Exhibit 10.3

THIRD AMENDMENT TO
CASCADE NATURAL GAS CORPORATION
1998 STOCK INCENTIVE PLAN

AND

SECOND AMENDMENT TO
CASCADE NATURAL GAS CORPORATION
2000 DIRECTOR STOCK AWARD PLAN

This Third Amendment to the 1998 Stock Incentive Plan and Second Amendment to
the 2000 Director Stock Award Plan (this “Amendment”) is dated September 14,
2006, and amends the 1998 Stock Incentive Plan (as amended to date, the
“Incentive Plan”) and 2000 Director Stock Award Plan (as amended to date, the
“Director Plan”) of Cascade Natural Gas Corporation (the “Corporation”).
Capitalized terms not otherwise defined in this Amendment shall have the
meanings set forth in the Director Plan or Incentive Plan, as the context
requires.

AMENDMENTS

Pursuant to its authority under Section 9.2 of the Director Plan and Article 10
of the Incentive Plan, the Board of Directors of the Corporation hereby amends
each of the Incentive Plan and Director Plan as follows:

1.           Amendments to Director Plan.   A new Section 7.8 is hereby added to
the Director Plan, which reads as follows:

7.8  Issuance of Deferred Shares in MDU Merger.  Notwithstanding anything to the
contrary in the Plan or any Deferral Election, immediately prior to the MDU
Merger Effective Time and with no further action on the part of any participant
in the Plan: (a) all outstanding Stock Units shall automatically be cancelled
and be converted into a right to receive Shares; and (b) the Corporation shall
automatically issue to each person whose Stock Units were cancelled, in
accordance with (a) above, a number of Shares equal to the number of such
person’s cancelled Stock Units; provided that in the event that the MDU Merger
Agreement is terminated, this Section 7.8 shall automatically terminate and be
of no further force and effect. “MDU Merger Effective Time” has the meaning
assigned to the term “Effective Time” in the MDU Merger Agreement.  “MDU Merger
Agreement” means that certain Agreement and Plan of Merger by and among MDU
Resources Group, Inc., Firemoon Acquisition, Inc. and Cascade Natural Gas
Corporation, dated as of July 8, 2006, as amended.

2.           Amendments to Incentive Plan.   Exhibit F to the Incentive Plan is
hereby deleted in its entirety and replaced with the Director Plan as amended by
this Amendment.

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3.           No Other Amendments.   Except as expressly amended by this
Amendment, each of the Director Plan and the Incentive Plan shall remain in full
force and effect.

4.           Headings.  The article and section headings contained in this
Amendment are inserted for convenience only and will not affect in any way the
meaning or interpretation of this Amendment.

[Signature page follows]

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IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date
stated in the introductory paragraph of this Amendment.

 

By Order of the Board of Directors,

 

 

 

 

 

/s/ David W. Stevens

 

 

David W. Stevens

 

 

President and Chief Executive Officer

 

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