Document:

exh10-10.htm

    
      
        

        

      

      EXHIBIT
10.10

       

      FIRST
AMENDED AND RESTATED

      SUPPLEMENTAL
RETIREMENT PLAN FOR

      DESIGNATED
OFFICERS

       

      MidAmerican
Energy Company

       

      

       

      Amended
and Restated as of January 1, 2005

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      MIDAMERICAN
ENERGY COMPANY

      FIRST
AMENDED AND RESTATED

      SUPPLEMENTAL
RETIREMENT PLAN FOR DESIGNATED OFFICERS

      

      CONTENTS

       

      
        	 
      	 
      	
                Page

              
	 
      	 
      	 
      
	
                I.

              	
                ESTABLISHMENT

              	
                1

              
	 
      	 
      	 
      
	
                II.

              	
                PURPOSE

              	
                1

              
	 
      	 
      	 
      
	
                III.

              	
                CONSTRUCTION

              	
                1

              
	 
      	 
      	 
      
	 
      	
                Section 3.1.  Definitions

              	
                1

              
	 
      	
                Section 3.2.  Gender and
    Number

              	
                5

              
	 
      	
                Section 3.3.  Severability

              	
                5

              
	 
      	 
      	 
      
	
                IV.

              	
                ADMINISTRATION

              	
                6

              
	 
      	 
      	 
      
	 
      	
                Section 4.1.  The Committee

              	
                6

              
	 
      	
                Section 4.2.  Authority of the
      Committee

              	
                6

              
	 
      	
                Section 4.3.  Decisions
    Binding

              	
                6

              
	 
      	
                Section 4.4.  Terms of
      Participation

              	
                6

              
	 
      	 
      	 
      
	
                V.

              	
                ELIGIBILITY
      AND PARTICIPATION

              	
                7

              
	 
      	 
      	 
      
	 
      	
                Section 5.1.  Participation

              	
                7

              
	 
      	
                Section 5.2.  No Employment
      Guarantee

              	
                7

              
	 
      	 
      	 
      
	
                VI.

              	
                BENEFITS

              	
                7

              
	 
      	 
      	 
      
	 
      	
                Section 6.1.  Benefits Upon Normal
      Retirement

              	
                7

              
	 
      	
                Section 6.2.  Benefits Upon Early
      Retirement

              	
                7

              
	 
      	
                Section 6.3.  Benefits Upon
      Disability

              	
                7

              
	 
      	
                Section 6.4.  Benefits Upon
    Death

              	
                7

              
	 
      	
                Section 6.5.  Forfeiture Upon Termination for
      Cause

              	
                8

              
	 
      	
                Section 6.6.  General Payout
      Restrictions

              	
                9

              
	 
      	
                Section
      6.7.  General Release

              	
                9

              
	 	Section
      6.8   Distribution to Specified Employees 	9
	 	Section
      6.9   General Release 	9
	 
      	 
      	
                 

              
	
                VII.

              	
                INDIVIDUAL
      ACCOUNTS AND THE RABBI TRUST

              	
                9

              
	 
      	 
      	 
      
	 
      	
                Section 7.1.  Establishment of a Rabbi
      Trust

              	
                9

              
	 
      	
                Section 7.2.  Payment of Benefits from the
      Trust

              	
                9

              
	 
      	 
      	 
      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

      
        	
                VIII.

              	
                BENEFICIARY
      DESIGNATION

              	
                10

              
	 
      	 
      	 
      
	 
      	
                Section 8.1.   Designation of Beneficiary

              	
                10

              
	 
      	
                Section 8.2.   Payment to a Participant’s
      Estate

              	
                10

              
	 
      	 
      	 
      
	
                IX.

              	
                MISCELLANEOUS

              	
                10

              
	 
      	 
      	 
      
	 
      	
                Section 9.1.   Unfunded Plan

              	
                10

              
	 
      	
                Section 9.2.   Withholding

              	
                10

              
	 
      	
                Section 9.3.   Costs of the
      Plan

              	
                10

              
	 
      	
                Section 9.4.   Nontransferability

              	
                10

              
	 
      	
                Section 9.5.   Successors

              	
                11

              
	 
      	
                Section 9.6.   Address of Participant or
      Beneficiary

              	
                11

              
	 
      	
                Section 9.7.   Applicable Law

              	
                11

              
	 	Section
      9.8    Amendment 	11
	 	Section
      9.9    Termination 	11
	 
      	 
      	 
      
	
                X.

              	
                CLAIMS
      PROCEDURE

              	
                12

              
	 
      	 
      	 
      
	 
      	
                Section 10.1.   Claim

              	
                12

              
	 
      	
                Section 10.2.   Denial of Claim

              	
                12

              
	 
      	
                Section 10.3.   Review of Claim Denial

              	
                12

              
	 
      	
                Section 10.4.   Final Decision

              	
                13

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        MIDAMERICAN
ENERGY COMPANY

        FIRST
AMENDED AND RESTATED

        SUPPLEMENTAL
RETIREMENT PLAN FOR DESIGNATED OFFICERS

         

        
          	
                   I.

                	
                  ESTABLISHMENT

                

        

         

        MidAmerican
Energy Company, an Iowa corporation (the “Company”), and a wholly owned
subsidiary of MidAmerican Energy Holdings Company (“Holdings”), hereby adopts
the Company’s First Amended and Restated Supplemental Retirement Plan for
Designated Officers (the “Plan”), amended and restated effective as of January
1, 2005.  The Plan is an amendment and restatement of the Supplemental
Retirement Plan for Designated Officers, which was adopted on January 1, 1996,
as previously amended and restated as of May 10, 1999.

         

        This
Plan, as amended and restated, shall apply only to Plan Participants who have
accrued a vested benefit under the Plan after December 31, 2004.  As
to those Participants, their entire vested benefit under the Plan shall be
governed by the terms of the Plan as amended and restated herein.  All
other Participants (those who have not accrued a vested benefit after December
31, 2004) shall have their benefits and rights under the Plan governed by the
terms of the Plan as in effect on December 31, 2004.

         

        The Plan,
as amended and restated, is intended to comply with the provisions of Section
409A of the Internal Revenue Code, as amended, and Applicable
Guidance.  As used in this Plan, the term “Applicable Guidance” means
Treasury Regulations issued pursuant to Section 409A of the Internal Revenue
Code, or other written Treasury or IRS guidance regarding Section 409A,
including IRS Notice 2005-1.  In the event of Applicable Guidance that
is contrary to any Plan provision, the Company, as of the effective date of the
Applicable Guidance, will operate the Plan in conformance therewith and will
disregard any inconsistent Plan provision. Any such Applicable Guidance is
deemed to be incorporated by reference into the Plan and to supersede any
contrary provision during any period in which the Company is permitted to comply
operationally with the Applicable Guidance and before a formal Plan amendment is
required.

         

        
          	
                   II.

                	
                  PURPOSE

                

        

         

        The
purpose of the Plan is to enable the Company, Holdings and their Subsidiaries to
attract, retain, and motivate persons of outstanding competence, and to provide
appropriate supplemental retirement and survivor benefits to Designated Officers
of the Company, Holdings and their Subsidiaries.

         

        
          	
                   III.

                	
                  CONSTRUCTION

                

        

         

        Section 3.1.  Definitions.  Whenever
used herein, the following terms shall have the respective meanings set forth
below:

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                   
      

                	
                  (a)

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

                
	 	 	 
	 	(b)	
                  “Cause”
      means, unless otherwise defined in a Participant’s employment agreement, a
      Participant’s discharge from the employment of the Company, Holdings or
      any Subsidiary because such Participant willfully engages in conduct, or
      lack thereof, that is demonstrably and materially injurious to the
      Company, Holdings or any Subsidiary or their business reputation or
      financial structure.  Determination of “Cause” shall be made by
      the Committee in the exercise of good faith and reasonable
      judgment.

                

        

         

        
        

        
          	
                   
      

                	
                  (c)

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

                

        

         

        
          	
                   
      

                	
                  (d)

                	
                  “Committee”
      means an Administrative Committee comprised of Company employees selected
      by the President of the Company and approved by the Board to administer
      the Plan pursuant to Article IV
herein.

                

        

         

        
          	
                   
      

                	
                  (e)

                	
                  “Company”
      means MidAmerican Energy Company. With respect to the obligation to make
      payments to any Participant under the Plan, Company shall mean the company
      who employs the Participant.  For purposes of determining
      whether there has been a Separation from Service with the Company, Company
      means all entities with whom the Company would be considered a single
      employer under Code Sections 414 (b) and
(c).

                

        

         

        
          	
                   
      

                	
                  (f)

                	
                  “Designated
      Officer” means an officer of the Company, Holdings or any Subsidiary who
      has been approved by the Board or the Committee, as applicable, to
      participate in the Plan.

                

        

         

        
          	
                   
      

                	
                  (g)

                	
                  “Disability”
      means a condition of any medically determinable physical or mental
      impairment which can be expected to result in death or can be expected to
      last for a continuous period of not less than 12 months and the Executive
      (i) is unable to engage in any substantial gainful activity or (ii) has
      been receiving income replacement benefits for a period of not less than 3
      months under a group long term disability insurance policy covering
      employees of the Company.  Such Disability shall be determined
      by the Committee in the exercise of good faith and reasonable judgment in
      reliance on competent medical advice from one or more qualified
      individuals selected by the
Committee.

                

        

         

        
          	
                   
      

                	
                  (h)

                	
                  “Disability
      Benefit” means, for such Participant, the Normal Retirement Supplemental
      Benefit or Early Retirement Supplemental Benefit, computed as though the
      Participant incurred a Separation from Service on the date he or she
      reaches age 55 or, if the Participant has already reached age 55, on the
      date of Disability.

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  “Early
      Retirement Total Benefit” means a Normal Retirement Total Benefit reducing
      the 65% in the formula in Section 3.l(q) at the rate of one percentage
      point for each full and one percentage point for each fraction of a year
      that, on the Participants Early Retirement Date, such Participant’s age is
      less than sixty-five (65) years (i.e., 60% at
      age 60, 55% at age 55).

                

        

         

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        
          	
                   
      

                	
                  (j)

                	
                  “Early
      Retirement” means, for each Participant, the commencement of benefits
      after Separation from Service of such Participant other than because of
      death or Cause, but prior to such Participant reaching Normal Retirement
      Age.

                

        

         

        
          	
                   
      

                	
                  (k)

                	
                  “Early
      Retirement Date” means the first day of the month following the later of
      (a) Participant’s attainment of age fifty-five (55) or (b) Participant’s
      date of Separation from Service prior to reaching Normal Retirement
      Age.

                

        

         

        
          	
                   
      

                	
                  (l)

                	
                  “Early
      Retirement Supplemental Benefit” (see subsection (p)
    below).

                

        

         

        
          	
                   
      

                	
                  (m)

                	
                  “Effective
      Date” means January 1, 1996. The Effective Date for the Plan as amended
      and restated herein means January 1,
2005.

                

        

         

        
          	
                   
      

                	
                  (n)

                	
                  “ERISA”
      means the Employee Retirement Income Security Act of 1974, as amended from
      time to time, or any successor
thereto.

                

        

         

        
          	
                   
      

                	
                  (o)

                	
                  “Normal
      Retirement Total Benefit” means the annual benefit provided under the Plan
      on a Participant’s Normal Retirement Date, in the amount of sixty-five
      percent (65%) of such Participant’s Total Cash Compensation in effect
      immediately prior to such Participant’s Separation from Service, times a
      fraction, the numerator being the number of years (including fractions of
      a year) of participation in this Plan (or participation in a similar
      supplemental retirement plan of a Predecessor Company) as of the date of
      Separation from Service, and the denominator being the number of years of
      participation if the Participant had remained employed to age 55 (the
      factor shall not exceed 1.0). The Board or the Committee, as applicable,
      shall have the authority to grant the crediting of service with a former
      employer of a Participant in the calculation of such Participant’s number
      of years of participation in the Plan or to provide other credit for
      service on a case by case basis.

                

        

         

        
          	
                   
      

                	
                  (p)

                	
                  “Normal
      Retirement Supplemental Benefit” and “Early Retirement Supplemental
      Benefit”, respectively, mean the Normal Retirement Total Benefit or Early
      Retirement Total Benefit, as applicable, reduced by the sum
      of:

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  the
      annual benefits provided to such Participant under a Tax Qualified Pension
      Plan (determined as if the Participant elected a joint and
      2/3  survivor benefit under such plan and beginning on the same
      date that payments begin under this
Plan);

                

        

         

        
          	
                   
      

                	
                  (ii)

                	
                  benefits
      under Iowa-Illinois Gas and Electric Company Supplemental Retirement Plan,
      the Iowa Resources Inc. and Subsidiaries Supplemental Retirement Income
      Plan and the Midwest Resources Supplemental Retirement Plan, after
      converting such benefits to an actuarially equivalent amount, as
      determined by the Committee in the exercise of good faith and reasonable
      judgment; and

                

        

         

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        
          	
                   
      

                	
                  (iii)

                	
                  tax
      qualified defined benefit pension type retirement plan benefits payable to
      such Participant by other employers of such Participant if service with
      such other employers is credited as service under the Tax Qualified
      Pension Plan, after converting such benefits to an actuarially equivalent
      amount, as determined by the Committee in the exercise of good faith and
      reasonable judgment;

                

        

         

        provided,
however, that unless otherwise provided in a Participant’s employment agreement,
a Participant’s Normal Retirement Supplemental Benefit and Early Retirement
Supplemental Benefit may not exceed $1 million per year.  An Early
Retirement Supplemental Benefit will not be available to any Participant whose
Separation from Service occurs prior to being credited with five (5) Years of
Service unless otherwise provided in a Participant’s employment
agreement.

         

        
          	
                   
      

                	
                  (q)

                	
                  “Normal
      Retirement Age” means, for each Participant, the attainment of age
      sixty-five (65) years.

                

        

         

        
          	
                   
      

                	
                  (r)

                	
                  “Normal
      Retirement Date” means the first day of the month following the month in
      which a Participant reaches Normal Retirement
  Age.

                

        

         

        
          	
                   
      

                	
                  (s)

                	
                  “Participant”
      means a Designated Officer of the Company, Holdings or any Subsidiary who
      has been approved by the Board or the Committee, as applicable, to
      participate in the Plan, and any retired individual who has a vested
      accrued benefit under the Plan as specified in Article
  V.

                

        

         

        
          	
                   
      

                	
                  (t)

                	
                  “Plan
      Year” means the calendar year beginning January 1 and ending
      December 31.

                

        

         

        
          	
                   
      

                	
                  (u)

                	
                  “Predecessor
      Company” means CalEnergy Company, Inc., Midwest Resources Inc.,
      Iowa-Illinois Gas and Electric Company, Midwest Energy Company, Iowa
      Resources Inc., any subsidiaries of any of these companies and any member
      of the same controlled group of corporations of any of these
      companies.

                

        

         

        
          	
                   
      

                	
                  (v)

                	
                  “Rabbi
      Trust” means a grantor trust, within the meaning of Sections 671-678 of
      the Code, established by the Company for the benefit of the Participants,
      both active and retired, and the Participants’ designated beneficiaries,
      as specified in Article VIII.

                

        

         

        
          	
                   
      

                	
                  (w)

                	
                  “Separation
      from Service” means the termination of a Participant’s employment with the
      Company for any reason, or as otherwise defined in Applicable
      Guidance.

                

        

         

        

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        
          	
                   
      

                	
                  (x)

                	
                  “Spouse”
      means a husband or wife as licensed in marriage by the
    state.

                

        

         

        
          	
                   
      

                	
                  (y)

                	
                  “Subsidiary”
      means a company as to which Holdings or the Company directly or indirectly
      holds securities representing at least 50% of the total voting power of
      all voting securities.

                

        

         

        
          	
                   
      

                	
                  (z)

                	
                  “Survivor’s
      Benefit” means the benefit payable to a Participant’s surviving Spouse,
      designated beneficiary or estate under the Plan as specified in Section
      6.6 in the event of such Participant’s
death.

                

        

         

        
          	
                   
      

                	
                  (aa)

                	
                  “Tax
      Qualified Pension Plan” shall mean the tax qualified defined benefit plan,
      cash balance plan and money purchase pension plan, if any, maintained by
      the Company, Holdings or any Subsidiary, but shall not include any profit
      sharing plans, employee stock ownership plans or qualified salary
      reduction or cash or deferred plan.

                
	 	 	 
	 	(bb)	 “Total
      Cash Compensation” means (i) the highest amount payable to a Participant
      by the Company, Holdings or any Subsidiary (or a Predecessor Company) as
      monthly base salary during the five years immediately prior to termination
      of services (including the year in which termination occurs) multiplied by
      twelve, plus (ii) the average of the Participant’s Awards during the most
      recent three year period under the Company’s Key Employee Annual Incentive
      Plan or its successor plan(s), or bonus awards under a similar annual
      incentive bonus program for executives of Holdings, a Subsidiary or a
      Predecessor Company, plus (iii) the prior three-year average annual amount
      of any other special, additional or non-recurring bonus awards or other
      compensation, but only if such awards or compensation are (A) required to
      be included in Total Cash Compensation under a Participant’s employment
      agreement or (B) approved by the Committee for inclusion in Total Cash
      Compensation as set forth in written notice to a
      Participant.  Monthly base salary shall include amounts deferred
      under any § 401(k) plans, § 125 cafeteria plans, nonqualified
      deferred compensation plans or similar arrangements.  If less
      than three years of bonus awards have been made for the Participation
      during the most recent three year period prior to termination of
      employment, the average of the number of bonus awards actually made during
      such three year period shall be used.

        

         

        
          	
                   
      

                	
                  (cc)

                	
                  “Year
      of Service” or “Years of Service” means each full twelve months of service
      with the Company, Holdings, a Subsidiary or a Predecessor
      Company.

                

        

         

        Section
3.2.  Gender and
Number.  Except when otherwise indicated by the context, any
masculine term used herein also shall include the feminine; the plural shall
include the singular; and the singular shall include the plural.

         

        Section
3.3.  Severability.  In
the event any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of the
Plan; and the Plan shall be construed and enforced as if the illegal or invalid
provision had not been included.

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          	
                  IV.

                	
                  ADMINISTRATION

                

        

         

        Section 4.1.  The
Committee.  The Plan shall be administered by the Committee
which shall be selected by the Board, and unless the Board otherwise directs in
writing, the Committee shall possess, in addition to any powers specifically
vested in the Committee, any or all of the powers vested in the Board
hereunder.  The Committee may delegate the responsibility of
performing ministerial acts to such administrative agents as it deems advisable
or desirable to carry out the purpose of the Plan.

         

        Section 4.2.  Authority of the
Committee.  The Committee shall have the power to construe and
interpret the Plan and any agreement or instrument entered into hereunder,
to prescribe, amend, or waive rules and regulations for the Plan’s
administration; and to make any other determination which may be necessary or
advisable for the Plan’s administration.  The Committee may correct
any defect or supply any omission or reconcile any inconsistency in the Plan in
the manner and to the extent reasonable to effect its purpose.  The
Committee shall have full discretion to administer the Plan as it sees
fit.  All decisions of the Committee shall be final and binding absent
manifest error.

         

        The
Company may elect to insure the lives of Participants; in such case,
Participants must agree to undergo physical examinations and otherwise cooperate
in obtaining such insurance as a condition precedent to participation in the
Plan.  Any such life insurance policies shall be owned by and be
considered a general asset of the Company.  Subject to Section 7.2, no
Participant or beneficiary shall have any rights to or interest in or shall be
entitled to any benefits under such policies.

         

        Section 4.3.  Decisions
Binding.  All determinations and decisions made by the
Committee pursuant to the provisions of the Plan, and all related orders or
resolutions of the Board shall be final, conclusive, and binding on all persons,
including the Company, its shareholders, employees, the Participants and their
estates and designated beneficiaries.

         

        The Board
or the Committee, as applicable, shall have the full power to amend or terminate
the Plan at any time; provided that no such amendment or termination shall
adversely affect the vested or accrued rights of any Participant under the Plan
without such Participant’s written consent.

         

        Section 4.4.  Terms of
Participation.  The Board or Committee, as applicable, may
establish terms of participation in the Plan for any Participant which may
differ from the specific terms of the Plan and which may be more favorable than
the terms applicable to Participants generally.  Without limitation,
the Board or the Committee, as applicable, may establish a minimum annual
benefit or death benefit for any Participant, on a case-by-case basis, which
annual benefit or death benefit may be greater than the annual benefit or death
benefit to which such Participant would otherwise be entitled under the benefit
formulas set forth in the Plan. However, any such additional terms may not
violate the provisions of Section 409A of the Internal Revenue Code or
Applicable Guidance.

         

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

         

        
          	
                   V.       

                	
                  ELIGIBILITY
      AND PARTICIPATION

                

        

         

        Section 5.1.  Participation.  Upon
approval by the Board or the Committee, as applicable, Designated Officers
shall  become Participants under the Plan as of the date specified by
the Board or the Committee.  Retired individuals who have a vested
accrued benefit under the Plan will also be considered to be
Participants.

         

        Section 5.2.  No Employment
Guarantee.  Neither this Plan nor any action taken hereunder
shall be construed as giving a Participant the right to be retained as an
employee of the Company, Holdings or any Subsidiary for any period.

         

        
          	
                   VI.

                	
                  BENEFITS

                

        

         

        Section
6.1.  Benefits Upon Normal
Retirement.  Upon a Participant’s Separation from Service on or
after reaching Normal Retirement Age, the Company shall pay to such Participant,
as compensation for services rendered prior to such date, his or her Normal
Retirement Supplemental Benefit in equal monthly installments commencing on the
Normal Retirement Date, or, if later, the first day of the month then following
Separation from Service, and continuing on the first day of each month
thereafter during the lifetime of such Participant.

         

        Section 6.2.  Benefits Upon
Early Retirement.  Upon a Participant’s Separation from Service
before reaching Normal Retirement Age, the Company shall pay to the Participant,
as compensation for services rendered prior to such date, his or her Early
Retirement Supplemental Benefit in equal monthly installments commencing on the
Participant’s Early Retirement Date, and, in all cases, continuing on the first
day of each month thereafter during the lifetime of such
Participant.

         

        Section 6.3.  Benefits Upon
Disability.  Upon a Participant’s Disability prior to reaching
Normal Retirement Age, the Company shall begin payment to the Participant on the
later of (a) the first day of the month following Disability or (b) the first
day of the month following the Participant’s attainment of age 55, as
compensation for services rendered prior to such date, his or her Disability
Benefit in equal monthly installments and continuing on the first day of each
month thereafter during the lifetime of such Participant.

         

        Section 6.4.  Benefits Upon
Death.  Upon a Participant’s death, the Company shall pay to
such Participant’s designated beneficiary or estate, as appropriate, the
following Survivor’s Benefit:

         

        
          	
                   
      

                	
                  (a)

                	
                  Death Prior to
      Commencement of Benefits.  If a Participant dies prior to
      commencement of the payment of any benefit hereunder, the Company shall
      pay to such Participant’s designated beneficiary or estate a Survivor’s
      Benefit equal to the Normal Retirement Supplemental Benefit (without
      application of the percentage reduction based upon years of participation
      prior to age 55) in one hundred eighty (180) equal monthly installments
      commencing on the first date of the month following such date of death and
      receipt of a death certificate by the Company, and continuing on the first
      day of each month thereafter until the one hundred eighty (180) payments
      have been made.

                

        

         

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        
          	
                   
      

                	
                  (b)

                	
                  Death After
      Commencement of Benefits.  If a Participant dies after
      commencement of the payment of any benefit hereunder, the Company shall
      pay to the Participant’s surviving Spouse a Survivor’s Benefit commencing
      on the first day of the month following such date of death and receipt of
      a death certificate by the Company and continuing on the first day of each
      month thereafter for the remaining lifetime of the surviving
      Spouse.  The Survivor’s Benefit means a benefit equal to
      two-thirds of the Normal Retirement Supplemental Benefit, Early Retirement
      Supplemental Benefit or Disability Benefit, as applicable, that the
      Participant was receiving immediately prior to death, except that the
      actuarial value of the total Survivor’s Benefit (and present valued back
      to the time benefits commenced) shall be limited to fifty percent (50%) of
      the total benefit based upon the actuarial value of such total benefit at
      the time benefits commenced.  Both calculations shall use the
      same actuarial assumptions in effect under the MidAmerican Energy Company
      Retirement Plan (or subsequent replacement plan) at the time benefits
      commenced.

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  Payment
      by the Company of the benefit in Section 6.4(a) or (b) shall relieve the
      Company of the obligation to pay a Normal Retirement Supplemental Benefit,
      an Early Retirement Supplemental Benefit, a Disability Benefit, or any
      other benefit which the Participant might have otherwise received under
      the Plan.

                

        

         

        
          	
                   
      

                	
                  (d)

                	
                  In
      the event a Participant dies without a surviving Spouse, after
      commencement of the payment of any benefits hereunder, the Company shall
      pay to such Participant’s designated beneficiary or estate a Survivor’s
      Benefit equal to the Normal Retirement Supplemental Benefit, Early
      Retirement Supplemental Benefit or Disability Benefit, as applicable, that
      the Participant was receiving immediately prior to death such that a total
      of one hundred eighty (180) equal monthly installments is paid to the
      Participant and such Participant’s designated beneficiary or
      estate.  The Survivor’s Benefit portion shall commence on the
      first day of the month following such date of death and receipt of a death
      certificate by the Company, and continue on the first day of each month
      thereafter until a total of one hundred eighty (180) payments have been
      made.

                

        

         

        Section 6.5.  Forfeiture Upon
Termination for Cause.  Unless otherwise provided in a
Participant’s employment agreement or otherwise provided by the Committee in
writing to a Participant, upon a Participant’s Separation from Service for
Cause, such Participant shall immediately forfeit all rights and benefits
provided under the Plan, and the Company shall have no further obligation to
such Participant under the Plan.

         

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        Section 6.6.  General Payout
Restrictions.  No benefits shall be paid under this Plan prior
to the actual Separation from Service of a Participant.

         

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

        

        Section
6.8.   Distribution to Specified Employees.
Notwithstanding anything to the contrary in the Plan or in a Participant payment
election, the Plan may not distribute to a Specified Employee, based on
Separation from Service, earlier than 6 months following Separation from Service
(or if earlier, upon the Specified Employee’s death).  A “Specified
Employee” means a Participant who is described in Section 416(i) of the Internal
Revenue Code, disregarding paragraph (5) thereof.  However, a
Participant is not a Specified Employee unless any stock of the Company (or of a
member of the same group of controlled entities as Company) is publicly traded
on an established securities market or otherwise.

        

        Section
6.9.  General Release.  Unless otherwise provided in
a Participant’s employment agreement, the Committee in its discretion may
require a Participant to execute a general release of claims, in such form as
the Company may prescribe, as a condition to the payment of benefits
hereunder.

         

        
          	
                   VII.

                	
                  INDIVIDUAL
      ACCOUNTS AND THE RABBI TRUST

                

        

         

        Section 7.1.  Establishment of a Rabbi
Trust.  After the Effective Date, the Company shall be
authorized, but shall not be required, to establish a revocable Rabbi Trust for
the benefit of the Participants, both active and retired.  Any such
Rabbi Trust shall have an independent trustee, selected by the Company, and, it
shall contain restrictions on the Company’s ability to amend or terminate any of
the terms thereof after the Rabbi Trust shall become irrevocable as provided in
Section 7.2.

         

        All
assets held in the Rabbi Trust (while revocable or irrevocable) shall at all
times be specifically subject to the claims of the Company’s general creditors
in the event of bankruptcy or insolvency; such terms shall be specifically
defined within the provisions of the Rabbi Trust, along with a required
procedure for notifying the Trustee of any such bankruptcy or
insolvency.

         

        Section
7.2.  Payment of Benefits from the Trust.  The
Company shall be primarily obligated to pay all benefits of Participants under
the Plan, whether the Rabbi Trust is revocable or irrevocable at the
time.  In the event the Company fails to fulfill any such obligation
hereunder in a timely manner, the Trustee shall be empowered, under the terms of
the Rabbi Trust, to either cash in any related life insurance policies or to
borrow against the policies, to the extent necessary to pay past due benefits
directly from the Trust.

         

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        
          	
                   VIII.

                	
                  BENEFICIARY
      DESIGNATION

                

        

         

        Section 8.1.  Designation of
Beneficiary.  Each Participant shall be entitled to designate
one or more beneficiaries by filing a signed, written notice of such designation
with the Committee, in a form as the Committee may prescribe.  A
Participant may revoke or modify a beneficiary designation at any time by filing
a new beneficiary designation form with the Committee.

         

        Section 8.2. Payment to a Participant’s
Estate.  A Participant’s beneficiary designation shall be
deemed automatically revoked in the event all designated beneficiaries
predecease such Participant or, if the sole beneficiary is such Participant’s
Spouse, in the event of dissolution of marriage.  In such event, or in
the event a Participant does not designate a beneficiary, the benefits under
Sections 6.5(a) and 6.5(d) shall be paid to such Participant’s
estate.

         

        
          	
                   IX.

                	
                  MISCELLANEOUS

                

        

         

        Section 9.1.  Unfunded
Plan.  This Plan is intended to be an unfunded plan maintained
primarily to provide benefits to a “select group of management or highly
compensated employees” within the meaning of Sections 201, 301, and 401 of ERISA
and, therefore, is further intended to be exempt from the provisions of Parts 2,
3, and 4 of Title I of ERISA.  Accordingly, the Committee may
terminate the Plan for any or all Participants in order to achieve and maintain
this intended result, provided that previously accrued benefits hereunder shall
not be reduced or otherwise adversely affected without the written consent of
the affected Participants.

         

        Section 9.2.  Withholding.  The
Company shall have the right to require Participants to remit to the Company an
amount sufficient to satisfy Federal, state, and local tax withholding
requirements, or to deduct from any or all payments made pursuant to the Plan
amounts sufficient to satisfy such tax withholding requirements.  In
the event any FICA, FUTA, Social Security, Medicare or any similar taxes become
due on benefits (or the value of such benefits) accrued under this Plan at any
time prior to the actual payment of benefits under this Plan, the Company shall
be authorized to withhold from the regular salary of such Participant the amount
of any such tax payable by the Participant.  Withholding shall take
place during the same calendar year in which the taxes on such benefits become
due, or at such time as may be required by Internal Revenue Service
regulations.

         

        Section 9.3.  Costs of the
Plan.  All costs of implementing and administering the Plan
shall be borne by the Company.

         

        Section 9.4.  Nontransferability.  Neither
the Participants nor any designated beneficiary shall have the right to sell,
assign, transfer, or otherwise convey the right to receive any payment
hereunder; nor shall any such payment be subject to attachment, garnishment,
levy, pledge, bankruptcy, or any other manner or kind of execution in connection
with any claim against the Participants or any designated beneficiary
thereof.

         

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

        Section 9.5.  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, consolidation, or reorganization
involving the Company or the purchase or other acquisition of all or
substantially all of the business and/or assets of the Company.

         

        Section 9.6.  Address of
Participant or Beneficiary.  Each Participant shall keep the
Company apprised of his or her current address and that of any designated
beneficiary during his or her participation in the Plan.  Upon the
death of a Participant, any beneficiaries entitled to receive benefit payment
under the Plan shall keep the Company apprised of their current address until
the entire amount to be distributed has been paid.

         

        Section 9.7.  Applicable
Law.  To the extent not preempted by Federal law, the Plan
shall be governed by and construed in accordance with the laws of the state of
Iowa.

         

        Section 9.8. 
Amendment.  The Company reserves the right to amend the Plan at
any time to comply with Code §409A and Applicable Guidance or for any other
purpose, provided that such amendment will not result in taxation to any
Participant under Code §409A.  Except as the Plan and Applicable
Guidance otherwise may require, the Company may make any such amendments
effective immediately.

         

        Section
9.9.  Termination.   The Company, by action of
the Board, may terminate, but is not required to terminate, the Plan and
distribute Plan Accounts under the following circumstances:

         

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

        

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

        

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

         

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        (d)  Applicable
Guidance.  The Company may terminate the Plan under such other
circumstances as Applicable Guidance may permit.

         

        
          	
                  X.     

                	
                  CLAIMS
      PROCEDURE

                

        

         

        Section
10.1.  Claim. Any person or entity claiming a benefit,
requesting an interpretation or ruling under the Plan (hereinafter referred to
as “Claimant”) shall present the request in writing to the Chairman & CEO
and the President of MidAmerican Energy Holdings Company (“Chairman & CEO
and President”), who shall respond in writing as soon as practical. The decision
shall be in writing and shall state the reasons and the relevant Plan
provisions. All decisions on review shall be final and bind all parties
concerned.

         

        Section
10.2.  Denial of Claim. If the claim or request is denied, the
written notice of denial shall state:

         

        
          	
                  a)  

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

                

        

         

        
          	
                  b)  

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

                

        

         

        
          	
                  c)  

                	
                  An
      explanation of the Plan’s claim review
  procedure.

                

        

         

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

         

        If the
claim is made by the President of MidAmerican Energy Holdings Company, the claim
or appeal of the claim shall be reviewed by the Chairman & CEO of
MidAmerican Energy Holdings Company.  If the claim is made by the
Chairman & CEO of MidAmerican Energy Holdings Company, the claim or review
of the claim shall be reviewed by the Compensation Committee of MidAmerican
Energy Holdings Company.

         

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

        Section
10.4.  Final Decision. The decision on review shall normally be
made within sixty (60) days after receipt of Claimant’s claim or request. If an
extension of time is required for a hearing or other special circumstances, the
Claimant shall be notified and the time limit shall be one hundred twenty (120)
days.

         

         

        

         

         

        Executed
this 25th day of February, 2008

         

         

        
        

         

        
          	 	MIDAMERICAN ENERGY
      COMPANY	 	 
	 	 	 	 
	
                   

                	By:  /s/  Paul J.
      Leighton	 	 
	 	Paul J.
      Leighton	 	 
	 	Vice
    President	 	 

        

         

        13exh10-11.htm

    
      

      

    

    EXHIBIT
10.11

    
 

    MidAmerican
Energy Holdings Company

    

    

    LONG-TERM
INCENTIVE PARTNERSHIP PLAN

    

    As
Amended and Restated January 1, 2007

    

    PLAN
DOCUMENT

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    MIDAMERICAN
ENERGY HOLDINGS COMPANY

    

    LONG-TERM
INCENTIVE PARTNERSHIP PLAN

    

    

     

    ARTICLE I
– PURPOSE AND
EFFECTIVE DATE

     

     

    
      	
              1.1   
       

            	
              Purpose. The
      purpose of this Long-Term Incentive Partnership Plan (the “Plan”) is to
      permit a select group of management employees of MidAmerican Energy
      Holdings Company and its subsidiaries to share in significant increases in
      the value of the Company realized through the efforts of these
      individuals. It is intended that the Plan, by providing this award and
      deferral opportunity (U.S. only), will assist the Company in retaining and
      attracting individuals of exceptional ability and will act as an incentive
      to align their interests with those of the Company.  For
      purposes of Internal Revenue Code Section 409A, Incentive Accounts are
      considered to be part of a nonelective account balance plan type and
      Deferral Accounts are considered to be part of an elective account balance
      plan type.

            

    

     

    
      	
                  
       1.2    

            	
              Effective Date.
      The Plan was effective as of March 14, 2000, was subsequently restated as
      of January 1, 2003 and again restated as of January 1, 2004, with the
      current restated Plan effective January 1, 2007, (See Section 13.2 for
      good faith compliance as to 409A Amounts during 2005, 2006, 2007 and
      2008). 

            

    

     

    ARTICLE
II – DEFINITIONS

     

    For the
purpose of the Plan, the following terms shall have the meanings indicated,
unless the context clearly indicates otherwise:

     

    
      	
              2.1   
       

            	
              Base Salary.
      “Base Salary” means the annual base salary rate payable to a Participant
      effective January 1 of the calendar year for a particular Award Year. For
      purposes of the Plan, Base Salary shall be calculated before reduction for
      any amounts deferred by the Participant pursuant to the Company’s tax
      qualified plans which may be maintained under Section 401(k) or Section
      125 of the Internal Revenue Code of 1986, as amended (the “Code”), or
      pursuant to the MidAmerican Energy Holdings Company Executive Voluntary
      Deferred Compensation Plan or any other non-qualified plan which permits
      the voluntary deferral of compensation. Inclusion of any forms of
      compensation other than such “wages” and deferred “wages” is subject to
      approval of the Chairman & CEO and the
  President.

            

    

     

    
      	
              2.2   
       

            	
              Beneficiary.
      “Beneficiary” means the person, persons or entity, as designated by the
      Participant, entitled under Article VIII to receive any Plan benefits
      payable after the Participant’s
death.

            

    

     

    
      	
              2.3   
       

            	
              Board. “Board”
      means the Board of Directors of the Company or any duly authorized
      committee.

            

    

     

    
      	
              2.4   
       

            	
              Company.
      “Company” means MidAmerican Energy Holdings Company, a Des Moines Iowa
      based corporation, and any directly or indirectly affiliated subsidiary
      corporations, any other affiliate designated by the Board, or any
      predecessor or successor to the business of any
      thereof.  However, with respect to all matters involving
      administration of the Plan, including the authority to amend and terminate
      the Plan, Company shall mean MidAmerican Energy Holdings
      Company.  With respect to the obligation to make payments to any
      Participant under the Plan, Company shall mean MidAmerican Energy Holdings
      Company and the Company who employs the Participant, but not any other
      Company.  For purposes of determining whether there has been a
      Separation from Service with the Company, Company means all entities with
      whom the Company would be considered a single employer under Code Sections
      414 (b) and (c).

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              2.5   
       

            	
              Determination
      Date. “Determination Date” means the last business day of each
      month.

            

    

     

    
      	
              2.6   
       

            	
              Disability.
      “Disability” means a condition of a Participant who by reason of any
      medically determinable physical or mental impairment which can be expected
      to result in death or can be expected to last for a continuous period of
      not less than 12 months: (i) is unable to engage in any substantial
      gainful activity; or (ii) is receiving income replacement benefits for a
      period of not less than 3 months under a long term disability plan
      covering employees of the Company.

            

    

     

    
      	
              2.7   
       

            	
              Incentive
      Account(s). “Incentive Account(s)” means the account or accounts
      maintained on the books of the Company with respect to each Incentive
      Award and used solely to calculate the amount which may be payable to each
      Participant under the Plan and shall not constitute a separate fund of
      assets. Participants may have more than one Incentive Account maintained
      on their behalf.

            

    

     

    
      	
              2.8   
       

            	
              Incentive
      Award(s). “Incentive Award(s)” means the award determined and
      allocated under the terms of the Plan. Each Incentive Award(s) shall be
      designated by the year to which the award relates (the “Award Year”) even
      though the value of the award may be determined and credited to a
      Participant’s Incentive Account in a subsequent year. An example: The Year
      2007 Incentive Award may relate to the performance of the Company over the
      calendar year 2007 (the Award Year), even though the Incentive Award will
      only be determinable in 2008.

            

    

     

    
      	
              2.9  
        

            	
              Interest.
      “Interest” means the amount credited to each Participant’s Incentive
      Account(s) on each Determination Date.  Prior to the start of
      each calendar year, the Chief Financial Officer of the Company shall
      select a range of asset allocation models from the Valuation
      Funds.  Participants shall then vote on which asset allocation
      model shall be used for crediting Interest for the calendar year for all
      Incentive Accounts of all Participants.  Such credits to a
      Participant’s Incentive Account(s) may be either positive or negative to
      reflect the increase or decrease in value of the Incentive Account(s) in
      accordance with the provisions of this
Plan.

            

    

     

    
      	
              2.10    

            	
              Net Income.
      “Net Income” means the definition as applied under Generally Accepted
      Accounting Principles. The Chairman & CEO and the President may adjust
      Net Income for extraordinary and non-recurring events, when
      appropriate.

            

    

     

    
      	
              2.11 
        

            	
              Nomination
      Committee. “Nomination Committee” means a group of Participants
      appointed by the Chairman & CEO and the President each plan year for
      the purposes of recommending the Initial and Performance
      Allocations.

            

    

     

    
      	
              2.12 
        

            	
              Participant.
      “Participant” means any employee who is eligible, pursuant to Article III,
      below, to participate in this Plan, and who has been so notified by the
      Chairman & CEO and the President. Such employee shall remain a
      Participant in this Plan for any award that has been made until such time
      as all benefits payable for that specific Award Year have been paid in
      accordance with the provisions hereof. A Participant may have an Incentive
      Account(s) or a Deferred Account and not be chosen to participate in a
      subsequent Award Year. Each Participant may be referred to as either a
      “Partner” or an “Associate”.  Any such designation does not
      convey any different or additional rights or responsibilities with respect
      to a Participant and does not affect in any manner the Participant’s
      employment status with the
Employer.

            

    

     

    
      	
              2.13 
        

            	
              Plan. “Plan”
      means this Long-Term Incentive Partnership Plan as amended from time to
      time.

            

    

     

    
      	
              2.14 
        

            	
              Retirement and
      Retirement Age. “Retirement” for purposes of Section 5.3 means the
      termination of employment with the Company of the Participant after
      attaining age fifty-five (55) and five (5) years of
      service.  For all other purposes under the Plan “Retirement”
      means termination of employment with the Company after attaining age
      fifty-five (55) and “Retirement Age” means age fifty-five
      (55).

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              2.15 
        

            	
              Separation from
      Service.  “Separation from Service” or “Separates from
      Service” means a Participant’s termination of employment with the Company
      or as otherwise defined in Applicable Guidance (See Section
      7.1(a)).

            

    

     

    
      	
              2.16 
        

            	
              Valuation
      Funds. “Valuation Funds” means one or more of the independently
      established funds or indices that are identified and listed in Exhibit A.
      These Valuation Funds are used solely to calculate the Interest that is
      credited to each Incentive Account(s) in accordance with Article V, and do
      not represent, nor should they be interpreted to convey any beneficial
      interest on the part of the Participant in any specific asset or other
      property of the Company. The Chairman & CEO and the President shall
      select the various Valuation Funds available under the Plan and shall set
      forth a list of these Valuation Funds attached hereto as Exhibit A, which
      may be amended from time to time at the discretion of the Chairman &
      CEO and the President.

            

    

     

    
      	
              2.17  
       

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

            

    

     

    ARTICLE
III – ELIGIBILITY AND
PARTICIPATION

     

    
      	
              3.1  
        

            	
              Eligibility.
      Eligibility to participate in the Plan shall be limited to those select
      key employees of the Company who are designated by the Chairman & CEO
      and the President from time to time. The Chairman & CEO and the
      President of the Company shall not be Participants in the Plan. The
      Chairman & CEO and the President of the Company may designate certain
      Participants as Associate Participants to reflect their contributions to
      the success of the Company. All other Participants shall be considered
      full Participants (“Partners”).  An Associate Participant may
      later be designated as a Partner.

            

    

     

    
      	
              3.2  
        

            	
              Participation.
      An employee’s participation in the Plan for any Award Year shall be
      effective upon notification to the employee by the Chairman & CEO and
      the President.

            

    

     

    ARTICLE
IV – INCENTIVE
AWARD

     

    
      	
              4.1  
        

            	
              Annual Award.
      Prior to the beginning of each Award Year, the Chairman & CEO and the
      President shall determine whether an Incentive Award shall be available
      for such Award Year. If an Incentive Award is made available, the Chairman
      & CEO and the President will establish the award categories based upon
      Net Income target goals or such other criteria, as they deem appropriate
      for the Award Year (including, but not limited to, safety, environmental
      and risk management goals).

            

    

     

    
      	
              4.2  
        

            	
              Allocation of
      Points. The total amount of the Incentive Award (if the established
      goals are met for an Award Year) shall be allocated among the eligible
      Participants based upon a maximum of 100,000 points allocated to
      Participants in the following
manner:

            

    

     

    
      	
              a)  

            	
              Initial Point
      Allocation. The Nomination Committee shall make recommendations to
      the Chairman & CEO and the President to allocate initial points among
      participants for that year. The Chairman & CEO and the President shall
      either accept these recommendations or make adjustments that may increase,
      decrease or eliminate any initial point allocation to any individual
      Participant. Any points that are not allocated to Participants may be
      either refunded to the Company or reallocated at a later date as
      performance points at the discretion of the Chairman & CEO and the
      President.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              b)  

            	
              Performance Point
      Allocation. Within sixty (60) days prior to the end of the Award
      Year, the Nomination Committee shall make recommendations to the Chairman
      & CEO and the President to allocate all, or a portion of, the
      remaining points for the Award Year, among the eligible Participants. The
      Chairman & CEO and the President shall either accept these
      recommendations or make adjustments that may increase, decrease or
      eliminate any such remaining point allocation to any individual
      Participant. Any award that is not allocated to Participants will be
      returned to the Company as an offset to Plan expenses. The recommendation
      of the Nomination Committee and the decision of the Chairman & CEO and
      the President for allocation of points to a Participant based on
      performance shall be based on subjective performance criteria where the
      subjective performance criteria relate to the performance of the
      individual Participant, a group of Participants that includes the
      Participant, or a business unit for which the Participant provides
      services.

            

    

     

    
      	
              c)  

            	
              Value of a
      Point.  The value of a point shall be equal to the total
      Incentive Award (determined by the results of Company performance as
      applied to the goals established for the Award Year) divided by the total
      number of points awarded.

            

    

     

    
      	
              d)  

            	
              Maximum
      Allocation. Notwithstanding the above, the dollar value of the sum
      of the initial and performance point allocations made on behalf of any
      Participant for any single Award Year shall not exceed one hundred fifty
      percent (150%) of that Participant’s Base Salary for that Award Year,
      unless such limit is waived by the Chairman & CEO and the President
      with respect to a Participant.

            

    

     

    
      	
              4.3  
        

            	
              Determination of
      Annual Awards. The dollar value of any Incentive Award shall be
      determined by the Chairman & CEO and the President as soon as
      practical after the close of the Award Year, but in no event shall the
      dollar value of the Award be determined later than March 1st
      of the year following the Award
Year.

            

    

     

    
      	
              4.4  
        

            	
              Reduction of
      Awards. The Chairman & CEO and the President may, in their sole
      discretion, establish certain criteria that must be met for an Incentive
      Award to be awarded in full. These criteria may include the achievement of
      certain safety performance goals, environmental, risk management or other
      goals established by the Chairman & CEO and the President. The
      determination of whether any applicable goals have been achieved with
      respect to an Incentive Award shall be determined by the Chairman &
      CEO and the President, as of the time that the dollar value of that
      Incentive Award is determined in Section 4.3 above.  If any such
      goal is not met, the Chairman & CEO and the President may reduce the
      Incentive Award by an amount as they determine in their sole
      discretion.  In addition, with respect to an individual
      Participant, if the Chairman & CEO and the President, in their sole
      discretion, determine that the Participant has not performed at a level
      during the Award Year deemed sufficient to have contributed to the success
      of the Company, the Participant’s point allocation may be
      reduced.

            

    

     

    ARTICLE V
– INCENTIVE
ACCOUNT(S)

     

    
      	
              5.1    

            	
              Accounts. The
      Company shall maintain a separate bookkeeping account on behalf of each
      Participant in the Plan for each Incentive Award. The value of any
      Incentive Award allocated to each Participant plus any Interest earned
      thereon shall be added to such Participant’s Incentive Account for the
      applicable Award Year. Any distribution attributable to an Incentive
      Account shall reduce the Incentive Account as of the date of
      distribution.  These Incentive Accounts shall be used solely to
      calculate the amount payable to each Participant under the Plan and shall
      not constitute a separate fund of
assets.

            

    

     

    
      	
              5.2  
        

            	
              Timing of
      Credits. The value of a Participant’s share of any Incentive Award
      for an Award Year shall be credited to a Participant’s Incentive Account
      for such Award Year as of the day determined by the Chairman & CEO and
      the President, but in no event shall the date be later than March 1st
      of the year following the Award Year. Each Incentive Account shall be
      increased or decreased by the Interest credited on each Determination Date
      as though the balance of that Incentive Account as of the date the
      Incentive Award is credited to a Participant’s Incentive Account had been
      invested in the applicable Valuation Funds chosen by the Investment
      Committee. Any distributions to a Participant shall reduce the
      Participant’s Incentive Account(s) as of the date of such
      distribution.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
               
        5.3     

            	
              Vesting of
      Accounts. Each Participant shall be twenty percent (20%) Vested in
      his or her Incentive Account on December 31st
      of the Award Year and an additional twenty percent (20%) on December 31 of
      each subsequent year.  Participants must be employed on December
      31st
      to Vest for the year.  The Chairman & CEO and the President
      may accelerate Vesting (but not accelerate payment), or may establish
      criteria with respect to a Participant (in addition to the passage of
      time) before Vesting will occur with respect to any Incentive Award;
      provided, however, that any portion of an Incentive Award that has already
      Vested with the passage of time shall not be subject to any such
      additional vesting criteria, and provided further that no additional
      vesting criteria shall postpone the date of payment of the Incentive Award
      as provided under Section 6.1.  The Participant shall be
      considered to be one hundred percent (100%) Vested in the event of
      termination of service as a result of a Disability or death, and shall be
      considered to be one hundred percent (100%) Vested in the event of
      Retirement, but only with respect to Incentive Awards granted for years
      prior to 2004.

            

    

     

    
      	
              5.4  
        

            	
              Statement of
      Accounts. The Company shall give to each Participant a statement
      showing the balances in the Participant’s Incentive Account(s) no less
      frequently than on an annual basis.

            

    

     

    ARTICLE
VI – PLAN
BENEFITS

     

    
      	
              6.1    

            	
              Normal
      Benefit.
      The balance of each Participant’s Incentive Account(s) shall be
      paid as soon as administratively feasible following the end of the fourth
      year following the Award Year, but in any event no later than two and
      one-half (2 1⁄2) months following the end of such fourth year. Unless
      deferred pursuant to Section 6.3 below, such amount shall be paid in a
      lump sum.

            

    

     

    
      	
              6.2 
         

            	
              Early Termination
      Benefit. In
      the event that a Participant Separates from Service with the Company prior
      to the end of the fourth year following the end of an Award Year, the
      Participant shall receive the Vested portion of the Incentive Account(s)
      as of the most recent Determination Date preceding the date of payment,
      payable in a lump sum; provided, however, that if the Participant has a
      deferral election on file with respect to an Incentive Account pursuant to
      Article VII, and incurs a Separation from Service after reaching
      Retirement Age, payment of the Vested amount of any Incentive Account
      shall be governed by Article VII with respect to the deferral election
      made by the Participant.  If paid in a lump sum, the amount
      shall be paid as soon as administratively feasible after the Separation
      from Service, but in no event later than two and one-half (2 1⁄2) months
      following the date of Separation from Service. In addition, the provisions
      of Section 7.2(A) shall apply to distributions under this Section
      6.2.

            

    

     

    
      	
              6.3  
        

            	
              Deferred Benefit (U.S.
      only).  With respect to any Incentive Award, the
      Participant may elect, in a manner acceptable to the Company, to defer the
      receipt of all or a portion of the value of the Incentive Account due
      under this Plan by filing an election to do so within 90 (ninety) days
      after the beginning of the Award Year relating to the Incentive Award to
      be deferred (and, with respect to the 2008 and later Award Years, by
      filing an election to defer before the beginning of the Award
      Year).

            

    

     

    
      	
              a)  

            	
              The
      portion of the Incentive Account previously elected to be deferred shall
      be transferred as of the last day of the fourth year following the end of
      the Award Year to a Deferred Account (or as soon as administratively
      feasible following Separation from Service if an appropriate deferral
      election has previously been made) and shall thereafter be subject to the
      terms and conditions of Article VII herein (any portion not previously
      elected to be deferred shall be paid pursuant to the provisions of Section
      6.1 above);

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              b)  

            	
              Such
      an election shall comply with the provisions of Section 7.4(A) and shall
      only permit the deferral of benefits otherwise payable under Section 6.1
      above, and the limited circumstance set forth in Section 6.2 in the event
      of Retirement; and

            

    

     

    
      	
              c)  

            	
              Such
      an election shall completely satisfy and discharge all obligations on the
      part of the Company to the Participant (and the Participant’s Beneficiary)
      with respect to such Incentive Account, and the Participant’s (and
      Participant’s Beneficiary’s) rights under the Plan with respect to such
      Incentive Account shall terminate and shall be governed by the provisions
      of the Plan dealing with Deferred
Accounts.

            

    

     

    An
example: A Participant may elect to defer the receipt of his 2008 Incentive
Award by filing an election to do so prior to December 31, 2007. If such
election is in a form acceptable to the Company, the balance of the Vested
portion of the 2008 Incentive Account as of December 31, 2012, shall be
transferred to a Deferred Account for the Participant as of that
date.

     

    
      	
              6.4  
        

            	
              Death Benefit.
      In the event of the death of a Participant prior to payment of any
      Incentive Account(s), the Participant’s Beneficiary shall receive the
      value of the Incentive Account(s) determined as of the date of death. Such
      amounts shall be paid in a lump sum as soon as administratively feasible
      after the death of the Participant, but in no event later than two and
      one-half (2 1⁄2) months following the date of the Participant’s
      death.

            

    

     

    
      	
              6.5     

            	
              Withholding and
      Payroll Taxes. The Company that employs the Participant at the time
      of payment shall withhold from any payment made pursuant to the Plan, from
      an Incentive Account, any taxes required to be withheld from such payments
      under law. A Beneficiary, however, may elect not to have withholding of
      federal income tax pursuant to Section 3405(a)(2) of the Code, or any
      successor provision thereto (U.S. only).  If FICA/Medicare taxes
      are due with respect to all or a portion of an Incentive Account prior to
      payment from the account, the Participant shall make arrangements
      satisfactory to the Company for payment of the Participant’s share of such
      taxes, which may include withholding of such taxes from other regular pay
      of the Participant.

            

    

     

    
      	
              6.6  
        

            	
              Payment to
      Guardian. If a Plan benefit is payable to a minor, a person
      declared incompetent or a person incapable of handling the disposition of
      the property, the Company may direct payment to the guardian, legal
      representative or person having the care and custody of such minor or
      person. The Company may require proof of incompetence, incapacity or
      guardianship, as it may deem appropriate prior to distribution. Such
      distribution shall completely discharge the Company from all liability
      with respect to such benefit.

            

    

     

    
      	
              6.7  
        

            	
              Effect of
      Payment.  The full payment of the applicable benefit
      under this Article VI shall completely discharge all obligations on the
      part of the Company to the Participant (and the Participant’s Beneficiary)
      with respect to the Incentive Account(s), and the Participant’s (and
      Participant’s Beneficiary’s) rights under the Plan with respect to the
      Incentive Account(s) shall
terminate.

            

    

     

    ARTICLE
VII – DEFERRED BENEFIT

     

    
      	
              7.1  
        

            	
              Definitions.
      For the purposes of this Article VII, the following terms shall have the
      meanings indicated, unless the context clearly indicates
      otherwise.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

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

    

    b)           
“Deferred
Account” means the account established under the Plan for each
Participant who elects to defer receipt of benefits under Section
6.3.  A Deferred Account shall consist of subaccounts as selected by
the Participant, which may be a Retirement Account and an In-Service
Account.  The Deferred Account is 100% Vested.

    

    c)           
“Earnings”
means the notional earnings, gains and losses applicable to a Participant’s
Deferred Account as described in Section 7.7.

    

    d)           
“Separation From
Service” means a Participant’s termination of employment with the Company
or as otherwise defined in Applicable Guidance.

    

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

    

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

    

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

    

    
      	
              7.2  
        

            	
              Separation from
      Service or Death.  The Company will pay to the
      Participant the balance held in the Participant’s Deferred Account
      following the earlier of the Participant’s Separation from Service or
      death.  Payment will commence at the time and payment will be
      made in the form and method specified under Section 7.4.  In the
      event of the Participant’s death, the Plan will pay to the Participant’s
      Beneficiary the Participant’s Deferred Account balance or any remaining
      amount thereof if benefits to the Participant already have commenced, in
      accordance with the Participant’s
election.

            

    

    

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

    

    
      	
              7.3  
        

            	
              Other Payment
      Events.  In addition to the payment events under Section
      7.2, the Company will pay to a Participant all or any part of the
      Participant’s Deferred Account: (i) at a Specified Time or Pursuant to a
      Fixed Schedule elected by the Participant with respect to an In-Service
      subaccount; or (ii) based upon an Unforeseeable Emergency. Payment will
      commence at the time and payment will be made in the form and method
      specified under Section 7.4.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              7.4  
        

            	
              Form, Timing and
      Method/Payment Election.  All distributions will be in
      cash.  Subject to the provisions of this paragraph, a
      Participant shall make an
      initial payment election as to the method of payment under Section 7.4(A)
      and may make a change to an election under Section 7.4(B).  If
      no election to defer payment of an Award has been made by the deadline as
      set forth in Section 6.3, the timing and method of payment for an Award as
      set forth in Section 6.1, 6.2 and 6.4 shall be deemed to be the
      Participant’s initial deferral election for purposes of a change to an
      election under Section 7.4(B). Until the Company completely distributes a
      Participant’s Deferred Account, the Plan will continue to credit the
      Participant’s Deferred Account with Earnings, in accordance with Section
      7.7.  Except as provided below, a Participant may elect either a
      lump sum payment or substantially equal annual installments (not to exceed
      10) with respect to a Retirement subaccount and an In-Service
      subaccount.  If no election is made as to method, payment shall
      be made in a lump sum.  If no election is made with respect to
      an In-Service subaccount as to a specified time to begin payments, the
      date of the regularly scheduled payment for an Incentive Account shall be
      deemed to be the date to begin payments.  Distributions from a
      Retirement subaccount as a result of Separation from Service after
      Retirement Age shall be made  (or commence) in January following
      the calendar year in which Separation from Service
      occurs.  Except as provided below, payments from an In-Service
      subaccount shall commence as soon as administratively feasible following
      the date selected by the Participant.  If Separation from
      Service occurs after Retirement Age and before commencement of
      distribution from an In-Service subaccount, the In-Service subaccount
      shall be added to the Retirement subaccount and distributed
      accordingly.  Distributions from an In-Service subaccount or a
      Retirement subaccount, when a Separation from Service occurs prior to
      Retirement Age (including death prior to Retirement Age), shall be made as
      soon as administratively feasible following the date of Separation from
      Service (or death) and shall be made in a lump sum payment (except that
      payments from the remaining account balance in an In-Service subaccount,
      where payments have already commenced prior to Separation from Service,
      shall continue to be made under the schedule then in
      effect).   Payments made because of Unforeseeable Emergency
      shall be made (or commence) as soon as administratively feasible following
      such event.  In the event of death after attaining Retirement
      Age or after payments from a Deferred Account have begun, a lump sum
      payment to the Beneficiary shall be made as soon as administratively
      feasible after date of death if the Participant had previously elected a
      lump sum distribution to the Beneficiary pursuant to Section 7.4(A)
      (initial payment election) or pursuant to Section 7.4(B)(1) (change to
      payment election).  Disability shall not be treated as a
      distribution event if Separation from Service has not
      occurred.

            

    

    

    (A)              
Initial Payment
Election. A Participant, as to an In-Service subaccount shall make an
initial payment election with respect to a Specified Time and Pursuant to a
Fixed Schedule at the time of the Participant’s first deferred benefit election
into such subaccount. As to a Retirement subaccount, a Participant shall make an
initial payment election as to a method of payment (Fixed Schedule) at the time
of his or her first deferred benefit election into such subaccount (the
Specified Time being a date following Separation of Service as provided in
Section 7.4 above). A Participant shall make any permissible initial payment
election on a form the Company provides for that purpose. At the time of any
such first deferred benefit election into any subaccount in his or her Deferred
Account, a Participant may elect to have a lump sum payment made to his or her
Beneficiary in lieu of the form of payment that otherwise has been selected for
payout during the Participant’s life.

    

    (B)              
Changes to Payment
Election.  A Participant may change the Participant’s initial
payment election (or change election) as to any subaccount in his or her
Deferred Account, including any Plan default payment applicable in the absence
of an election.  Any such change election must comply with this
Section 7.4(B).  A Participant must make any change election on a form
the Company provides for such purpose.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

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

    

    (2)              
Definition of
“Payment.”  Except as otherwise provided in Section 7.4(B)(3),
a “payment” for purposes of applying Section 7.4(B)(1) is each separately
identified amount the Company is obligated to pay to a Participant on a
determinable date and includes amounts paid for the benefit of the
Participant.  An amount is “separately identified” only if the Company
can objectively determine the amount.

    

    (3)              
Installment
Payments.  As set forth in Applicable Guidance, and for
purposes of making a change to a payment election under this Section 7.4(B), a
series of installment payments will be treated as a single
payment.  For purposes of this Section 7.4(B)(3), a “series of
installment payments” means payment of a series of substantially equal periodic
amounts to be paid over a predetermined number of years, except to the extent
that any increase in the payment amounts reflects reasonable Earnings through
the date of payment.

    

    (4)              
Coordination with
Anti-Acceleration Rule.  In applying Section 7.4(C), “payment”
means as described in Sections 7.4(B)(2) and (3).  A Participant under
a change payment election may change the form of payment to a more rapid
schedule (including a change from installments to a lump-sum payment) without
violating Section 7.4(C), provided any such change remains subject to the change
payment election provisions under this Section 7.4(B).  Accordingly,
if the Participant’s payment change election modifies the payment method from
installments to a lump-sum payment, a payment change election must satisfy
Section 7.4(B)(1) measured from the first installment payment.  If a
payment change election only modifies the timing of an installment payment, the
payment change election must apply to each installment and must satisfy Section
7.4(B) measured from each installment payment.

    

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

    

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

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              7.5  
        

            	
              Withholding of Income
      Tax.  The Company that employs the Participant at the
      time of payment or employed the Participant immediately prior to a
      Separation from Service (with the Company including such payment on a Form
      W-2 issued by the Company to the Participant) will withhold from any
      payment made under the Plan from a Deferred Account and from any amount
      taxable under Code §409A, all applicable taxes, and any and all other
      amounts required to be withheld under federal, state or local law,
      including Notice 2005-1 and Applicable
Guidance.

            

    

    

    
      	
              7.6  
        

            	
              Administration of
      Payment Date(s).  The Company may shall pay a
      Participant’s Deferred Account balance on any date that is
      administratively feasible following any Plan specified payment date or
      date of any authorized distribution event or the date specified in any
      valid payment election, but in no event later than two and one-half (2 1⁄2)
      months following any such date; and provided further that the Participant
      shall not be permitted, directly or indirectly, to designate the taxable
      year of the payment.

            

    

    

    
      	
              7.7  
        

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

            

    

     

    ARTICLE
VIII – BENEFICIARY
DESIGNATION

     

    
      	
              8.1  
        

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

            

    

     

     

    
      	
              8.2  
        

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

            

    

     

     

    
      	
              8.3  
        

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

            

    

     

    
      	
              a)  

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

            

    

     

     

    
      	
              b)  

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

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

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

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

            

    

     

    
      	
              c)  

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

            

    

     

    
      	
              i)  

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

            

    

     

    
      	
              ii)  

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

            

    

     

    
      	
              8.4  
        

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

            

    

     

    
      
        	
                    

              	
                a)  The Participant’s
      surviving spouse;

              

      

    

     

    
      
        
          
            	
                        

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

                  

          

        

      

    

     

    
      
        
          	
                      

                	
                  c)  The
      Participant’s estate.

                

        

      

    

     

    
      	
              8.5  
        

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

            

    

     

    
      	
              8.6  
        

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

            

    

     

    ARTICLE
IX – ADMINISTRATION

     

    
      	
              9.1  
        

            	
              Binding Effect of
      Decisions. Subject to the rights of a Participant under the claims
      procedure set forth in Article X, the decision or action of the Chairman
      & CEO and the President with respect to any question arising out of or
      in connection with the administration, interpretation and application of
      the Plan and the rules and regulations promulgated hereunder shall be
      final, conclusive and binding upon all persons having any interest in the
      Plan.

            

    

     

    ARTICLE X
– CLAIMS
PROCEDURE

     

    
      	
              10.1    

            	
              Claim. Any
      person or entity claiming a benefit, requesting an interpretation or
      ruling under the Plan (hereinafter referred to as “Claimant”) shall
      present the request in writing to the Chairman & CEO and the
      President, who shall respond in writing as soon as practical. The decision
      shall be in writing and shall state the reasons and the relevant Plan
      provisions. All decisions on review shall be final and bind all parties
      concerned.

            

    

     

    
      	
              10.2 
        

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

            

    

     

    
      	
              a)     

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

            

    

     

    
      	
              b)     

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

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              c)
          

            	
              An
      explanation of the Plan’s claim review
  procedure.

            

    

     

    
      	
               
      10.3    

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

            

    

    
    

     

    
      	
              10.4 
        

            	
              Final Decision.
      The decision on review shall normally be made within sixty (60) days after
      receipt of Claimant’s claim or request. If an extension of time is
      required for a hearing or other special circumstances, the Claimant shall
      be notified and the time limit shall be one hundred twenty (120)
      days.

            

    

     

    ARTICLE
XI – AMENDMENT AND
TERMINATION OF PLAN

     

    
      	
              11.1  
       

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

            

    

     

    
      	
              11.2 
        

            	
              Termination.  The
      Company, by action of the Board, may terminate, but is not required to
      terminate, the Plan and distribute Plan Accounts under the following
      circumstances:

            

    

     

     

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

     

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

    

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

     

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

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XII – MISCELLANEOUS

     

    
      	
              12.1 
       

            	
              Unfunded Plan.
      To the extent the Plan is considered an “employee benefit pension plan”
      under Section 3 (2) the Employee Retirement Income Security Act of 1974,
      as amended (“ERISA”) with respect to any Participant (because some or all
      of the payments with respect to a Participant under the Plan have been
      elected by the Participant to be made from a Retirement Account), the
      Plan, as to any such Participant, is an unfunded plan maintained primarily
      to provide deferred compensation benefits for a select group of
      “management or highly-compensated employees” within the meaning of
      Sections 201, 301 and 401 of the ERISA, and therefore is exempt from the
      provisions of Parts 2, 3 and 4 of Title I of ERISA. Accordingly, the Board
      may terminate the Plan and make no further benefit payments or remove
      certain employees as Participants if it is determined by the United States
      Department of Labor, a court of competent jurisdiction, or an opinion of
      counsel that the Plan constitutes an employee pension benefit plan within
      the meaning of Section 3 (2) of ERISA (as currently in effect or hereafter
      amended) which is not so exempt.

            

    

     

    
      	
              12.2
        

            	
              Company
      Obligation. The obligation to make benefit payments to any
      Participant under the Plan shall be an obligation solely of the
      Company.

            

    

     

    
      	
              12.3
        

            	
              Unsecured General
      Creditor. Notwithstanding any other provision of the Plan,
      Participants and Participants’ Beneficiaries shall be unsecured general
      creditors, with no secured or preferential rights to any assets of the
      Company or any other party for payment of benefits under the Plan. Any
      property held by the Company for the purpose of generating the cash flow
      for benefit payments shall remain its general, unpledged and unrestricted
      assets. The Company’s obligation under the Plan shall be an unfunded and
      unsecured promise to pay money in the
future.

            

    

     

    
      	
              12.4
        

            	
              Trust Fund. The
      Company shall be responsible for the payment of all benefits provided
      under the Plan. At its discretion, the Company may establish one (1) or
      more trusts for the purpose of assisting in the payment of such benefits.
      Although such a trust shall be irrevocable, its assets shall be held for
      payment of all the Company’s general creditors in the event of insolvency.
      To the extent any benefits provided under the Plan are paid from any such
      trust, the Company shall have no further obligation to pay them. If not
      paid from the trust, such benefits shall remain the obligation of the
      Company.

            

    

     

    
      	
              12.5
        

            	
              Nonassignability.
      Neither a Participant nor any other person shall have any right to
      commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise
      encumber, transfer, hypothecate or convey in advance of actual receipt of
      the amounts, if any, payable hereunder, or any part thereof, which are,
      and all rights to which are, expressly declared to be unassignable and
      non-transferable except only pursuant to the designated Beneficiary in the
      event of death or Disability or pursuant to a legal will or the laws of
      intestate succession. No part of the amounts payable shall, prior to
      actual payment, be subject to seizure or sequestration for the payment of
      any debts, judgments, alimony or separate maintenance owed by a
      Participant or any other person, nor be transferable by operation of law
      in the event of a Participant’s or any other person’s bankruptcy or
      insolvency.

            

    

     

    
      	
              12.6
        

            	
              Not a Contract of
      Employment. The Plan shall not constitute a contract of employment
      between the Company and the Participant. Nothing in the Plan shall give a
      Participant the right to be retained in the service of the Company or to
      interfere with the right of the Company to discipline or discharge a
      Participant at any time.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
              12.7   

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

            

    

     

    
      	
              12.8
        

            	
              Governing Law.
      The provisions of the Plan shall be construed and interpreted according to
      the laws of the State of Iowa, except as preempted by federal
      law.

            

    

     

    
      	
              12.9
        

            	
              Validity. If
      any provision of the Plan shall be held illegal or invalid for any reason,
      said illegality or invalidity shall not affect the remaining parts hereof,
      but the Plan shall be construed and enforced as if such illegal and
      invalid provision had never been inserted
  herein.

            

    

     

    
      	
              12.10
        

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

            

    

     

    
      	
              12.11
        

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

            

    

     

    
      	
              12.12
        

            	
              Account
      Statements. The Company will provide each Participant with a
      statement of the Participant’s Incentive Accounts and Deferral Accounts at
      least annually as of the last day of the most recent calendar year. The
      Company also will provide account statements to any Beneficiary of a
      deceased Participant with an Incentive Account or Deferral Account
      remaining in the Plan.

            

    

     

    
      	
              12.13
        

            	
              Accounting. The
      Company will maintain for each Participant as is necessary for proper
      administration of the Plan, an Incentive Account for each Award year and a
      Deferral Account (and Retirement and In-Service
    subaccounts).

            

    

     

    
      	
              12.14   

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

            

    

     

    
      	
              12.15
        

            	
              Reporting. The
      Company will report deferred compensation for Participants on Form W-2 in
      accordance with Notice 2005-1 and Applicable
  Guidance.

            

    

     

    ARTICLE
XIII – TRANSITION
RULES AND PROVISIONS

     

    
      	
                   13.1

            	
              Code §409A
      Amounts.
      The terms of this Plan control as to: (i) any compensation deferred
      prior to January 1, 2005; and (ii) any compensation deferred in Taxable
      Years beginning after December 31, 2004. All deferred compensation under
      this Section 13.1 is a “409A Amount”.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	
                  13.2

            	
              2005, 2006, 2007 and
      2008 Operational Rules.  The following provisions apply
      to the Plan during the 2005, 2006, 2007 and 2008 Taxable Years, as
      specifically provided in each subsection.

            

    

     

    (A)              
Good Faith. As
to 409A Amounts, the Company will operate the Plan during the 2005, 2006, 2007
and 2008 Taxable Years in good faith compliance in accordance with: (i) Notice
2005-1; (ii) Code §409A; and (iii) any Applicable Guidance.  The
Company also may operate the Plan consistent with the Prop. Treas. Reg. §1.409A
before such regulations become effective and may apply such regulations to the
extent that they are inconsistent with Notice 2005-1.  Although the
Company intends this Plan document to comply with the provisions of Notice
2005-1 and of Prop. Treas. Reg. §1.409A, the Company will not apply any Plan
provision which is inconsistent therewith and, by December 31, 2008, will amend
any such provision to comply with Applicable Guidance.  The Company
and the Participants may not exercise discretion under the Plan in a manner that
would violate Code §409A.

    

    (B)              
Participant’s Revised
Deferral Election. A Participant, on or before December 31, 2008, may
make a new payment election as to any previously deferred 409A Amount, except
that a Participant cannot in 2006, 2007 or 2008 change payment elections with
respect to payments that the Participant would otherwise receive in the year of
the new payment election, or to cause payments to be made in the year of the new
payment election that are otherwise scheduled to be made after the year of the
new payment election. Any such election must be a permissible election under
Section 7.4(A), but an election under this Section 13.2(B) is not treated as a
change in the timing or form of distribution and need not comply with Section
7.4(B) as it applies to such changes.

     

    
      	
                  
      13.3

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

            

    

     

     

    
      
        	 	MidAmerican
      Energy Holdings Company	 
	 	 	 	 
	 	By:	 /s/  Gregory E. Abel	 
	 	 	Gregory
      E. Abel, President	 
	 	 	 	 
	 	Dated: 	 February
      25, 2008	 

      

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    MIDAMERICAN
ENERGY HOLDINGS COMPANY

     

    LONG-TERM
INCENTIVE PARTNERSHIP PLAN

     

    EXHIBIT
A

     

    Following
are the Valuation Funds as of January 1, 2005:

     

     

     

    
      ·  IWD
(Russell 1000 Value; Large Cap Value)

    

     

     

    
      ·  IVV
(S&P 500 Index; Large Cap Core)

    

     

     

    
      ·  IWF
(Russell 1000 Growth; Large Cap Growth)

    

     

     

    
      ·  IWN
(Russell 2000 Value; Small Cap Value)

    

     

     

    
      ·  IWO
(Russell 2000 Growth; Small Cap Growth)

    

     

     

    
      ·  EFA
(Morgan Stanley EAFE; International)

    

     

     

    
      ·  VEMFX
(Lehman 1-3 Mo Treas Bill Index)

    

     

     

    
      ·  Average
of the one-year Treasury Bill constant maturity each October 15 (or the
preceding business day if a holiday or weekend) of the prior year. (Stable
Value)

    

     

    The
Company reserves the right to change the Valuation Funds at any time pursuant to
the terms of the Plan.

     

    16

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