Document:

EX-10.2

 Exhibit 10.2 

EMPLOYMENT AGREEMENT 
 This
Employment Agreement (this “Agreement”) is entered into as of January 6, 2020 (the “Effective Date”), between Manish Parmar (“Executive”) and Regional Management Corp., a
Delaware corporation (the “Corporation”). 
 RECITALS 

A.    The Corporation believes that the future growth, profitability, and success of the business of the Corporation will
be significantly enhanced by the employment of Executive as Executive Vice President and Chief Credit Risk Officer of the Corporation. 

B.    The Corporation desires to provide Executive with appropriate incentives and rewards related to the performance by
Executive and to encourage the employment of Executive in the service of the Corporation, and Executive desires to accept such employment, on the terms and conditions of this Agreement, from and after the date of this Agreement. 

C.    The Corporation and Executive desire to enter into an employment agreement, as evidenced in this Agreement, to
reflect the terms of Executive’s employment. 
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which is mutually acknowledged, the parties hereto hereby agree as follows: 

I. DEFINITIONS 

1.1    Definitions. In addition to terms defined elsewhere in this Agreement, for purposes of this Agreement, the
following terms will have the following respective meanings when used in this Agreement with initial capital letters: 

(a)    “2015 Plan”: as defined in Section 2.4(c). 

(b)    “Affiliate”: with respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under common control with such Person. For purposes of this definition, “control,” when used with respect to any Person, means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of any such Person, whether through the ownership of voting securities, by contract, or otherwise, and the terms “controlling” and “controlled”
have the respective meanings correlative to the foregoing. With respect to any natural Person, “Affiliate” will also include such Person’s grandparents, any descendants of such Person’s grandparents, the grandparents of
such Person’s spouse, and any descendants of the grandparents of such Person’s spouse (in each case, whether by blood, adoption, or marriage). 

(c)    “Agreement”: as defined in the introductory paragraph. 

(d)    “Annual Bonus”: as defined in Section 2.4(b)(i).  

(e)    “Annual Incentive Plan”: the Annual Incentive Plan of the Corporation or any
successor plan thereto, as amended and/or restated. 

 (f)    “Average Bonus”: the
average of the Annual Bonus paid to Executive for each of the three fiscal years preceding the fiscal year in which Executive’s Termination Date occurs (or the average of such lesser number of full fiscal year periods that Executive is employed
if less than three full fiscal years prior to the Termination Date); provided, however, that if Executive’s employment terminates before December 31, 2021, then the Average Bonus shall equal the Target Bonus. 

(g)    “Board”: the Board of Directors of the Corporation. 

(h)    “Business”: the business of providing installment, automobile purchase, and
retail purchase loans and related payment protection insurance to consumers, and “Business Services” means the services related to the Business. 

(i)    “Cause”: (i) the willful or grossly negligent material failure by
Executive to perform his duties hereunder (other than arising due to Executive’s Disability); (ii) the conviction of Executive, or the entering into a plea bargain or plea of nolo contendere by Executive, of any felony, or of a
misdemeanor involving the unlawful theft or conversion of substantial monies or other property or any fraud or embezzlement offense; (iii) personally or on behalf of another Person, willfully receiving a benefit relating to the Corporation or
its Subsidiaries or its funds, properties, opportunities, or other assets in violation of applicable law, or constituting fraud, embezzlement, or misappropriation; (iv) the willful or grossly negligent failure by Executive to comply
substantially with any lawful written policy of the Corporation or its Subsidiaries that materially interferes with his ability to discharge his duties, responsibilities, or obligations under this Agreement; (v) the knowing misstatement by
Executive of the financial records of the Corporation or its Subsidiaries or complicit actions in respect thereof; (vi) the material breach by Executive of any of the terms of this Agreement; (vii) Executive’s habitual drunkenness or
substance abuse that interferes with his ability to discharge his duties, responsibilities, or obligations under this Agreement, or his failure to pass a pre-employment drug screening in accordance with the
policies of the Corporation; (viii) the knowing failure to disclose material financial or other information to the Board; or (ix) Executive’s engagement in conduct that results in Executive’s obligation to reimburse the
Corporation for the amount of any bonus, incentive-based compensation, equity-based compensation, profits realized from the sale of the Corporation’s securities, or other compensation pursuant to application of the provisions of
Section 304 of the Sarbanes-Oxley Act of 2002, Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or other applicable laws, rules, or regulations, but, in each case for clauses (i) through (ix) herein,
only if (1) Executive has been provided with written notice of any assertion that there is a basis for termination for Cause, which notice shall specify in reasonable detail specific facts regarding any such assertion, and in the case of non-willful behavior under clauses (i), (iii), (iv), or (vi), Executive has failed to cure within 30 days of written notice to Executive, (2) such written notice is provided to Executive a reasonable
time before the Board meets to consider any possible termination for Cause, (3) at or prior to the meeting of the Board to consider the matters described in the written notice, an opportunity is provided to Executive and his counsel to be heard
before the Board with respect to the matters described in the written notice, (4) any resolution or other Board action held with respect to any deliberation regarding or decision to terminate Executive for Cause is duly adopted by a vote of a
majority of the entire Board of the Corporation at a meeting of the Board called and held, and (5) Executive is promptly provided with a copy of the resolution or other corporate action taken with respect to such termination. No act or failure
to act by Executive shall be considered willful unless done or omitted to be done by him not in good faith and without reasonable belief that his action or omission was in the best interests of the Corporation. Notwithstanding the provisions of this
Section 1.1(i), “Cause” will not be deemed to have occurred solely as a result of Executive’s failure to follow any Corporation policy or any Corporation instruction to Executive that would permit Executive to terminate this
Agreement under Section 2.7(a) because such policy or instruction constitutes Good Reason. 

  
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 (j)    “Change of Control”:
except as may be otherwise required, if at all, under Code Section 409A, the occurrence of any of the following: 

(i)    any entity or person shall have become the beneficial owner of, or shall have obtained voting
control over, more than fifty percent (50%) of the total voting power of the Corporation’s then outstanding voting stock; 

(ii)    the consummation of (A) a merger, consolidation, recapitalization, or reorganization of the
Corporation (or similar transaction involving the Corporation), in which the holders of the Corporation’s common stock immediately prior to the transaction have voting control over less than fifty percent (50%) of the voting securities of the
surviving corporation immediately after such transaction, or (B) the sale or disposition of all or substantially all of the assets of the Corporation; or 

(iii)    a change in a majority of the Board within a 12-month
period unless the nomination for election by the Corporation’s stockholders or the appointment of each new director was approved by the vote of two-thirds of the members of the Board (or a committee of
the Board, if nominations are approved by a Board committee rather than the Board) then still in office who were in office at the beginning of the 12-month period. 

For the purposes of the definition of “Change of Control,” the term “person” shall mean any
individual, corporation, partnership, group, association, or other person, as such term is defined in Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as amended, other than the Corporation, a subsidiary of the
Corporation, or any employee benefit plan(s) sponsored or maintained by the Corporation or any subsidiary thereof, and the term “beneficial owner” shall have the meaning given the term in Rule
13d-3 under the Securities Exchange Act of 1934, as amended. 
 For the purposes of
clarity, a transaction shall not constitute a Change of Control if its principal purpose is to change the state of the Corporation’s incorporation, create a holding company that would be owned in substantially the same proportions by the
persons who held the Corporation’s securities immediately before such transaction, or is another transaction of other similar effect. 

Notwithstanding the preceding provisions, in the event that any compensation paid under this Agreement is deemed to be deferred
compensation subject to (and not exempt from) the provisions of Code Section 409A, then payment to be made upon a Change of Control may be permitted, in the Board’s discretion, upon the occurrence of one or more of the following events (as
they are defined and interpreted under Code Section 409A): (A) a change in the ownership of the Corporation; (B) a change in effective control of the Corporation; or (C) a change in the ownership of a substantial portion of the assets
of the Corporation. 
 (k)    “COBRA”: as defined in Section 2.7(f). 

(l)    “Code”: the Internal Revenue Code of 1986, as amended, or any successor
thereto. Any reference herein to a specific Code section shall be deemed to include all related regulations or other guidance with respect to such Code section. 

  
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 (m)    “Commencement Date”: as
defined in Section 2.1. 
 (n)    “Compensation Committee”: Compensation
Committee of the Board. 
 (o)    “Confidential Information”: as defined in
Section 3.2. 
 (p)    “Corporation”: as defined in the introductory
paragraph. 
 (q)    “Corporation Employee”: as defined in Section 3.5. 

(r)    “Corporation IP”: as defined in Section 3.1(a). 

(s)    “Disability”: a physical or mental impairment that prevents Executive from
performing one or more of the essential functions of his job hereunder, whether with or without reasonable accommodation, (i) for at least 90 consecutive calendar days or for shorter periods of time aggregating 90 or more calendar days in any 12-month period, or (ii) where a licensed physician mutually selected by Executive and the Corporation (with the Corporation responsible for any expenses related thereto) determines that the timeline for
Executive’s return to full duty is indeterminable, is indefinite, or is likely to exceed a 90-day period; provided, however, that if Executive and the Corporation cannot agree upon a mutually acceptable
licensed physician, then the determination of whether a “Disability” has occurred shall be made by the majority vote of a panel of three licensed physicians, with one physician selected by Executive, one physician selected by the
Corporation, and the third physician mutually agreed upon by the two physicians selected by Executive and the Corporation respectively (with each party responsible for his or its related expenses and the parties being equally responsible for the
expenses related to the services of the third physician). 
 (t)    “Effective
Date”: as defined in the introductory paragraph. 
 (u)    “Employment
Period”: as defined in Section 2.1. 
 (v)    “Estate”: as
defined in Section 2.7(d). 
 (w)    “Executive”: as defined in the
introductory paragraph. 
 (x)    “Exempt Person”: as defined in
Section 3.2(g). 
 (y)    “Good Reason”: the termination of Executive’s
employment by Executive which is due to (i) (A) a material diminution of Executive’s responsibilities, position (as Executive Vice President and Chief Credit Risk Officer of the Corporation, its successor, or ultimate parent entity),
office, title, reporting relationships, working conditions, authority, or duties, or (B) the assignment to Executive of titles, authority, duties, or responsibilities that are materially inconsistent with this Agreement and are a material
diminution of his title, position, authority, duties, or responsibilities as Executive Vice President and Chief Credit Risk Officer of the Corporation; (ii) a material adverse change in the terms or status (including, but not limited to, a
reduction of the Employment Period) of this Agreement; (iii) a material reduction in Executive’s compensation package provided herein, including Salary, Target Bonus, bonus opportunities, or equity award opportunities (other than a
reduction in bonus opportunities or equity award opportunities that applies to senior executive officers of the Corporation generally or that is due, in the discretion of the Board or the Compensation Committee, to the failure to attain performance
or other business objectives, and subject in all cases to the discretion of the Compensation Committee and other terms of Section 

  
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2.4(c) and Section 2.4(d) herein); or (iv) an actual relocation of (A) the Satellite Office to a location outside of a 50-mile radius from
its current location, (B) the Corporation’s principal office to a location outside of a 50-mile radius from its current location at 979 Batesville, Road, Suite B, Greer, South Carolina 29651, if
Executive’s principal residence was established in Greenville County, South Carolina prior thereto, or (C) the Corporation’s principal office from Greenville County, South Carolina to any location outside of the contiguous United
States, if Executive’s principal residence was not established in the Dallas–Fort Worth–Arlington, TX Metropolitan Area or Greenville County, South Carolina prior thereto, and in each case of clauses (i) through (iv) herein,
without the written consent of Executive. Notwithstanding the preceding, for any of the foregoing events to constitute Good Reason, Executive must provide written notification of his intention to resign for Good Reason within 30 days after Executive
knows or has reason to know of the occurrence of any such event, and the Corporation shall have 30 days from the date of receipt of such notice to effect a cure of the condition constituting Good Reason, and, upon cure thereof by the Corporation,
such event shall no longer constitute Good Reason. 
 (z)    “Government
Agencies”: as defined in Section 3.2(e). 
 (aa)    “Loan
Source”: as defined in Section 3.4(a). 
 (bb)    “Non-Compete Territory”: as defined in Section 3.3. 

(cc)    “Option”: as defined in Section 2.4(c)(i). 

(dd)    “Performance Unit Award”: as defined in Section 2.4(c)(iv). 

(ee)    “Person”: an individual, a corporation, a partnership, a limited liability
company, an association, a trust, a joint stock corporation, a joint venture, an unincorporated organization, or any federal, state, county, city, municipal, or other local or foreign government or any subdivision, authority, commission, board,
bureau, court, administrative panel, or other instrumentality thereof. 

(ff)    “RSA”: as defined in Section 2.4(c)(ii). 

(gg)    “RSU”: as defined in Section 2.4(c)(iii). 

(hh)    “Salary”: as defined in Section 2.4(a). 

(ii)    “Satellite Office”: the Corporation’s satellite office, currently
located at 400 Parker Square, Suite 205, Flower Mound, Texas 75028. 
 (jj)    “Severance
Period”: as defined in Section 2.7(a)(ii). 
 (kk)    “Signing
Bonus”: as defined in Section 2.4(b)(ii). 
 (ll)    “Stock
Plan”: as defined in Section 2.4(c). 
 (mm)    “Subsidiary”:
with respect to any Person, (i) any corporation of which a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote generally in the election of directors thereof is at the
time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) any limited liability company, partnership, association, or other business entity, of
which a majority of the partnership or other similar ownership interests thereof 

  
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is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes of this definition, a Person or
Persons will be deemed to have a majority ownership interest in a limited liability company, partnership, association, or other business entity if such Person or Persons will be allocated a majority of limited liability company, partnership,
association, or other business entity gains or losses, or is or controls the managing member or general partner of such limited liability company, partnership, association, or other business entity. 

(nn)    “Target Bonus”: as defined in Section 2.4(b)(i). 

(oo)    “Termination Date”: as defined in Section 2.1. 

II. TERMS OF EMPLOYMENT 

2.1    Employment Period. The Corporation shall employ Executive, and Executive accepts employment with the
Corporation, upon the terms and conditions set forth in this Agreement for the period beginning on Executive’s date of commencement of employment, which date shall be on or before January 6, 2020 (the “Commencement
Date”). The term of the Agreement shall commence on the Commencement Date, and the Agreement will terminate on the third anniversary of the Commencement Date, unless sooner terminated in accordance with Section 2.7. The term of
this Agreement as determined under the preceding sentence is referred to herein as the “Employment Period,” and the date on which Executive’s employment terminates is referred to herein as the “Termination
Date.” 
 2.2    Duties During Employment Period. Executive will be an employee of, and serve as the
Executive Vice President and Chief Credit Risk Officer of, the Corporation and will report directly to the Chief Executive Officer of the Corporation. In such capacity, Executive will perform such duties and exercise such powers that are consistent
with the position of Executive Vice President and Chief Credit Risk Officer in accordance with the amended and restated bylaws of the Corporation and as are assigned to Executive by the Chief Executive Officer of the Corporation or the Board.
Executive agrees that to the best of his ability and experience he shall at all times conscientiously perform all of his duties and obligations under the terms of this Agreement. Executive understands and agrees that he shall be required to perform
the duties and responsibilities of his position on a full-time basis at the Satellite Office, although it is understood that he shall also be required to travel in connection with the performance of his duties and responsibilities. 

2.3    Activities During Employment Period. 

(a)    Executive will devote substantially all of his full business time, energy, ability, attention, and
skill to his employment hereunder and to the Business of the Corporation and, absent the prior written approval of the Board, which approval shall not be unreasonably withheld, Executive will not engage in any business activity, whether as an
employee, investor, officer, director, consultant, independent contractor, or otherwise, that would interfere with his duties and responsibilities pursuant to Section 2.2. Executive agrees to comply with all lawful rules and policies
established by the Corporation and its Subsidiaries throughout the Employment Period. 
 (b)    Provided
that the following activities do not interfere with Executive’s duties and responsibilities as Chief Credit Risk Officer of the Corporation, Executive may (i) engage in charitable and community affairs, trade activities, and trade
organizations, and teach and/or lecture, so long as such activities are consistent with his duties and responsibilities under this Agreement, (ii) manage his personal investments, and (iii) serve on the boards of directors of other
companies with the Board’s prior written consent (which will not be unreasonably withheld). 

  
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 (c)    Executive will act in accordance with laws,
ordinances, regulations, professional standards, or rules of any governmental, regulatory, or administrative body, agent or authority, any court or judicial authority, or any public, private, or industry regulatory authority. 

2.4    Compensation. 

(a)    Salary. For Executive’s services under this Agreement, the Corporation will pay to
Executive an annualized base salary (the “Salary”) of $335,000 (prorated for any partial year based on a fraction, the numerator of which shall be the number of days employed in such year and the denominator of which shall be
365 (or 366 in a leap year)). The Board or the Compensation Committee may review the amount of Salary from time to time and may adjust Salary upwards after any such review, with any such upward adjustments effective as of the dates determined by the
Board or the Compensation Committee. Executive’s Salary will be payable to Executive periodically in accordance with the normal practices of the Corporation. 

(b)    Bonus. 

(i)    Annual Bonus. For each fiscal year during the Employment Period, Executive shall be eligible
for participation in the Annual Incentive Plan with a target bonus thereunder equal to no less than one hundred percent (100%) of Executive’s Salary in effect at the beginning of the fiscal year (the “Target Bonus”)
and which will be prorated for any partial fiscal year based on a fraction, the numerator of which shall be the number of days employed in such partial fiscal year and the denominator of which shall be 365 (or 366 in a leap year). The Compensation
Committee shall establish and communicate to Executive performance criteria for the Corporation and/or Executive and one or more formula(s) for determining the annual bonus, if any, earned by Executive under the Annual Incentive Plan (the
“Annual Bonus”) for each fiscal year. Unless otherwise addressed in Section 2.7, if Executive is employed by the Corporation in good standing on the last day of the applicable fiscal year, Executive
will be entitled to receive an Annual Bonus for such year, to the extent earned, in an amount determined in accordance with such formula(s) set by the Compensation Committee based on the actual performance of the Corporation and/or Executive
relative to the performance criteria established by the Compensation Committee for that year. Any Annual Bonus due to Executive pursuant to this Section 2.4(b)(i) shall be paid in cash in a lump sum no later than 70 days following the fiscal
year during which Executive’s right to the Annual Bonus vests (or otherwise in a manner compliant with, or exempt from, Code Section 409A). Unless otherwise addressed under Section 2.7, Annual Bonus entitlement (to the extent earned)
vests and is fully payable if Executive is employed by the Corporation on the last day of the applicable fiscal year, even if Executive is no longer employed at the time the Annual Bonus is scheduled to be paid. 

(ii)    Signing Bonus. In order to offset Executive’s loss of his annual bonus opportunity with
his immediate past employer, Executive shall be paid a bonus (the “Signing Bonus”) in the amount of $250,000 in the first full pay period following the Commencement Date. Executive agrees that if he voluntarily terminates his
employment with the Corporation before the third anniversary of the Commencement Date, he shall be obligated to repay, and he hereby promises to pay, to the Corporation a ratable portion of the Signing Bonus (calculated based on a fraction, the
numerator of which shall be the number of days remaining between the Termination Date and the third anniversary of the Commencement Date and the denominator of which shall be 1,097). 

  
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 (c)    Long-Term Incentive Compensation. Subject
to Executive’s continued employment, Executive shall be eligible to participate in and receive long-term incentive, equity, and/or equity-based awards under the Corporation’s 2015 Long-Term Incentive Plan, as amended and/or restated (the
“2015 Plan”), or any successor or other applicable plan or arrangement (the 2015 Plan and such other plans or arrangements collectively, the “Stock Plan”), as provided in Section 2.4(c) and
Section 2.4(d) herein. Any such long-term incentive, equity, or equity-based awards described herein shall be subject to the terms of the Stock Plan and applicable award agreements in form acceptable to the Compensation Committee and such other
terms as may be established by the Compensation Committee. 
 (i)    Nonqualified Stock Option
(“Option”). The Corporation shall grant to Executive an Option to purchase such number of shares of the Corporation’s common stock as may be determined by dividing $125,625 by the fair value of each
Option share (calculated on or as close in time as practicable to the grant date in accordance with generally accepted accounting principles in the United States using the Black-Scholes option pricing model), at an exercise price per share equal to
the fair market value per share of the Corporation’s common stock on the grant date, which grant date shall be a date determined by the Compensation Committee to occur on or as soon as practicable after the Commencement Date. The Option shall
vest with respect to one-third of the number of shares subject to the Option on each of (A) December 31, 2020, (B) December 31, 2021, and (C) December 31, 2022, so long as
Executive’s employment continues from the grant date until the applicable vesting date or as otherwise provided in the applicable award agreement. The term of the Option will be ten years from the grant date, subject to earlier termination in
the event Executive’s employment terminates. The Option shall be subject to the terms of the Stock Plan and the applicable nonqualified stock option award agreement in form acceptable to the Compensation Committee. 

(ii)    Restricted Stock Award (“RSA”). The Corporation shall
grant to Executive an RSA for such number of shares of the Corporation’s common stock as may be determined by dividing $147,625 by the closing price of the common stock on the grant date, which grant date shall be a date determined by the
Compensation Committee to occur on or as soon as practicable after the Commencement Date. The RSA shall vest with respect to one-third of the number of shares subject to the RSA on each of
(A) December 31, 2020, (B) December 31, 2021, and (C) December 31, 2022, so long as Executive’s employment continues from the grant date until the applicable vesting date or as otherwise provided in the applicable award
agreement. The RSA shall be subject to the terms of the Stock Plan and the applicable restricted stock award agreement in form acceptable to the Compensation Committee. 

(iii)    Performance-Contingent Restricted Stock Unit (“RSU”)
Award. Subject to Executive’s continued employment from the Commencement Date until the grant date and the availability of sufficient shares of the Corporation’s common stock under the 2015 Plan, the Corporation shall grant to
Executive an RSU award at the time the Corporation grants its long-term incentive awards for 2020 to other members of senior management. The number of shares subject to the RSU shall be determined by dividing $125,625 by the closing price of the
Corporation’s common stock on or as close in time as practicable to the grant date. The RSU award will be eligible for vesting on December 31, 2022, based upon the achievement, if at all, of performance criteria established by the
Compensation Committee and Executive’s continued employment from the grant date until the vesting date or as otherwise provided in the applicable award agreement. The RSU award (including the distribution of any shares of the Corporation’s
common stock issuable pursuant thereto) shall be subject to the terms of the Stock Plan and the applicable restricted stock unit award agreement in form acceptable to the Compensation Committee. 

  
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 (iv)    Cash-Settled Performance Unit Award
(“Performance Unit Award”). Subject to Executive’s continued employment from the Commencement Date until the grant date, the Corporation shall grant to Executive a Performance Unit Award at the time the
Corporation grants its annual long-term incentive awards for 2020 to other members of senior management. The Performance Unit Award will be eligible for vesting on December 31, 2022, based upon the achievement, if at all, of performance
criteria established by the Compensation Committee and Executive’s continued employment from the grant date until the vesting date or as otherwise provided in the applicable award agreement. The target cash settlement value of the Performance
Unit Award at vesting shall be equal to $125,625. The Performance Unit Award shall be subject to the terms of the Stock Plan and the applicable performance unit award agreement in form acceptable to the Compensation Committee. 

(v)    Future Long-Term Incentive Compensation. Commencing in 2021, and subject to
Section 2.4(d) herein and Executive’s continued employment, Executive shall be eligible to participate in and receive long-term incentive, equity, and/or equity-based awards under the Stock Plan in the sole discretion of the Board or the
Compensation Committee. 
 (d)    Future Compensation Opportunities. Commencing in 2021, and for
the remainder of the Employment Period, the Corporation undertakes and agrees to provide Executive with an annual Salary, cash incentive compensation opportunity, and equity or long-term incentive compensation opportunity of no less than $1,172,500
in the aggregate (inclusive of the grant date fair value of long-term incentive awards and prorated for any partial fiscal year); provided, however, that (i) Executive’s Salary shall be subject to the provisions of Section 2.4(a)
herein, (ii) the Compensation Committee shall have sole discretion to determine any allocation between cash incentive opportunities and equity or equity-based incentive opportunities, (iii) such cash incentive opportunities and equity or
equity-based incentive opportunities shall be subject to the terms of the applicable Corporation plan (including the Annual Incentive Plan and/or the Stock Plan) and any related award agreement, including any performance or multi-year service
criteria established by the Compensation Committee under any such plan or award agreement, and (iv) the Compensation Committee shall have sole discretion to determine if and to the extent that any such equity or equity-based incentive
opportunities and/or cash incentive opportunities are deemed earned and payable based on the attainment of performance criteria and such other terms and conditions as may be established by the Compensation Committee (including, without limitation,
multi-year vesting requirements if applicable under any such plan or award agreement and so determined by the Compensation Committee). 

2.5    Benefits; Additional Terms. 

(a)    Benefit Plans. Except as otherwise addressed in this Section 2.5, during the Employment
Period, Executive shall be entitled to participate in all pension, medical, disability, retirement, and other benefit plans and programs generally available to the Corporation’s other employees, provided that Executive meets all eligibility
requirements under those plans and programs. Executive shall be subject to the terms and conditions of the plans and programs, including, without limitation, the Corporation’s right to amend or terminate the plans and programs at any time and
without advance notice to the participants. Notwithstanding the foregoing, Executive will not during the Employment Period be entitled to participate in any severance pay plan of the Corporation. Executive’s severance benefits are to be solely
as set forth in Section 2.7. 

  
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 (b)    Vacation; Leave. Executive shall be
entitled to paid vacation time of not less than 20 business days for each calendar year of the Employment Period (prorated for any partial year, based on a fraction, the numerator of which shall be the number of days employed in such partial year
and the denominator of which shall be 365 (or 366 in a leap year)). Executive shall also be entitled to all paid holidays and to reasonable personal and sick leave in accordance with the policies of the Corporation applicable to its executive
management. Unused vacation and personal and/or sick leave may not be carried over by Executive from one calendar year to the next, except as otherwise provided in the policies of the Corporation applicable to its executive management.
Notwithstanding the foregoing, such vacation, holidays, and personal and/or sick leave shall not accrue as a monetary liability of the Corporation. 

(c)    Expenses; Reimbursements. Subject to compliance with the Corporation’s policies as from
time to time in effect regarding the incurrence, substantiation, verification, and reimbursement of business expenses, the Corporation will promptly pay or reimburse Executive for all reasonable expenses incurred in connection with the performance
of Executive’s duties hereunder or for promoting, pursuing, or otherwise furthering the Business of the Corporation, including Executive’s reasonable expenses for travel (including reasonable expenses associated with Executive’s
periodic travel between the Corporation’s Satellite Office and the Corporation’s headquarters in Greenville County, South Carolina), entertainment, and similar items. Executive acknowledges and agrees that the provisions of
Section 2.5(d) below provide the exclusive reimbursement terms for Executive’s use of any personal vehicles in connection with the performance of his duties as an employee of the Corporation. All expenses eligible for reimbursements in
connection with Executive’s employment with the Corporation must be incurred by Executive during the term of employment or service to the Corporation and must be in accordance with the Corporation’s expense reimbursement policies. The
amount of reimbursable expenses incurred in one taxable year shall not affect the expenses eligible for reimbursement in any other taxable year. Each category of reimbursement shall be paid as soon as administratively practicable, but in no event
shall any such reimbursement be paid after the last day of Executive’s taxable year following the taxable year in which the expense was incurred. No right to reimbursement is subject to liquidation or exchange for other benefits. 

(d)    Mileage Reimbursement. The Corporation will, in accordance with the Corporation’s
general personal vehicle use reimbursement policy (and consistent with the provisions of Section 2.5(c) herein), promptly reimburse Executive an amount equal to $0.50 (or such higher amount as may apply pursuant to the Corporation’s
mileage reimbursement policy as it may be in effect from time to time) for each mile he drives a personal car in connection with the performance of his duties as an employee of the Corporation. 

(e)    Use of Mobile Phone. The Corporation will, at its option, either (i) provide Executive
with a mobile phone (including monthly service fees), the reasonable costs of which shall be paid by the Corporation directly to the service provider, or (ii) promptly reimburse Executive for the expense that Executive incurs in providing for
his own mobile phone, not to exceed $75 per month (or such higher amount as may apply pursuant to the Corporation’s mobile phone reimbursement policy as it may be in effect from time to time). 

(f)    Disability Insurance Premiums. The Corporation may, at its option, provide Executive with the
opportunity to elect to include the amount of any disability insurance premiums paid by the Corporation pursuant to any disability insurance, plan, or policy provided by the 

  
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Corporation to or for the benefit of Executive as taxable income to Executive. If Executive so elects, the Corporation shall pay to Executive an additional amount necessary to put Executive in
substantially the same after-tax position that he would have been in had he not elected to include such disability insurance premiums in income (taking into account all federal, state, and local income and
employment taxes due as a result of the inclusion of such disability insurance premiums in income). Payment of the additional amount, if any, shall be made to Executive in the same pay periods in which the disability insurance premiums are included
in income. 
 (g)    Residence; Relocation Expenses. Executive understands and agrees that he is
required to relocate to, and reside in, the Dallas–Fort Worth–Arlington, TX Metropolitan Area on a full-time basis commencing on or before June 30, 2020. Executive is eligible to receive relocation benefits in connection with his
relocation to the Dallas–Fort Worth–Arlington, TX Metropolitan Area in accordance with the Corporation’s relocation policies for executive officers and the provisions of Section 2.5(c) herein. Prior to Executive’s permanent
relocation on or before June 30, 2020, the Corporation will promptly reimburse Executive for his reasonable commuting expenses to the Corporation’s Satellite Office (or the Corporation’s headquarters, as applicable) from his residence
and his reasonable temporary living expenses in the Dallas–Fort Worth–Arlington, TX Metropolitan Area, subject to the provisions of Section 2.5(c) herein. In addition, in the event that Executive is required to reimburse his immediate
past employer for all or a portion of his previously-reimbursed relocation expenses, the Corporation shall reimburse Executive for such amounts, not to exceed $50,000. Executive agrees that if he voluntarily terminates his employment with the
Corporation before the third anniversary of the Commencement Date, he shall be obligated to repay, and he hereby promises to pay, to the Corporation a ratable portion of such relocation expense reimbursement (calculated based on a fraction, the
numerator of which shall be the number of days remaining between the Termination Date and the third anniversary of the Commencement Date and the denominator of which shall be 1,097). 

2.6    Deductions and Withholdings. All amounts payable or that become payable under this Agreement will be subject
to any deductions and withholdings previously authorized by Executive or required by law. Executive will be responsible for any and all taxes resulting from the benefits provided hereunder. 

2.7    Termination. 

(a)    Termination by the Corporation without Cause or by Executive for Good Reason. 

(i)    Notice of Termination. The Corporation may terminate Executive’s employment hereunder
without Cause at any time, upon 30 calendar days’ written notice to Executive. Executive may terminate Executive’s employment hereunder for Good Reason upon 30 calendar days’ written notice to the Corporation, subject to the
additional notice provisions of Section 1.1(y) herein. The Corporation may elect to pay to Executive his portion of Salary for the notice period in lieu of permitting Executive to continue working. 

(ii)    Severance Payments. If Executive is terminated by the Corporation without Cause or if
Executive terminates his employment for Good Reason, the Corporation will pay to Executive (A) accrued but unpaid Salary through the Termination Date, (B) an amount equal to Executive’s Salary in effect on the Termination Date, to be
paid over a period of twelve (12) months from and after the Termination Date (such 12-month period, the “Severance Period”), (C) an amount equal to Executive’s Average
Bonus as determined as of the Termination Date, to be paid over the Severance Period, 

  
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(D) a pro-rata portion of the Annual Bonus for the year in which Executive’s Termination Date occurs, to the extent earned (such amount to be
calculated by determining the amount of the Annual Bonus earned as of the end of the year in which the Termination Date occurs and pro-rating such amount by the portion of such year Executive was employed by
the Corporation), plus, if Executive’s termination occurs after year-end but before the Annual Bonus for the preceding year is paid, the Annual Bonus for the preceding year, to the extent earned, and
(E) COBRA premiums as described in Section 2.7(f). 
 (iii)    Change of Control
Adjustment. If Executive is terminated by the Corporation without Cause or if Executive terminates his employment for Good Reason, and such termination occurs within six (6) months before or one (1) year after the effective date of a
Change of Control, the amounts described in Section 2.7(a)(ii)(B)–(C) shall be increased by a factor of one hundred percent (100%) (for a total of 200% of Salary and Average Bonus). 

(iv)    Timing of Payments. The payment required by Section 2.7(a)(ii)(A) will be made as and
at such times as Executive would have otherwise received his Salary had he remained an employee of the Corporation (that is, in accordance with Corporation payroll practices). The payments required by Section 2.7(a)(ii)(B)–(C) will be made
in equal installments over the Severance Period as and at such times as Executive would have otherwise received his Salary had he remained an employee of the Corporation (that is, in accordance with Corporation payroll practices), subject to
execution of an irrevocable release as provided in Section 4.18 and provided that such amounts shall be paid commencing with the first payroll date that occurs on or after 45 calendar days following the Termination Date. Any additional amounts
payable pursuant to Section 2.7(a)(iii) attributable to a Change of Control occurring within six (6) months following Executive’s termination of employment shall be added to the remaining balance of the amounts payable under
Section 2.7(a)(ii)(B)–(C) and shall be paid as provided in this Section 2.7(a)(iv) over the remainder of the Severance Period. The payment required by Section 2.7(a)(ii)(D) will be made as and at such time as Executive would have
otherwise received his Annual Bonus had he remained an employee of the Corporation, subject to execution of an irrevocable release as provided in Section 4.18. 

(v)    Additional Payments. In addition, the Corporation will pay to Executive all unreimbursed
expenses incurred by Executive prior to his termination pursuant to Section 2.7(a) for which Executive is entitled to reimbursement pursuant to and in accordance with Section 2.5(c). Further, during the Severance Period, the Corporation
shall pay reasonable outplacement service expenses of Executive in an amount not to exceed $25,000. 

(vi)    Liquidated Damages. The payments to be made in accordance with this Section 2.7(a) will
constitute liquidated damages, and Executive will not be entitled to any other compensation from the Corporation under this Agreement or otherwise except as provided in this Section 2.7(a). 

(vii)    Compliance with Article III. The Corporation’s obligation to make any payments under
this Section 2.7(a), except for accrued but unpaid Salary through the Termination Date, any Annual Bonus that was previously earned but unpaid as of the Termination Date, and reimbursement of unreimbursed expenses, is contingent upon
Executive’s compliance with Article III herein, and Executive and the Corporation agree that the Corporation shall have the right, in addition to any other rights of the Corporation, to terminate or suspend such payments in the event of
Executive’s breach of Article III herein. 

  
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 (viii)    Termination of Agreement. Upon
termination of Executive’s employment pursuant to this Section 2.7(a), except for the payments required by this Section 2.7(a) or as required by applicable law, the Corporation will have no additional obligations to Executive
hereunder or otherwise and, except as otherwise provided in this Agreement (including but not limited to Executive’s obligations under Article III herein), this Agreement will terminate. 

(b)    Termination by the Corporation for Cause. The Corporation will have the right to terminate
Executive’s employment hereunder for Cause upon written notice to Executive and Executive’s failure to cure during any applicable cure period as set forth in this Agreement. If Executive’s employment is terminated for Cause, the
Corporation will pay to Executive (i) accrued but unpaid Salary through the Termination Date (payable 45 calendar days after the Termination Date), and (ii) all unreimbursed expenses incurred by Executive prior to the Termination Date for
which Executive is entitled to reimbursement pursuant to and in accordance with Section 2.5(c). Upon termination of Executive’s employment pursuant to this Section 2.7(b), except for the payments required by this Section 2.7(b)
or as required by applicable law, the Corporation will have no additional obligations to Executive hereunder or otherwise and, except as otherwise provided in this Agreement (including but not limited to Executive’s obligations under Article
III herein), this Agreement will terminate as of the Termination Date. 
 (c)    Voluntary Termination
by Executive. If Executive voluntarily terminates his employment, the Corporation will pay to Executive (i) accrued but unpaid Salary through the Termination Date (payable as and at such times as Executive would have otherwise received his
Salary had he remained an employee of the Corporation (that is, in accordance with Corporation payroll practices)), (ii) if Executive’s termination occurs after year-end but before the Annual Bonus
for the preceding year is paid, the Annual Bonus for the preceding year, to the extent earned (payable as and at such time as Executive would have otherwise received his Annual Bonus had he remained an employee of the Corporation), and
(iii) all expenses incurred by Executive prior to the Termination Date for which Executive is entitled to reimbursement pursuant to and in accordance with Section 2.5(c). Upon termination of Executive’s employment pursuant to this
Section 2.7(c), except for the payments required by this Section 2.7(c) or as required by applicable law, the Corporation will have no additional obligations to Executive hereunder or otherwise and, except as otherwise provided in this
Agreement (including but not limited to Executive’s obligations under Article III herein), this Agreement will terminate. 

(d)    Termination by Death of Executive. If Executive dies during the Employment Period, the
Corporation will pay to such Person or Persons as Executive may designate in writing or, in the absence of such designation, to the estate of Executive (as the case may be, the “Estate”) the sum of (i) accrued but unpaid
Salary earned prior to Executive’s death, (ii) expenses incurred by Executive prior to his death for which Executive is entitled to reimbursement pursuant to and in accordance with Section 2.5(c), and (iii) a pro-rata portion of the Annual Bonus for the year in which Executive’s death occurs, to the extent earned (such amount to be calculated by determining the amount of the Annual Bonus earned as of the end of the
year in which the death occurs and pro-rating such amount by the portion of such year Executive was employed by the Corporation), plus, if Executive’s death occurs after
year-end but before the Annual Bonus for the preceding year is paid, the Annual Bonus for the preceding year, to the extent earned. The payments described in clauses (i) and (ii) in the preceding
sentence will be made within 45 calendar days following the date of Executive’s death. Any Annual Bonus will be paid as and at such times as Executive would 

  
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have otherwise received his Annual Bonus had he remained an employee of the Corporation. This Agreement in all other respects will terminate upon the death of Executive, and all rights of
Executive and his heirs, legatees, descendants, testamentary executors, and testamentary administrators regarding compensation and other benefits under this Agreement shall cease. 

(e)    Termination for Disability. Executive acknowledges and agrees that his position is unique and
critical to the Corporation and that the Corporation would suffer grievous economic injury or other undue hardship if Executive becomes unable to perform one or more essential functions of his job due to a Disability, as defined by
Section 1.1(s). The parties, therefore, agree to the following termination provisions to avoid grievous economic injury and/or other undue hardship to the Corporation in the event of the Disability of Executive. 

(i)    Notice of Termination. Subject to a municipal, state, or federal law expressly providing to
the contrary, the Corporation will have the right to terminate Executive’s employment hereunder at any time upon the Disability of Executive during the Employment Period. 

(ii)    Severance Payments. If Executive’s employment is terminated because of Executive’s
Disability, the Corporation will pay to Executive (A) accrued but unpaid Salary through the Termination Date, (B) an amount equal to Executive’s Salary in effect on the Termination Date, to be paid over the Severance Period,
(C) an amount equal to Executive’s Average Bonus as determined as of the Termination Date, to be paid over the Severance Period, (D) a pro-rata portion of the Annual Bonus for the year in which
Executive’s termination due to Disability occurs, to the extent earned (such amount to be calculated by determining the amount of the Annual Bonus earned as of the end of the year in which Executive’s termination due to Disability occurs
and pro-rating such amount by the portion of such year Executive was employed by the Corporation), plus, if Executive’s termination due to Disability occurs after
year-end but before the Annual Bonus for the preceding year is paid, the Annual Bonus for the preceding year, to the extent earned, and (E) COBRA premiums as described in Section 2.7(f). 

(iii)    Timing of Payments. The payment required by Section 2.7(e)(ii)(A) will be made as and
at such times as Executive would have otherwise received his Salary had he remained an employee of the Corporation (that is, in accordance with Corporation payroll practices). The payments required by Section 2.7(e)(ii)(B)–(C) will be made
in equal installments over the Severance Period as and at such times as Executive would have otherwise received his Salary had he remained an employee of the Corporation (that is, in accordance with Corporation payroll practices), subject to
execution of an irrevocable release as provided in Section 4.18 and provided that such amounts shall be paid commencing with the first payroll date that occurs on or after 45 calendar days following the Termination Date. The payment required by
Section 2.7(e)(ii)(D) will be made as and at such time as Executive would have otherwise received his Annual Bonus had he remained an employee of the Corporation, subject to execution of an irrevocable release as provided in Section 4.18.

 (iv)    Additional Payments. In addition, the Corporation will pay to Executive all
unreimbursed expenses incurred by Executive prior to his termination pursuant to Section 2.7(e) for which Executive is entitled to reimbursement pursuant to and in accordance with Section 2.5(c). Further, during the Severance Period, the
Corporation shall pay reasonable outplacement service expenses of Executive in an amount not to exceed $25,000. 

  
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 (v)    Offset for Disability Benefits. The
payment obligations of the Corporation set forth in this Section 2.7(e) will be reduced by the amount of any disability benefits paid to Executive pursuant to any disability insurance, plan, or policy provided and paid for by the Corporation.
In the event that any such disability insurance, plan, or policy pays disability benefits to Executive that are not subject to local, state, or federal taxation, the payment obligations of the Corporation set forth in this Section 2.7(e) will
be reduced by an amount equal to the gross taxable amount that the Corporation would have been required to pay in order to yield the net, after-tax benefit that Executive actually received pursuant to the
disability insurance, plan, or policy. 
 (vi)    Liquidated Damages. The payments to be made in
accordance with this Section 2.7(e) will constitute liquidated damages, and Executive will not be entitled to any other compensation from the Corporation under this Agreement or otherwise except as provided in this Section 2.7(e). 

(vii)    Compliance with Article III. The Corporation’s obligation to make any payments under
this Section 2.7(e), except for accrued but unpaid Salary through the Termination Date, any Annual Bonus that was previously earned but unpaid as of the Termination Date, and reimbursement of unreimbursed expenses, is contingent upon
Executive’s compliance with Article III herein, and Executive and the Corporation agree that the Corporation shall have the right, in addition to any other rights of the Corporation, to terminate or suspend such payments in the event of
Executive’s breach of Article III herein. 
 (viii)    Termination of Agreement. Upon
termination of Executive’s employment pursuant to this Section 2.7(e), except for the payments required by this Section 2.7(e) or as required by applicable law, the Corporation will have no additional obligations to Executive
hereunder or otherwise and, except as otherwise provided in this Agreement (including but not limited to Executive’s obligations under Article III herein), this Agreement will terminate. 

(f)    Payment of COBRA Premiums; No Effect on Vested and Accrued Benefits. During the Severance
Period and provided that Executive timely and properly elects health continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Corporation shall reimburse Executive for the monthly
COBRA premium paid by Executive for himself and his dependents for continuation coverage under the Corporation’s group medical plan; provided, however, that if at any time during the Severance Period Executive becomes eligible to receive health
insurance from a subsequent employer or is no longer eligible to receive COBRA continuation coverage under the Corporation’s group medical plan, the Corporation’s obligation to continue to reimburse Executive for his COBRA premium payments
shall terminate immediately. Such reimbursement shall be paid to Executive on the 20th day of the month immediately following the month in which Executive timely remits the required COBRA premium
payment. Notwithstanding anything to the contrary herein and subject to the terms of any benefit plan or program of the Corporation, no termination of Executive’s employment with the Corporation shall in any manner whatsoever result in any
termination, curtailment, reduction, or cessation of any vested benefits or other entitlements to which Executive is entitled under the terms of any such benefit plan or program of the Corporation in respect of which Executive is a participant as of
the Termination Date. 
 (g)    No Mitigation; No Offset. In the event of any termination of
Executive’s employment under this Section 2.7, Executive shall be under no obligation to seek other 

  
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employment and there shall be no offset against amounts due Executive under this Agreement on account of any compensation attributable to any subsequent employment that he may obtain, except as
specifically provided in this Section 2.7. Notwithstanding anything contained in this Agreement to the contrary, any compensation and/or benefits payable to Executive under any other severance or change-in-control plan, program, policy, or arrangement of the Corporation in which Executive is a participant (other than the Stock Plan or the Annual Incentive Plan, or any award granted thereunder) shall
be reduced by the amount of all compensation and benefits payable under this Section 2.7. 

(h)    Survival. In the event that the Corporation becomes obligated during the Employment Period to
make post-termination payments to Executive pursuant to this Section 2.7, the Corporation’s obligation to continue to make such payments in accordance with this Section 2.7 shall survive the termination of the Agreement and the
Employment Period, subject to the other provisions of this Agreement (including but not limited to Executive’s compliance with Article III). For the avoidance of doubt, Executive will not be entitled to any payment pursuant to this
Section 2.7 if Executive’s termination of employment occurs after the end of the Employment Period. 
 III. RESTRICTIVE
COVENANTS 
 3.1    Patents, Inventions, and Other Intellectual Property. 

(a)    If at any time during the Employment Period or (if applicable) prior thereto at any time that
Executive was an employee, agent, director, or officer of or consultant to the Corporation or its Subsidiaries, Executive, whether alone or with any other Person, makes, discovers, produces, conceives, or first reduces to practice any invention,
process, development, design, or improvement that relates to, affects, or, in the opinion of the Board, is capable of being used or adapted for use in or in connection with the Business or any product, process, or intellectual property right of the
Corporation or its Subsidiaries, (i) Executive acknowledges and agrees that such invention, process, development, design, or improvement (collectively, “Corporation IP”) will be the sole property of the Corporation or
such Subsidiaries, as appropriate, and is hereby irrevocably assigned by Executive to the Corporation or such Subsidiaries, as appropriate, and (ii) Executive will immediately disclose in confidence all Corporation IP to the Corporation in
writing. The Corporation shall have the right to use all such Corporation IP, whether original or derivative, in any matter it chooses without any related royalty, licensure, or other obligation. Executive acknowledges that all such Corporation IP
shall be considered as “work made for hire” as provided under the United States Copyright Act, 17 U.S.C. Section 101, et seq., and shall belong exclusively to the Corporation. Executive agrees further that in the event that any
Corporation IP should be deemed not to be work made for hire belonging exclusively to the Corporation, he shall promptly assign and transfer such Corporation IP to the Corporation so that the Corporation shall be, in fact, the exclusive owner. 

(b)    Executive will, if and when reasonably required to do so by the Corporation (whether during the
Employment Period or thereafter), at the Corporation’s expense and, if after the expiration of the Employment Period, subject to Executive’s availability and reimbursement by the Corporation of Executive’s reasonable out-of-pocket expenses and payment to Executive of a reasonable per diem to compensate Executive for time spent in connection therewith: (i) apply, or join with the
Corporation or a Subsidiary thereof, as appropriate, in applying, for patents or other protection in any jurisdiction in the world for any Corporation IP; (ii) execute or procure to be executed all instruments, and do or procure to be done all
things, that are necessary or, in the opinion of the Corporation, advisable for vesting such patents or other protection in the name of the Corporation or a Subsidiary thereof or any nominee thereof, or subsequently for renewing and

  
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maintaining the same in the name of the Corporation, a Subsidiary thereof, or its nominees; and (iii) assist in defending any proceedings relating to, or any application for, such patents or
other protection. 
 (c)    Executive irrevocably appoints the Corporation as his attorney in his name
(with full power of substitution and re-substitution) and on his behalf to execute all documents, and do all things, required in order to give full effect to the provisions of this Section 3.1. 

3.2    Confidentiality. 

(a)    Executive acknowledges that during the Employment Period and (if applicable) prior thereto when he
was an employee, agent, director, or officer of or consultant to the Corporation, Executive has been given and will continue to have, in connection with the conduct of the Business, access and exposure to trade secrets and other confidential
information in written, oral, electronic, and other form regarding the Corporation and its Subsidiaries, and their respective Affiliates, businesses, operations, equipment, products, and employees (“Confidential
Information”), including, but not limited to: 
 (i)    the identities of customers and key
accounts and relationships and potential customers and key accounts and relationships, including, without limitation, the identity of customers and key accounts and potential customers and key accounts cultivated or maintained by Executive while
providing services to the Corporation or its Subsidiaries, or that Executive cultivates or maintains while providing services at the Corporation or its Subsidiaries using the Corporation’s (or its Subsidiaries’) products, name, and
infrastructure, and the identities of contact persons at those customers and key accounts and potential customers and key accounts, as well as other such confidential information related to the Business to which Executive is exposed during the
course of his employment or service; 
 (ii)    the particular preferences, likes, dislikes, and needs of
those customers and key accounts and relationships, and potential customers and key accounts and contact persons with respect to service types, financing terms, pricing, sales calls, timing, sales terms, rental terms, lease terms, service plans, and
other marketing terms and techniques; 
 (iii)    the business methods, practices, strategies, forecasts,
pricing, and marketing techniques; 
 (iv)    the identities of brokers, licensors, vendors, and other
suppliers and the identities of contact persons at such brokers, licensors, vendors, and other suppliers; 

(v)    the identities of key sales representatives and personnel and other employees; 

(vi)    advertising and sales materials, research, technology, intellectual property rights, training
materials and techniques, computer software, and related materials; 
 (vii)    other facts and financial
and other business information concerning such Persons or relating to their business, operations, financial condition, results of operations, and prospects; and 

  
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 (viii)    all other information the Corporation or its
Subsidiaries try to keep confidential and that has commercial value or is of such a nature that its unauthorized disclosure would be detrimental to the Corporation’s or any of its Subsidiaries’ interests. 

(b)    Notwithstanding the foregoing, “Confidential Information” will not include information
that is approved for public release by the Corporation or its Subsidiaries or information that Executive can demonstrate (i) is already in or has subsequently entered the public domain, other than as a result of any breach of this Agreement by
Executive; (ii) was in the possession of or known to Executive prior to Executive’s employment or other service with the Corporation and is not subject to confidentiality restrictions; (iii) was obtained from a third party not in
violation of any agreement with, or duty of confidentiality to, the Corporation; or (iv) was independently developed by Executive without use of or reference to the Corporation’s Confidential Information. 

(c)    During the Employment Period and thereafter, Executive will not at any time, except as directed by
the Corporation, use for himself or others, directly or indirectly, any such Confidential Information, and, except as required by law or as directed by the Corporation, Executive will not disclose such Confidential Information, directly or
indirectly, to any other Person or use, lecture upon, or publish any of the Confidential Information. 

(d)    All physical property and all notes, memoranda, files, records, writings, documents, and other
materials of any and every nature, written or electronic, that Executive has prepared, developed, or received, or will prepare, develop, or receive in the course of his association with the Corporation or its Subsidiaries and that relate to or are
useful in any manner to the Business or any other business now or hereafter conducted by the Corporation or its Subsidiaries, are and will remain the sole and exclusive property of such Persons. Except as may be required in the performance of
Executive’s duties under this Agreement, Executive will not remove from such Person’s premises any such physical property, the original, “soft copy,” or any reproduction of any such materials nor the information contained
therein, and all such physical property, materials, and information in his possession or under his custody or control will, on the Termination Date, be immediately turned over to the Corporation or its Subsidiaries. 

(e)    Notwithstanding the foregoing, (i) nothing in this Agreement or other agreement prohibits
Executive from reporting possible violations of law or regulation to any federal, state, or local governmental agency or entity (the “Government Agencies”), or communicating with Government Agencies or otherwise participating
in any investigation or proceeding that may be conducted by Government Agencies, including providing documents or other information; (ii) Executive does not need the prior authorization of the Corporation to take any action described in (i),
and Executive is not required to notify the Corporation that he has taken any action described in (i); and (iii) the Agreement does not limit Executive’s right to receive an award for providing information relating to a possible securities
law violation to the Securities and Exchange Commission. 
 (f)    Further, notwithstanding the
foregoing, Executive will not be held criminally or civilly liable under any Government Agency’s trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state, or local government
official, either directly or indirectly, or to an attorney, and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding,
if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his attorney and use the trade secret information in the court
proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order. 

  
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 (g)    Further, Executive may disclose Confidential
Information (i) to the extent required by a court of law, by any governmental agency having supervisory authority over the business of the Corporation, or by any administrative or legislative body (including a committee thereof) with apparent
jurisdiction to order him to divulge, disclose, or make accessible such information (provided, however, that the Corporation is given reasonable prior notice of such proposed disclosure and a reasonable period of time to secure a protective order or
take other action to protect such Confidential Information (at the Corporation’s expense)); or (ii) to Executive’s spouse, attorney, and/or his personal tax and financial advisors as necessary or appropriate to advance
Executive’s tax, financial, and other personal planning (each, an “Exempt Person”), provided, however, that (A) each such Exempt Person is notified of the confidential nature of the Confidential Information,
(B) such disclosure to an Exempt Person does not violate applicable laws, rules, or regulations, and (C) any disclosure or use of Confidential Information by an Exempt Person shall be deemed to be a breach of this Section 3.2 by
Executive. 
 3.3    Covenant Not to Compete. Executive agrees that during his employment with the Corporation,
and for a period of one (1) year immediately following the termination thereof, whether voluntary or involuntary, he shall not, directly or indirectly, on behalf of himself or any other person or entity, (a) work, whether on a full-time,
part-time, consulting, or contractor basis, as a chief credit risk officer or in another capacity similar to his management position with the Corporation for, (b) provide Business Services consulting to, (c) operate or manage, or
(d) have an ownership interest in, any entity (including a sole proprietorship) in the Non-Compete Territory (as hereinafter defined) that operates a Business that is competitive with the Business of the
Corporation or its Subsidiaries or that provides Business Services that are competitive with those provided by the Corporation or its Subsidiaries. Although Executive acknowledges that the market area of the Corporation and its Subsidiaries extends
throughout much of the United States and that he shall regularly be exposed to customers, Loan Sources, and related Confidential Information throughout that market area, the restriction in this Section 3.3 shall apply only to the area that is
within a twenty-five (25)-mile radius of any branch or other office of the Corporation or its Subsidiaries (“Non-Compete Territory”). Moreover, the restriction in this Section 3.3
shall not prevent Executive from owning, for personal investment purposes, up to one percent (1%) of the stock of any entity whose securities are listed on a national or regional securities exchange or have been registered under
Section 12(b) or Section 12(g) of the Securities Exchange Act of 1934, as amended. 
 3.4    Covenant
Not to Solicit Competitive Business Services Through or From Loan Sources. 
 (a)    Executive agrees
that during his employment with the Corporation, and for a period of one (1) year immediately following the termination thereof, whether voluntary or involuntary, he shall not, directly or indirectly, on behalf of himself or any other person or
entity, solicit the provision of, or otherwise provide, Business Services that are competitive with those provided by or to the Corporation or its Subsidiaries, through any Loan Source. “Loan Source,” as used in this
Agreement, shall mean any automobile dealership, online credit application network, retailer, or other Business Services source that the Corporation or its Subsidiaries uses at any time during the last year of Executive’s employment with the
Corporation and that Executive has contact with or is exposed to Confidential Information about through his employment with the Corporation. 

(b)    Executive agrees that during his employment with the Corporation, and for a period of one
(1) year immediately following the termination thereof, whether voluntary or involuntary, he shall not, directly or indirectly, on behalf of himself or any other person or entity, solicit any Loan Source for the purpose of providing or
receiving Business Services that are competitive with those provided by or to the Corporation or its Subsidiaries. 

  
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 3.5    Covenant Not to Hire or Solicit Employees. Executive
agrees that during his employment with the Corporation, and for a period of one (1) year immediately following the termination thereof, whether voluntary or involuntary, he shall not, directly or indirectly, on behalf of himself or any other
person or entity, hire any Corporation Employee for, or solicit any Corporation Employee for the purpose of offering employment with, any entity or person (including himself) that operates a Business that is competitive with the Business of the
Corporation or its Subsidiaries or that provides Business Services that are competitive with those provided by the Corporation or its Subsidiaries. “Corporation Employee,” as used in this Agreement, shall mean any employee
who (a) is employed with the Corporation or any of its Subsidiaries at any time during the last six (6) months of Executive’s employment with the Corporation, and (b) either (1) has been exposed to Confidential Information or
(2) has had contact with Executive through Executive’s employment with the Corporation. 

3.6    Reasonableness of Restrictions. 

(a)    Executive has carefully read and considered the provisions of Sections 3.2, 3.3, 3.4, and 3.5 and,
having done so, agrees that the restrictions, set forth in these Sections, including, but not limited to, the time period of restriction and the geographical area restriction, are fair and reasonable and are reasonably required for the protection of
the interests of the Corporation. 
 (b)    In the event that, notwithstanding the foregoing, either
Section 3.2, 3.3, 3.4, or 3.5 above shall be held to be invalid or unenforceable, the remaining paragraph(s) thereof shall nevertheless continue to be valid and enforceable as though the invalid or unenforceable paragraph(s) had not been
included therein. 
 (c)    In the event that any provision of Sections 3.2, 3.3, 3.4, or 3.5 above shall
be held to be invalid or unenforceable, the remaining provisions thereof shall nevertheless continue to be valid and enforceable as though the invalid or unenforceable provision(s) had not been included therein. 

(d)    In the event that any provision of Sections 3.2, 3.3, 3.4, or 3.5 relating to the time period of
restriction, the geographic area restriction, and/or any related aspects is found by a court of competent jurisdiction to exceed the maximum restrictiveness such court deems reasonable and enforceable, then it is the express desire and intent of
both the Corporation and Executive that such provision not be rendered invalid thereby, but rather that the duration, geographic area, scope, or nature of the restriction be deemed reduced or modified to the extent necessary to render such provision
reasonable, valid, and enforceable. The time period restriction, geographic area restriction, and/or any related aspects deemed reasonable and enforceable by the court shall then become, and thereafter be, the maximum restriction in such regard, and
the provision, as reformed, shall remain valid and enforceable. The Corporation and Executive acknowledge that this Section 3.6(d) is contractual in nature and expressly grant a court of competent jurisdiction the authority to effectuate this
contractual provision. 
 3.7    Non-Disparagement. During the term of
Executive’s employment, and thereafter, Executive shall not make any disparaging remarks, or any remarks that could reasonably be construed as disparaging, regarding the Corporation, its Subsidiaries, or its or their officers, directors,
employees, stockholders, representatives, or agents. The Corporation shall, except to the extent otherwise required by applicable laws, rules, or regulations or as appropriate in the exercise of the Board’s fiduciary duties (as determined by
the Board with advice of counsel), exercise reasonable efforts to cause the following 

  
 20 

 
individuals to refrain from making any disparaging statements, orally or in writing, regarding Executive from and after the termination of the Employment Period: the Corporation’s executive
officers and the members of the Board. 
 3.8    Use of Name. Executive will not have the rights to and may not
use the name “Regional Management Corp.” or any other name used by the Corporation or its Subsidiaries or any derivative or abbreviation thereof in any manner, including but not limited to in any activity prohibited under
Sections 3.3, 3.4, or 3.5, or in any manner that could reasonably be expected to be adverse to the interests of the Corporation or its Subsidiaries. This covenant shall survive indefinitely without limitation to time. 

3.9    Breach of Restrictive Covenants. Executive acknowledges that this Agreement is designed and intended to
protect the legitimate business interests of the Corporation and that the restrictions imposed by this Agreement are necessary, fair, and reasonably designed to protect those interests. Executive further acknowledges that the Corporation has given
him access to certain Confidential Information and that the use of such Confidential Information by him on behalf of some other entity (including himself) would cause irreparable harm to the Corporation. Executive also acknowledges that the
Corporation has invested considerable time and resources in developing its relationships with its Loan Sources and customers and in training Corporation Employees, the loss of which similarly would cause irreparable harm to the Corporation. Without
limitation, Executive agrees that if he should breach or threaten to breach any of the restrictive covenants contained in Sections 3.2, 3.3, 3.4, 3.5, and 3.7 of this Agreement, the Corporation may, in addition to seeking other available remedies
(including but in no way limited to the Corporation’s rights under Sections 2.7(a) and (e)), apply, consistent with Section 4.7 below, for the immediate entry of an injunction restraining any actual or threatened breaches or violations of
said provisions or terms by Executive. If, for any reason, any of the restrictive covenants or related provisions contained in Sections 3.2, 3.3, 3.4, 3.5, or 3.7 of this Agreement should be held invalid or otherwise unenforceable, it is agreed the
court shall construe the pertinent Section(s) or provision(s) so as to allow its enforcement to the maximum extent permitted by applicable law. Executive further agrees that any claimed breach of this Agreement by the Corporation shall not prevent,
or otherwise be a defense against, the enforcement of any restrictive covenant or other Executive obligation herein. 

3.10    Executive Representations. Executive represents that the restrictions on his business provided in this
Agreement are fair and protect the legitimate business interests of the Corporation. Executive represents further that the consideration for this Agreement is fair and adequate, and that even if the restrictions in this Agreement are applied to him,
he shall still be able to earn a good and reasonable living from those activities, areas, and opportunities not restricted by this Agreement. In addition, Executive represents he has had an opportunity to consult with independent counsel concerning
this Agreement and is not relying on the Corporation or its counsel for any related legal, tax, or other advice. 

3.11    No Prior Obligations. The Corporation represents and warrants that it is fully authorized and empowered to
enter into this Agreement and that the performance of its obligations under this Agreement will not violate any agreement between it and any other person, firm, or organization. Executive represents he is not subject to any contractual or other
obligations, including but not limited to any non-competition, non-solicitation, confidentiality, and/or other restrictive covenants, that preclude him from entering
into this Agreement or would in any way restrict his work activities as required under this Agreement. Executive represents further that he does not possess any prior employer or other third-party proprietary information and shall not use or
disclose any such information in his work for the Corporation. In the event that said representations should be untrue to any material extent and a related action should be initiated against the Corporation or its Subsidiaries, Executive agrees to
promptly indemnify the Corporation for any resulting liability and costs, including attorneys’ fees, as they are incurred in full. 

  
 21 

 3.12    Survival; Subsequent Employer Notice. The provisions
contained in this Article III and in Section 4.4 and Section 4.7 will survive termination of this Agreement regardless of whether such termination is initiated by the Corporation or Executive. In the event of the termination of his
employment with the Corporation and subsequent employment with, or work for, another entity or person, Executive agrees to notify the Corporation of his new employment or work, including the name and address of the new employer or entity or person
he intends to work for, before commencing work for the new employer or other entity or person. In addition, Executive authorizes the Corporation to provide notice of his obligations under this Agreement, including a copy of this Agreement, to his
new employer or other entity or person for whom he intends to work or provide services. 
 IV. MISCELLANEOUS 

4.1    Notices. All notices and other communications required or permitted hereunder will be in writing and, unless
otherwise provided in this Agreement, will be deemed to have been duly given when delivered in person or by a nationally recognized overnight courier service or when dispatched if during normal business hours by electronic facsimile transfer
(confirmed in writing by mail simultaneously dispatched) to the appropriate party at the address specified below: 

(a)    If to the Corporation, to: 

Regional Management Corp. 
 979
Batesville Road, Suite B 
 Greer, SC 29651 

Facsimile No.: (864) 729-4261 

Attention: General Counsel 

With a copy to: 
 Womble Bond
Dickinson (US) LLP 
 One Wells Fargo Center 

301 South College Street, Suite 3500 

Charlotte, NC 28202-6037 

Facsimile No.: (704) 338-7823 

Attention: Jane Jeffries Jones 

(b)    If to Executive, to: 

Regional Management Corp. 
 979
Batesville Road, Suite B 
 Greer, SC 29651 

Facsimile No.: (864) 329-8392 

Attention: Manish Parmar 
 With
a copy to Executive’s address on file with the Corporation. 
 or to such other address or addresses as any such party may from time to time designate
as to itself or himself by like notice. 

  
 22 

 4.2    Amendments and Waivers. 

(a)    Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver
is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective. 

(b)    No failure or delay by any party in exercising any right, power, or privilege hereunder will operate
as a waiver thereof nor will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power, or privilege. The rights and remedies herein provided will be cumulative and not exclusive
of any rights or remedies provided by law. 
 4.3    Expenses. Unless expressly set forth to the contrary
elsewhere in this Agreement, the parties will pay all of their respective expenses incurred in connection with any legal proceeding concerning a dispute arising out of this Agreement. Notwithstanding the foregoing, the Corporation shall pay the
reasonable fees and expenses of Executive’s attorney not to exceed $7,500 in connection with the negotiation of this Agreement. 

4.4    Indemnification. The Corporation will provide indemnification no less favorable than that set forth in the
Corporation’s amended and restated bylaws as in effect on the Effective Date. The Corporation agrees to use its best efforts to maintain a directors’ and officers’ liability insurance policy covering Executive to the extent the
Corporation provides such coverage for its other executive officers and such policy is available on commercially reasonable terms. Notwithstanding any indemnification rights provided under this Section 4.4, Executive shall not be entitled to
any indemnification as to any matter where the Corporation has brought an action or has otherwise asserted a claim against Executive that Executive has breached this Agreement. Notwithstanding anything contained in this Agreement to the contrary,
this Section 4.4 shall survive the termination of the Agreement and the Employment Period. 
 4.5    Successors
and Assigns. The provisions, obligations and rights of this Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns, heirs, and administrators; provided, however, that Executive may
not assign, delegate, or otherwise transfer any of his rights or obligations under this Agreement without the prior written consent of the Corporation. 

4.6    No Third Party Beneficiaries. Except as otherwise expressly provided for herein, this Agreement is for the
sole benefit of the parties hereto and their permitted assigns, and nothing herein expressed or implied will give or be construed to give to any Person, other than the parties hereto and such permitted assigns, any legal or equitable rights
hereunder. 
 4.7    Choice of Law; Forum Selection; Jury Waiver. This Agreement, including its interpretation,
performance, breach, or any statutory or other claim relating to Executive’s employment with the Corporation, the termination thereof, or his work for the Corporation, shall be governed by, and construed in accordance with, the laws of the
State of Delaware without giving any force or effect to the provisions of any conflict of law rule thereof, and unless superseded by federal law. The parties knowingly and voluntarily agree that any controversy or dispute arising out of or otherwise
related to this Agreement, including any statutory or other claim relating to Executive’s employment with the Corporation, the termination thereof, or his work for the Corporation, shall be tried exclusively, without jury, and consent to
personal jurisdiction, in the state courts of Greenville, South Carolina or the United States District Court for the District of South Carolina, Greenville division. Consistent with 6 Del. Code Ann. Section 2708(a), the parties consent to the
jurisdiction of said South Carolina courts and the service of legal process on them for any civil action arising out of or otherwise related to this Agreement, including any statutory or other claim related to Executive’s employment with the
Corporation or the termination thereof. 

  
 23 

 4.8    Controlling Document. Except with respect to the Stock
Plan, the Annual Incentive Plan, or any award agreement under any such plan, if any provision of any agreement, plan, program, policy, arrangement, or other written document between or related to the Corporation and Executive conflicts with any
provision of this Agreement, the provision of this Agreement shall control and prevail. The provisions of the Stock Plan, the Annual Incentive Plan, and any award agreements under such plans shall control over this Agreement. Notwithstanding
anything contained in this Agreement to the contrary, this Section 4.8 shall survive the termination of the Agreement and the Employment Period. 

4.9    No Limitation of Rights. Nothing in this Agreement shall limit or prejudice any rights of the Corporation
under any other laws. 
 4.10    Counterparts. This Agreement may be signed in any number of counterparts,
including via facsimile transmission, each of which will be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

4.11    Headings. The headings in this Agreement are for convenience of reference only and will not control or
affect the meaning or construction of any provisions hereof. 
 4.12    Severability. If any provision of this
Agreement or the application of any such provision to any Person or circumstance is held invalid, illegal, or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality, or unenforceability will not affect any
other provision hereof. If any provision of this Agreement is finally judicially determined to be invalid, ineffective, or unenforceable, the determination will apply only in the jurisdiction in which such final adjudication is made, and such
provision will be deemed severed from this Agreement for purposes of such jurisdiction only, but every other provision of this Agreement will remain in full force and effect, and there will be substituted for any such provision held invalid,
ineffective, or unenforceable, a provision of similar import reflecting the original intent of the parties to the extent permitted under applicable law. 

4.13    Certain Interpretive Matters. 

(a)    Unless the context otherwise requires, (i) all references to sections are to sections of this
Agreement, (ii) each term defined in this Agreement has the meaning assigned to it, (iii) words in the singular include the plural and vice versa, and (iv) the terms “herein,” “hereof,” “hereby,”
“hereunder,” and words of similar import shall mean references to this Agreement as a whole and not to any individual section or portion hereof. All references to $ or dollar amounts will be to lawful currency of the United States. 

(b)    No provision of this Agreement will be interpreted in favor of, or against, any of the parties
hereto by reason of the extent to which any such party or his or its counsel participated in the drafting thereof or by reason of the extent to which any such provision is inconsistent with any prior draft hereof or thereof. 

4.14    Entire Agreement. This Agreement constitutes the entire agreement among the parties with respect to the
subject matter hereof and supersedes all prior agreements and understandings, both oral and written, including but not limited to any term sheet, offer letter, or other similar summary of proposed terms, between the parties with respect to the
subject matter of this Agreement. 
 4.15    Full Understanding. Executive represents and agrees that Executive
fully understands Executive’s right to discuss all aspects of this Agreement with Executive’s private attorney, and that to the extent, if any, that Executive desired, Executive utilized this right. Executive further represents and agrees
that: (i) Executive has carefully read and fully understands all of the provisions of 

  
 24 

 
this Agreement; (ii) Executive is competent to execute this Agreement; (iii) Executive’s agreement to execute this Agreement has not been obtained by any duress, and Executive
freely and voluntarily enters into it; (iv) Executive is not subject to any covenants, agreements, or restrictions arising out of Executive’s prior employment (other than with the Corporation) that would be breached or violated by
Executive’s execution of this Agreement or performance of duties hereunder; and (v) Executive has read this document in its entirety and fully understands the meaning, intent, and consequences of this document. Executive agrees and
acknowledges that the obligations owed to Executive under this Agreement are solely the obligations of the Corporation and that none of the Corporation’s stockholders, directors, or lenders will have any obligation or liabilities in respect of
this Agreement and the subject matter hereof. 
 4.16    Code Section 409A. Notwithstanding
any other provision in this Agreement to the contrary, if and to the extent that Code Section 409A is deemed to apply to any benefit under this Agreement, it is the general intention of the Corporation that such benefits shall, to the extent
practicable, comply with, or be exempt from, Code Section 409A, and this Agreement shall, to the extent practicable, be construed in accordance therewith. Deferrals of benefits distributable pursuant to this Agreement that are otherwise exempt
from Code Section 409A in a manner that would cause Code Section 409A to apply shall not be permitted unless such deferrals are in compliance with or otherwise exempt from Code Section 409A. In the event that the Corporation (or a
successor thereto) has any stock which is publicly traded on an established securities market or otherwise and Executive is determined to be a “specified employee” (as defined under Code Section 409A), any payment of deferred
compensation subject to Code Section 409A to be made to Executive upon a separation from service may not be made before the date that is six months after Executive’s separation from service (or death, if earlier). To the extent that
Executive becomes subject to the six-month delay rule, all payments of deferred compensation subject to Code Section 409A that would have been made to Executive during the six months following his
separation from service, if any, will be accumulated and paid to Executive during the seventh month following his separation from service, and any remaining payments due will be made in their ordinary course as described in this Agreement. For the
purposes herein, the phrase “termination of employment” or similar phrases will be interpreted in accordance with the term “separation from service” as defined under Code Section 409A if and to the extent required under Code
Section 409A. Whenever payments under the Agreement are to be made in installments, each such installment shall be deemed to be a separate payment for purposes of Code Section 409A. Further, (i) in the event that Code
Section 409A requires that any special terms, provisions, or conditions be included in this Agreement, then such terms, provisions, and conditions shall, to the extent practicable, be deemed to be made a part of this Agreement, and
(ii) terms used in this Agreement shall be construed in accordance with Code Section 409A if and to the extent required. Further, in the event that this Agreement or any benefit thereunder shall be deemed not to comply with Code
Section 409A, then neither the Corporation, its Subsidiaries, the Board, the Compensation Committee, nor its or their designees or agents shall be liable to Executive or any other person for actions, decisions, or determinations made in good
faith. 
 4.17    Compliance with Recoupment, Ownership, and Other Policies or Agreements. As a condition to
entering into this Agreement, Executive agrees that he shall abide by all provisions of any equity retention policy, compensation recovery policy, stock ownership guidelines, and/or other similar policies maintained by the Corporation, each as in
effect from time to time and to the extent applicable to Executive from time to time. In addition, Executive shall be subject to such compensation recovery, recoupment, forfeiture, or other similar provisions as may apply at any time to Executive
under applicable law. 
 4.18    Waiver and Release. Executive acknowledges and agrees that the Corporation may
at any time require, as a condition to receipt of benefits payable under this Agreement, including but not limited to the payment of termination benefits pursuant to Sections 2.7(a), 2.7(d), 2.7(e), and 2.7(f) herein, that Executive (or a
representative of his Estate) execute a waiver and release discharging the 

  
 25 

 
Corporation and its Subsidiaries, and their respective Affiliates, and its and their officers, directors, managers, employees, agents, and representatives and the heirs, predecessors, successors,
and assigns of all of the foregoing, from any and all claims, actions, causes of action, or other liability, whether known or unknown, contingent or fixed, arising out of or in any way related to Executive’s employment, or the termination of
Executive’s employment with the Corporation or the benefits thereunder, including, without limitation, any claims under this Agreement or other related instruments. The waiver and release shall be in a form substantially similar to the form of
release attached to this Agreement as Exhibit A and shall be executed prior to the expiration of the time period provided for payment of such benefits (including those provided under Section 2.7 herein). 

4.19    Tax Matters. The Corporation has made no warranties or representations to Executive with respect to the tax
consequences (including but not limited to income tax consequences) contemplated by this Agreement and/or any benefits to be provided pursuant thereto. Executive acknowledges that there may be adverse tax consequences related to the transactions
contemplated hereby and that Executive should consult with his own attorney, accountant, and/or tax advisor regarding the decision to enter into this Agreement and the consequences thereof. Executive also acknowledges that the Corporation has no
responsibility to take or refrain from taking any actions in order to achieve a certain tax result for Executive. 
 [Remainder of Page
Intentionally Left Blank; Signature Page Follows] 

  
 26 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
effective as of the day and year first above written. 
  

			
	REGIONAL MANAGEMENT CORP.
		
	By:	 	 /s/ Peter R. Knitzer

	Name:	 	Peter R. Knitzer
	Title:	 	President and Chief Executive Officer

  

			
	EXECUTIVE
	
	 /s/ Manish Parmar

	Manish Parmar

  
 [Signature Page to
Employment Agreement] 

 EXHIBIT A 

RELEASE OF CLAIMS 
 This
Release of Claims (the “Agreement”) is made and entered into by and between Regional Management Corp. (the “Corporation”) and Manish Parmar (the “Executive”). 

BACKGROUND 

A.    The Corporation and Executive are parties to an Employment Agreement dated as of January 6, 2020 (the
“Employment Agreement”) that, among its terms, provides that the Corporation will pay Executive certain individually-tailored severance benefits (the “Severance”) under certain circumstances in
connection with the termination of Executive’s employment thereunder. 
 B.    Under the Employment Agreement, the
Corporation is not obligated to pay the Severance unless Executive has signed a release of claims in favor of the Corporation. The parties intend this Agreement to be that release of claims. 

NOW, THEREFORE, based on the foregoing and the terms and conditions below, the Corporation and Executive, desiring to amicably resolve any and
all existing and potential disputes between them as of the date each executes this Agreement, and in consideration of the obligations and undertakings set forth below and intending to be legally bound, agree as follows. 

1.    Corporation’s Obligations. In return for “Executive’s Obligations” (as
described in Section 2 below), and provided that Executive signs this Agreement and does not exercise Executive’s rights to revoke or rescind Executive’s waivers of certain discrimination claims (as described in Section 5 below),
the Corporation will pay to Executive the Severance. 
 2.    Executive’s Obligations. In return for the
Corporation’s Obligations in Section 1 above, Executive knowingly and voluntarily agrees to the following: 

(a)    Executive hereby fully, finally, and forever releases, waives, and discharges, to the maximum extent that the law
permits, any and all legal, equitable, and administrative claims, actions, causes of action, suits, debts, accounts, judgments, and demands (collectively, “Claims”) against the Corporation or any of its direct or indirect
subsidiaries or affiliates that Executive has or may have through the date on which Executive signs this Agreement. This full and final release, waiver, and discharge extends to all and each of every legal, equitable, and administrative Claim(s) of
any kind or nature whatsoever including, without limitation, the following: 
 (i)    All Claims that
Executive has or may have now, whether Executive now knows about or suspects such claims; 
 (ii)    All
Claims for attorney’s fees; 
 (iii)    All rights and Claims of age discrimination and retaliation
under the Age Discrimination in Employment Act (“ADEA”), as amended by the Older Workers Benefit Protection Act of 1990 (“OWBPA”); 

(iv)    All rights and Claims of any other forms of discrimination and retaliation of any kind or nature
whatsoever under federal, state, or local law, including but not limited to Claims of discrimination and retaliation under Title VII of the Civil Rights Act of 1964, and the Americans With Disabilities Act (“ADA”); 

 (v)    All Claims, whether in contract or tort, arising
out of Executive’s employment and Executive’s termination of employment with the Corporation, including but not limited to any alleged breach of contract, breach of implied contract, wrongful or illegal termination, defamation, invasion of
privacy, fraud, promissory estoppel, and infliction of emotional distress; 
 (vi)    All Claims for any
other compensation, including but not limited to front pay, back pay, bonus, fringe benefits, vacation pay, other paid time off, severance pay, other severance benefits, incentive opportunity pay, other grants of incentive compensation, and grants
of stock, stock options, and other equity awards and equity-based awards; 
 (vii)    All Claims under
the Employee Retirement Security Act of 1974, as amended (“ERISA”), subject to Section 4(c) herein; 

(viii)    All Claims for any other alleged unlawful employment practices arising out of or relating to
Executive’s employment or termination of employment with the Corporation; 
 (ix)    All Claims for
emotional distress, pain and suffering, compensatory damages, punitive damages, and liquidated damages; and 

(x)    All Claims for reinstatement or re-employment. 

Notwithstanding the foregoing, nothing in this Section 2(a) shall constitute a waiver of (i) any Claims that arise as a result of
conduct that occurs after the date that Executive signs this Agreement, (ii) any Claims for continuation rights under COBRA, or (iii) any Claims that do not exist as of the date that Executive signs this Agreement. 

(b)    Executive will not commence any civil actions against the Corporation except as necessary to enforce his
obligations under this Agreement and the Employment Agreement. The Severance that Executive is receiving in the Employment Agreement has a value that is greater than anything to which Executive is entitled. Other than what Executive is receiving in
the Employment Agreement, the Corporation owes Executive nothing else in return for Executive’s Obligations. 

(c)    Executive relinquishes any right to future employment with the Corporation, and the Corporation shall have the
right to refuse to re-employ Executive without liability. 
 (d)    Executive
agrees to continue to adhere to the terms and conditions set forth in Article III (Restrictive Covenants) of the Employment Agreement. Executive agrees that such terms and conditions are reasonable and necessary to protect the legitimate interests
of the Corporation and that any violation of Article III of the Employment Agreement by Executive may cause substantial and irreparable harm to the Corporation. Executive agrees that the Corporation may seek any remedies set forth in
Section 2.7(a)(vii), Section 2.7(e)(vii), and/or Article III of the Employment Agreement should Executive violate Article III of the Employment Agreement. The Corporation and Executive specifically agree that Section 2.7(a)(vii),
Section 2.7(e)(vii), and Article III of the Employment Agreement are incorporated hereto by reference and integrated herein. 

  
 A-2 

 3.    Certain Definitions. For purposes of Section 2,
“Executive” means Manish Parmar and any person or entity that has or obtains any legal rights or claims through Manish Parmar. Further, the “Corporation” means Regional Management Corp. and any parent,
subsidiary, and affiliated organization or entity in the present or past related to Regional Management Corp., and any past and present officers, directors, members, governors, attorneys, employees, agents, insurers, successors, and assigns of, and
any person who acted on behalf of or instruction of, Regional Management Corp. 
 4.    Other Provisions. 

(a)    The Corporation has paid or will pay Executive in full for all reimbursable business expenses, earned annualized
salary, earned unpaid bonus pay, and any other earnings through the last day of Executive’s employment (if and to the extent such payments are required to be made pursuant to the terms of the Employment Agreement). 

(b)    This Agreement does not prohibit Executive from filing an administrative charge of discrimination with, or
cooperating or participating in an investigation or proceeding conducted by, the Equal Employment Opportunity Commission or other federal or state regulatory or law enforcement agency. However, Executive agrees not to seek or accept any money
damages or other relief should any such charge be filed. 
 (c)    Nothing in this Agreement affects Executive’s
rights in any qualified retirement or welfare benefit plan or program in which Executive was a participant while employed by the Corporation. In addition, any equity, equity-based, or other long-term incentive awards granted to Executive shall be
governed by the terms of the applicable Stock Plan (as defined in the Employment Agreement) and related award agreement. The terms of such plans, programs, and award agreements control Executive’s rights with respect thereto. 

(d)    The Corporation will indemnify Executive as permitted by and pursuant to any agreement or policy that the
Corporation has adopted relating to indemnification of directors, officers, and employees, and as permitted by and pursuant to any provision of the Corporation’s certificate of incorporation or by-laws
relating to such indemnification. Executive will continue to be covered as permitted by and pursuant to any policy of directors and/or officers liability insurance policy on the terms and conditions of the applicable policy documents. For the
avoidance of doubt, nothing in Section 2(a) of this Agreement waives any right to claims for such indemnification or insurance coverage. 

(e)    Notwithstanding the foregoing, (i) nothing in this Agreement or other agreement prohibits Executive from
reporting possible violations of law or regulation to any federal, state, or local governmental agency or entity (the “Government Agencies”), or communicating with Government Agencies or otherwise participating in any
investigation or proceeding that may be conducted by Government Agencies, including providing documents or other information; (ii) Executive does not need the prior authorization of the Corporation to take any action described in (i), and
Executive is not required to notify the Corporation that he has taken any action described in (i); and (iii) the Agreement does not limit Executive’s right to receive an award for providing information relating to a possible securities law
violation to the Securities and Exchange Commission. Further, notwithstanding the foregoing, Executive will not be held criminally or civilly liable under any Government Agency’s trade secret law for the disclosure of a trade secret that
(i) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (B) solely for the purpose of reporting or investigating a suspected violation or law; or
(ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may
disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except
pursuant to court order. 

  
 A-3 

 (f)    The terms and obligations of the Employment Agreement and this
Agreement shall inure to the benefit of Executive’s heirs and estate. 
 5.    Executive’s Rights to
Counsel, Consider, Revoke, and Rescind. 
 (a)    The Corporation hereby advises Executive to consult with an
attorney prior to signing this Agreement. 
 (b)    Executive further understands that Executive has 21 days to consider
Executive’s release of rights and claims of age discrimination under the ADEA and OWBPA, beginning the date on which Executive receives this Agreement. Executive agrees that he was provided this Agreement on ________________, 20__ for
consideration. If Executive signs this Agreement, Executive understands that Executive is entitled to revoke Executive’s release of any rights or claims under the ADEA and OWBPA within seven days after Executive has executed it, and
Executive’s release of any rights or claims under the ADEA and OWBPA will not become effective or enforceable until the seven-day period has expired. To revoke such release, Executive must put the
rescission in writing and deliver it to the Corporation by hand or mail within the seven-day period. If Executive delivers the rescission by mail, it must be: (i) postmarked within seven calendar days
after the date on which Executive signs this Agreement; (ii) addressed to the Corporation, c/o General Counsel, 979 Batesville Road, Suite B, Greer, SC 29651; and (iii) sent by certified mail return receipt requested. If Executive revokes
or rescinds Executive’s waivers of discrimination claims as provided above, Executive shall not be entitled to receive the Severance. 

6.    Non-Admission. The Corporation and Executive enter into this
Agreement expressly disavowing fault, liability, and wrongdoing, liability at all times having been denied. Neither this Agreement, nor anything contained in it, will be construed as an admission by either of them of any liability, wrongdoing, or
unlawful conduct whatsoever. If this Agreement is not executed, no term of this Agreement will be deemed an admission by either party of any right that he/it may have with or against the other. 

7.    No Oral Modification or Waiver. This Agreement may not be changed orally. No breach of any provision hereof
can be waived by either party unless in writing. Waiver of any one breach by a party will not be deemed to be a waiver of any other breach of the same or any other provision hereof. 

8.    Governing Law. This Agreement will be governed by the substantive laws of the State of Delaware without
regard to conflicts of law principles. 
 9.    Forum Selection, Jurisdiction, and Venue. Executive and the
Corporation knowingly and voluntarily agree that any controversy or dispute arising out of or otherwise related to this Agreement, including any employment or statutory claim, shall be tried exclusively, without jury, and consent to personal
jurisdiction, in the state courts of Greenville, South Carolina or the United States District Court for the District of South Carolina, Greenville division. 

10.    Counterparts. This Agreement may be executed in any number of counterparts, each such counterpart will be
deemed to be an original instrument, and all such counterparts together will constitute but one agreement. 

11.    Blue Pencil Doctrine. In the event that any provision of this Agreement is unenforceable under applicable
law, the validity or enforceability of the remaining provisions will not be affected. To the extent any provision of this Agreement is judicially determined to be unenforceable, a court of competent jurisdiction may reform any such provision to make
it enforceable. The provisions of this Agreement will, where possible, be interpreted so as to sustain its legality and enforceability. 

  
 A-4 

 12.    Agreement Freely Entered Into. Executive and the
Corporation have voluntarily and free from coercion entered into this Agreement. Each has read this Agreement carefully and understands all of its terms, and has had the opportunity to discuss this Agreement with his/its own attorney prior to its
execution. In agreeing to sign this Agreement, neither party has relied on any statements or explanations made by the other party, their respective agents, or attorneys except as set forth in this Agreement. Both parties agree to abide by this
Agreement. 
 [Signature Page to Follow] 

  
 A-5 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the dates set forth below. 
  

					
	 By:
	 	  

		 	 Manish Parmar

		 	 Dated:
	 	  

	
	Regional Management Corp.
		
	 By:
	 	  

		 	 Name:
	 	  

		 	 Its:
	 	  

		 	 Dated:
	 	  

  
 A-6Wdesk | Exhibit

MDU RESOURCES GROUP, INC.
401(K) RETIREMENT PLAN

Restated effective April 1, 2020

	
			
	147194561.3
	 
	 

TABLE OF CONTENTS
Page

INTRODUCTION     1
ARTICLE I    DEFINITIONS     2
ARTICLE II    PARTICIPATION     9
2.1    Participation Requirements     9
2.2    Termination of Participation     9
2.3    Reemployment     10
ARTICLE III    CONTRIBUTIONS     11
3.1    Deferral Contributions     11
3.2    Changing Deferral Contribution Election    12
3.3    In-Plan Roth Conversion     12
3.4    Matching Contributions     13
3.5    Employer Contributions     14
3.6    Special Limitations on Deferral Contributions     14
3.7    Special Matching Contribution Limitations     18
3.8    Contribution Limitation     19
3.9    Rollover Contributions     21
ARTICLE IV    ACCOUNTS; VESTING; DISTRIBUTIONS     22
4.1    Participants’ Accounts     22
4.2    Vesting     22
4.3    Distribution     24
4.4    Method of Payment     24
4.5    Withdrawals by Participants     25
4.6    Timing of Distributions     27
4.7    Distributions Made in Accordance with Code Section 401(a)(31)     29
4.8    Loans to Participants     30
ARTICLE IV A    MINIMUM DISTRIBUTION REQUIREMENTS     33
4A.1    General Rules     33
4A.2    Time and Manner of Distribution     33
4A.3    Required Minimum Distributions During Participant’s Lifetime     35
4A.4    Required Minimum Distributions After Participant’s Death     36
4A.5    Definitions     37
ARTICLE V    INVESTMENT OF CONTRIBUTIONS     39
5.1    Making of Contributions     39
5.2    Investment     39
5.3    Voting of Common Stock of the Company     41
5.4    Tendering of Stock    42
5.5    Dividend Election     42
ARTICLE VI    PLAN ADMINISTRATION; CLAIMS FOR BENEFITS     44
6.1    Named Fiduciaries     44

	
			
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TABLE OF CONTENTS
(continued)
Page

6.2    Administrative Powers and Duties     44
6.3    Claims Procedures     45
6.4    Applications and Forms     45
6.5    Facility of Distribution and Payment     46
6.6    Beneficiary Designations     46
6.7    Form and Method of Designation     46
6.8    Administrative Expenses     47
ARTICLE VII    TRUST FUND     48
7.1    Trust Agreement     48
7.2    Reversion     48
ARTICLE VIII    AMENDMENT AND TERMINATION     49
8.1    Amendments     49
8.2    Right to Terminate     50
8.3    Action by the Company     50
8.4    Distribution of Accounts upon Plan Termination     50
ARTICLE IX    ADOPTION OF THE PLAN BY AFFILIATES     51
9.1    Adoption     51
9.2    Withdrawal     51
ARTICLE X    GENERAL     52
10.1    No Guarantee of Employment     52
10.2    Nonalienation of Benefits     52
10.3    Missing Persons     52
10.4    Governing Law     52
10.5    Merger or Consolidation of Plan     52
10.6    Distribution to Alternate Payees     53
10.7    Construction     53
ARTICLE XI    TOP‐HEAVY PROVISIONS     54
11.1    Top-Heavy Plan     54
11.2    Operative Provisions     54
ARTICLE XII    SPECIAL RULES FOR CERTAIN OFFICERS     56
EXECUTION     57
SCHEDULE A    MATCHING CONTRIBUTIONS     58
SCHEDULE B    PROFIT SHARING CONTRIBUTIONS     60
SCHEDULE C.1    RETIREMENT CONTRIBUTIONS—CERTAIN PARTICIPATING AFFILIATES     63
SCHEDULE C.2    RETIREMENT CONTRIBUTIONS—MDU RESOURCES GROUP, INC. AND 
CERTAIN PARTICIPATING AFFILIATES     65

	
			
	147194561.3
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TABLE OF CONTENTS
(continued)
Page

SCHEDULE C.3    RETIREMENT CONTRIBUTIONS—CERTAIN PENSION PLAN 
PARTICIPANTS     67
SCHEDULE C.4    RETIREMENT CONTRIBUTIONS—JTL GROUP, INC.     69
SCHEDULE C.5    RETIREMENT CONTRIBUTIONS—HAWAIIAN CEMENT, MAUI CONCRETE 
AND AGGREGATE DIVISION     70
SCHEDULE C.6    RETIREMENT CONTRIBUTIONS—SWEETMAN CONST. CO. AND RAIL TO 
ROAD, INC.     71
SCHEDULE D    PREVAILING WAGE LAW REQUIREMENTS AND SUPPLEMENTAL 
CONTRIBUTIONS     72
SCHEDULE E    PLAN MERGERS     74

	
			
	147194561.3
	iii
	 

INTRODUCTION
The MDU Resources Group, Inc. 401(k) Retirement Plan (formerly the Tax Deferred Compensation Savings Plan) (the “Plan”) was originally established effective January 1, 1984, by the board of directors of MDU Resources Group, Inc. (formerly Montana-Dakota Utilities Co.) (the “Company”).  The Plan is intended to provide a means for deferred savings and investment by Eligible Employees and to afford security for their retirement.  The Plan is intended to comply with the requirements of ERISA and Sections 401(a) and 401(k) of the Code.
The Plan is amended and restated as set forth herein generally effective April 1, 2020 (or such earlier or later effective date as provided herein) in connection with a change in the Plan’s recordkeeper and to incorporate all prior amendments, to reflect the Internal Revenue Service’s final regulations on hardship distributions, to make certain Plan-design changes (including the addition of Roth contributions, in-Plan Roth conversions and flexible installment distributions, and certain Plan loan changes), and to make certain other changes.  The rights and benefits of a Participant who severed from employment with all Affiliates prior to the effective date of this amendment and restatement shall be determined under the Plan as in effect at the time of such severance from employment, except as otherwise provided herein, as required by applicable law, or in accordance with uniform procedures adopted by the Committee.
Plan provisions relating to certain Employer contributions, merged plans, and other provisions specific to certain Participating Affiliates and Participants are set forth in the schedules herein.

	
			
	147194561.3
	1
	 

ARTICLE I
DEFINITIONS
The following terms, when used herein, shall have the meanings stated below unless a different meaning is otherwise indicated or required by the context.
Account – The Pretax Deferral Account, Roth Deferral Account, In-Plan Roth Conversion Account, Matching Contribution Account, ESOP Account, Rollover Account, Profit Sharing Account, and Retirement Contribution Account, respectively, maintained for a Participant (or an Eligible Employee), as applicable.  In addition, the Committee may establish additional accounts and subaccounts as it may deem necessary for the proper administration of the Plan, and “Account” may also refer to any or all such additional accounts and subaccounts.
Affiliate –The Company and any other corporation, trade or business that, together with the Company, is treated as a single employer with the Company pursuant to Code Section 414(b), (c), (m), or (o), except that with respect to Section 3.8, “pursuant to Code Section 414(b), (c), (m), or (o), as modified by Code Section 415(h)” shall be substituted for the preceding reference to “pursuant to Code Section 414(b), (c), (m), or (o).
Code – The Internal Revenue Code of 1986, as amended.  Reference to any specific Code section shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing, or superseding such section.
Committee – The MDU Resources Group, Inc. Employee Benefits Committee appointed to administer the Plan pursuant to Article VI or its delegate, as applicable.
Common Stock – Common stock of the Company.
Company – MDU Resources Group, Inc., or any successor thereto.
Compensation – The total compensation paid to an Eligible Employee by the Employer (not in excess of $285,000 for the 2020 Plan Year, as adjusted by the Secretary of the Treasury to reflect increases in the cost of living), unreduced by any deferral contributions of the Eligible Employee to the Plan, and any amount that is contributed by the Employer pursuant to a salary reduction agreement and that is not includible in the gross income of an Employee under Code Sections 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b), including any differential wage payment (as defined in Code Section 

	
			
	147194561.3
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3401(h)(2)), but excluding other contributions to the Plan, contributions to other employee benefit plans, relocation allowances, club membership reimbursements, the cost of group life insurance that is added to taxable income of the Eligible Employee, and any other extra or additional compensation from the Employer that does not constitute base compensation, such as bonuses and other incentive compensation.
Disability – A physical or mental condition of an Eligible Employee that results in permanent and total disability as defined by the Social Security Administration.
Distributee – Distributee means an Employee or former Employee.  In addition, the Employee’s (or former Employee’s) surviving Spouse and the Employee’s (or former Employee’s) Spouse or former Spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p), are Distributees with regard to the interest of the Spouse or former Spouse.  A Distributee also means the Employee’s (or former Employee’s) non-Spouse designated beneficiary, in which case, the distribution can only be transferred to a traditional IRA or Roth IRA established on behalf of the non-Spouse designated beneficiary for the purpose of receiving the distribution.
Effective Date – The Effective Date of the amendment and restatement of the Plan is April 1, 2020.  The Plan was originally established effective January 1, 1984.
Eligible Employee – Eligible Employee means each regular full-time Employee or part time Employee scheduled to work at least 1,000 Hours of Service a year who is at least 18 years of age and who is actively employed by the Employer; provided, however, that a part-time Employee scheduled to work less than 1,000 Hours of Service a year who completes at least 1,000 Hours of Service within a 12-month period beginning on the Employee’s employment date or in any subsequent Plan Year shall be an Eligible Employee.
Notwithstanding the foregoing, unless specifically approved as an Eligible Employee by the Committee, an Employee of an Employer shall not be an Eligible Employee during any time when such Employee is (1) eligible to participate in a multiemployer plan as defined in ERISA Section 3(37) to which the Employer contributes, (2) covered by a collectively bargained unit that has not bargained for the Plan for such Employee, (3) classified as a student or intern as defined by the payroll practices of the Employer, or (4) classified as a Temporary Employee, except that a Davis-Bacon Employee described in Section D-1 

	
			
	147194561.3
	3
	 

who is a Temporary Employees will become an Eligible Employees upon the completion of one Hour of Service.
A student, intern, or Temporary Employee who completed at least 1,000 Hours of Service within a 12-month period ending on or before December 31, 2010 shall be an Eligible Employee.
A Leased Employee shall not be an Eligible Employee.
Eligible Retirement Plan – Eligible Retirement Plan means (1) an individual retirement account described in Code Section 408(a) or 408A, (2) an individual retirement annuity described in Code Section 408(b), (3) an annuity plan described in Code Section 403(a), (4) an annuity contract described in Code Section 403(b), (5) an eligible plan under Code Section 457(b) that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and that agrees to separately account for amounts transferred into such plan from this Plan, or (6) a qualified plan described in Code Section 401(a) that accepts the Distributee’s Eligible Rollover Distribution.  This definition shall also apply in the case of a distribution to a surviving Spouse, or to a Spouse or former Spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p).  If any portion of an Eligible Rollover Distribution is attributable to payments or distributions from a Roth Deferral Account, an Eligible Retirement Plan with respect to such portion shall include only another designated Roth account of the individual from whose Account the payments or distributions were made or a Roth IRA of such individual.
Eligible Rollover Distribution – Eligible Rollover Distribution means any distribution of all or any portion of the balance to the credit of the Distributee, except that an Eligible Rollover Distribution does not include (1) any distribution that is one of a series of substantially equal periodic payments made (not less frequently than annually) for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee’s designated beneficiary, or for a specified period of ten years or more, (2) any distribution to the extent such distribution is required under Code Section 401(a)(9), (3) any hardship distribution described in Code Section 401(k)(2)(B)(i)(iv), (4) the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities), or (5) a distribution excluded from the definition of an “Eligible Rollover Distribution” under applicable Treasury rulings or regulations.

	
			
	147194561.3
	4
	 

A portion of a distribution shall not fail to be an Eligible Rollover Distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income.  However, such portion may be paid only to an individual retirement account or annuity described in Code Section 408(a) or 408(b), a Roth IRA described in Code Section 408A, a qualified retirement plan (either a defined contribution plan or a defined benefit plan) described in Code Section 401(a) or 403(a), or an annuity contract described in Code Section 403(b) that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution that is includible in gross income and the portion of such distribution that is not so includible.
Employee – An individual shall be an Employee of or be employed by the Employer for any Plan Year only if such individual is treated by the Employer for such Plan Year as its employee for purposes of employment taxes and wage withholding for federal income taxes, regardless of any subsequent reclassification by the Employer, any governmental agency, or court.
Employer – The Company and the Participating Affiliates.
ERISA – The Employee Retirement Income Security Act of 1974, as amended.  Reference to any specific ERISA section shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing, or superseding such section.
ESOP – The portion of the Plan that is designed to invest primarily in Common Stock and is intended to satisfy the requirements of a non-leveraged employee stock ownership plan set forth in Code Sections 401(a), 409, and 4975(e)(7).  The ESOP consists of all amounts credited to Participants’ Accounts that are invested in Common Stock from time to time, including, without limitation, amounts held under this Plan as a result of the merger of the MDU Resources Group, Inc. Employee Stock Ownership Plan into the Plan as of January 1, 1988.
ESOP Account – The separate Account or Accounts maintained for a Participant to which is credited the Participant’s interest in the ESOP from time to time.
Highly Compensated Employee or HCE – Includes highly compensated active Employees and highly compensated former Employees.  “Highly compensated active Employee” means any Employee who (1) was a 5% owner (as defined in Code Section 416(i)(I)) of the Employer at any time during the current or the preceding year, or (2) for the preceding year had compensation from the Employer in excess of 

	
			
	147194561.3
	5
	 

$80,000 (as adjusted by the Secretary of the Treasury pursuant to Code Section 415(d), except that the base period shall be the calendar quarter ending September 30, 1996).
A former Employee shall be treated as a Highly Compensated Employee if (A) such Employee was a Highly Compensated Employee when he or she separated from service, or (B) such Employee was a Highly Compensated Employee at any time after attaining age 55.
The determination of who is a Highly Compensated Employee will be made in accordance with Code Section 414(q).
For purposes of this definition, the term “compensation” means Section 415 compensation (as defined in Section 3.8).
Hour of Service – Any hour for which an Employee is directly or indirectly paid or entitled to payment by an Employer (1) for the performance of duties, or (2) on account of a period of time during which no duties are performed due to paid vacation, paid holidays, paid illness or incapacity, paid jury duty, or other authorized paid leaves of absence, or (3) for which back pay irrespective of mitigation of damages is either awarded or agreed to by an Employer.  The number of Hours of Service, and the period to which such hours shall be credited, will be determined in accordance with Department of Labor Regulations Section 2530.200b-2.
In-Plan Roth Conversion Account – An Account created to hold amounts under the Plan that a Participant, spousal alternate payee, or spousal beneficiary elects to convert to the In-Plan Roth Conversion Account in accordance with Section 3.3.  The Committee may establish subaccounts based on the source of the in-Plan Roth conversion.
Investment Funds – Each of the investment funds designated by the Committee in which a Participant’s Accounts may be invested, in accordance with Section 5.2.
Leased Employee – An individual, not otherwise an Employee, who, pursuant to an agreement between an Affiliate and a leasing organization, has performed, on a substantially full-time basis, for a period of at least 12 months, services under the primary direction or control of the Affiliate unless (1) the individual is covered by a money purchase pension plan maintained by the leasing organization and meeting the requirements of Code Section 414(n)(5)(B), and (2) Leased Employees do not constitute more 

	
			
	147194561.3
	6
	 

than 20% of the nonhighly compensated workforce of all Affiliates (within the meaning of Code Section 414(n)(5)(C)(ii)).
Matching Contribution Account – The separate Account to which Employer matching contributions under Section 3.4 are credited.
Normal Retirement Age – The date a Participant attains age 60.
Participant – An Eligible Employee who participates in the Plan pursuant to Article II.
Participating Affiliate – An Affiliate to which the Committee has extended the Plan and which adopts the Plan by its board of directors or other governing body.
Plan – The MDU Resources Group, Inc. 401(k) Retirement Plan as set forth herein and as amended from time to time.
Plan Year – The calendar year.
Pretax Deferral Account – The separate Account to which pretax deferral contributions under Section 3.1 are credited.
Profit Sharing Account – A separate account to which profit sharing contributions under Section 3.5(a) are credited.
Retirement Contribution Account – A separate account to which retirement contributions under Section 3.5(b) are credited.
Rollover Account – The separate Account maintained for an Eligible Employee to hold amounts contributed pursuant to Section 3.9.
Roth Deferral Account – The separate Account to which Roth deferral contributions under Section 3.1 are credited.
Section 16 Officer – An officer as described in Section 16 of the Securities Exchange Act of 1934 and the rules thereunder. 
Spouse – The person to whom an individual is married for purposes of federal income taxes.
Temporary Employee – An Employee classified as a temporary Employee by an Employer and assigned employment status code 5 in the Knife River Corporation payroll system, employment status code 7 in the Montana-Dakota Utilities Co. or WBI Energy, Inc. payroll system, employment status code N in the MDU Construction Services Group, Inc. payroll system, or any successor or equivalent payroll system code.  

	
			
	147194561.3
	7
	 

Trust Agreement – The Trust Agreement between the Company and the Trustee pursuant to which the Trust Fund is maintained, as such agreement may be amended from time to time.  The Trust Agreement constitutes a part of the Plan and its terms are incorporated herein by reference.
Trust Fund – The Trust Fund under the Plan in which Plan assets are retained by the Trustee.
Trustee – The Trustee of the Trust Fund, and any successor thereto.

	
			
	147194561.3
	8
	 

ARTICLE II
PARTICIPATION
		
	2.1
	Participation Requirements

		
	(a)
	Each Eligible Employee who was a Participant in the Plan immediately prior to the Effective Date shall continue to participate in the Plan as of the Effective Date.

		
	(b)
	Each other Eligible Employee who is not a Participant prior to the Effective Date or who becomes an Eligible Employee on and after the Effective Date shall become a Participant on the date that he or she becomes an Eligible Employee, provided that such Eligible Employee complies with any enrollment procedures established by the Committee.

		
	2.2
	Termination of Participation

		
	(a)
	A Participant shall terminate active participation in the Plan upon any of the following events:

		
	(i)
	death,

		
	(ii)
	retirement,

		
	(iii)
	Disability, or

		
	(iv)
	other termination of employment with all Affiliates.

		
	(b)
	A Participant who elects, pursuant to Section 4.5(b), to make a complete or partial withdrawal from the Pre-tax Deferral Account, Roth Deferral Account, Matching Contribution Account, and Rollover Account after age 591⁄2 shall not be deemed to terminate participation in the Plan by such election alone.

		
	(c)
	A Participant who ceases to be an Eligible Employee (other than by termination of employment), discontinues deferral contributions under Section 3.1, or enters the military service of the United States, shall also be an inactive Participant with respect to the deferral contribution feature of the Plan; provided, however, that, notwithstanding any provision of the Plan to the contrary, (i) contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with Code Section 414(u), and (ii) in the case of a Participant who dies while performing qualified military service (as defined in Code Section 414(u)), the survivors of the Participant are entitled to any benefits

	
			
	147194561.3
	9
	 

(other than benefit accruals relating to the period of qualified military service) provided under the Plan had the Participant resumed and then terminated employment on account of death.  Any interest of an inactive Participant in the Plan may be allowed to remain in the Trust Fund, subject to payment as provided in Article IV.  Inactive Participants may apply for a hardship withdrawal in accordance with Section 4.5(a) but shall not be eligible for loans under Section 4.8.
		
	2.3
	Reemployment.  An Eligible Employee or Participant who terminates employment with the Employer and who is subsequently reemployed as an Eligible Employee shall become a Participant on the date of his or her reemployment, provided that such Eligible Employee complies with any enrollment procedure established by the Committee.  Notwithstanding any provision of the Plan to the contrary, an individual rehired after January 1, 2011, as a student, intern, or Temporary Employee will not be an Eligible Employee and will not become a Participant in the Plan, except that a Davis-Bacon Employee described in Section D-1 who is a Temporary Employees will become an Eligible Employee upon the completion of one Hour of Service.

	
			
	147194561.3
	10
	 

ARTICLE III
CONTRIBUTIONS
		
	3.1
	Deferral Contributions

		
	(a)
	Maximum.  A Participant may contribute, by payroll deduction, any whole percentage of the Participant’s Compensation not exceeding 75% of Compensation for each pay period to the Participant’s Pretax Deferral Account and/or Roth Deferral Account.  The Participant must specify whether the deferral contributions shall be pretax deferral contributions, Roth deferral contributions, or a combination of both.  If a Participant fails to specify, then his or her deferral contributions shall be treated as pretax deferral contributions.  The election shall be made in such manner and with such advance notice as prescribed by the Committee.

		
	(b)
	Deferral contributions on behalf of a Participant shall be credited to such Participant’s Pretax Deferral Account and/or Roth Deferral Account, as applicable and subject to Section 3.6.

		
	(c)
	Upon becoming a Participant, and at any time thereafter, each Participant may elect the percentage of Compensation to be contributed as deferral contributions to the Plan.  Any such election will take effect as soon as administratively feasible.  Each election by a Participant under this Section 3.1(c) shall be made pursuant to the method established by the Committee for this purpose.

		
	(d)
	If a Participant fails to make an election within 30 days of becoming a Participant, the Participant shall be deemed to have elected to have 6% of Compensation (the “automatic deferral rate”) withheld and contributed to the Plan as pretax deferral contributions, effective as soon as administratively feasible following the 30-day period.  (Effective January 1, 2017, to March 31, 2020, the automatic deferral rate was 4%.  Effective September 1, 2007, to December 31, 2016, the automatic deferral rate was 3%.)  Within a reasonable period prior to the date an automatic deferral election is effective and the first day of each Plan Year thereafter, the Participant shall receive a notice that explains the automatic deferral feature (including the applicable automatic deferral rate and how

	
			
	147194561.3
	11
	 

automatic contributions will be invested in the absence of the Participant’s investment election), the Participant’s right to elect not to have automatic contributions made on the Participant’s behalf, and the procedure for making an alternate election.  Automatic contributions being made on behalf of a Participant will cease as soon as administratively feasible after the Participant makes an affirmative election regarding deferral contributions.
		
	(e)
	Notwithstanding a Participant’s election under Section 3.1(c) or deemed election under Section 3.1(d), if a Participant is contributing less than 15% of Compensation to the Plan on January 1 following his or her initial deferral contribution, such a Participant’s deferral rate shall be automatically increased by 1% on such January 1 and each subsequent January 1 (or as soon as administratively feasible thereafter) until his or her deferral rate equals 15% of Compensation; provided, however, that this Section 3.1(e) shall not apply to a Participant who has elected to opt out of the automatic deferral increase feature or has elected to not contribute to the Plan.

		
	(f)
	Deferral contributions must be contributed to the Trust Fund as soon as they can reasonably be segregated from the Employer’s general assets, but in no event later than the 15th business day of the month following the month in which such amounts otherwise would have been payable to the Participant in cash.  Deferral contributions shall be invested pursuant to Section 5.2(a).

		
	3.2
	Changing Deferral Contribution Election.  A Participant may change his or her deferral contribution election at any time as provided in Section 3.1(c).  Such change will take effect as soon as administratively feasible.

		
	3.3
	In-Plan Roth Conversion.  A Participant, spousal alternate payee, or spousal beneficiary may elect to convert vested amounts from any Account, other than an Account holding Roth Contributions, to an In-Plan Roth Conversion Account in such manner and subject to such rules as the Committee may establish consistent with this Section 3.3 and Code Section 402A(c)(4)(E).  The Plan permits conversion of any amounts permissible under the Code, including amounts that are not otherwise distributable.  Amounts that are so converted will be subject to the taxation provisions and separate accounting requirements that apply to designated Roth contributions and any distribution

	
			
	147194561.3
	12
	 

constraints applicable to such amounts prior to the conversion.  An in-Plan Roth conversion is not a Plan distribution.  Accordingly, the Plan may not withhold or distribute any amounts for income tax withholding.
		
	3.4
	Matching Contributions

		
	(a)
	The Employer shall make a matching contribution for each pay period equal to 50% of the deferral contribution made by the Participant for such pay period; provided, however, that a Participant’s deferral contributions in excess of 6% of Compensation for such pay period shall not be eligible for matching contributions.  Notwithstanding the immediately preceding sentence, an Employer, by resolution of its board of directors or other governing body and subject to the approval of the Committee, may provide for a matching contribution on behalf of Participants employed by such Employer that differs from the matching contribution stated above.  In such a case, the matching contribution so adopted by such Employer and approved by the Committee shall be set forth in Schedule A and shall be applicable to such Employer in lieu of the matching contribution stated above until changed by action of such Employer’s board of directors or other governing body and approved by the Committee.  Matching contributions on behalf of a Participant shall be made in cash and credited to the Participant’s Matching Contribution Account.

The Employer shall make a true-up matching contribution for each Plan Year on behalf of each Participant who made deferral contributions during such Plan Year.  The true-up matching contribution shall be in the amount that, when aggregated with all matching contributions made during the Plan Year on behalf of the Participant, equals 50% of the Participant’s deferral contributions for the Plan Year that do not exceed 6% of the Participant’s Compensation for the Plan Year.  A Participant whose employment is terminated during the Plan Year may receive a true-up matching contribution prior to the end of the Plan Year, as determined in the sole discretion of the Participant’s Employer.  Notwithstanding the foregoing, for any Participant employed by an Employer who provides a matching contribution that differs from the matching contribution formula stated above, as set forth in Schedule A, the amount of true-up matching contribution shall not exceed

	
			
	147194561.3
	13
	 

the maximum matching contribution made pursuant to Schedule A as determined on a Plan Year basis.
Matching contributions described in this Section 3.4(a) without regard to any matching contributions described in Schedule A are referred to herein as the “standard matching contributions.”
		
	(b)
	[Reserved]

		
	3.5
	Employer Contributions.  Each Employer, in its sole discretion, may make either or both of the following types of contributions to the Plan on behalf of Participants employed by that Employer.

		
	(a)
	Profit Sharing.  Each Employer may establish a profit sharing feature by which a contribution to the Plan may be allocated to Participants pursuant to criteria related to the Employer’s annual performance, as established by resolution of its governing body and subject to the approval of the Committee.  Each profit sharing feature shall be set forth in Schedule B and shall be applicable to the Employer that established the feature until changed by action of such Employer’s governing body and approved by the Committee.  Any such contribution will be made in accordance with Section 5.1 and will be invested pursuant to the Participant’s investment election.

		
	(b)
	Retirement Contribution.  Each Employer may establish a retirement contribution feature by which a contribution to the Plan will be allocated to Participants pursuant to a specific formula established by resolution of its governing body and subject to the approval of the Committee.  Each retirement contribution feature shall be set forth in Schedules C.1–C.6 and shall be applicable to the Employer that established the feature until changed by action of such Employer’s governing body and approved by the Committee.  Any such contribution will be made in accordance with Section 5.1 and will be invested pursuant to the Participant’s investment election.

		
	3.6
	Special Limitations on Deferral Contributions

		
	(a)
	For each Plan Year, the Plan shall comply with Code Section 401(k)(3).  Specifically, if the actual deferral percentage or ADP (as defined in Section 3.6(c)) of Compensation for Participants who are HCEs is more than the amount permitted under the special limitations

	
			
	147194561.3
	14
	 

set forth in Section 3.6(b), the deferral contributions made by the HCEs will be reduced (in the order of those HCEs with the highest dollar contribution amount) to the extent necessary to meet the requirements of Section 3.6(b).  The Employer shall pay directly to the Participant any excess amounts withheld for contribution.  Any excess deferral contributions made to the Trust Fund, plus any related earnings thereon, shall be distributed to the Participants before the end of the Plan Year following the Plan Year in which such excess deferral contributions are made.  Amounts to be distributed to a Participant pursuant to the previous sentence shall be reduced by the amounts (if any) to be distributed to that Participant pursuant to Section 3.6(g).
In addition, if the Employer or the Committee determines that contributions would be in excess of the special limitations set forth in Section 3.6(b), the Employer may in its sole discretion suspend, in whole or in part, deferral contributions to the Plan made on behalf of Participants who are HCEs.  In such case the deferral contributions that would ordinarily be contributed to the Trust Fund on the Participants’ behalf in a payroll period shall be paid directly to such Participants.
		
	(b)
	The ADP for any Plan Year beginning on or after January 1, 1987, of all Eligible Employees who are HCEs shall not exceed, alternatively (i) 125% of the ADP for all Eligible Employees who are not HCEs, or (ii) 200% of the ADP for Eligible Employees who are not HCEs, provided that the ADP for all HCEs does not exceed the ADP for all other Eligible Employees by more than 2%.

		
	(c)
	For purposes of this Section 3.6, the “actual deferral percentage” or “ADP” for a Plan Year shall be the average of the ratios, calculated separately for each Eligible Employee in each group, of the amount of deferral contributions credited to the Pretax Deferral Account and Roth Deferral Account on behalf of each Eligible Employee for such Plan Year to the Eligible Employee’s Section 415 compensation (as defined in Section 3.8) for such Plan Year.

		
	(d)
	If a reduction in the amount of deferral contributions on behalf of a Participant is required because of the application of Section 3.6(a), the reduction shall be treated as taxable

	
			
	147194561.3
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earnings to the Participant for the pay period in which the reduction occurs, and the Employer shall withhold any taxes required by law on such taxable earnings.
		
	(e)
	If a distribution of excess deferral contributions (and related earnings) is required because of the application of Section 3.6(a), the Employer shall withhold any taxes required by law on such distribution.

		
	(f)
	In the event that an active Participant is required to reduce deferral contributions to the Plan as a result of the application of Section 3.6(a), the matching contribution under Section 3.4 made on behalf of the Participant for the remainder of the Plan Year shall be applied to the reduced amount of deferral contributions.

		
	(g)
	Notwithstanding the foregoing provisions of this Section 3.6, the maximum amount of deferral contributions credited to the Pretax Deferral Account and Roth Deferral Account on behalf of a Participant in any calendar year may not exceed $19,500, as may be adjusted in accordance with regulations prescribed by the Secretary of the Treasury to reflect increases in the cost of living, and any such contributions made to the Pretax Deferral Account and Roth Deferral Account in excess of such limit (as adjusted), plus any related earnings on the excess, shall be distributed to the Participant by no later than April 15 following the close of the calendar year in which the excess deferral contributions are made.  The amount of deferral contributions distributed to a Participant pursuant to the immediately preceding sentence shall be reduced by the amount of deferral contributions distributed to such Participant pursuant to Section 3.6(a) for the same Plan Year.

Deferral contributions exceeding the limits of this Section 3.6(g) shall mean the amount of deferral contributions for a calendar year that the Participant designates to the Plan pursuant to the following procedure.  The Participant’s designation shall (i) be submitted to the Committee in writing no later than March 1, (ii) specify the Participant’s deferral contributions exceeding the limits of this Section 3.6(g) for the preceding calendar year, and (iii) be accompanied by the Participant’s written statement that if such excess deferral contribution is not distributed, it will, when added to amounts deferred under other plans or arrangements described in Code Section 401(k), 408(k), or 403(b), exceed the

	
			
	147194561.3
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limit imposed on the Participant by Code Section 402(g) for the year in which the deferral occurred.  Deferral contributions exceeding the limits of this Section 3.6(g) are includible in a Participant’s gross income under Code Section 402(g) to the extent that such Participant’s deferral contributions for a taxable year exceed the dollar limitation under such Code section.  Such excess deferral contributions, and the income or loss allocable thereto, may be distributed before the end of the calendar year in which the deferral contributions were made.  A Participant who has such excess deferral contributions for a taxable year, taking into account only such deferral contributions under the Plan or any other plan of the Affiliates, shall be deemed to have designated the entire amount of such excess deferral contributions.  
		
	(h)
	The earnings allocable to distributions of deferral contributions exceeding the limits of Section 3.6(b) or 3.6(g) shall be the sum of (i) the earnings attributable to the Participant’s deferral contributions for the year multiplied by a fraction, the numerator of which is the applicable excess amount, and the denominator of which is the balances in the Pretax Deferral Account and Roth Deferral Account of the Participant on the last day of such year reduced by gains (or increased by losses) attributable to such Accounts for the year; and (ii) 10% of the amount determined under clause (i) multiplied by the number of whole calendar months between the end of the Plan Year and the date of distribution, counting the month of distribution if distribution occurs after the 15th day of such month.

		
	(i)
	All Employees who are eligible to make deferral contributions under the Plan and who have attained age 50 before the close of the Plan Year shall be eligible to make catch-up contributions in accordance with, and subject to the limitations of, Code Section 414(v).  Such catch-up contributions shall not be taken into account for purposes of implementing the required limitations of Code Sections 402(g) and 415.  The Plan shall not be treated as failing to satisfy the requirements of Code Section 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416, as applicable, by reason of the making of such catch-up contributions.  Deferral contributions are matched up to the maximum deferral limit for the Plan Year, including excess deferrals that are reclassified as catch-up contributions.

	
			
	147194561.3
	17
	 

		
	3.7
	Special Matching Contribution Limitations

		
	(a)
	For each Plan Year, the Plan shall comply with Code Section 401(m)(2).  Specifically, if the actual contribution percentage or ACP (as defined in Section 3.7(c)) for Participants who are HCEs is more than the amount permitted under the special limitations set forth under Section 3.7(b), the matching contributions credited to the Matching Contribution Accounts of those Participants who are HCEs shall be reduced (in the order of the HCEs with the highest dollar amount of matching contributions) to the extent necessary to meet the requirements of Section 3.7(b).  Any excess matching contributions made to the Trust Fund, plus any related earnings thereof, shall be distributed to such Participants before the end of the Plan Year following the Plan Year in which such excess matching contributions are made.  The earnings allocable to distributions of deferral contributions exceeding the limits of Section 3.7(b) shall be the sum of (i) the earnings attributable to the Participant’s deferral contributions for the year multiplied by a fraction, the numerator of which is the applicable excess amount and the denominator of which is the balance in the Pretax Deferral Account and Roth Deferral Account of the Participant on the last day of such year reduced by gains (or increased by losses) attributable to such Accounts for the year; and (ii) 10% of the amount determined under clause (i) multiplied by the number of whole calendar months between the end of the Plan Year and the date of distribution, counting the month of distribution if distribution occurs after the 15th day of such month.  In addition, if the Employer or the Committee determines that contributions or matching contributions would be in excess of the special limitations set forth under Section 3.7(b), the Employer may, in its sole discretion, suspend, in whole or in part, deferral contributions to the Plan made on behalf of Participants who are HCEs and, therefore, related matching contributions with respect to such Participants, in which case the deferral contributions that would ordinarily be contributed to the Trust Fund on the Participants’ behalf in a payroll period shall be paid directly to such Participants.

		
	(b)
	The ACP for any Plan Year of all Eligible Employees who are HCEs shall not exceed, alternatively (i) 125% of the ACP for all Eligible Employees who are not HCEs, or (ii) 200% 

	
			
	147194561.3
	18
	 

of the ACP for Eligible Employees who are not HCEs, provided that the ACP for all HCEs does not exceed the ACP for all other Eligible Employees by more than 2%.
		
	(c)
	For purposes of this Section 3.7, the “actual contribution percentage” or “ACP” for a Plan Year shall be the average of the ratios, calculated separately for each Eligible Employee in each group, of the amount of matching contributions to the Matching Contribution Account on behalf of each Eligible Employee for such Plan Year to the Eligible Employee’s Section 415 compensation (as defined in Section 3.8) for such Plan Year.

		
	(d)
	If a reduction in the amount of deferral contributions on behalf of a Participant is required because of the application of Section 3.7(a), the reduction shall be treated as taxable earnings to the Participant for the pay period in which the reduction occurs, and the Employer shall withhold any taxes required by law on such taxable earnings.

		
	(e)
	If a distribution of excess deferral contributions or excess matching contributions (and related earnings) is required because of the application of Section 3.7(a), the Employer shall withhold any taxes required by law on such distribution.

		
	(f)
	In the event that an active Participant is required to reduce deferral contributions to the Plan as a result of the application of Section 3.7(a), the matching contribution made on behalf of the Participant for the remainder of the Plan Year shall be applied to the reduced amount of deferral contributions.

		
	3.8
	Contribution Limitation.  Notwithstanding any provision of the Plan to the contrary, and except to the extent permitted under Code Section 414(v), the annual additions (as defined below) to a Participant’s Accounts shall not exceed the lesser of (a) 100% of the Participant’s total Section 415 compensation (as defined below) or (b) $57,000, as adjusted for cost-of-living increases under Code Section 415(d).  Plan benefits shall be paid in accordance with Code Section 415 and applicable Treasury Regulations issued thereunder, the requirements of which are incorporated herein by reference to the extent not specifically provided herein.

“Annual addition” for any Plan Year means the sum of (a) the deferral contributions, matching contributions, and profit sharing contributions, if any, credited to a Participant’s Accounts for that year, and (b) the contributions made by an Affiliate on behalf of such Participant (including 

	
			
	147194561.3
	19
	 

contributions made by such Participant pursuant to an election to defer earnings), and any remainders to be credited to his or her Account under any other defined contribution plan maintained by the Affiliates in which such Participant participates.  The Committee shall take any actions it deems advisable to avoid an annual addition in excess of the limitations set forth in Code Section 415; provided, however, if a Participant’s annual addition for a Plan Year actually exceeds the limitations of this Section 3.8, the Committee shall correct such excess in accordance with applicable Treasury Regulations or applicable guidance issued by the Internal Revenue Service.
The term “Section 415 compensation” shall mean the total of all of the wages, salaries, and other amounts received by the Participant from the Employer for services rendered to the Employer as reflected on Form W-2, but only to the extent such amounts are includible as compensation under Code Section 415I(3) and the regulations thereunder (including any amounts includible in a Participant’s income under the rules of Code Section 409A or because the amounts are constructively received by the Participant for any year beginning on or after January 1, 2008), and any differential wage payment (as defined in Code Section 3401(h)), plus any elective deferrals (as defined in Code Section 402(g)(3)) and any amount contributed or deferred by the Employer at the Participant’s election that is excludable from income under Code Sections 125, 132(f)(4), or 457.
Notwithstanding the foregoing, Section 415 compensation for a Plan Year shall include compensation paid to the Participant by the later of 21⁄2 months after the Participant’s severance from employment with the Employer or the end of the Plan Year that includes the date of such severance from employment if (i) the payments are regular compensation for services during the Participant’s regular working hours or compensation for services outside the Participant’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments, and, absent a severance from employment, the payments would have been paid to the Participant while the Participant continued in employment with the Employer; (ii) the payments are for unused accrued bona fide vacation time that the Participant would have been able to use if employment had continued; or (iii) the payment is received by the Participant pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid at the same time if employment had continued and only to the extent the payments are includible 

	
			
	147194561.3
	20
	 

in gross income.  Payments other than those described above shall not be considered compensation if paid after severance from employment, even if they are paid by the later of 21⁄2 months after the date of severance from employment or the end of the Plan Year that includes the date of severance from employment, except (i) payments to an individual who does not currently perform services for the Employer by reason of qualified military service (within the meaning of Code Section 414(u)(1)) to the extent these payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Employer rather than entering qualified military service; or (ii) compensation paid to a Participant who is permanently and totally disabled, as defined in Code Section 22(e)(3), provided that either salary continuation applies to all Participants who are permanently and totally disabled for a fixed or determinable period or the Participant was not an HCE immediately before becoming disabled.  Notwithstanding any provision of the Plan to the contrary, Section 415 compensation shall not include amounts in excess of the limitation under Code Section 401(a)(17) in effect for the Plan Year.
		
	3.9
	Rollover Contributions.  At the direction of the Committee, and in accordance with such uniform rules as the Committee may from time to time establish, rollovers described in Code Section 402(c), rollovers from an annuity contract described in Code Section 403(b), rollovers from an eligible plan under Code Section 457(b) that is maintained by a state, a political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and that is not tax-exempt, and rollovers from another plan that meets the requirements of Code Section 401(a) or 403(a), including after-tax employee contributions and designated Roth accounts, may be received by the Trustee and will be credited to an Account established in the name of the Eligible Employee.  Any rollover contribution made in accordance with the preceding sentence must be made in cash; rollover contributions of property other than cash will not be accepted.  Any amount received by the Trustee for an Eligible Employee in accordance with this Section 3.9 shall be adjusted during each accounting period for their pro rata share of any change in the value of the Investment Funds.  Eligible Employees shall be fully vested in their Rollover Account.  Loans from a terminated plan of an acquired company may be accepted.

	
			
	147194561.3
	21
	 

ARTICLE IV
ACCOUNTS; VESTING; DISTRIBUTIONS
		
	4.1
	Participants’ Accounts

		
	(a)
	The Employer shall maintain, or cause to be maintained, records that reflect the interest of each Participant’s Pretax Deferral Account, Roth Deferral Account, In-Plan Roth Conversion Account, Matching Contribution Account, ESOP Account, Rollover Account, Profit Sharing Account, and Retirement Contribution Account, as applicable, including all contributions, income, gains or losses, and withdrawals with respect to such Accounts.  Records for the Participants’ Accounts shall be maintained in accordance with procedural rules as determined by the Committee.  As of such valuation dates as the Committee shall determine, but not less frequently than once each Plan Year, the Committee shall determine the value of each Participant’s Accounts.

		
	(b)
	At least once each Plan Year (and as frequently as ERISA requires), the Employer shall cause to be furnished to each Participant a statement of the contributions made by the Employer on the Participant’s behalf, and the value of the Participant’s Accounts, as well as such information as may be necessary to set forth earnings, gains, or losses with respect to the Participant’s Accounts.

		
	4.2
	Vesting

		
	(a)
	A Participant will, at all times, have a fully vested right to the value of the Participant’s Pretax Deferral Account, Roth Deferral Account, Matching Contribution Account, Rollover Account, and ESOP Account.  As described in Schedule B or Schedules C.1–C.6 (which add a profit sharing feature or retirement contribution feature), a number of years of service may be required for the Participant to be fully vested in his or her Profit Sharing Account or Retirement Contribution Account, as applicable.  If a Participant terminates employment before becoming fully or partially vested in his or her Profit Sharing Account or Retirement Contribution Account, the non-vested portion in such Account shall be forfeited as of the last day of the Plan Year in which the Participant terminates employment with all Affiliates.  Any forfeitures that arise under the terms of this Section 4.2(a) shall be used for any of the 

	
			
	147194561.3
	22
	 

following: (i) to reinstate the profit sharing contributions or retirement contributions of any reemployed Participants pursuant to the terms of the Plan, (ii) to reduce Employer contributions to the Plan, and (iii) to reduce administrative expenses incurred by the Plan.  A Participant who dies while performing qualified military service (as defined in Code Section 414(u)) will receive service credit for vesting purposes for the period of qualified military service.
		
	(b)
	If a Participant’s employment with all Affiliates terminates before the Participant becomes vested in his or her Profit Sharing Account or Retirement Contribution Account, and such Participant is subsequently reemployed by the an Affiliate, the following special rules shall apply:

		
	(i)
	A “One-Year Break In Service” means a Plan Year in which a terminated Participant completes less than 500 Hours of Service.

		
	(ii)
	If the Participant was not vested in his or her Profit Sharing Account or Retirement Contribution Account as of termination of employment, the Participant’s years of vesting service prior to the termination of employment shall be aggregated with years of vesting service accrued upon reemployment only if the number of his or her consecutive One-Year Breaks In Service is less than five.

		
	(iii)
	In the case of a maternity or paternity absence (as defined below), a Participant shall be credited, for the first Plan Year in which he or she otherwise would have incurred a One-Year Break In Service (and solely for purposes of determining whether such a One-Year Break In Service has occurred), with the Hours of Service that normally would have been credited to the Participant but for such absence (or, if the Committee is unable to determine the hours that would have been so credited, 8 hours for each work day of such absence), but in no event more than 501 hours for any one absence.  A “maternity or paternity absence” means an Employee’s absence from work because of the pregnancy of the Employee or birth of a child of the Employee, because of the placement of a child with the Employee in connection with the adoption of such child by the Employee,

	
			
	147194561.3
	23
	 

or for purposes of caring for the child immediately following such birth or placement.  The Committee may require the Employee to furnish such information as the Committee considers necessary to establish that the Employee’s absence was for one of the reasons specified above.
		
	(iv)
	If a Participant terminated employment with all Affiliates before the Participant was fully vested in the Participant’s Profit Sharing Account or Retirement Contribution Account, and is reemployed by an Affiliate before incurring five consecutive One-Year Breaks In Service, the forfeiture that resulted from the Participant’s earlier termination of employment (unadjusted by subsequent gains or losses if the Participant received a prior distribution from the Plan) shall be recredited to the Participant’s Profit Sharing Account or Retirement Contribution Account, as applicable, as of the accounting date coincident with or next following the date of his or her reemployment.

		
	4.3
	Distribution.  The amount credited to a Participant’s Accounts, to the extent such Participant is vested in such Accounts, shall become payable to the Participant (or the beneficiary, as applicable) subject to Section 4.6 upon any of the following events:

		
	(a)
	retirement;

		
	(b)
	Disability;

		
	(c)
	death;

		
	(d)
	other termination of employment with all Affiliates;

		
	(e)
	as a hardship withdrawal under Section 4.5(a); or

		
	(f)
	as an age 591⁄2 withdrawal under Section 4.5(b).

		
	4.4
	Method of Payment.  Participants (or their beneficiaries), in accordance with such uniform rules as the Committee may establish, shall elect distribution of their Accounts in one of the following methods:

		
	(a)
	as a single-sum distribution; or

		
	(b)
	in flexible installments not exceeding nine years.

	
			
	147194561.3
	24
	 

Distributions shall generally be paid in cash; provided, however, that distributions from a Participant’s ESOP Account may, at the Participant’s election, be paid in the form of Common Stock.
		
	4.5
	Withdrawals by Participants

		
	(a)
	Hardship Withdrawal.  A Participant may apply for a hardship withdrawal at any time.  The withdrawal must be for an immediate and heavy financial need of the Participant for which funds are not reasonably available from other resources of the Participant.  If approved, such withdrawal shall equal the lesser of (i) the amount required to be distributed to meet the need created by the hardship, (including any amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the withdrawal), or (ii) the value of the vested portion of the Participant’s Accounts.  Immediate and heavy financial needs are limited to amounts necessary for:

		
	(i)
	Unreimbursed medical expenses (as defined in Code Section 213, determined without regard to whether the expense exceeds 71⁄2% of adjusted gross income) incurred by the Participant, the Participant’s Spouse, or the Participant’s dependents (as defined in Code Section 152 without regard to Code Sections 152(b)(1), (b)(2), and (d)(1)(B)).

		
	(ii)
	Preventing foreclosure on or eviction from the Participant’s principal residence.

		
	(iii)
	Costs directly related to the purchase of the Participant’s principal residence, not including mortgage payments.

		
	(iv)
	Tuition, room and board, and related educational fees for the next 12 months of post-secondary education for the Participant or the Participant’s Spouse, children, or dependents.

		
	(v)
	Funeral or burial expenses for the Participant’s deceased parent, Spouse, children, or dependents.

		
	(vi)
	Expenses for repair of damages to the Participant’s principal residence that would qualify for a casualty loss deduction under Code Section 165 (determined without

	
			
	147194561.3
	25
	 

regard to Code Section 165(h) and whether the loss exceeds 10% of adjusted gross income).
		
	(vii)
	Expenses and losses (including loss of income) incurred by the Participant on account of a disaster declared by the Federal Emergency Management Agency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 100–707, provided that the Participant’s principal residence or principal place of employment at the time of the disaster was located in an area designated by the Federal Emergency Management Agency for individual assistance with respect to the disaster.

In addition, a hardship withdrawal may be made only if the following conditions are met:
		
	(i)
	The Participant has obtained all other currently available distributions (including distributions of ESOP dividends under Code Section 404(k), but not hardship withdrawals or nontaxable loans) under the Plan and all other plans of deferred compensation (whether qualified or nonqualified) maintained by the Affiliates.

		
	(ii)
	The Participant has provided to the Committee a representation in writing (including by using an electronic medium as defined in Treasury Regulation § 1.401(a)–21(e)(3)), or in such other form as may be prescribed by the Commissioner of the Internal Revenue Service, that he or she has insufficient cash or other liquid assets reasonably available to satisfy the need.

		
	(iii)
	The Committee does not have actual knowledge that is contrary to the representation described above.

		
	(iv)
	Any additional conditions, such as those described in 26 C.F.R. 1.401(k)-1(d)(3)(iv)(B) and (C).

A hardship withdrawal shall be paid to the Participant in cash as soon as practicable after approval of the Participant’s written request.  Effective January 1, 2020, there will be no suspension of deferral contributions following receipt of a hardship withdrawal.

	
			
	147194561.3
	26
	 

		
	(b)
	Age 591⁄2 Withdrawal.  A Participant who has attained age 591⁄2 may withdraw, by written election to the Committee once per Plan Year, all or any portion of the Participant’s vested Accounts in cash or in the form of Common Stock.

		
	(c)
	Rollover Withdrawal.  A Participant may withdraw, at any time by written election, all or any portion of the Participant’s Rollover Account.

		
	4.6
	Timing of Distributions

		
	(a)
	When Distributions May Commence.  If a Participant has incurred a distribution event described in Section 4.3 and requests a distribution of his or her Account, amounts credited to such Participant’s Account will be paid as soon as practicable after such amounts are ascertained.  In accordance with Code Section 414(u)(12), a Participant receiving a differential wage payment (as defined in Code Section 3401(h)(2)) shall be treated as having been severed from employment with all Affiliates for purposes of taking a distribution of his or her Account during any period the Participant performs service in the uniformed services while on active duty for a period of more than 30 days.  If a Participant elects to receive a distribution pursuant to the preceding sentence, such Participant shall not be permitted to make deferral contributions under Section 3.1 during the six-month period beginning on the date of the distribution.

		
	(b)
	When Distributions Must Commence

		
	(i)
	Accounts Not Exceeding $5,000.  If a Participant incurs a distribution event described in Section 4.3(a)–(f) and his or her vested Accounts do not exceed $5,000, such vested Accounts shall be distributed as soon as practicable after such amounts are ascertained without the need for the Participant’s consent to such distribution.  If the Participant’s vested Accounts exceed $1,000 but do not exceed $5,000, the vested Accounts shall be distributed in a direct rollover to an individual retirement account designated by the Committee unless the Participant elects otherwise.  If the Participant’s vested Accounts are $1,000 or less, the vested Accounts shall be distributed to the Participant in a lump sum unless the Participant elects otherwise.

	
			
	147194561.3
	27
	 

		
	(ii)
	Accounts in Excess of $5,000.  If a Participant incurs a distribution event described in Section 4.3(a)–(f) and his or her vested Accounts exceed $5,000, then payment of the Participant’s vested Accounts shall commence not later than the 60th day after the end of the calendar year in which the latest of the following events occurs:

		
	(A)
	the Participant attains Normal Retirement Age;

		
	(B)
	the tenth anniversary of the year in which the Participant commenced participation in the Plan occurs; or

		
	(C)
	the Participant terminates employment with all Affiliates.

Notwithstanding the foregoing, the Participant may elect to defer distribution of his or her Accounts (by not requesting a distribution) until attainment of age 72.  As a result, if the Participant’s vested Accounts exceed $5,000, a distribution will not be made to the Participant before attainment of age 72 without the Participant’s consent.  Upon a Participant’s attainment of age 72, distribution of the Accounts shall commence as soon as practicable after such amounts are ascertained.  If a Participant dies before age 72 and the Participant’s surviving Spouse is the beneficiary, the surviving Spouse may elect to defer distribution of the Participant’s Accounts until the Participant would have attained age 72.  (In applying this Section 4.6(b)(ii)(C) prior to January 1, 2020, “age 701⁄2” shall be substituted for “age 72.”) 
For purposes of determining the value of the Participant’s vested Accounts under Sections 4.6(b)(i)–(ii), the Participant’s Rollover Account (if any) shall be included.
		
	(c)
	Minimum Distribution Rules for Employees Who Continue in Service After Attaining Age 72.  All distributions under the Plan shall be made in accordance with Code Section 401(a)(9).  

		
	(i)
	5% Owners in Service After Attaining Age 72.  With regard to a Participant who is a 5% owner (as defined in Code Section 416), payment of a benefit under the Plan shall commence no later than the April 1 next following the calendar year in which

	
			
	147194561.3
	28
	 

such Participant attains age 72, regardless of whether the Participant has retired or otherwise terminated employment as of such date.
		
	(ii)
	All Other Participants in Service After Attaining Age 72.  With regard to Participants other than 5% owners who continue to be active Employees after attaining age 72, distribution of their Accounts is not required until they terminate employment.

(In applying this Section 4.6(c) prior to January 1, 2020, “age 701⁄2” shall be substituted for “age 72.”)
		
	4.7
	Distributions Made in Accordance with Code Section 401(a)(31).  Notwithstanding any provision of the Plan to the contrary that would otherwise limit a Distributee’s election under this Section 4.7, a Distributee may elect, at the time and in the manner prescribed by the Committee, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a direct rollover.  With respect to any portion of a distribution from the Plan on behalf of a deceased Participant, if a direct trustee-to-trustee transfer is made to an individual retirement plan described in Code Section 408(a) or (b) (an “IRA”), which IRA is established for the purpose of receiving the distribution on behalf of an individual who is a designated beneficiary (as defined by Code Section 401(a)(9)(E)) of the Participant and who is not the surviving Spouse of the Participant, then the transfer shall be treated as an Eligible Rollover Distribution for purposes of this Plan and Code Section 402(c).  For purposes of this Section 4.7, the IRA of the non-Spouse beneficiary is treated as an inherited IRA within the meaning of Code Section 408(d)(3)(C).  The Plan may make a direct rollover to an IRA on behalf of a trust where the trust is the designated beneficiary of a Participant, provided that (a) the beneficiaries of the trust meet the requirements of a designated beneficiary described above; (b) the IRA is established in accordance with Internal Revenue Service guidance, with the trust identified as the beneficiary; and (c) the trust meets the requirements set forth in Treasury Regulation § 1.401(a)(9)-4, Q&A-5.  The rules of this Section 4.7 shall be interpreted in a manner consistent with regulations or other guidance prescribed by the Internal Revenue Service under Code Section 402(c)(11).  Solely to the extent permitted in Code Sections 408A(c)(3)(B), (d)(3) and (e), an eligible Distributee may elect to roll over any portion of an Eligible Rollover Distribution to a Roth IRA (as defined by Code Section 408A), provided that

	
			
	147194561.3
	29
	 

the rollover requirements of Code Section 402(c) are met, and provided further that, in the case of an Eligible Rollover Distribution to a non-Spouse beneficiary, the Roth IRA is treated as an inherited IRA (within the meaning of Code Section 408(d)(3)(C)).
		
	4.8
	Loans to Participants.  While it is the primary purpose of the Plan to accumulate retirement funds for Participants, it is recognized that under some circumstances it is in the best interest of Participants to permit loans to be made to them while they continue in the active service of the Employer.  Accordingly, the Committee, pursuant to such rules as it may from time to time establish and upon application by a Participant supported by such evidence as the Committee requests, may make loans to Participants subject to the following:

		
	(a)
	Funding, Number, and Amount.  Loans are available pro rata from a Participant’s vested Accounts.  For each Participant, no more than two loans may be approved and no more than two loans may be outstanding at any time during a Plan Year.  The minimum amount of each loan is $1,000.  The maximum amount of each loan, when added to the outstanding balance of all other loans made to the Participant from all qualified plans maintained by the Affiliates, shall not exceed the lesser of:

		
	(i)
	$10,000, reduced by the excess (if any) of:

		
	(A)
	the highest outstanding balance of plan loans during the one-year period ending immediately preceding the date of the loan, over

		
	(B)
	the outstanding balance of plan loans on the date the loan is made; or

		
	(ii)
	one-half of the Participant’s total vested Account balances under the Plan.

		
	(b)
	Documentation and Interest Rate.  Each loan must be evidenced by a promissory note prepared in a form approved by the Committee and shall bear a reasonable rate of interest equal to the Wall Street Journal Prime Rate plus 1% or such other commercially reasonable interest rate as determined by the Committee from time to time; provided however, that the applicable interest rate shall not exceed 6% during any period that the Participant receiving the loan is on military leave, in accordance with the Servicemembers Civil Relief Act.  Interest paid by a Participant on a loan made under this Section 4.8 shall be credited to the

	
			
	147194561.3
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Participant’s Account as of the accounting date that ends the accounting period of the Plan during which such interest payment is made.
		
	(c)
	Repayment and Leaves of Absence.  The repayment of any loan must be made in at least quarterly installments of principal and interest; provided, however, that this quarterly amortization requirement shall not apply while a Participant is on a leave of absence for a period not longer than one year, if the following conditions are met: (i) the Participant is on leave either without pay from the Employer, or at a rate of pay (after income and employment tax withholding) that is less than the amount of the installment payments required under the terms of the loan; (ii) the loan must be repaid by the latest date permitted under Section 4.8(e) or 4.8(f), as applicable, and (iii) the installments due after the leave of absence ends (or if earlier, upon the expiration of the first year of the leave of absence) must not be less than those required under the terms of the original loan.  The Committee may allow for suspension of loan repayments under the Plan as permitted under Code Section 414(u)(4).

		
	(d)
	Term of Loan.  Each loan shall specify a repayment period that shall not extend beyond five years.  If a Participant’s employment is involuntarily terminated in connection with the sale, outsourcing or other divestiture of an Employer, then the Committee may establish uniform rules pursuant to which a Participant may elect a rollover of his or her outstanding loan to an Eligible Retirement Plan.  However, the five-year limit shall not apply to any loan used to acquire any dwelling unit that, within a reasonable time, is to be used (determined at the time the loan is made) as the principal residence of the Participant, in which event the time limit shall be 15 years.

		
	(e)
	Retirement or Termination of Employment.  If upon a Participant’s retirement or other termination of employment, any loan or portion of a loan made to the Participant under the Plan, together with the accrued interest thereon, remains unpaid, an amount equal to such loan or any part thereof, together with the accrued interest thereon, shall be charged to the Participant’s Account as soon as practicable after 60 days following the Participant’s retirement or termination of employment.

	
			
	147194561.3
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	(f)
	Failure to Repay.  If a Participant fails to make a loan payment by its due date (other than as described in Section 4.8(e)), the total outstanding amount of the loan, together with the accrued interest thereon, shall be defaulted as soon as practicable after 90 days following the loan payment due date.

	
			
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ARTICLE IV A
MINIMUM DISTRIBUTION REQUIREMENTS
4A.1    General Rules
		
	(a)
	Effective Date.  The provisions of this Article IV A will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year.  In applying the provisions of this Article IV A prior to January 1, 2020, “age 701⁄2” shall be substituted for “age 72.”

		
	(b)
	Precedence.  The requirements of this Article IV A will take precedence over any inconsistent provisions of the Plan; provided, however, that this Article IV A shall not require the Plan to provide any form of benefit, or any option, not otherwise provided under the Plan.

		
	(c)
	Requirements of Treasury Regulations Incorporated.  All distributions required under this Article IV A will be determined and made in accordance with Code Section 401(a)(9), including the incidental death benefit requirement in Code Section 401(a)(9)(G), and the Treasury Regulations thereunder.

		
	(d)
	TEFRA Section 242(b) Elections.  Notwithstanding the other provisions of this Article IV A, distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (“TEFRA”) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.

		
	(e)
	Definitions.  For purposes of this Article IV A, capitalized terms shall have the meanings provided in Article I, unless an alternate definition is provided in Section 4A.5, in which case the definition in Section 4A.5 shall control.

4A.2    Time and Manner of Distribution
		
	(a)
	Required Beginning Date.  The Participant’s entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant’s Required Beginning Date.

		
	(b)
	Death of Participant Before Distributions Begin.  If the Participant dies before distributions begin, the Participant’s entire interest will be distributed, or begin to be distributed, no later than as follows:

	
			
	147194561.3
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	(i)
	If the Participant’s surviving Spouse is the Participant’s sole Designated Beneficiary, distributions to the surviving Spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 72, if later.

		
	(ii)
	If the Participant’s surviving Spouse is not the Participant’s sole Designated Beneficiary, and if distribution is to be made over the life or over a certain period not exceeding the Life Expectancy of the Designated Beneficiary, distribution to the Designated Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died.

		
	(iii)
	If there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, or if the provisions of Sections 4A.2(b)(i) and (ii) do not otherwise apply, the Participant’s entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.

		
	(iv)
	If the Participant’s surviving Spouse is the Participant’s sole Designated Beneficiary and the surviving Spouse dies after the Participant but before distributions to the surviving Spouse begin, this Section 4A.2(b), other than Section 4A.2(b)(i), will apply as if the surviving Spouse were the Participant.

For purposes of Sections 4A.2 and 4A.4, unless Section 4A.2(b)(iv) applies, distributions are considered to begin on the Participant’s Required Beginning Date.  If Section 4A.2(b)(iv) applies, distributions are considered to begin on the date distributions are required to begin to the surviving Spouse under Section 4A.2(b)(i).  If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant’s Required Beginning Date (or to the Participant’s surviving Spouse before the date distributions are required to begin to the surviving Spouse under Section 4A.2(b)(i)), the date distributions are considered to begin is the date distributions actually commence.

	
			
	147194561.3
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	(c)
	Forms of Distribution.  Unless the Participant’s interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the Required Beginning Date, as of the first Distribution Calendar Year, distributions will be made in accordance with Sections 4A.3 and 4A.4.  If the Participant’s interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Code Section 401(a)(9) and the Treasury Regulations thereunder.

4A.3    Required Minimum Distributions During Participant’s Lifetime
		
	(a)
	Amount of Required Minimum Distribution for Each Distribution Calendar Year.  During the Participant’s lifetime, the minimum amount that will be distributed for each Distribution Calendar Year is the lesser of:

		
	(i)
	the quotient obtained by dividing the Participant’s Account Balance by the distribution period in the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations, using the Participant’s age as of the Participant’s birthday in the Distribution Calendar Year; or

		
	(ii)
	if the Participant’s sole Designated Beneficiary for the Distribution Calendar Year is the Participant’s Spouse, the quotient obtained by dividing the Participant’s Account Balance by the number in the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations, using the Participant’s and Spouse’s attained ages as of the Participant’s and Spouse’s birthdays in the Distribution Calendar Year.

		
	(b)
	Lifetime Required Minimum Distributions Continue Through Year of Participant’s Death.  Required minimum distributions will be determined under this Section 4A.3 beginning with the first Distribution Calendar Year and up to and including the Distribution Calendar Year that includes the Participant’s date of death.

	
			
	147194561.3
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4A.4    Required Minimum Distributions After Participant’s Death
		
	(a)
	Death on or After Date Distributions Begin.

		
	(i)
	Participant Survived by Designated Beneficiary.  Subject to the provisions of this Article IV A, if the Participant dies on or after the date distributions begin and there is a Designated Beneficiary, the minimum amount that will be distributed for each Distribution Calendar Year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account Balance by the longer of the remaining Life Expectancy of the Participant or the remaining Life Expectancy of the Participant’s Designated Beneficiary, determined as follows:

		
	(A)
	The Participant’s remaining Life Expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.

		
	(B)
	If the Participant’s surviving Spouse is the Participant’s sole Designated Beneficiary, the remaining Life Expectancy of the surviving Spouse is calculated for each Distribution Calendar Year after the year of the Participant’s death using the surviving Spouse’s age as of the Spouse’s birthday in that year.  For Distribution Calendar Years after the year of the surviving Spouse’s death, the remaining Life Expectancy of the surviving Spouse is calculated using the age of the surviving Spouse as of the Spouse’s birthday in the calendar year of the Spouse’s death, reduced by one for each subsequent calendar year.

		
	(C)
	If the Participant’s surviving Spouse is not the Participant’s sole Designated Beneficiary, the Designated Beneficiary’s remaining Life Expectancy is calculated using the age of the Beneficiary in the year following the year of the Participant’s death, reduced by one for each subsequent year.

		
	(ii)
	No Designated Beneficiary.  If the Participant dies on or after the date distributions begin and there is no Designated Beneficiary as of September 30 of the year after

	
			
	147194561.3
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the year of the Participant’s death, the minimum amount that will be distributed for each Distribution Calendar Year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account Balance by the Participant’s remaining Life Expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.
		
	(b)
	Death Before Date Distributions Begin.

		
	(i)
	Participant Survived by Designated Beneficiary.  If the Participant dies before the date distributions begin and there is a Designated Beneficiary, the minimum amount that will be distributed for each Distribution Calendar Year after the year of the Participant’s death is the quotient obtained by dividing the Participant’s Account Balance by the remaining Life Expectancy of the Participant’s Designated Beneficiary, determined as provided in Section 4A.4(a).

		
	(ii)
	No Designated Beneficiary.  If the Participant dies before the date distributions begin and there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, distribution of the Participant’s entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.

		
	(iii)
	Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin.  If the Participant dies before the date distributions begin, the Participant’s surviving Spouse is the Participant’s sole Designated Beneficiary, and the surviving Spouse dies before distributions are required to begin to the surviving Spouse under Section 4A.2(b)(i), this Section 4A.4(b) will apply as if the surviving Spouse were the Participant.

4A.5    Definitions
		
	(a)
	Designated Beneficiary.  The individual who is designated as the Beneficiary under Section 6.6 and is the designated Beneficiary under Code Section 401(a)(9) and Treasury Regulation Section 1.401(a)(9)-1, Q&A-4.

	
			
	147194561.3
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	(b)
	Distribution Calendar Year.  A calendar year for which a minimum distribution is required.  For distributions beginning before the Participant’s death, the first Distribution Calendar Year is the calendar year immediately preceding the calendar year that contains the Participant’s Required Beginning Date.  For distributions beginning after the Participant’s death, the first Distribution Calendar Year is the calendar year in which distributions are required to begin under Section 4A.2(b).  The required minimum distribution for the Participant’s first Distribution Calendar Year will be made on or before the Participant’s Required Beginning Date.  The required minimum distribution for other Distribution Calendar Years, including the required minimum distribution for the Distribution Calendar Year in which the Participant’s Required Beginning Date occurs, will be made on or before December 31 of that Distribution Calendar Year.

		
	(c)
	Life Expectancy.  Life expectancy as computed by use of the Single Life Table in Q&A-1 of Section 1.401(a)(9)-9 of the Treasury Regulations.

		
	(d)
	Participant’s Account Balance.  The Account balance as of the last valuation date in the calendar year immediately preceding the Distribution Calendar Year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the Account balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date.  The Account balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the Distribution Calendar Year if distributed or transferred in the valuation calendar year.

		
	(e)
	Required Beginning Date.  The date specified in Section 4.6(b).

	
			
	147194561.3
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ARTICLE V
INVESTMENT OF CONTRIBUTIONS
		
	5.1
	Making of Contributions.  Once each month, or as otherwise determined by the Committee subject to the Employer’s consent, the Employer will pay over contributions to the Trustee to be held in trust and invested as herein provided and as set out more fully in the Trust Agreement.  The Employer’s matching contributions, profit sharing contributions, and retirement contributions for each Plan Year, if any, shall not be made later than the due date for filing the Employer’s federal income tax return for the taxable year with or within which such Plan Year ends, including extensions thereof.  The contributions to this Plan when taken together with all other contributions made by the Employer to other qualified retirement plans shall not exceed the maximum amount deductible under Code Section 404.

		
	5.2
	Investment

		
	(a)
	Each Participant’s Accounts and earnings credited to such Accounts on and after the Effective Date will be invested in one or more of the Investment Funds.  Each Participant will designate the proportion (expressed as a percentage in multiples of 1%) of such Participant’s Accounts to be invested in each Investment Fund.  Such designation, once made, can be changed at any time and will take effect as soon as administratively feasible.  Participants may also, at any time and independent of changing their election of investment of future deferral contributions, transfer the amount equivalent to the Participant’s interest or any partial interest (expressed as a percentage in multiples of 1% or in dollars) from one Investment Fund to another.  Any designation made under this Section 5.2(a) shall be made pursuant to the method established by the Committee for this purpose.

Notwithstanding any other provision herein to the contrary, during any period in which a Participant has not made an initial election as to the investment of his or her Accounts, the Participant shall be deemed to have elected to have his or her Accounts invested in the age appropriate target date fund, as determined by the Committee.  The investment described in the preceding sentence is referred to as the default fund and is

	
			
	147194561.3
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intended to constitute a qualified default investment alternative within the meaning of ERISA Section 404(c) and the regulations issued thereunder.
		
	(b)
	Each Participant shall have an interest in each Investment Fund in which the Participant has elected to have invested all or any part of the Participant’s deferral contributions under Section 3.1.  The Participant’s interest at any time in the Investment Funds shall be equal to such contributions, adjusted from time to time to reflect the proportionate share of the income and losses realized by such Investment Funds and of the net appreciation or depreciation in the value of such Investment Funds.

		
	(c)
	In accordance with Code Section 401(a)(35), for any period in which the Plan holds publicly traded employer securities, the following rules shall apply.

		
	(i)
	Subject to Section 1.401(a)(35)-1(f)(2)(iv)(B) of the Treasury Regulations, if the Company or any member of the controlled group of corporations (as defined in Section 1.401(a)(35)-1(f)(2)(iv)(A) of the Treasury Regulations) that includes the Company has issued a class of stock that is a publicly traded employer security, and the Plan holds employer securities that are not publicly traded employer securities, then the Plan shall be treated as holding publicly traded employer securities.

		
	(ii)
	With respect to a Participant, an alternate payee with an Account under the Plan, or a Participant’s beneficiary, if any portion of such individual’s Account under the Plan attributable to employee contributions and elective deferrals (as described in Code Section 402(g)(3)(A)) is invested in publicly traded employer securities, then such individual must be offered the opportunity to elect to divest those employer securities and reinvest an equivalent amount in other investment options as described in Section 5.2(c)(iv).

		
	(iii)
	With respect to a Participant who has completed three years of vesting service, an alternate payee of such Participant with an account under the Plan, or a Participant’s beneficiary, if any portion of such individual’s account attributable to employer contributions is invested in publicly traded employer securities, then such

	
			
	147194561.3
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individual must be offered the opportunity to elect to divest those employer securities and reinvest an equivalent amount in other investment options as described in Section 5.2(c)(iv).
		
	(iv)
	With respect to individuals described in Sections 5.2(c)(ii) and (iii):

		
	(A)
	At least three investment options (other than employer securities) shall be offered to such individuals;

		
	(B)
	Each investment option shall be diversified and have materially different risk and return characteristics; and

		
	(C)
	Periodic reasonable divestment and reinvestment opportunities shall be provided at least quarterly.

		
	(v)
	Except as provided in Sections 1.401(a)(35)-1(e)(2) and (3) of the Treasury Regulations, restrictions (either direct or indirect) or conditions will not be imposed on the investment of publicly traded employer securities if such restrictions or conditions are not imposed on the investment of other Plan assets.

		
	(d)
	One of the Investment Funds shall be a fund invested primarily in Common Stock (the “Common Stock Investment Fund”).  The Common Stock Investment Fund is intended to be a permanent Investment Fund under the Plan, unless the Committee concludes that it is clearly imprudent to continue the Common Stock Investment Fund as an Investment Fund under the Plan.  The Committee will evaluate the prudence of maintaining the Common Stock Investment Fund not on the basis of the risk of the Common Stock Investment Fund standing alone but in light of the availability of other Investment Funds under the Plan and the ability of Participants and beneficiaries to construct a diversified investment portfolio consistent with their individual desired level of risk and return.

		
	5.3
	Voting of Common Stock of the Company.  Each Participant shall have the right to direct the Trustee as to the manner in which shares of Common Stock allocated to the Participant’s Accounts are to be voted.  The Company shall furnish the Trustee and the Participants with notices and information statements when voting rights are to be exercised, in such time and manner as may be required by applicable law and the Certificate of Incorporation and Bylaws of the Company.  Such

	
			
	147194561.3
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statements shall be substantially the same for Participants as for holders of Common Stock in general.  The Participant may, in the Participant’s discretion, grant proxies for the exercise of the Participant’s voting rights under this Section 5.3 in accordance with proxy provisions of general application.  The Trustee shall vote such Common Stock in accordance with the direction of the Participant.  Fractional shares of Common Stock allocated to Participants’ Accounts shall be combined to the largest number of whole shares and voted by the Trustee to the extent possible to reflect the voting direction of the Participants holding fractional shares.  Subject to the terms of the immediately following sentence, the Trustee shall vote allocated shares of the Company’s Common Stock for which it has not received valid direction proxies and any shares that have not been allocated to Participants’ Accounts in accordance with the recommendation of the Company’s board of directors on all of the matters.
		
	5.4
	Tendering of Stock.  A Participant (or in the event of the Participant’s death, the beneficiary) shall have the right to instruct the Trustee in writing as to the manner in which to respond to a tender or exchange offer in any and all shares of Common Stock credited to such Participant’s Accounts.  The Employer shall notify each Participant (or beneficiary) and utilize its best efforts to distribute or cause to be distributed in a timely fashion such information as will be distributed to shareholders of the Employer in connection with any such tender or exchange offer, together with a form requesting confidential instruction to the Trustee as to the manner in which to respond to the tender or exchange offer for any or all shares of Common Stock credited to such Participant’s Accounts.  Upon its receipt of such instructions, the Trustee shall tender such shares of such Common Stock as and to the extent so instructed.  If the Trustee does not receive instructions from a Participant (or beneficiary) regarding any such tender or exchange offer for Common Stock, the Trustee shall have no discretion in such matter and shall take no action with respect thereto.

		
	5.5
	Dividend Election.  Effective as of May 25, 2006, each Participant (or, where applicable, a Participant’s beneficiary or an alternate payee) will have the right to elect to receive a cash payment of the dividends, if any, paid on all shares (vested or unvested) of Common Stock in the Participant’s ESOP Account or to reinvest such vested dividends in Common Stock in the Participant’s ESOP Account.  Participants shall be fully vested in all dividends, if any, paid on the

	
			
	147194561.3
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shares of Common Stock held in the Participant’s ESOP Account.  If a Participant (or the Participant’s beneficiary or an alternate payee) does not make an affirmative election under this Section 5.5, the Participant will be deemed to have elected to reinvest vested dividends in the ESOP Account.  The Committee will establish rules and procedures for the election, including the procedures for determining the number of shares of Common Stock in each Participant’s ESOP Account on the record date of the dividend.  Reinvested dividends will be paid to the Plan and credited to the Participant’s ESOP Account.  If a Participant elects to receive dividends in cash, such dividends shall be paid to the Participant by the Plan and shall not constitute Eligible Rollover Distributions under Section 4.7.  Partial elections (i.e., electing to receive part of a dividend in cash and to reinvest part) shall not be permitted.

	
			
	147194561.3
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ARTICLE VI
PLAN ADMINISTRATION; CLAIMS FOR BENEFITS
		
	6.1
	Named Fiduciaries.  The Plan shall be administered by the Committee, which shall consist of the Chief Financial Officer of the Company and four to ten other individuals appointed by the Chief Executive Officer of the Company who are employed by the Company.

The Committee shall be the “plan administrator” under Section 3(16)(A) of ERISA and shall have all of the powers, rights, and duties necessary or advisable in order to fully perform the applicable responsibilities imposed by ERISA upon plan administrators, including the authority to delegate or allocate any of those powers in writing in a prudent and reasonable manner consistent with ERISA.  The Committee shall be a “named fiduciary” under ERISA.  The Company agrees to maintain adequate fiduciary liability insurance with respect to the Committee and any member or delegate thereof by reason of any act or failure to act on behalf of the Plan or Participants in carrying out the fiduciary obligations.
		
	6.2
	Administrative Powers and Duties.  In administering the Plan, the Committee shall have such duties and powers as may be necessary to discharge its duties hereunder, including, but not by way of limitation, the following:

		
	(a)
	To construe and interpret the provisions of the Plan and make factual determinations thereunder, including the discretionary power to determine the rights or eligibility of Employees, Participants and any other persons, as well as the amounts of their benefits under the Plan, and to remedy ambiguities, inconsistencies, or omissions, with such determinations to be binding on all parties;

		
	(b)
	To prescribe procedures to be followed for the proper and efficient administration of the Plan;

		
	(c)
	To prepare and distribute information explaining the Plan;

		
	(d)
	To receive from the Employer and from all Participants such information as shall be necessary for the proper administration of the Plan;

		
	(e)
	To prepare such reports with respect to the administration of the Plan as are reasonable and appropriate, including the power and authority to cause to be prepared, to execute,

	
			
	147194561.3
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and to deliver any governmental filings related to the Plan including, without limitation, annual reports (Form 5500 series) and Internal Revenue Service determination letter filings;
		
	(f)
	To furnish each Participant a statement showing the status of that Participant’s Accounts;

		
	(g)
	To appoint or employ individuals to assist in the administration of the Plan, including the power and authority to establish one or more committees to handle Participant claims under the Plan and to appoint or remove, for any reason, members of any such committee;

		
	(h)
	To monitor the Plan to meet the applicable nondiscrimination rules of the Code;

		
	(i)
	To keep such accounts and records as the Committee may deem necessary or proper in the performance of its duties under the Plan; and

		
	(j)
	As described in Article IX, to extend the Plan to Affiliates.

		
	6.3
	Claims Procedures.  As required under Section 2560.503-1(b)(2) of the Department of Labor Regulations, the claims procedures are set forth in the Plan’s Summary Plan Description, which claims procedures are incorporated by reference into the Plan.  A Participant or a beneficiary, or the authorized representative of either (the “claimant”), may not bring an action under ERISA Section 502(a) or otherwise with respect to his or her claim until he or she has exhausted the claims procedures.  Any such action must be filed in a court of competent jurisdiction within 12 months after the date on which the claimant receives the Committee’s written denial of the claimant’s claim on appeal or, if earlier, 12 months after the date of the alleged facts or conduct giving rise to the claim (including, without limitation, the date the claimant alleges he or she became entitled to Plan benefits requested in the suit or legal action), or it shall be forever barred.  Any further review, judicial or otherwise, of the Committee’s decision on the claimant’s claim shall be limited to whether, in the particular instance, the Committee abused its discretion.  In no event shall such further review, judicial or otherwise, be on a de novo basis, as the Committee has discretionary authority to determine eligibility and benefits and to construe and interpret the terms of the Plan.

		
	6.4
	Applications and Forms.  Any action permitted or required to be taken by a Participant or a Participant’s beneficiary shall be made pursuant to one of the following methods: (a) by filing a written election, (b) by telephone through a telephone system established by the Committee for this

	
			
	147194561.3
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purpose, or (c) by any other method designated by the Committee.  A Participant or a Participant’s beneficiary shall furnish all pertinent information requested by the Committee.
		
	6.5
	Facility of Distribution and Payment.  Whenever, in the Committee’s opinion, a person entitled to receive any distribution or payment under the Plan is under a legal disability or is so incapacitated as to be unable to manage financial affairs, the Committee may make a distribution or payment to such person or the person’s legal representative or to a relative of such person in such manner as the Committee considers appropriate.  Any distribution or payment of a benefit in accordance with the provisions of this Section 6.5 shall be a complete discharge of any liability for the making of such distribution or payment under the provisions of the Plan.

		
	6.6
	Beneficiary Designations.  A Participant shall designate a beneficiary or multiple or contingent beneficiaries to whom distribution of the Participant’s interest in the Plan shall be made in the event of the Participant’s death prior to the full receipt thereof; provided, however, that in the event that the Participant is married on the date of death, such beneficiary shall be deemed to be the Participant’s surviving Spouse.  The Participant may elect to change or revoke a designated beneficiary at any time; provided, however, that in the event that the beneficiary is the Participant’s surviving Spouse, such election shall not be effective unless such surviving Spouse provides written consent that acknowledges the effect of such election and is witnessed by a Plan representative or a notary public.  The affirmative designation of any beneficiary and any elected change or revocation thereof by a Participant shall be made on forms provided by the Committee and shall not in any event be effective unless and until filed with the Committee.  If no designated or deemed beneficiary survives the Participant or former Participant, or if any unmarried Participant or former Participant fails to designate a beneficiary under the Plan, the amount payable upon the death of the Participant or former Participant shall be paid to the Participant’s estate.

		
	6.7
	Form and Method of Designation.  The affirmative designation of any beneficiary and any elected change or revocation thereof by a Participant shall be made on forms provided by the Committee and shall, not in any event, be effective unless and until filed with the Committee.  The Committee and all other parties involved in making payment to a beneficiary may rely on the latest beneficiary designation on file with the Committee at the time of payment or may make payment pursuant to 

	
			
	147194561.3
	46
	 

Section 6.6 if an effective designation is not on file, shall be fully protected in doing so, and shall have no liability whatsoever to any person making claim for such payment under a subsequently filed designation of beneficiary or from any other reason.
		
	6.8
	Administrative Expenses.  Unless paid by the Company and except as otherwise provided below, all reasonable costs, charges, and expenses incurred in the administration of the Plan, including expenses incurred by the Committee, compensation to the Trustee, compensation to an investment manager, and any compensation to agents, attorneys, actuaries, accountants, recordkeepers, and other persons performing services on behalf of this Plan or for the Committee will be paid from the Trust Fund in such portions as the Committee may direct.  As directed by the Committee, expenses to be paid from the Trust Fund may be drawn from (a) Participants’ Accounts, in the form of a flat fee, charges for specific services, or a percentage of the value of each Account, (b) earnings or gains in each Investment Fund or (c) forfeitures under Section 4.2.  Expenses directly related to the investment of a particular Investment Fund (such as brokerage, postage, express and insurance charges, and transfer taxes) shall be paid from that Investment Fund.  The Company, in its discretion, may decide to pay the expenses incurred in operating and administering the Plan for certain Participating Affiliates or certain Participants.

	
			
	147194561.3
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ARTICLE VII
TRUST FUND
		
	7.1
	Trust Agreement.  All assets of the Plan shall be held under the Trust Agreement between the Company and the Trustee designated by the Company, which shall serve at the pleasure thereof.  The Trust Agreement shall provide, among other things, for a Trust Fund to be administered by the Trustee to which all contributions shall be paid, and the Trustee shall have such rights, powers, and duties as the Company shall from time to time determine.  All assets of the Trust Fund shall be held, invested, and reinvested in accordance with the provisions of the Trust Agreement.

		
	7.2
	Reversion.  At no time, prior to the satisfaction of all liabilities with respect to Participants and their beneficiaries, shall any part of the assets of the Plan be used for or diverted to purposes other than for the exclusive benefit of such persons; provided, however, Employer contributions may be returned to the Employer (a) if made by the Employer by a mistake of fact, within one year after the payment of the contribution, or (b) if a contribution is conditioned upon the deductibility of such contribution under Code Section 404, then to the extent the deduction is disallowed, within one year of the disallowance of the deduction.  The amount of any contribution that may be returned to the Employer must be reduced by any portion thereof previously distributed from the Trust Fund and by any losses of the Trust Fund allocable thereto, and in no event may the return of such contribution cause any Participant’s Account balances to be less than the amount of such balances had the contribution not been made under the Plan.

	
			
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ARTICLE VIII
AMENDMENT AND TERMINATION
		
	8.1
	Amendments.  The Company reserves the right to make, from time to time, any amendments to the Plan that do not cause any part of the Accounts to be used for or diverted to any purpose other than the exclusive benefit of Participants or their beneficiaries and that do not operate retroactively so as to adversely affect the rights of any Participant or beneficiary prior to such action.  The Company has delegated to the Committee the authority to cause to be prepared, to approve, and to execute any amendments, including for the purpose of merging, consolidating, freezing, or completing the termination of the Plan or Trust; provided, however, approval of the board of directors of the Company is necessary for any amendment that would result in:

		
	(a)
	The greater of a 5% or $500,000 increase in the cost of funding or administering the Plan, unless:

		
	(i)
	the Committee reasonably believes that such amendment or action is necessary to bring the Plan into compliance with ERISA, or any other applicable law, or to maintain the Plan’s qualification under, or compliance with, provisions of the Code, or 

		
	(ii)
	such amendment or action is necessary to implement the provisions of any collective bargaining or other agreement validly executed by any Employer;

		
	(b)
	Disqualification, termination, or partial termination of the Plan or loss of tax-exempt status of the Trust;

		
	(c)
	Violation of the terms and conditions of any collective bargaining agreement for the Plan subject to such agreement;

		
	(d)
	The appointment or removal of the Trustee, investment manager, custodian, or other professional firm engaged by the Committee in connection with the investment or management of the Plan’s assets;

		
	(e)
	A change in the membership or structure, or a material change in the powers, duties, or responsibilities, of the Committee or a change in the indemnification of any fiduciary of the Plan (except that the Committee may amend the Plan to transfer to the Committee any or

	
			
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all of the powers, rights, responsibilities, and duties described in Section 6.2 that are currently granted by the Plan to none of the Committee, the Company, or the Company’s board of directors); or
		
	(f)
	An increase in the duties or responsibilities of the Company’s board of directors under the Plan.

No person has the authority to modify the terms of the Plan, except by means of authorized written amendments to the Plan.  No verbal or written representations contrary to the terms of the Plan and its written amendments shall be binding upon the Employer or the Plan.
		
	8.2
	Right to Terminate.  The Company expects to continue the Plan indefinitely, but the continuance of the Plan and the payment of contributions are not assumed as contractual obligations.  If the Plan shall be terminated, the Trustee shall continue to hold, invest, and administer the Trust Fund in accordance with the provisions of the Trust Agreement and shall make distributions therefrom in accordance with the provisions of the Plan, as then in effect, pursuant to instructions filed with the Trustee by the Committee upon such termination or from time to time thereafter, subject to Section 8.4.

		
	8.3
	Action by the Company.  Any action by the Company to amend or terminate the Plan may be taken by resolution of its board of directors or by any person or persons duly authorized by resolution of its board of directors to take such action.

		
	8.4
	Distribution of Accounts upon Plan Termination.  The distribution of Participants’ Accounts after termination of the Plan may, in the Company’s discretion, be deferred until a reasonable time after the Company’s receipt of a favorable Internal Revenue Service determination letter regarding the Plan’s termination if the Company applies to the Internal Revenue Service for such letter.

	
			
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ARTICLE IX
ADOPTION OF THE PLAN BY AFFILIATES
		
	9.1
	Adoption.  In the event the Plan is adopted by appropriate action of an Affiliate that the Committee authorizes to adopt the Plan, the Committee may determine the effective date of the Plan as to any such Affiliate, and each such Affiliate shall thereupon be a Participating Affiliate and included within the term “Employer.”  The Committee may also determine the extent to which service of the employees of any such Affiliate prior to such effective date, including with a predecessor employer, shall be counted as credited service and may otherwise determine the terms and conditions upon which any such Affiliate may adopt the Plan.

		
	9.2
	Withdrawal.  The Company may withdraw from the Plan at any time by action of its board of directors.  Any Participating Affiliate may withdraw from the Plan by giving at least 30 days’ written notice of its intention to withdraw to the Committee.

	
			
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ARTICLE X
GENERAL
		
	10.1
	No Guarantee of Employment.  Nothing contained in the Plan shall be construed as a contract of employment between the Employer and any Eligible Employee or Participant, as a right of any Eligible Employee or Participant to be continued in the employment of the Employer, or as a limitation of the right of the Employer to discharge any of its Employees.

		
	10.2
	Nonalienation of Benefits.  Except to the extent otherwise provided by Code Section 401(a)(13)(C) or by the issuance of a qualified domestic relations order (within the meaning of Code Section 414(p)), benefits payable under the Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any kind, either voluntary or involuntary, including any such liability that is for alimony or other payments for the support of a Spouse or former Spouse, or for any other relative of the Participant, prior to actually being received by the person entitled to the benefit under the terms of the Plan; and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, or otherwise dispose of any right to benefits payable under the Plan, shall be void.

		
	10.3
	Missing Persons.  If the Committee is unable to locate a Participant or beneficiary whose Account becomes distributable under the Plan or if the Plan has made a distribution, but the Participant or beneficiary for any reason does not cash the distribution check, such Account shall be administered according to the Plan’s missing persons process as then in effect, which is made a part of the Plan and incorporated herein by reference.

		
	10.4
	Governing Law.  Except as preempted by federal law, the provisions of the Plan will be construed in accordance with the laws of the State of North Dakota.

		
	10.5
	Merger or Consolidation of Plan.  In the event of any merger or consolidation of the Plan with, or transfer in whole or in part of the assets and liabilities of the Plan to, another plan, the assets and liabilities of the Plan shall be transferred to the other plan only if each Participant would, if the Plan or the other plan then terminated, receive a benefit immediately after the merger, consolidation, or transfer that is equal to or greater than the benefit the Participant would have been entitled to receive if the Plan had been terminated immediately before the merger, consolidation, or transfer.

	
			
	147194561.3
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	10.6
	Distribution to Alternate Payees.  Benefits may be distributed to an alternate payee on the earliest date specified in a qualified domestic relations order, without regard to whether such distribution is made or commences prior to the Participant’s earliest retirement age (as defined in Code Section 414(p)(4)(B)) or the earliest date that the Participant could commence receiving benefits under the Plan. 

		
	10.7
	Construction.  Whenever any words are used herein in the singular or plural, they shall be construed as though they were used in the plural or singular, as the case may be.  The words “hereof,” “herein,” “hereunder,” and other similar compounds containing the word “here” shall mean and refer to this entire document and not to any particular article or section.  Headings are included for reading convenience.  The text shall control if any ambiguity or inconsistency exists between the headings and the text.  References to “Participant” shall include alternate payee or beneficiary when appropriate and even if not otherwise already expressly stated.

	
			
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ARTICLE XI
TOP‐HEAVY PROVISIONS
		
	11.1
	Top-Heavy Plan.  The Plan shall be deemed “Top-Heavy” with respect to any Plan Year commencing on or after January 1, 1984 if, as of the last day of the preceding Plan Year (the “Determination Date”), the present value of the cumulative account balances for “Key Employees,” as defined in Code Section 416(i), under the Plan and all other plans in the “Aggregation Group,” as defined below, exceeds 60% of the present value, as of the Determination Date, of the cumulative account balances under all such plans for all employees of the Affiliates.  For purposes of this Article XI, (a) the term “Aggregation Group” shall mean each plan of the Affiliates in which a Key Employee participates and each other plan of the Affiliates that enables such plan to meet the requirements of Code Section 401(a)(4) or 410; (b) the present value of such account balances shall be computed in accordance with Code Section 416(g); and (c) the above percentage ratio shall be determined as of the Determination Date by a fraction, the numerator of which is the sum of the present value of the account balances of Key Employees under the Plan and all other plans in the Aggregation Group and the denominator of which is the sum of the present value of the account balances under all such plans, including the Plan, for all employees of the Affiliates.  The accrued benefits of a Participant who did not perform any services for an Employer during the one‐year period ending on the Determination Date shall be disregarded.

		
	11.2
	Operative Provisions

		
	(a)
	For any Plan Year with respect to which the Plan is deemed Top‐Heavy, the Employer shall make a special Employer contribution on behalf of each Participant who is not a Key Employee with respect to such Plan Year in an amount that, when added to the matching contribution, if any, made under the Plan on behalf of such Participant for such Plan Year, equals 3% of the Participant’s Section 415 compensation (as defined in Section 3.8).  Any such special Employer contributions that are used to satisfy the minimum contribution requirements shall be treated as matching contributions for purposes of the actual contribution percentage test and other requirements of Code Section 401(m).  Notwithstanding the foregoing provisions of this Section 11.2, if a Participant in the Plan is 

	
			
	147194561.3
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also a Participant in a defined benefit plan of the Employer, then for each Plan Year with respect to which the Plan is Top-Heavy, such Participant’s accrual of a minimum benefit under such other defined benefit plan in accordance with Code Section 416(c)(1) shall be deemed to satisfy the special Employer contribution requirements of this Section 11.2(a).
		
	(b)
	In the event the Plan is deemed “Top-Heavy” pursuant to Section 11.1, each Participant shall have a nonforfeitable right to the Participant’s entire Account balances, including those amounts attributable to the special Employer contributions under this Section 11.2.

	
			
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ARTICLE XII
SPECIAL RULES FOR CERTAIN OFFICERS
Notwithstanding the provisions set forth herein, Section 16 Officers are subject to special limitations on their ability to effect certain transactions under the Plan, as follows: The Section 16 Officer may effect “Discretionary Transactions,” as defined below, only in compliance with Rule 16b-3(f) of the Securities Exchange Act of 1934, as amended.
A “Discretionary Transaction” is a transaction pursuant to the Plan that (a) is at the volition of the Participant; (b) is not made in connection with the Participant’s death, retirement, or termination of employment; (c) is not required to be made available to the Participant pursuant to a provision of the Code; and (d) results in either an intra-Plan transfer involving an issuer equity securities fund, or a cash distribution funded by a volitional disposition of an issuer equity security.  A Discretionary Transaction shall be exempt from Section 16(b) of the Securities and Exchange Act of 1934, as amended, only if effected pursuant to an election made at least six months following the date of the most recent election, with respect to any plan of the Company that effected a Discretionary Transaction that was (i) an acquisition, if the transaction to be exempted would be a disposition; or (ii) a disposition, if the transaction to be exempted would be an acquisition.

	
			
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EXECUTION
The Plan is amended and restated effective as of April 1, 2020 (or such earlier or later effective date as provided herein) and executed by a duly authorized individual on the date set forth below.
MDU RESOURCES GROUP, INC

Date: March 30, 2020                By: /s/ Jason L. Vollmer                    
      Jason L. Vollmer, Chairman
      Employee Benefits Committee

	
			
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SCHEDULE A
MATCHING CONTRIBUTIONS
Each Employer identified in this Schedule A provides for matching contributions in lieu of the standard matching contributions provided in Section 3.4(a) to the extent described in this Schedule A.  (For historical information regarding these matching contributions, see Schedule A to the Plan as in effect prior to April 1, 2020.)
		
	A-1
	Anchorage Sand & Gravel Company, Inc.  The Employer shall not make matching contributions on behalf of its collective bargaining unit Employees effective August 16, 2012.  (The Employer’s non-bargaining unit Employees are eligible for the standard matching contributions.)

		
	A-2
	Allstate Fire Protection (Desert Fire Protection, LLC).  The Employer shall not make matching contributions effective August 16, 2012.

		
	A-3
	Bombard Electric, LLC.  The Employer shall make matching contributions equal to 50% of deferral contributions limited to 15% of Compensation each pay period effective August 1, 2005.

		
	A-4
	Cascade Natural Gas Corporation.  The Employer shall make matching contributions equal to 25% of deferral contributions limited to 6% of Compensation each pay period on behalf of its collective bargaining unit Employees hired before January 1, 2007, effective July 2, 2007.  (The Employer’s non-bargaining unit Employees and bargaining unit Employees hired on or after January 1, 2007 are eligible for the standard matching contributions.)

		
	A-5
	Hawaiian Cement.  The Employer shall make matching contributions equal to 100% of deferral contributions limited to 3% of Compensation each pay period on behalf of its collective bargaining unit Employees hired before July 1, 2010 and shall not make matching contributions on behalf of its collective bargaining unit Employees hired on or after such date, effective August 1, 2005.  (The Employer’s non-bargaining unit Employees are eligible for the standard matching contributions.)

		
	A-6
	Intermountain Gas Company.  The Employer shall not make matching contributions on behalf of its collective bargaining unit Employees effective October 12, 2008.  (The Employer’s non-bargaining unit Employees are eligible for the standard matching contributions.)

		
	A-7
	JTL Group, Inc. Montana.  The Employer shall not make matching contributions, except that it will make the standard matching contributions on behalf of its Employees hired or classified as salaried Employees after December 31, 2014, effective January 1, 2015.

		
	A-8
	JTL Group, Inc. Wyoming.  The Employer shall not make matching contributions, except that it will make the standard matching contributions on behalf of Casper hourly Employees and all other Employees hired or classified as salaried Employees after December 31, 2014, effective January 1, 2015.

		
	A-9
	Knife River Corporation – South.  The Employer shall make matching contributions equal to 100% of deferral contributions limited to 3% of Compensation each pay period, effective September 1, 2003.

		
	A-10
	LTM, Incorporated.  The Employer shall not make matching contributions on behalf of its collective bargaining unit Employees effective April 1, 2000.  (The Employer’s non-bargaining unit Employees are eligible for the standard matching contributions.)

		
	A-11
	OEG, Inc.  The Employer shall make matching contributions equal to 100% of deferral contributions limited to 2% of Compensation each pay period effective March 7, 2011, as amended May 24, 2018.  

	
			
	147194561.3
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	A-12
	USI Industrial Services, Inc.  The Employer shall not make matching contributions on behalf of its maintenance group Employees effective August 18, 2014.  (The Employer’s non-bargaining unit Employees are eligible for the standard matching contributions.)

		
	A-13
	WHC, Ltd.  The Employer shall make matching contributions equal to 50% of deferral contributions limited to 6% of Compensation each pay period on behalf of its Employees hired on or after May 1, 2010.  In addition, the Employer shall make matching contributions equal to 100% deferral contributions limited to 5% of Compensation each pay period on behalf of its Employees hired prior to May 1, 2010.  This Section A-13 is effective September 1, 2001, as amended May 1, 2010.

	
			
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SCHEDULE B
PROFIT SHARING CONTRIBUTIONS
		
	B-1
	Introduction.  Pursuant to Section 3.5(a) of the Plan, certain Participating Affiliates hereby establish profit sharing features as described in this Schedule B and will hereafter be referred to individually as a “Schedule B Employer” and collectively as “Schedule B Employers.”  The profit sharing features shall be in addition to all other contributions provided pursuant to the Plan and shall be effective as of the date(s) provided below.  The terms of this Schedule B supersede the other provisions of the Plan to the extent necessary to eliminate inconsistencies between this Schedule B and such other provisions.  (For historical information regarding these profit sharing features, see Supplement D‐1 to the Plan as in effect prior to April 1, 2020.)

		
	B-2
	Eligibility.  Participation in the profit sharing features for any Plan Year is limited to Employees of the Schedule B Employers who satisfy the Plan’s definition of Eligible Employee (unless otherwise specified below).  The current and original effective dates for each Schedule B Employer’s respective profit sharing feature are listed below.

	
		
	Schedule B Employer
	Current Effective Date 
(Original Effective Date)2

	Anchorage Sand & Gravel Company, Inc. (non-union Employees)
	January 1, 1999

	Baldwin Contracting Company, Inc.
	January 1, 1999

	Capital Electric Line Builders, Inc.7
	January 1, 2014

	Cascade Natural Gas Corporation1
	January 1, 2017 
(July 2, 2007)

	Concrete, Inc.
	January 1, 2001

	Connolly-Pacific Co.
	January 1, 2007

	DSS Company
	January 1, 2004 
(July 8, 1999)

	Ellis & Eastern Company
	January 1, 2019

	E.S.I., Inc.
	January 1, 2008 
(January 1, 2003)

	Fairbanks Materials, Inc.
	May 1, 2008

	Granite City Ready Mix, Inc.
	June 1, 2002

	Great Plains Natural Gas Co.1
	January 1, 2017 
(January 1, 2008)

	Hawaiian Cement (non-union Employees hired after December 31, 2005)
	January 1, 2009

	Intermountain Gas Company1
	January 1, 2017 
(January 1, 2011)

	JTL Group, Inc.5/6
	January 1, 2015 
(January 1, 2014)

	Jebro Incorporated
	November 1, 2005

	Kent’s Oil Service4
	January 1, 2007

	Knife River – North Dakota Division, a  
Division of Knife River Corporation –  
North Central
	January 1, 2016 
(January 1, 2007)

	Knife River Corporation – Mountain West
	May 1, 2018 
(January 1, 2015)

	Knife River Corporation – North Central
	January 1, 2016 
(January 1, 2007)

	
			
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	Schedule B Employer
	Current Effective Date 
(Original Effective Date)2

	Knife River Corporation – Northwest
	January 1, 2019 
January 1, 2012

	Knife River Corporation - South
	January 1, 2008 
(January 1, 2007)

	Knife River Midwest, LLC
	January 1, 2016 
(April 1, 2004)

	LTM, Incorporated
	January 1, 2003

	MDU Resources Group, Inc.1
	January 1, 2017

	Montana-Dakota Utilities Co. 
(non-union employees)1
	January 1, 2017 
(January 1, 2008)

	Montana-Dakota Utilities Co. 
(union employees)
	January 1, 2008

	Northstar Materials, Inc.
	January 1, 2016 
(January 1, 2003)

	OEG, Inc.3
	March 7, 2011

	Rail to Road, Inc.
	January 1, 2019

	Sweetman Const. Co. 
(including subsidiaries)
	January 1, 2019

	Wagner Smith Equipment Co.
	January 1, 2008 
(July 1, 2000)

	WBI Energy, Inc.1
	January 1, 2017 
(May 1, 2012)

	WBI Energy Midstream, LLC1
	January 1, 2017 
(January 1, 2001)

	WBI Energy Transmission, Inc.1
	January 1, 2017 
(January 1, 2009)

	WHC, Ltd.
	September 1, 2001

1Eligible Employees include only those in salary grade levels 29-38.
2In the event an Employer adopts a profit sharing feature on a date other than January 1, effective as of the date of participation in the Plan, the amount of any such contribution allocated to a Schedule B Participant shall be based on Compensation received while in the employ of the Employer after the date of acquisition by an Affiliate. 
3Requirement to be an active Employee on the last day of the Plan Year does not apply.
4The following Employee of Kent’s Oil Service is granted vesting service for prior years of service with Spirit Road Oils: XXXX XXXXXXX.
5Eligible JTL Casper hourly Employees (both union and nonunion), including Employees who participate in the Operating Engineers Local No. 800 & The Wyoming Contractors’ Association, Inc. Pension Trust Fund for Wyoming (JTL MEP Employees).
6Eligible salaried Employees of JTL hired after December 31, 2014 or any other JTL Employee who transfers to a salaried position after December 31, 2014.
7Eligible Employees participating in a management incentive compensation plan are not eligible for a profit sharing contribution.
To share in the allocation of any profit sharing contribution made by a Schedule B Employer for a Plan Year, Participants employed by a Schedule B Employer must be credited with 1,000 Hours of Service (prorated for the Plan Year in which the profit sharing feature becomes effective) in that Plan Year, must be an active Employee of the Schedule B Employer on the last day of the Plan Year, and must not be covered by a collectively bargained unit to which the profit sharing feature has not been extended.
However, an Eligible Employee of any Knife River Corporation Participating Affiliate who transfers employment during the Plan Year and remains employed by a Knife River Corporation Participating Affiliate on the last day of the Plan Year will be eligible to receive a prorated profit sharing contribution from each Knife River Corporation Participating Affiliate.

	
			
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Effective January 1, 2017, MDU Resources Group, Inc., Montana-Dakota Utilities Co., Intermountain Gas Company, Cascade Natural Gas Corporation, Great Plains Natural Gas Co., WBI Energy, Inc., WBI Energy Midstream, LLC, and WBI Energy Transmission, Inc. (each a “Regulated Group Employer”) will provide a profit sharing contribution to Eligible Employees who are classified in salary grade levels 29-38, or a prorated profit sharing contribution to Eligible Employees who transfer in or out of salary grade levels 29-38, provided the profitability target is met and they remain employed by a Regulated Group Employer as of the last day of the Plan Year.  Profit Sharing contributions for Eligible Employees of MDU Resources Group, Inc. will be based on an independent earnings per share target.  Profit sharing contributions for Eligible Employees of WBI Energy, Inc., WBI Energy Midstream, LLC, and WBI Energy Transmission, Inc. will be based on a combined profitability target.  Employees of the WBI Energy Corrosion Services division of WBI Energy Midstream, LLC are not eligible to receive profit sharing contributions.  Profit Sharing contributions for Eligible Employees of Montana Dakota Utilities Co., Great Plains Natural Gas Co., Intermountain Gas Company and Cascade Natural Gas Corporation will be based on such Employers’ combined profitability targets.
For purposes of this Schedule B, “active Employee” means an Employee who is still on the payroll, has been temporarily laid off, or who terminated employment due to Disability, death, or after attaining Normal Retirement Age during the Plan Year, but does not mean an Employee whose employment has been terminated effective on or before December 31 of the Plan Year.  In addition, for purposes of applying the requirement of completing 1,000 Hours of Service for the Plan Year, such requirement shall not apply to Employees terminating after attaining Normal Retirement Age, provided they are not terminated for cause.
Participants who meet the preceding requirements are referred to herein as “Schedule B Participants.”
		
	B-3
	Amount and Allocation.  For each Plan Year, the governing body of each Schedule B Employer, in its discretion, shall determine the amount (if any) of profit sharing contributions to be made to the Plan based upon its own profitability.  The amount of any such contribution for a Plan Year by any Schedule B Employer shall be allocated to its Schedule B Participants based upon those Participants’ Compensation, excluding bonuses, received while employed by that Schedule B Employer for that Plan Year.

Compensation for the first effective Plan Year of each Schedule B Employer shall include Compensation paid to the Schedule B Participant by the Schedule B Employer on and after such Employer’s effective date shown above.
		
	B-4
	Vesting.  Notwithstanding anything in Section 4.2 to the contrary, Schedule B Participants shall be vested in their Profit Sharing Accounts upon completing three Years of Vesting Service.  For this purpose, A “Year of Vesting Service” means a Plan Year in which the Schedule B Participant is credited with at least 1,000 Hours of Service.  Service with a Schedule B Employer and Affiliates shall be recognized for purposes of this Section B-4, including, but not limited to, service that occurred prior to the effective date of this Schedule B, applying these rules as if the Schedule B Employer (and its affiliates at that time) were Affiliates under the Plan.  Schedule B Participants who were employed with Ideal Builders, Inc. on the date of acquisition on August 29, 2008 by Knife River Corporation – Northwest (the Southern Idaho Division) will have prior years of service recognized for Years of Vesting Service.  Notwithstanding the foregoing, a Schedule B Participant shall be fully vested in his or her Profit Sharing Account upon death, Disability, or attainment of Normal Retirement Age.

	
			
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SCHEDULE C.1
RETIREMENT CONTRIBUTIONS— 
CERTAIN PARTICIPATING AFFILIATES
		
	C.1-1
	Introduction.  Participating Affiliates identified in Section C.1-2 (each a “Schedule C.1 Employer” and collectively “Schedule C.1 Employers”) hereby establish retirement contribution features as described in this Schedule C.1.  The retirement contribution features shall be in addition to all other contributions provided pursuant to the Plan.  (For historical information regarding these retirement contribution features, see Supplement D-2 to the Plan as in effect prior to April 1, 2020.)

		
	C.1-2
	Eligibility.  Participation in the retirement contributions for any Plan Year is limited to Eligible Employees of this Schedule C.1 Employers.  The current and original effective dates for each Schedule C.1 Employer’s retirement contribution feature are listed in the following table.

	
			
	Schedule C.1 Employer
	Current Effective Date (Original Effective Date)
	Retirement Contribution Amount as a Percentage of Compensation

	Cascade Natural Gas Corporation  
(non-bargaining)
	January 1, 2011  
(July 2, 2007)
	5%

	Cascade Natural Gas Corporation  
(Field Operations Bargaining Unit employees hired on or after 1/1/2007)
	May 1, 2015  
(July 2, 2007)
	5%

	Great Plains Natural Gas Co.
	January 1, 2003
	5%

	Intermountain Gas Company 
(non-bargaining)
	January 1, 2011  
(October 12, 2008)
	5%

	OEG, Inc.
	May 24, 2018  
(March 7, 2011)
	6%

	Rocky Mountain Contractors, Inc.  
(non-bargaining)
	January 1, 2005
	5%

	WBI Energy Midstream, LLC1
	July 1, 2012  
(January 1, 2001)
	5%

1The following Employee of WBI Energy Midstream, LLC is excluded: XXXXX XXXXXXXX due to participation in the appropriate pension plan replacement contribution.
To share in the allocation of any retirement contribution made by a Schedule C.1 Employer for a Plan Year, Eligible Employees described above must be credited with at least 1,000 Hours of Service (prorated for the Plan Year in which the retirement contribution feature becomes effective) in the Plan Year and must not be covered by a collectively bargained unit to which the retirement contribution feature has not been extended.  However, if the Participant’s failure to be credited with 1,000 Hours of Service in that Plan Year is due to the Participant’s (i) Disability, (ii) death, or (iii) termination of employment on or after attaining Normal Retirement Age during such Plan Year (provided that the Participant is not terminated for cause), such Participant shall nevertheless be entitled to share in the allocation of the retirement contributions for such Plan Year.  A Participant who is not a Highly Compensated Employee who has met the above eligibility requirements as of June 30 each Plan Year shall receive a pro rata allocation mid-year based on Compensation paid through June 30.  The final annual allocation shall be reduced by any such mid-year allocation.  Participants who meet the requirements of this Section C.1-2 are referred to herein as “Schedule C.1 Participants.”
		
	C.1-3
	Amount and Allocation.  For each Plan Year, each Schedule C.1 Employer shall make retirement contributions on behalf of its Schedule C.1 Participants in an amount equal to the applicable percentage of Compensation (excluding bonuses) listed in the table in Section C.1-2.  Compensation for the Plan Year in which the retirement contribution feature becomes effective for

	
			
	147194561.3
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a Schedule C.1 Employer shall include Compensation paid to a Schedule C.1 Participant during the Plan Year on and after such effective date.
		
	C.1-4
	Vesting.  Notwithstanding anything in Section 4.2 to the contrary, Schedule C.1 Participants shall be vested in their Retirement Contribution Accounts upon completing three Years of Vesting Service.  For this purpose, a “Year of Vesting Service” means a Plan Year in which the Schedule C.1 Participant is credited with at least 1,000 Hours of Service.  Service with a Schedule C.1 Employer and Affiliates shall be recognized for purposes of this Section C.1-4, including, but not limited to, service that occurred prior to the effective date of this Schedule C.1, applying these rules as if the Schedule C.1 Employer (and its affiliates at that time) were Affiliates under the Plan.  Notwithstanding the foregoing, a Schedule C.1 Participant shall be fully vested in his or her Retirement Contribution Account upon death, Disability, or attaining Normal Retirement Age.

	
			
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SCHEDULE C.2
RETIREMENT CONTRIBUTIONS— 
MDU RESOURCES GROUP, INC. AND CERTAIN PARTICIPATING AFFILIATES
		
	C.2-1
	Introduction.  Effective January 1, 2006, Participating Affiliates identified in Section C.2-2 (each a “Schedule C.2 Employer” and collectively “Schedule C.2 Employers”) hereby establish a retirement contribution feature as described in this Schedule C.2.  The retirement contribution feature shall be in addition to all other contributions provided pursuant to the Plan.  (For historical information regarding this retirement contribution feature, see Supplement D-6 to the Plan as in effect prior to April 1, 2020.)

		
	C.2-2
	Eligibility.  Participation in the retirement contribution for any Plan Year is limited to Eligible Employees hired after December 31, 2005 by the following Participating Affiliates:

Knife River Corporation
MDU Construction Services Group, Inc.
MDU Resources Group, Inc.
Montana- Dakota Utilities Co.
WBI Energy, Inc.
WBI Energy Transmission, Inc.
Unless specifically bargained for, Employees covered by a collective bargaining agreement shall not be eligible to participate in the retirement contribution feature.  Notwithstanding the foregoing, (i) WBI Energy Transmission, Inc. Employees covered by a collective bargaining agreement shall be eligible to participate in this retirement contribution feature effective January 1, 2006, (ii) Montana-Dakota Utilities Co. Employees covered by a collective bargaining agreement shall be eligible to participate in this retirement contribution feature effective July 1, 2007, and (iii) notwithstanding any provision of the Plan to the contrary, the following individuals shall be eligible to participate in this retirement contribution feature upon commencing participation in the Plan: XXXXXXX X XXXXXXX and XXXXXX X XXXXX.
To share in the allocation of any retirement contribution made by a Schedule C.2 Employer for a Plan Year, Eligible Employees described above must be credited with at least 1,000 Hours of Service in that Plan Year; provided, however, that if the Participant’s failure to be credited with 1,000 Hours of Service in that Plan Year is due to the Participant’s (i) Disability, (ii) death, or (iii) termination of employment on or after attaining Normal Retirement Age during such Plan Year (provided the Participant is not terminated for cause), such Participant shall nevertheless be entitled to share in the allocation of the retirement contribution for such Plan Year.  Any Participant who is not a Highly Compensated Employee who has met the eligibility requirements above as of June 30 each Plan Year shall receive a pro rata allocation mid-year based on Compensation paid through June 30.  The final annual allocation shall be reduced by any such mid-year allocation.  Participants who meet the requirements of this Section C.2-2 are referred to herein as “Schedule C.2 Participants.
		
	C.2-3
	Amount and Allocation.  For each Plan Year, each Schedule C.2 Employer will make a retirement contribution equal to 5% of Compensation for each Eligible Employee.  The amount of any such retirement contribution for a Plan Year shall be allocated to Schedule C.2 Participants based on their Compensation, excluding bonuses received while employed by the Schedule C.2 Employers.

		
	C.2-4
	Vesting.  Notwithstanding anything in Section 4.2 to the contrary, Schedule C.2 Participants shall be vested in their Retirement Contribution Accounts upon completing three years of Vesting Service.  For this purpose, a “Year of Vesting Service” means a Plan Year in which the Schedule C.2 Participant is credited with at least 1,000 Hours of Service.  Service with a Schedule C.2 Employer and Affiliates shall be recognized for purposes of this Section C.2-4, including, but not

	
			
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limited to, service that occurred prior to the effective date of this Schedule C.2, applying these rules as if the Schedule C.2 Employer (and its affiliates at that time) were Affiliates under the Plan.  Notwithstanding the foregoing, a Schedule C.2 Participant shall be fully vested in his or her Retirement Contribution Account upon death, Disability, or attaining Normal Retirement Age.

	
			
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SCHEDULE C.3
RETIREMENT CONTRIBUTIONS— 
CERTAIN PENSION PLAN PARTICIPANTS
		
	C.3-1
	Introduction.  Effective January 1, 2010, Participating Affiliates that employ the individuals described in Section C.3-2 (each a “Schedule C.3 Employer” and collectively “Schedule C.3 Employers”) hereby establish a retirement contribution feature as described in this Schedule C.3.  The retirement contribution feature shall be in addition to all other contributions provided pursuant to the Plan.  (For historical information regarding this retirement contribution feature, see Supplement D-6A to the Plan as in effect prior to April 1, 2020.)

		
	C.3-2
	Eligibility.  Participation in the retirement contribution for a Plan Year is limited to individuals who were active Participants in one of the following plans as of December 31, 2009:

MDU Resources Group, Inc. Pension Plan for Non-Bargaining Unit Employees
Knife River Corporation Salaried Employees’ Pension Plan
Williston Basin Interstate Pipeline Company Pension Plan
Notwithstanding the foregoing, active participants in the MDU Resources Group, Inc. Pension Plan for Collective Bargaining Unit Employees as of June 30, 2011, shall be eligible to participate in this retirement contribution feature effective July 1, 2011.  Furthermore, active participants in the Retirement Plan for Employees of Cascade Natural Gas Corporation, who are covered by a collective bargaining agreement that provides for participation in such plan as of September 30, 2012, shall be eligible to participate in this retirement contribution feature effective January 1, 2013.
To share in the allocation of any retirement contribution made by a Schedule C.3 Employer for a Plan Year, Eligible Employees described above must be credited with at least 1,000 Hours of Service in the Plan Year; provided, however, that if the Participant’s failure to be credited with 1,000 Hours of Service in the Plan Year is due to the Participant’s (i) Disability, (ii) death, or (iii) termination of employment on or after attaining Normal Retirement Age during the Plan Year (provided the Participant is not terminated for cause), such Participant shall nevertheless be entitled to a retirement contribution for such Plan Year.  Any Participant who is not a Highly Compensated Employee who has met the above eligibility requirements as of June 30 each Plan Year shall receive a pro rata allocation mid-year based on compensation paid through June 30.  The final annual allocation shall be reduced by any such mid-year allocation.  Participants who meet the requirements of this Section C.3-2are referred to herein as “Schedule C.3 Participants.”
		
	C.3-3
	Amount and Allocation.  For each Plan Year, Schedule C.3 Participants eligible to participate in this feature on January 1, 2010, will be credited with the following retirement contribution based on their age as of December 31, 2009; Schedule C.3 Participants eligible to participate in this feature on July 1, 2011, will be credited with the following contribution based on their age as of June 30, 2011; and Schedule C.3 Participants eligible to participate in this feature on January 1, 2013, will be credited with the following contribution based upon their age as of December 31, 2012.  The retirement contribution is also based on such a Participant’s Compensation, excluding bonuses for the Plan Year, paid on and after the initial effective date of the provision.

	
		
	Age as of December 31, 2009, June 30, 2011, or December 31, 2012
	Retirement Contribution Percentage

	Less than 30
	5.0%

	30 but less than 35
	7.0%

	35 but less than 40
	9.0%

	40 but less than 45
	10.5%

	45 and over
	11.5%

	
			
	147194561.3
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Notwithstanding the foregoing, if the retirement contribution percentage above for Participants who are Highly Compensated Employees is more than the amount permitted under Code Section 415, the Participant’s retirement contributions shall be reduced to the extent necessary to comply with Code Section 415.  The retirement contribution percentage above may also be reduced for Participants who are Highly Compensated Employees, as necessary, to pass nondiscrimination testing.
		
	C.3-4
	Vesting.  Notwithstanding anything in Section 4.2 to the contrary, Schedule C.3 Participants shall be vested in their Retirement Contribution Accounts upon completing three years of Vesting Service.  For this purpose, a “Year of Vesting Service” means a Plan Year in which the Schedule C.3 Participant is credited with at least 1,000 Hours of Service.  Service with a Schedule C.3 Employer and Affiliates shall be recognized for purposes of this Section C.3-4, including, but not limited to, service that occurred prior to the effective date of this Schedule C.3, applying these rules as if the Schedule C.3 Employer (and its affiliates at that time) were Affiliates under the Plan.  Notwithstanding the foregoing, a Schedule C.3 Participant shall be fully vested in his or her Retirement Contribution Account upon death, Disability, or attaining Normal Retirement Age.

	
			
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SCHEDULE C.4
RETIREMENT CONTRIBUTIONS— 
JTL GROUP, INC.
		
	C.4-1
	Introduction.  Effective January 1, 2005, JTL Group, Inc. (“JTL”), a Participating Affiliate, hereby established the retirement contribution feature as described in this Schedule C.4.  The retirement contribution feature shall be in addition to all other contributions provided by JTL pursuant to the Plan.  (For historical information regarding this retirement contribution feature, see Supplement D‐7 to the Plan as in effect prior to April 1, 2020.)

		
	C.4-2
	Eligibility.  To share in the allocation of any retirement contribution made by JTL for a Plan Year, a Participant must be an Eligible Employee of JTL.  Unless specifically bargained for, Employees covered by a collective bargaining agreement shall not be eligible to share in this retirement contribution feature.  Participants who meet the preceding requirements are referred to herein as “Schedule C.4 Participants.”

		
	C.4-3
	Amount and Allocation.  For each Plan Year, JTL shall provide hourly Schedule C.4 Participants $1.55 (effective April 1, 2014) per Hour of Service as a retirement contribution.  The amount of any such retirement contribution for a Plan Year will be allocated to such Participants for each Hour of Service for which the Participant receives Compensation, excluding Hours of Service pursuant to a prevailing wage agreement.  In addition, JTL will credit salaried Schedule C.4 Participants with a retirement contribution equal to 8% of Compensation.  Such salaried Participants must have been hired and classified as a salaried Employee prior to January 1, 2015 to receive a retirement contribution allocation.  The amount of any such retirement contribution for a Plan Year shall be allocated to such salaried Participants based on their Compensation, excluding bonuses received while employed by JTL.

		
	C.4-4
	Vesting.  Notwithstanding anything in Section 4.2 to the contrary, Schedule C.4 Participants shall be vested in their Retirement Contribution Accounts upon completing three years of Vesting Service; provided, however that Schedule C.4 Participants who were employed by Star Aggregates, Inc. on August 31, 2007, shall be fully vested.  For this purpose, a “Year of Vesting Service” means a Plan Year in which the Schedule C.4 Participant is credited with at least 1,000 Hours of Service.  Service with JTL and Affiliates shall be recognized for purposes of this Section C.4-4, including, but not limited to, service that occurred prior to the effective date of this Schedule C.4, applying these rules as if JTL (and its affiliates at that time) were Affiliates under the Plan.  Notwithstanding the foregoing, a Schedule C.4 Participant shall be fully vested in his or her Retirement Contribution Account upon death, Disability, or attaining Normal Retirement Age.

	
			
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SCHEDULE C.5
RETIREMENT CONTRIBUTIONS— 
HAWAIIAN CEMENT, MAUI CONCRETE AND AGGREGATE DIVISION
		
	C.5-1
	Introduction.  Effective July 1, 2015, Hawaiian Cement (“HC”), a Participating Affiliate, hereby establishes the retirement contribution feature as described in this Schedule C.5.  This retirement contribution shall be in addition to all other contributions provided by HC pursuant to the Plan.  (For historical information regarding this retirement contribution feature, see Supplement D‐9 to the Plan as in effect prior to April 1, 2020.)

		
	C.5-2
	Eligibility.  To share in the allocation of any retirement contribution made by HC for a Plan Year, a Participant must be an Eligible Employee of HC who was an active participant in the Pension Plan for Bargaining Unit Employees of Hawaiian Cement, Maui Concrete and Aggregate Division as of June 30, 2015.  Participants who meet the preceding requirements are referred to herein as “Schedule C.5 Participants.”

		
	C.5-3
	Amount and Allocation.  For each Plan Year, Schedule C.5 Participants will be credited with the retirement contributions below for each Hour Worked.  For this purpose, “Hour Worked” shall mean all hours where the Employee is on HC property performing bargaining unit work, not to include vacation, sick leave, or other non-worked hours for which the Employee may receive Compensation from HC.

	
		
	Date
	Rate per Hour Worked

	July 1, 2015 – April 15, 2016
	$3.02

	April 16, 2016 – April 15, 2017
	$3.34

	April 16, 2017 – April 15, 2018
	$3.67

	April 16, 2018 – April 15, 2019
	$4.02

	April 16, 2019 – April 15, 2020
	$4.34

		
	C.5-4
	Vesting.  Notwithstanding anything in Section 4.2 to the contrary, Schedule C.5 Participants shall be vested in their Retirement Contribution Accounts upon completing three years of Vesting Service.  For this purpose, a “Year of Vesting Service” means a Plan Year in which the Schedule C.5 Participant is credited with at least 1,000 Hours of Service.  Service with HC and Affiliates shall be recognized for purposes of this Section C.5-4, including, but not limited to, service that occurred prior to the effective date of this Schedule C.5, applying these rules as if HC (and its affiliates at that time) were Affiliates under the Plan.  Notwithstanding the foregoing, a Schedule C.5 Participant shall be fully vested in his or her Retirement Contribution Account upon death, Disability, or attaining Normal Retirement Age.

	
			
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SCHEDULE C.6
RETIREMENT CONTRIBUTIONS — 
SWEETMAN CONST. CO. AND RAIL TO ROAD, INC.
		
	C.6-1
	Introduction.  Effective October 4, 2018, Sweetman Const. Co. (“SCC”) and Rail to Road, Inc. (“RTR”), each a Participating Affiliate, established a retirement contribution feature as described in this Schedule C.6.  This retirement contribution feature shall be in effect from October 4, 2018 through December 31, 2018 and is in addition to all other contributions provided by SCC and RTR pursuant to the Plan.  (For historical information regarding this retirement contribution feature, see Supplement D‐10 to the Plan as in effect prior to April 1, 2020.)

		
	C.6-2
	Eligibility.  To share in the allocation of any retirement contribution made by SCC or RTR for the dates provided in Section C.6-1, a Participant must be an Eligible Employee of either SCC, including its subsidiaries, or RTR.  Participants who meet the preceding requirements are referred to herein as “Schedule C.6 Participants.”

		
	C.6-3
	Amount and Allocation.  SCC and RTR shall credit Schedule C.6 Participants with a retirement contribution equal to 3% of Compensation (which excludes Compensation prior to the effective date of this Schedule C.6).

		
	C.6-4
	Vesting.  Notwithstanding anything in Section 4.2 to the contrary, Schedule C.6 Participants shall be fully vested in their Retirement Contribution Accounts.

	
			
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SCHEDULE D
PREVAILING WAGE LAW REQUIREMENTS AND SUPPLEMENTAL CONTRIBUTIONS
		
	D-1
	Introduction.  Effective January 1, 2003, the Plan covers certain Eligible Employees who perform services for an Employer under a public contract that is subject to the Davis-Bacon Act or similar prevailing state wage law (a “Davis-Bacon Employee”).  The portion of a Davis-Bacon Employee’s service with an Employer that is subject to the Davis-Bacon Act or similar prevailing state wage law (the “Prevailing Wage Law”) is referred to in this Schedule D as “Davis-Bacon Service.”  The provisions of this Schedule D are intended to modify the terms of the Plan as applied to Davis-Bacon Employees and to allow the Plan to qualify as a bona fide fringe benefit plan in accordance with Title 29, Part 5 of the Code of Federal Regulations and the Department of Labor guidance issued thereunder.  (For historical information regarding the Prevailing Wage Law requirements and supplemental contributions, see Supplement G and Schedule B to the Plan as in effect prior to April 1, 2020.)

		
	D-2
	Eligibility and Participation.  A Davis-Bacon Employee who is employed on an occasional or temporary basis and who otherwise meets the definition of an Eligible Employee shall become a Participant upon the completion of one Hour of Service.

		
	D-3
	Prevailing Wage Compensation.  While employed in Davis-Bacon Service, Compensation paid to a Davis-Bacon Employee and used in determining contributions under the Plan shall be the prevailing wage required by the Prevailing Wage Law.

		
	D-4
	Supplemental Contributions.  An Employer, in its sole discretion, may make a supplemental contribution on behalf of any Davis-Bacon Employee, other than a Davis-Bacon Employee who is a Highly Compensated Employee, (a “supplemental contribution”) (i) in such amount as may be necessary to satisfy the Prevailing Wage Law’s required fringe cost to the extent that the sum of the matching contributions and profit sharing contributions for a period are insufficient to satisfy the Prevailing Wage Law’s required fringe cost, or (ii) in such amount as may be necessary to satisfy the Prevailing Wage Law’s required fringe cost without regard to any matching contributions and profit sharing contributions made on behalf of such Davis-Bacon Employee.  Any supplemental contributions made on behalf of a Davis-Bacon Employee shall be credited to a “Davis-Bacon Supplemental Contribution Account” established for the Davis-Bacon Employee.  Except as otherwise provided in this Schedule D, a Davis-Bacon Supplemental Contribution Account shall be treated as an “Account” for all purposes of the Plan and the amounts credited thereto shall be subject to the same restrictions as applicable to amounts credited to a Participant’s Profit Sharing Account.

		
	D-5
	Depositing of Employer Contributions.  Any Employer contribution made on behalf of a Davis-Bacon Employee under the Plan that is intended to satisfy the Prevailing Wage Law’s required fringe cost, including, but not limited to, any matching contributions and any supplemental contributions, will be contributed to the Trust Fund not less frequently than quarterly.

		
	D-6
	Vesting.  A Davis-Bacon Employee will, at all times, have a fully vested and nonforfeitable right to the value of his or her Matching Contribution Account and Davis-Bacon Supplemental Contribution Account.

		
	D-7
	Davis-Bacon Match Subaccount.  The Committee shall maintain as part of each Davis-Bacon Employee’s Matching Contribution Account a subaccount to reflect the matching contributions, if any, made on behalf of the Davis-Bacon Employee that are intended to satisfy the Prevailing Wage Law’s required fringe cost.

		
	D-8
	Contribution Limitation.  If the annual additions that would otherwise be allocated to a Davis-Bacon Employee’s Accounts would exceed the limitations described in Section 3.8 of the Plan for any Plan Year, any portion of the excess amount that is attributable to contributions made on behalf of the 

	
			
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Davis-Bacon Employee with respect to Davis Bacon Service shall be corrected in accordance with Section 3.8 of the Plan.
		
	D-9
	Supplemental Contributions.  Each Employer identified in this Section D-9 shall make supplemental contributions on behalf of its Davis-Bacon Employees as provided below.

	
				
	Employer
	Section D-4(i) Supplemental Contribution
	Section D-4(ii) Supplemental Contribution
	Effective

	Concrete, Inc.
	X
	 
	7/1/2016

	JTL Group, Inc.
	 
	X
	1/1/2005, as amended 1/1/2008 and 7/14/2014

	Kent’s Oil Service
	X
	 
	9/1/2008

	Knife River Corporation – Mountain West
	 
	X
	5/1/2018

	Knife River Corporation – North Central
	X
	 
	1/1/2003, as amended 1/1/2008

	Knife River Corporation – North Central (dba Knife River – North Dakota Division)
	X
	 
	5/1/2010

	Knife River Midwest, LLC
	X
	 
	4/1/2017

	Northstar Materials, Inc.
	X
	 
	5/14/2010

	
			
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SCHEDULE E
PLAN MERGERS
The plans identified in this Schedule E (each a “merged plan”) merged with and into the Plan as of the merger dates provided below.  Each plan merger and resulting transfer of assets were designed to comply with Code Sections 401(a)(12), 411(d)(6), and 414(l).  This Schedule E sets forth the special provisions applicable to the affected Participants of the merged plans on or after the merger dates.  (For historical information regarding the merged plans, see Supplements A, B, E, H, and H-1 through H-12, as applicable, to the Plan as in effect prior to April 1, 2020.)
E-1    Anchorage Sand and Gravel Company, Inc. Profit Sharing/401(k) Plan
		
	(a)
	Merger Date: January 1, 1995.

		
	(b)
	Affected Participants: Current and former Anchorage Sand and Gravel Company, Inc. Employees who participate in the Plan on or after the merger date.

		
	(c)
	Participation: Each participant who had an account balance in the merged plan on December 31, 1994 became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: The affected Participants shall be 100% vested in their Accounts at all times.

E-2    MDU Resources Group, Inc. Tax Deferred Compensation Savings Plan
		
	(a)
	Merger Date: January 1, 1999.

		
	(b)
	Participation: Each participant in the merged plan became a Participant in the Plan on the merger date.

E-3    LTM, Incorporated 401(k) Employee Savings Plan
		
	(a)
	Merger Date: April 1, 2000.

		
	(b)
	Affected Participants: Current and former LTM, Incorporated bargaining Employees who participate in the Plan on or after the merger date.

		
	(c)
	Participation: Each participant who had an account balance in the merged plan on March 31, 2000 became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: On the merger date, the affected Participants became fully vested in their Accounts.

		
	(e)
	Administrative Expenses: Expenses incurred in operating and administering the Plan on behalf of the affected Participants shall be paid from assets of the Plan attributable to such Participants.

E-4    Umpqua River Navigation Company Retirement Plan
		
	(a)
	Merger Date: January 1, 2003.

		
	(b)
	Affected Participants: Former Umpqua River Navigation Company Employees who participate in the Plan on the merger date.  (As of April 1, 2020, there are no Participants employed by Umpqua River Navigation Company.)

	
			
	 
	74
	 

		
	(c)
	Participation: Each participant who had an account balance in the merged plan on December 31, 2002 became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: On the merger date, the affected Participants became fully vested in their Accounts.

		
	(e)
	Distribution: For a Participant with a portion of his or her Account consisting of amounts transferred from the merged plan in connection with the plan merger, whose entire vested Account is in excess of $5,000 and who terminates employment and requests distribution prior to April 1, 2003, distribution may be made in the form of an annuity subject to Code Section 401(a)(11).

E-5    Morse Bros., Inc. Employee’s Profit-Sharing Plan and Trust
		
	(a)
	Merger Date: September 1, 2004.

		
	(b)
	Affected Participants: Participants who had a portion of their Accounts transferred from the merged plan in connection with the plan merger.

		
	(c)
	Participation: Each affected Participant became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: Notwithstanding anything in Section 4.2 of the Plan to the contrary and except as otherwise provided with respect to Normal Retirement Age or Disability, an affected Participant who terminates employment on or after September 1, 2004, shall be vested in his or her Profit Sharing Account in accordance with the following schedule:

	
		
	Years of Vesting Service
	Vested Percentage

	Less than 2 years
	0%

	2 years but less than 3 years
	20%

	3 years or more
	100%

For this purpose, a “Year of Vesting Service” means a Plan Year in which the affected Participant is compensated for 1,000 or more Hours of Service.  For this purpose, an affected Participant shall be credited with any years of vesting service credited under the merged plan.
		
	(e)
	Distribution: For an affected Participant whose entire vested Account is in excess of $5,000 and who terminates employment and requests distribution prior to December 31, 2004, distribution may be made in the form of an annuity or installments, subject to Code Section 401(a)(11) and the terms of the merged plan as in effect on the merger date (the applicable terms of the merged plan being incorporated herein by this reference).

		
	(f)
	Section 4.5 Withdrawals: An affected Participant who requests and is approved for a withdrawal pursuant to Section 4.5 of the Plan shall have included in the available amount any such amounts transferred from the merged plan in connection with the plan merger.

		
	(g)
	After-Tax Withdrawals: An affected Participant may withdraw, by written election to the Committee, but not more than once per Plan Year, all or any portion of any after-tax contributions transferred from the merged plan in connection with the plan merger.

E-6    Pouk & Steinle Retirement Savings Plan
		
	(a)
	Merger Date: September 1, 2004.

	
			
	147194561.3
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	(b)
	Affected Participants: Participants who had a portion of their Accounts transferred from the merged plan in connection with the plan merger.

		
	(c)
	Participation: Each affected Participant became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: The affected Participant shall be fully vested in their Accounts.

		
	(e)
	Distribution: For an affected Participant whose entire vested Account is in excess of $5,000 and who terminates employment and requests distribution prior to December 31, 2004, distribution may be made in the form of an annuity, subject to Code Section 401(a)(11) and the terms of the merged plan as in effect as of the merger date (the applicable terms of the merged plan are incorporated herein by this reference) and Code Section 401(a)(11).

		
	(f)
	Hardship Withdrawals: An affected Participant who requests and is approved for a hardship withdrawal pursuant to Section 4.5(a) of the Plan shall have included in the available amount any such amounts transferred from the merged plan in connection with the plan merger.

		
	E-7
	Northwest AGC Chapters 401(k) Profit Sharing Plan, as Adopted by Oregon Electronic Construction, Inc.

		
	(a)
	Merger Date: September 1, 2004.

		
	(b)
	Affected Participants: Participants who had a portion of their Accounts transferred from the merged plan in connection with the plan merger.

		
	(c)
	Participation: Each affected Participant became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: The affected Participants shall be fully vested in their Accounts.

		
	(e)
	Distribution: For an affected Participant whose entire vested Account is in excess of $5,000 and who terminates employment and requests distribution prior to December 31, 2004, distribution may be made in the form of an annuity or installments, subject to Code Section 401(a)(11) and the terms of the merged plan as in effect as of the merger date (the applicable terms of the merged plan are incorporated herein by this reference).

		
	(f)
	Hardship Withdrawals: An affected Participant who requests and is approved for a hardship withdrawal pursuant to Section 4.5(a) of the Plan shall have included in the available amount any such amounts transferred from the merged plan in connection with the plan merger.

E-8    Savings Plan for Salaried Employees of Hawaiian Cement
		
	(a)
	Merger Date: October 1, 2004.

		
	(b)
	Affected Participants: Participants who had their Accounts transferred from the merged plan in connection with the plan merger.

		
	(c)
	Participation: Each affected Participant became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: The affected Participants shall be fully vested in their Accounts.

	
			
	147194561.3
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	(e)
	Hardship Withdrawals: An affected Participant who requests and is approved for a hardship withdrawal pursuant to Section 4.5(a) of the Plan shall have included in the available amount any such amounts transferred from the merged plan in connection with the plan merger.

E-9    Loy Clark Pipeline Company 401(k) Plan
		
	(a)
	Merger Date: December 29, 2004.

		
	(b)
	Affected Participants: Participants who had a portion of their Accounts transferred from the merged plan in connection with the plan merger.

		
	(c)
	Participation: Each affected Participant employed by Loy Clark Pipeline Company as of the merger date became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: The affected Participants shall be fully vested in their Accounts.

		
	(e)
	Distribution: An affected Participant whose entire vested Account is in excess of $5,000 and who terminates employment and requests distribution prior to March 31, 2005, distribution may be made in the form of an annuity or installments, subject to Code Section 401(a)(11) and the terms of the merged plan as in effect on the merger date (the applicable terms of the merged plan being incorporated herein by this reference).

		
	E-10
	Montana Contractors’ Association, Inc. Money Purchase Retirement Plan and Trust, as Adopted by JTL Group, Inc. (the “Money Purchase Plan”) and Montana Contractors’ Association, Inc. 401(k) Retirement Plan and Trust, as Adopted by JTL Group, Inc.

		
	(a)
	Merger Date: December 29, 2004.

		
	(b)
	Affected Participants: Participants who had a portion of their Accounts transferred from the merged plans in connection with the plan mergers.

		
	(c)
	Participation: Each affected Participant employed by JTL Group, Inc. as of the merger date became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: The affected Participants shall be fully vested in their Accounts.

		
	(e)
	Distribution: For an affected Participant whose entire vested Account is in excess of $5,000 and who terminates employment and requests distribution prior to February 1, 2005, distribution may be made in the form of an annuity or installments, subject to Code Section 401(a)(11) and the terms of the merged plans as in effect on the merger date (the applicable terms of the merged plans being incorporated herein by this reference).  Any distribution requests made on or after February 1, 2005, shall be made in accordance with Section 4.4 of the Plan, provided, however, an affected Participant’s Account attributable to the Money Purchase Plan may be distributed in the form of a 50% joint and survivor annuity (for a married Participant) or single life annuity (for an unmarried Participant or married Participant with spousal written and notarized consent).

		
	E-11
	Rocky Mountain Contractors Employees’ Profit Sharing Plan and Rocky Mountain Contractors Employees’ Pension Plan (the “Pension Plan”), as Adopted by Rocky Mountain Contractors, Inc. and Hamlin Electric Company

		
	(a)
	Merger Date: December 31, 2004.

		
	(b)
	Affected Participants: Participants who had a portion of their Accounts transferred from the merged plans in connection with the plan mergers.

	
			
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	(c)
	Participation: Each affected Participant became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: Notwithstanding anything in Section 4.2 to the contrary and except as otherwise provided with respect to Normal Retirement Age or Disability, affected Participants shall be vested in their employer contributions transferred from the merged plans as follows:

	
		
	Years of Vesting Service
	Vested Percentage

	Less than 2 years
	0%

	2 years but less than 3 years
	20%

	3 years or more
	100%

For this purpose, a “Year of Vesting Service” means a Plan Year in which the affected Participant is compensated for 1,000 or more Hours of Service.  An affected Participant shall be credited with any years of vesting service credited under the merged plans.
		
	(e)
	Hardship and Age 591⁄2 Withdrawals: An affected Participant who requests and is approved for a withdrawal pursuant to Section 4.5(a) or 4.5(b) of the Plan shall have excluded from the available amount any portion of the affected Participant’s Account that was transferred from the Pension Plan in connection with the plan merger.  In addition, if the affected Participant is married and a portion of the Account is attributable to the Pension Plan, the affected Participant must obtain spousal written consent, which consent must either be notarized or witnessed by a Plan representative.

		
	(f)
	Loans: If an affected Participant is married and a portion of the Account is attributable to the Pension Plan, the affected Participant must obtain spousal written consent in order to obtain a loan under Section 4.8 of the Plan, which consent must either be notarized or witnessed by a Plan representative.

		
	(g)
	Distribution: For an affected Participant whose entire vested Account is in excess of $5,000 and who terminates employment and requests distribution prior to March 15, 2005, distribution may be made in the normal form of an annuity or installments, subject to Code Section 401(a)(11) and the terms of the merged plans as in effect on the merger date (the applicable terms of the merged plans being incorporated herein by this reference).  Any distribution requests made on or after March 15, 2005 shall be made in accordance with Section 4.4 of the Plan, provided, however, an affected Participant’s Account attributable to the Pension Plan may be distributed in the form of a 50% joint and survivor annuity (for a married Participant) or single life annuity (for an unmarried Participant or married Participant with spousal written and notarized consent).

E-12    Hawaiian Cement Non-Salaried Employees 401(k) Plan
		
	(a)
	Merger Date: August 1, 2005.

		
	(b)
	Affected Participants: Participants who had their Accounts transferred from the merged plan in connection with the plan merger.

		
	(c)
	Participation: Each affected Participant became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: The affected Participants shall be fully vested in their Accounts.

	
			
	147194561.3
	78
	 

		
	(e)
	Hardship Withdrawals: An affected Participant that requests and is approved for a hardship withdrawal pursuant to Section 4.5(a) of the Plan will have included in the available amount any such amounts transferred from the merged plan in connection with the plan merger.

E-13    Bauerly Brothers, Inc. Davis-Bacon Pension Plan
		
	(a)
	Merger Date: December 1, 2005.

		
	(b)
	Affected Participants: Participants who had a portion of their Accounts transferred from the merged plan in connection with the plan merger.

		
	(c)
	Vesting: An affected Participant shall be fully vested in the amounts transferred from the merged plan in connection with the plan merger, with the balance of such Participant’s Account being vested in accordance with Section 4.2 of the Plan.

		
	(d)
	Distribution: Distribution shall be made in accordance with Section 4.4 of the Plan, provided, however, that an affected Participant’s Account attributable to the merged plan may be distributed in the form of a 50% joint and survivor annuity (for a married Participant) or single life annuity (for an unmarried Participant or married Participant with spousal written and notarized consent).

		
	(e)
	Withdrawals: An affected Participant who requests and is approved for a withdrawal pursuant to Section 4.5 of the Plan, shall have excluded from the available amount any portion of the affected Participant’s Account that was transferred from the merged plan in connection with the plan merger.  In addition, if the affected Participant is married and a portion of his or her Account is attributable to the merged plan, the Participant must obtain spousal written consent, which must be either notarized or witnessed by a Plan representative.

		
	(f)
	Loans: If an affected Participant is married, and a portion of his or her Account is attributable to the merged plan, the affected Participant must obtain spousal written consent in order to obtain a loan under Section 4.8 of the Plan, which consent must either be notarized or witnessed by a Plan representative.

E-14    Buffalo Bituminous, Inc. Davis-Bacon Pension Plan
		
	(a)
	Merger Date: December 1, 2005.

		
	(b)
	Affected Participants: Participants who had a portion of their Accounts transferred from the merged plan in connection with the plan merger.

		
	(c)
	Vesting: An affected Participant shall be fully vested in the amounts transferred from the merged plan in connection with the plan merger, with the balance of such Participant’s Account being vested in accordance with Section 4.2 of the Plan.

		
	(d)
	Distribution: Distribution shall be made in accordance with Section 4.4 of the Plan, provided, however, that an affected Participant’s Account attributable to the merged plan may be distributed in the form of a 50% joint and survivor annuity (for a married Participant) or single life annuity (for an unmarried Participant or married Participant with spousal written and notarized consent).

		
	(e)
	Withdrawals: An affected Participant who requests and is approved for a withdrawal pursuant to Section 4.5 of the Plan, shall have excluded from the available amount any portion of the affected Participant’s Account that was transferred from the merged plan in connection with the plan merger.  In addition, if the affected Participant is married and a portion of his or her Account is attributable to the merged plan, the Participant must obtain

	
			
	147194561.3
	79
	 

spousal written consent, which must be either notarized or witnessed by a Plan representative.
		
	(f)
	Loans: If an affected Participant is married, and a portion of his or her Account is attributable to the merged plan, the affected Participant must obtain spousal written consent in order to obtain a loan under Section 4.8 of the Plan, which consent must either be notarized or witnessed by a Plan representative.

E-15    Granite City Ready Mix 401(k) Plan for Union Employees
		
	(a)
	Merger Date: December 1, 2006.

		
	(b)
	Affected Participants: Participants who had a portion of their Accounts transferred from the merged plan in connection with the plan merger.

		
	(c)
	Participation: Each affected Participant became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: An affected Participant shall be fully vested in the amounts transferred from the merged plan in connection with the plan merger, with the balance of such Participant’s Account being vested in accordance with Section 4.2 of the Plan.  Notwithstanding Section 4.2 of the Plan, however, each affected Participant shall become fully vested in his or her Accounts upon attainment of age 55.

		
	(e)
	Distribution: Distribution shall be made in accordance with Section 4.4 of the Plan, provided, however, that an affected Participant’s Account attributable to the merged plan may be distributed in the form of a 50% joint and survivor annuity (for a married Participant) or single life annuity (for an unmarried Participant or married Participant with spousal written and notarized consent).

		
	(f)
	Hardship Withdrawals: An affected Participant that requests and is approved for a hardship withdrawal pursuant to Section 4.5(a) of the Plan will have included in the available amount any such amounts transferred from the merged plan in connection with the plan merger.

E-16    Bauerly Brothers, Incorporated 401(k) Plan
		
	(a)
	Merger Date: March 20, 2009.

		
	(b)
	Affected Participants: Participants who had their Accounts transferred from the merged plan in connection with the plan merger.

		
	(c)
	Participation: An affected Participant employed by Knife River Corporation – North Central (formerly, Bauerly Brothers, Incorporated), became a Participant in the Plan on the merger date.

		
	(d)
	Vesting: An affected Participant shall be fully vested in the amounts transferred from the merged plan in connection with the plan merger, with the balance of such Participant’s Account being vested in accordance with Section 4.2 of the Plan.  Any profit sharing contributions made on the behalf of an affected Participant shall be subject to a three-year cliff vesting schedule.

		
	(e)
	Distribution: Distribution shall be made in accordance with Section 4.4 of the Plan, provided, however, that an affected Participant’s Account attributable to the merged plan may be distributed in the form of a 50% joint and survivor annuity (for a married Participant) or single life annuity (for an unmarried Participant or married Participant with spousal written and notarized consent).

	
			
	147194561.3
	80
	 

		
	(f)
	Hardship Withdrawals: An affected Participant that requests and is approved for a hardship withdrawal pursuant to Section 4.5(a) of the Plan will have included in the available amount any such amounts transferred from the merged plan in connection with the plan merger.

	
			
	147194561.3
	81

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