal, state, local or foreign tax
withholding obligation relating to the exercise of such Option by any of the
following means or by a combination of such means: (1) tendering a cash payment;
(2) authorizing the Company to withhold shares from the shares of the common
stock otherwise issuable to the participant as a result of the exercise of the
Option; or (3) delivering to the Company owned and unencumbered shares of the
common stock of the Company. Notwithstanding the foregoing, the Company shall
not be authorized to withhold shares of common stock at rates in excess of the
minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes, if such excess withholding would result in a charge to
the Company's earnings for accounting purposes.

                                       13
<PAGE>

7.   Covenants Of The Company.

     (a)  During the terms of the Options, the Company shall keep available at
all times the number of shares of stock required to satisfy such Options.

     (b)  The Company shall seek to obtain from each regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares of stock upon exercise of the Options; provided, however,
that this undertaking shall not require the Company to register under the
Securities Act either the Plan, any Option or any stock issued or issuable
pursuant to any such Option. If, after reasonable efforts, the Company is unable
to obtain from any such regulatory commission or agency the authority which
counsel for the Company deems necessary for the lawful issuance and sale of
stock under the Plan, the Company shall be relieved from any liability for
failure to issue and sell stock upon exercise of such Options unless and until
such authority is obtained.

8.   Use Of Proceeds From Stock.

     Proceeds from the sale of stock pursuant to Options shall constitute
general funds of the Company.

9.   Miscellaneous.

     (a)  The Compensation Committee shall have the power to accelerate the time
at which an Option may first be exercised or the time during which an Option or
any part thereof will vest pursuant to subsection 6(e), notwithstanding the
provisions in the Option stating the time at which it may first be exercised or
the time during which it will vest.

     (b)  Neither an Optionee nor any person to whom an Option is transferred
under subsection 6(d) shall be deemed to be the holder of, or to have any of the
rights of a holder with

                                       14
<PAGE>

respect to, any shares subject to such Option unless and until such person has
satisfied all requirements for exercise of the Option pursuant to its terms.

     (c)  Nothing in the Plan or any instrument executed or Option granted
pursuant thereto shall confer upon any Employee or Consultant any right to
continue in the employ of the Company or any Affiliate, or to continue to serve
as a member of the Board or as a consultant, or shall affect the right of the
Company or any Affiliate to terminate the employment relationship of any
Employee with or without cause, to remove a member of the Board pursuant to the
terms of the Company's Bylaws, or to terminate a Consultant in accordance with
the terms of this agreement with the Company or Affiliate.

     (d)  The Compensation Committee shall have the authority to effect, at any
time and from time to time (i) the repricing of any outstanding Options under
the Plan and/or (ii) with the consent of the affected holders of Options, the
cancellation of any outstanding Options and the grant in substitution therefor
of new Options under the Plan covering the same or different numbers of shares
of Common Stock, but having an exercise price per share not less than eighty-
five percent (85%) of the Fair Market Value per share of Common Stock on the new
grant date.

10.  Adjustments Upon Changes In Stock.

     (a)  If any change is made in the stock subject to the Plan, or subject to
any Option (through merger, consolidation, reorganization, recapitalization,
stock dividend, dividend in property other than cash, stock split, liquidating
dividend, combination of shares, exchange of shares, change in corporate
structure or otherwise), the Plan will be appropriately adjusted in the
class(es) and maximum number of shares subject to the Plan pursuant to
subsection 4(a) and the outstanding Options will be appropriately adjusted in
the class(es) and number of shares and price per share of stock subject to such
outstanding Options.

                                       15
<PAGE>

     (b)  In the event of a Change in Control, then, to the extent permitted by
applicable law: (i) any surviving corporation shall assume any Options
outstanding under the Plan or shall substitute similar Options for those
outstanding under the Plan; or (ii) such Options shall continue in full force
and effect. In the event any surviving corporation refuses to assume or continue
such options, or to substitute similar options for those outstanding under the
Plan, then, with respect to options held by persons then performing services as
employees, consultants or directors for the Company, the time during which such
Options become vested or may be exercised shall be accelerated and any
outstanding unexercised rights under any Options terminated if not exercised
prior to such event.

     (c)  In the event an Employee's employment is terminated due to an
Involuntary Termination Without Cause within twenty-four (24) months after the
effective date of a Change in Control, then all Options issued and outstanding
under the Plan and held by the Employee shall accelerate and become immediately
vested and exercisable. Notwithstanding the foregoing, if the Change in Control
was a transaction that was accounted for as a pooling of interests for financial
reporting purposes, then the unvested portion of such stock options shall not
accelerate unless the Company receives reasonable assurances from the Company's
independent public accountants (and from the acquiring party's independent
public accountants) that in their good faith judgment such acceleration will not
adversely affect the pooling of interests accounting treatment of such Change in
Control transaction.

11.  Amendment Of The Plan and Options.

     (a)  The Board or the Compensation Committee at any time, and from time to
time, may amend the Plan. However, except as provided in Section 10 relating to
adjustments upon changes in stock, no amendment shall be effective unless
approved by the stockholders of the

                                       16
<PAGE>

Company to the extent stockholder approval is necessary for the Plan to satisfy
the requirements of Rule 16b-3 under the Exchange Act or any Nasdaq or
securities exchange listing requirements. The Board may in its sole discretion
submit any other amendment to the Plan for stockholder approval.

     (b)  The Compensation Committee may, in its sole discretion, submit the
Plan or any amendment to the Plan for stockholder approval.

     (c)  It is expressly contemplated that the Board or the Compensation
Committee may amend the Plan in any respect the Board or the Compensation
Committee deems necessary or advisable to provide Optionees with the maximum
benefits provided or to be provided under the provisions of the Code and the
regulations promulgated thereunder.

     (d)  Rights and obligations under any Option granted before amendment of
the Plan shall not be impaired by any amendment of the Plan unless (i) the
Company requests the consent of the person to whom the Option was granted and
(ii) such person consents in writing.

     (e)  The Board or the Compensation Committee at any time, and from time to
time, may amend the terms of any one or more Options; provided, however, that
the rights and obligations under any Option shall not be impaired by any such
amendment unless (i) the Company requests the consent of the person to whom the
Option was granted and (ii) such person consents in writing.

12.  Termination Or Suspension Of The Plan.

     (a)  The Board or the Compensation Committee may suspend or terminate the
Plan at any time. Unless sooner terminated, the Plan shall terminate on the date
when all the shares of the Company's common stock reserved for issuance under
the Plan have been issued. No Options may be granted under the Plan while the
Plan is suspended or after it is terminated.

                                       17
<PAGE>

     (b)  Rights and obligations under any Option granted while the Plan is in
effect shall not be altered or impaired by suspension or termination of the
Plan, except with the consent of the person to whom the Option was granted.

13.  Effective Date Of Plan.

     The Plan shall become effective on August 28, 1995.

Adopted by the Compensation Committee on August 28, 1995 with an aggregate share
reserve of 140,000 shares.

Ratified and amended by the Board of Directors on September 20, 1995 to increase
the aggregate share reserve to 600,000 shares.

Amended by the Board of Directors on May 9, 1996 to increase the aggregate share
reserve to 1,100,000 shares.

Amended by the Board of Directors on October 20, 1997 to increase the aggregate
share reserve to 1,600,000 shares.

Amended by the Board of Directors on August 5, 1998 to remove the discretion of
the Board to determine whether acceleration of vesting shall occur in the event
of a Change in Control if the successor entity does not assume or continue
outstanding options or substitute similar options and to provide for
acceleration of vesting upon an employee's Involuntary Termination Without Cause
within twenty-four months after a Change in Control.

Amended by the Board of Directors on November 9, 1998 to increase the aggregate
share reserve to 2,000,000 shares.

Amended by the Board of Directors on April 12, 1999 to increase the aggregate
share reserve to 2,500,000 shares.

Amended by the Board of Directors on June 25, 1999 to increase the aggregate
share reserve to 3,000,000 shares.

Amended by the Board of Directors on November 12, 1999 to increase the aggregate
share reserve to 3,600,000 shares and to permit the grant of options to persons
who will become officers of the Company or an affiliate if such grants are made
in order to induce such persons to enter into employment contracts with the
Company or an affiliate.

                                       18

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