Document:

1997 Non-Employee Director Long-Term Inc Plan

    MDU
      RESOURCES GROUP, INC.

    1997
      NON-EMPLOYEE DIRECTOR LONG-TERM INCENTIVE PLAN

    

    Article
      1. Establishment, Purpose and Duration

    

    1.1 Establishment
      of the Plan. MDU
      Resources Group, Inc., a Delaware corporation (hereinafter referred to as the
      "Company"), hereby establishes an incentive plan to be known as the "MDU
      Resources Group, Inc. 1997 Non-Employee Director Long-Term Incentive Plan"
      (hereinafter referred to as the "Plan"), as set forth in this document. The
      Plan
      permits the grant of Nonqualified Stock Options (NQSO), Stock Appreciation
      Rights (SAR), Restricted Stock, Performance Units, Performance Shares and other
      awards.

    

    The
      Plan
      shall become effective when approved by the stockholders at the annual meeting
      on April 22, 1997, (the "Effective Date"), and shall remain in effect as
      provided in Section 1.3 herein.

    

    1.2 Purpose
      of the Plan.
      The
      purpose of the Plan is to promote the success and enhance the value of the
      Company by linking the personal interests of Participants to those of Company
      stockholders and customers. The Plan is further intended to assist the Company
      in its ability to motivate, attract and retain highly qualified individuals
      to
      serve as directors of the Company.

    

    1.3 Duration
      of the Plan.
      The Plan
      shall commence on the Effective Date, as described in Section 1.1 herein, and
      shall remain in effect, subject to the right of the Board of Directors to
      terminate the Plan at any time pursuant to Article 14 herein, until all Shares
      subject to it shall have been purchased or acquired according to the Plan's
      provisions.

    

    Article
      2. Definitions

    

    Whenever
      used in the Plan, the following terms shall have the meanings set forth below
      and, when such meaning is intended, the initial letter of the word is
      capitalized:

    

    2.1 "Award"
      means,
      individually or collectively, a grant under the Plan of NQSOs, SARs, Restricted
      Stock, Performance Units, Performance Shares or any other type of award
      permitted under Article 10 of the Plan.

    

    2.2 "Award
      Agreement"
      means an
      agreement entered into by each Participant and the Company, setting forth the
      terms and provisions applicable to an Award granted to a Participant under
      the
      Plan.

    

    2.3 "Base
      Value"
      of an
      SAR shall have the meaning set forth in Section 7.1 herein.

    

    2.4 "Board"
      or "Board of Directors"
      means
      the Board of Directors of the Company.

    

    2.5 "Change
      in Control" means
      the
      earliest of the following to occur: (a) the public announcement by the Company
      or by any person (which shall not include the Company, any subsidiary of the
      Company, or any employee benefit plan of the Company or of any subsidiary of
      the
      Company) ("Person") that such Person, who or which, together with all Affiliates
      and Associates (within the meanings ascribed to such terms in the Rule 12b-2
      of
      the General Rules and Regulations under the Exchange Act) of such Person, shall
      be the beneficial owner of twenty percent (20%) or more of the voting stock
      of
      the Company outstanding; (b) the commencement of, or after the first public
      announcement of any Person to commence, a tender or exchange offer the
      consummation of which would result in any Person becoming the beneficial owner
      of voting stock aggregating thirty percent (30%) or more of the then outstanding
      voting stock of the Company; (c) the announcement of any transaction relating
      to
      the Company required to be described pursuant to the requirements of Item 6(e)
      of Schedule 14A of Regulation 14A under the Exchange Act; (d) a proposed change
      in constituency of the Board such that, during any period of two (2) consecutive
      years, individuals who at the beginning of such period constitute the Board
      cease for any reason to constitute at least a majority thereof, unless the
      election or nomination for election by the stockholders of the Company of each
      new Director was approved by a vote of at least two-thirds (2/3) of the
      Directors then still in office who were members of the Board at the beginning
      of
      the period; or (e) any other event which shall be deemed by a majority of the
      Committee to constitute a "change in control."

    

    2.6 "Code"
      means
      the Internal Revenue Code of 1986, as amended from time to time.

    

    2.7 "Committee"
      means
      the Committee, as specified in Article 3, appointed by the Board to administer
      the Plan with respect to Awards.

    

    2.8 "Company"
      means
      MDU Resources Group, Inc., a Delaware corporation, or any successor thereto
      as
      provided in Article 15 herein.

    

    2.9 "Director"
      means
      any individual who is a member of the Board of Directors of the
      Company.

    

    2.10 "Dividend
      Equivalent"
      means,
      with respect to Shares subject to an Award, a right to be paid an amount equal
      to dividends declared on an equal number of outstanding Shares.

    

    2.11 "Employee"
      means
      any full-time or regularly-scheduled part-time employee of the Company or of
      the
      Company's Subsidiaries, who is not covered by any collective bargaining
      agreement to which the Company or any of its Subsidiaries is a
      party.

    

    2.12 "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended from time to time, or any
      successor act thereto.

    

    2.13 "Exercise
      Period"
      means
      the period during which an SAR or Option is exercisable, as set forth in the
      related Award Agreement.

    

    2.14 "Fair
      Market Value"
      shall
      mean the average of the high and low sale prices as reported in the consolidated
      transaction reporting system or, if there is no such sale on the relevant date,
      then on the last previous day on which a sale was reported.

    

    2.15 "Freestanding
      SAR"
      means
      an SAR that is granted independently of any Option. 

    

    2.16 "Non-Employee
      Director"
      means
      any person who is elected or appointed to the Board and who is not an
      Employee.

    

    2.17 "Nonqualified
      Stock Option" or "NQSO"
      means an
      option to purchase Shares, granted under Article 6 herein, which is not intended
      to be an Incentive Stock Option under Section 422 of the Code.

    

    2.18 "Option"
      means a
      Nonqualified Stock Option.

    

    2.19 "Option
      Price"
      means
      the price at which a Share may be purchased by a Participant pursuant to an
      Option, as determined by the Committee and set forth in the Option Award
      Agreement.

    

    2.20 "Participant"
      means a
      Non-Employee Director who has an outstanding Award granted under the
      Plan.

    

    2.21 "Performance
      Unit"
      means an
      Award granted to a Participant, as described in Article 9 herein.

    

    2.22 "Performance
      Share"
      means an
      Award granted to a Participant, as described in Article 9 herein.

    

    2.23 "Period
      of Restriction"
      means
      the period during which the transfer of Restricted Stock is limited in some
      way,
      as provided in Article 8 herein.

    

    2.24 "Person"
      shall
      have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act,
      as used in Sections 13(d) and 14(d) thereof, including usage in the definition
      of a "group" in Section 13(d) thereof.

    

    2.25 "Restricted
      Stock"
      means an
      Award of Shares granted to a Participant pursuant to Article 8
      herein.

    

    2.26 "Shares"
      means
      the shares of common stock of the Company.

    

    2.27 "Stock
      Appreciation Right" or "SAR"
      means a
      right, granted alone or in connection with a related Option, designated as
      an
      SAR, to receive a payment on the day the right is exercised, pursuant to the
      terms of Article 7 herein. Each SAR shall be denominated in terms of one
      Share.

    

    2.28 "Subsidiary"
      means
      any corporation that is a "subsidiary corporation" of the Company as that term
      is defined in Section 424(f) of the Code.

    

    2.29 "Tandem
      SAR"
      means an
      SAR that is granted in connection with a related Option, the exercise of which
      shall require forfeiture of the right to purchase a Share under the related
      Option (and when a Share is purchased under the Option, the Tandem SAR shall
      be
      similarly canceled).

    

    Article
      3. Administration

    

    3.1 The
      Committee.
      The Plan
      shall be administered by any committee appointed by the Board or by the Board
      of
      Directors (the "Committee").

    

    3.2 Authority
      of the Committee.
      The
      Committee shall have full power except as limited by law, the Articles of
      Incorporation and the Bylaws of the Company, subject to such other restricting
      limitations or directions as may be imposed by the Board and subject to the
      provisions herein, to determine the size and types of Awards; to determine
      the
      terms and conditions of such Awards in a manner consistent with the Plan; to
      construe and interpret the Plan and any agreement or instrument entered into
      under the Plan; to establish, amend or waive rules and regulations for the
      Plan's administration; and (subject to the provisions of Article 14 herein)
      to
      amend the terms and conditions of any outstanding Award. Further, the Committee
      shall make all other determinations which may be necessary or advisable for
      the
      administration of the Plan. As permitted by law, the Committee may delegate
      its
      authorities as identified hereunder.

    

    3.3 Restrictions
      on Share Transferability.
      The
      Committee may impose such restrictions on any Shares acquired pursuant to Awards
      under the Plan as it may deem advisable, including, without limitation,
      restrictions to comply with applicable Federal securities laws, with the
      requirements of any stock exchange or market upon which such Shares are then
      listed and/or traded and with any blue sky or state securities laws applicable
      to such Shares.

    

    3.4 Approval.
      The
      Committee or the Board shall approve all Awards made under the Plan and all
      elections made by Participants, prior to their effective date, to the extent
      necessary to comply with Rule 16b-3 under the Exchange Act.

    

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

    

    3.6 Costs.
      The
      Company shall pay all costs of administration of the Plan.

    

    Article
      4. Shares Subject to the Plan

    

    4.1 Number
      of Shares.
      Subject
      to Section 4.2 herein, the maximum number of Shares that may be issued pursuant
      to Awards under the Plan shall be 429,750. Shares underlying lapsed or forfeited
      Awards of Restricted Stock shall not be treated as having been issued pursuant
      to an Award under the Plan. Shares that are potentially deliverable under an
      Award that expires or is canceled, forfeited, settled in cash or otherwise
      settled without the delivery of Shares shall not be treated as having been
      issued under the Plan. Shares that are withheld to satisfy the Option Price
      related to an Option, SAR or other Award pursuant to which the Shares withheld
      have not yet been issued shall not be deemed to be Shares issued under the
      Plan.

    

    Shares
      issued pursuant to the Plan may be (i) authorized but unissued Shares of Common
      Stock, (ii) treasury shares, or (iii) shares purchased on the open
      market.

    

    4.2 Adjustments
      in Authorized Shares.
      In the
      event of any merger, reorganization, consolidation, recapitalization,
      separation, liquidation, stock split, reverse stock split, stock dividend,
      split-up, spin-off, share combination, share exchange, extraordinary dividend
      or
      any change in the corporate structure of the Company affecting the Shares,
      such
      adjustment shall be made to the number and kind of Shares which may be delivered
      under the Plan, and the number, kind and/or price of Shares subject to
      outstanding Awards granted under the Plan, as may be determined to be
      appropriate and equitable by the Committee, in its sole discretion, to prevent
      dilution or enlargement of rights; provided, however, that unless otherwise
      determined by the Committee, the number of Shares subject to any Award shall
      always be rounded down to a whole number.

    

    Article
      5. Eligibility and Participation

    

    5.1 Eligibility.
      Persons
      eligible to participate in the Plan are any persons elected or appointed to
      the
      Board who are not Employees.

    

    5.2 Actual
      Participation.
      Subject
      to the provisions of the Plan, the Committee may, from time to time, select
      from
      all eligible Non-Employee Directors those to whom Awards shall be granted and
      shall determine the nature and amount of each Award.

    

    Article
      6. Stock Options

    

    6.1 Grant
      of Options. Subject
      to the terms and conditions of the Plan, Options may be granted to a
      Non-Employee Director at any time and from time to time, as shall be determined
      by the Committee.

    

    The
      Committee shall have complete discretion in determining the number of Shares
      subject to Options granted to each Participant (subject to Article 4 herein)
      and, consistent with the provisions of the Plan, in determining the terms and
      conditions pertaining to such Options.

    

    6.2 Option
      Award Agreement.
      Each
      Option grant shall be evidenced by an Option Award Agreement that shall specify
      the Option Price, the term of the Option, the number of Shares to which the
      Option pertains, the Exercise Period and such other provisions as the Committee
      shall determine, including but not limited to any rights to Dividend
      Equivalents.

    

    6.3 Exercise
      of and Payment for Options.
      Options
      granted under the Plan shall be exercisable at such times and be subject to
      such
      restrictions and conditions as the Committee shall in each instance
      approve.

    

    A
      Participant may exercise an Option at any time during the Exercise Period.
      Options shall be exercised by the delivery of a written notice of exercise
      to
      the Company or its designee, setting forth the number of Shares with respect
      to
      which the Option is to be exercised, accompanied by provisions for full payment
      for the Shares.

    

    The
      Option Price upon exercise of any Option shall be payable either: (a) in cash
      or
      its equivalent, (b) by tendering previously acquired Shares having an aggregate
      Fair Market Value at the time of exercise equal to the total Option Price
      (provided that Shares which are tendered must have been held by the Participant
      for at least six (6) months prior to their tender to satisfy the Option Price),
      (c) by Share withholding, (d) by cashless exercise or (e) by a combination
      of
      (a),(b),(c), and/or (d).

    

    As
      soon
      as practicable after receipt of a written notification of exercise of an Option
      and provisions for full payment therefor, the Company shall (i) deliver to
      the
      Participant, in the Participant's name or the name of the Participant's
      designee, a Share certificate or certificates in an appropriate aggregate amount
      based upon the number of Shares purchased under the Option, or (ii) cause to
      be
      issued in the Participant's name or the name of the Participant's designee,
      in
      book-entry form, an appropriate number of Shares based upon the number of Shares
      purchased under the Option.

    

    6.4 Termination
      of Director Status.
      Each
      Option Award Agreement shall set forth the extent to which the Participant
      shall
      have the right to exercise the Option following termination of the Participant's
      position on the Board of the Company. Such provisions shall be determined in
      the
      sole discretion of the Committee, shall be included in the Option Award
      Agreement entered into with Participants, need not be uniform among all Options
      granted pursuant to the Plan or among Participants and may reflect distinctions
      based on the reasons for termination of director status.

    

    6.5 Transferability
      of Options.
      Except
      as otherwise determined by the Committee and set forth in the Option Award
      Agreement, no Option granted under the Plan may be sold, transferred, pledged,
      assigned, or otherwise alienated or hypothecated, other than by will or by
      the
      laws of descent and distribution, and all Options granted to a Participant
      under
      the Plan shall be exercisable during his or her lifetime only by such
      Participant or his or her legal representative.

    

    Article
      7. Stock Appreciation Rights

    

    7.1 Grant
      of SARs. Subject
      to the terms and conditions of the Plan, an SAR may be granted to a Non-Employee
      Director at any time and from time to time as shall be determined by the
      Committee. The Committee may grant Freestanding SARs, Tandem SARs or any
      combination of these forms of SAR.

    

    The
      Committee shall have complete discretion in determining the number of SARs
      granted to each Participant (subject to Article 4 herein) and, consistent
      with the provisions of the Plan, in determining the terms and conditions
      pertaining to such SARs.

    

    The
      Base
      Value of a Freestanding SAR shall equal the Fair Market Value of a Share on
      the
      date of grant of the SAR. The Base Value of Tandem SARs shall equal the Option
      Price of the related Option.

    

    7.2 SAR
      Award Agreement. Each
      SAR
      grant shall be evidenced by an SAR Award Agreement that shall specify the number
      of SARs granted, the Base Value, the term of the SAR, the Exercise Period and
      such other provisions as the Committee shall determine.

    

    7.3 Exercise
      and Payment of SARs.
      Tandem
      SARs may be exercised for all or part of the Shares subject to the related
      Option upon the surrender of the right to exercise the equivalent portion of
      the
      related Option. A Tandem SAR may be exercised only with respect to the Shares
      for which its related Option is then exercisable.

    

    Freestanding
      SARs may be exercised upon whatever terms and conditions the Committee, in
      its
      sole discretion, imposes upon them.

    

    A
      Participant may exercise an SAR at any time during the Exercise Period. SARs
      shall be exercised by the delivery of a written notice of exercise to the
      Company, setting forth the number of SARs being exercised. Upon exercise of
      an
      SAR, a Participant shall be entitled to receive payment from the Company in
      an
      amount equal to the product of:

    

    
      	 	
              (a)

            	
              the
                excess of (i) the Fair Market Value of a Share on the date of exercise
                over (ii) the Base Value multiplied
                by

            

    

    

    
      	 	
              (b)

            	
              the
                number of Shares with respect to which the SAR is
                exercised.

            

    

    

    At
      the
      sole discretion of the Committee, the payment to the Participant upon SAR
      exercise may be in cash, in Shares of equivalent value, or in some combination
      thereof.

    

    7.4 Termination
      of Director Status.
      Each SAR
      Award Agreement shall set forth the extent to which the Participant shall have
      the right to exercise the SAR following termination of the Participant's
      position on the Board of the Company. Such provisions shall be determined in
      the
      sole discretion of the Committee, shall be included in the SAR Award Agreement
      entered into with Participants, need not be uniform among all SARs granted
      pursuant to the Plan or among Participants and may reflect distinctions based
      on
      the reasons for termination of director status.

    

    7.5 Transferability
      of SARs.
      Except
      as otherwise determined by the Committee and set forth in the SAR Award
      Agreement, no SAR granted under the Plan may be sold, transferred, pledged,
      assigned, or otherwise alienated or hypothecated, other than by will or by
      the
      laws of descent and distribution, and all SARs granted to a Participant under
      the Plan shall be exercisable during his or her lifetime only by such
      Participant or his or her legal representative.

    

    Article
      8. Restricted Stock

    

    8.1 Grant
      of Restricted Stock. Subject
      to the terms and conditions of the Plan, Restricted Stock may be granted to
      a
      Non-Employee Director at any time and from time to time, as shall be determined
      by the Committee.

    

    The
      Committee shall have complete discretion in determining the number of shares
      of
      Restricted Stock granted to each Participant (subject to Article 4 herein)
      and,
      consistent with the provisions of the Plan, in determining the terms and
      conditions pertaining to such Restricted Stock.

    

    8.2 Restricted
      Stock Award Agreement.
      Each
      Restricted Stock grant shall be evidenced by a Restricted Stock Award Agreement
      that shall specify the Period or Periods of Restriction, the number of
      Restricted Stock Shares granted and such other provisions as the Committee
      shall
      determine.

    

    8.3 Transferability.
      Restricted Stock granted hereunder may not be sold, transferred, pledged,
      assigned, or otherwise alienated or hypothecated until the end of the applicable
      Period of Restriction established by the Committee and specified in the
      Restricted Stock Award Agreement. All rights with respect to the Restricted
      Stock granted to a Participant under the Plan shall be available during his
      or
      her lifetime only to such Participant or his or her legal
      representative.

    

    8.4 Certificate
      Legend.
      Each
      certificate representing Restricted Stock granted pursuant to the Plan may
      bear

    a
      legend
      substantially as follows:

    

    "The
      sale
      or other transfer of the shares of stock represented by this certificate,
      whether voluntary, involuntary or by operation of law, is subject to certain
      restrictions on transfer as set forth in MDU Resources Group, Inc. 1997
      Non-Employee Director Long-Term Incentive Plan, and in a Restricted Stock Award
      Agreement. A copy of such Plan and such Agreement may be obtained from MDU
      Resources Group, Inc."

    

    The
      Company shall have the right to retain the certificates representing Restricted
      Stock in the Company's possession until such time as all restrictions applicable
      to such Shares have been satisfied.

    

    8.5 Removal
      of Restrictions.
      Restricted Stock shall become freely transferable by the Participant after
      the
      last day of the Period of Restriction applicable thereto. Once Restricted Stock
      is released from the restrictions, the Participant shall be entitled to have
      the
      legend referred to in Section 8.4 removed from his or her stock
      certificate.

    

    8.6 Voting
      Rights. During
      the Period of Restriction, Participants holding Restricted Stock may exercise
      full voting rights with respect to those Shares.

    

    8.7 Dividends
      and Other Distributions.
      Subject
      to the Committee's right to determine otherwise at the time of grant, during
      the
      Period of Restriction, Participants holding Restricted Stock shall receive
      all
      regular cash dividends paid with respect to all Shares while they are so held.
      All other distributions paid with respect to such Restricted Stock shall be
      credited to Participants subject to the same restrictions on transferability
      and
      forfeitability as the Restricted Stock with respect to which they were paid
      and
      shall be paid to the Participant within forty-five (45) days following the
      full
      vesting of the Restricted Stock with respect to which such distributions were
      made.

    

    8.8 Termination
      of Director Status. Each
      Restricted Stock Award Agreement shall set forth the extent to which the
      Participant shall have the right to receive unvested Restricted Stock following
      termination of the Participant's position on the Board of the Company. Such
      provisions shall be determined in the sole discretion of the Committee, shall
      be
      included in the Restricted Stock Award Agreement entered into with Participants,
      need not be uniform among all grants of Restricted Stock or among Participants
      and may reflect distinctions based on the reasons for termination of director
      status.

    

    Article
      9. Performance Units and Performance Shares

    

    9.1 Grant
      of Performance Units and Performance Shares. Subject
      to the terms and conditions of the Plan, Performance Units and/or Performance
      Shares may be granted to a Non-Employee Director at any time and from time
      to
      time, as shall be determined by the Committee.

    

    The
      Committee shall have complete discretion in determining the number of
      Performance Units and/or Performance Shares granted to each Participant (subject
      to Article 4 herein) and, consistent with the provisions of the Plan, in
      determining the terms and conditions pertaining to such Awards.

    

    9.2 Performance
      Unit/Performance Share Award Agreement.
      Each
      grant of Performance Units and/or Performance Shares shall be evidenced by
      a
      Performance Unit and/or Performance Share Award Agreement that shall specify
      the
      number of Performance Units and/or Performance Shares granted, the initial
      value
      (if applicable), the Performance Period, the performance goals and such other
      provisions as the Committee shall determine, including but not limited to any
      rights to Dividend Equivalents.

    

    9.3 Value
      of Performance Units/Performance Shares.
      Each
      Performance Unit shall have an initial value that is established by the
      Committee at the time of grant. The value of a Performance Share shall be equal
      to the Fair Market Value of a Share. The Committee shall set performance goals
      in its discretion which, depending on the extent to which they are met, will
      determine the number and/or value of Performance Units/Performance Shares that
      will be paid out to the Participants. The time period during which the
      performance goals must be met shall be called a "Performance
      Period."

    

    9.4 Earning
      of Performance Units/Performance Shares.
      After
      the applicable Performance Period has ended, the holder of Performance
      Units/Performance Shares shall be entitled to receive a payout with respect
      to
      the Performance Units/Performance Shares earned by the Participant over the
      Performance Period, to be determined as a function of the extent to which the
      corresponding performance goals have been achieved.

    

    9.5 Form
      and Timing of Payment of Performance Units/Performance Shares.
      Payment
      of earned Performance Units/Performance Shares shall be made following the
      close
      of the applicable Performance Period. The Committee, in its sole discretion,
      may
      pay earned Performance Units/Performance Shares in cash or in Shares (or in
      a
      combination thereof), which have an aggregate Fair Market Value equal to the
      value of the earned Performance Units/Performance Shares at the close of the
      applicable Performance Period. Such Shares may be granted subject to any
      restrictions deemed appropriate by the Committee.

    

    9.6 Termination
      of Director Status.
      Each
      Performance Unit/Performance Share Award Agreement shall set forth the extent
      to
      which the Participant shall have the right to receive a Performance
      Unit/Performance Share payment following termination of the Participant's
      position on the Board of the Company during a Performance Period. Such
      provisions shall be determined in the sole discretion of the Committee, shall
      be
      included in the Award Agreement entered into with Participants, need not be
      uniform among all grants of Performance Units/Performance Shares or among
      Participants and may reflect distinctions based on reasons for termination
      of
      director status.

    

    9.7 Transferability.
      Except
      as otherwise determined by the Committee and set forth in the Performance
      Unit/Performance Share Award Agreement, Performance Units/Performance Shares
      may
      not be sold, transferred, pledged, assigned or otherwise alienated or
      hypothecated, other than by will or by the laws of descent and distribution,
      and
      a Participant's rights with respect to Performance Units/Performance Shares
      granted under the Plan shall be available during the Participant's lifetime
      only
      to such Participant or the Participant's legal representative.

    

    Article
      10. Other Awards

    

    The
      Committee shall have the right to grant other Awards which may include, without
      limitation, the grant of Shares based on certain conditions, the payment of
      Shares in lieu of cash, or the payment of cash based on performance criteria
      established by the Committee. Payment under or settlement of any such Awards
      shall be made in such manner and at such times as the Committee may
      determine.

    

    Article
      11. Beneficiary Designation

    

    Each
      Participant under the Plan may, from time to time, name any beneficiary or
      beneficiaries (who may be named contingently or successively) to whom any
      benefit under the Plan is to be paid in case of his or her death before he
      or
      she receives any or all of such benefit. Each such designation shall revoke
      all
      prior designations by the same Participant, shall be in a form prescribed by
      the
      Company, and will be effective only when filed by the Participant in writing
      with the Company during the Participant's lifetime. In the absence of any such
      designation, benefits remaining unpaid at the Participant's death shall be
      paid
      to the Participant's estate.

    

    The
      spouse of a married Participant domiciled in a community property jurisdiction
      shall join in any designation of beneficiary or beneficiaries other than the
      spouse.

    

    Article
      12. Deferrals

    

    The
      Committee may permit a Participant to defer the Participant's receipt of the
      payment of cash or the delivery of Shares that would otherwise be due to such
      Participant under the Plan. If any such deferral election is permitted, the
      Committee shall, in its sole discretion, establish rules and procedures for
      such
      payment deferrals.

    

    Article
      13. Change in Control

    

    The
      terms
      of this Article 13 shall immediately become operative, without further action
      or
      consent by any person or entity, upon a Change in Control, and once operative
      shall supersede and take control over any other provisions of this Plan.

    

    Upon
      a
      Change in Control

    

    
      	 	
              (a)

            	
              Any
                and all Options and SARs granted hereunder shall become immediately
                exercisable;

            

    

    

    
      	 	
              (b)

            	
              Any
                restriction periods and restrictions imposed on Restricted Stock
                or Awards
                granted pursuant to Article 10 (if not performance-based) shall be
                deemed
                to have expired and such Restricted Stock or Awards shall become
                immediately vested in full; and

            

    

    

    
      	 	
              (c)

            	
              The
                target payout opportunity attainable under all outstanding Awards
                of
                Performance Units, Performance Shares and Awards granted pursuant
                to
                Article 10 (if performance-based) shall be deemed to have been fully
                earned for the entire Performance Period(s) as of the effective date
                of
                the Change in Control, and shall be paid out promptly in Shares or
                cash
                pursuant to the terms of the Award Agreement, or in the absence of
                such
                designation, as the Committee shall determine.

            

    

    

    Article
      14. Amendment, Modification and Termination

    

    14.1 Amendment,
      Modification and Termination.
      The
      Board may, at any time and from time to time, alter, amend, suspend or terminate
      the Plan in whole or in part. 

    

    14.2 Awards
      Previously Granted.
      No
      termination, amendment or modification of the Plan shall adversely affect in
      any
      material way any Award previously
      granted
      under the Plan, without the written consent of the Participant holding such
      Award, unless such termination, modification or amendment is required by
      applicable law.

    

    Article
      15. Successors

    

    All
      obligations of the Company under the Plan, with respect to Awards granted
      hereunder, shall be binding on any successor to the Company, whether
the
      existence of such successor is the result of a direct or indirect purchase,
      merger, consolidation or otherwise, of all or substantially all of the business
      and/or assets of the Company.

    

    Article
      16. Legal Construction

    

    16.1 Gender
      and Number.
      Except
      where otherwise indicated by the context, any masculine
      term
      used herein also shall include
      the feminine, the plural shall include the singular and the singular shall
      include the plural.

    

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

    

    16.3 Requirements
      of Law.
      The
      granting of Awards and the issuance of Shares under
      the Plan
      shall be subject to all applicable laws, rules and regulations, and to such
      approvals by any governmental agencies or national securities exchanges as
      may
      be required.

    

    16.4 Governing
      Law.
      To the
      extent not preempted by Federal law, the Plan, and all agreements hereunder,
      shall be construed in accordance with, and governed by, the laws of the State
      of
      Delaware.

    

    Article
      17. Code Section 409A Compliance

    

    To
      the
      extent applicable, it is intended that this Plan and any Awards granted
      hereunder comply with the requirements of Section 409A of the Code and any
      related regulations or other guidance promulgated with respect
      to such
      Section by the U.S. Department of the Treasury or the Internal Revenue Service
      ("Section 409A"). Any provision that would cause the Plan or any Award granted
      hereunder to fail to satisfy Section 409A shall have no force or effect until
      amended to comply with Section 409A, which amendment may be retroactive to
      the
      extent permitted by Section 409A.WBI Holdings Executive Inc Comp Plan

    

      WBI
        HOLDINGS, INC

      

      EXECUTIVE
        INCENTIVE COMPENSATION PLAN

      ____________________________________________________________

       

      I. PURPOSE

      The
        purpose of the Executive Incentive Compensation Plan (the "Plan") is to provide
        an incentive for key executives of WBI Holdings, Inc. (the "Company") and
        any
        subsidiaries participating in the Plan (each a "Subsidiary", and together,
        the
        "Subsidiaries") to focus their efforts on the achievement of challenging
        and
        demanding corporate objectives. The Plan is designed to reward successful
        corporate performance calculated from January 1 to December 31 of each Plan
        Year, as measured against specified performance goals as well as exceptional
        individual performance. When corporate or subsidiary performance reaches
        or
        exceeds the performance targets and individual performance is exemplary,
        incentive compensation awards, in conjunction with salaries, will provide
        a
        level of compensation which recognizes the skills and efforts of the key
        executives.

      

      II. BASIC
        PLAN CONCEPT 

      The
        Plan
        provides an opportunity to earn annual incentive compensation based on the
        achievement of specified annual performance objectives. A target incentive
        award
        for each individual within the Plan is established based on the position
        level
        and actual base salary, provided, however, that the Compensation Committee
        of
        the Board of Directors (the "Committee") of the Company in its sole discretion
        may, instead of actual base salary, use the assigned salary grade market
        value
        (midpoint) ("Salary"). The target incentive award represents the amount to
        be
        paid, subject to the achievement of the performance objective targets
        established each year. Larger incentive awards than target may be authorized
        when performance exceeds targets; lesser or no amounts may be paid when
        performance is below target.

      It
        is
        recognized that during a Plan Year major unforeseen changes in economic and
        environmental conditions or other significant factors beyond the control
        of
        management may substantially affect the ability of the Plan Participants
        to
        achieve the specified performance goals. Therefore, in its review of corporate
        performance the Committee, in consultation with the Chief Executive Officer
        of
        MDU Resources Group, Inc., may modify the performance targets. However, it
        is
        contemplated that such target modifications will be necessary only in years
        of
        unusually adverse or favorable external conditions.

      

      III. ADMINISTRATION

      The
        Plan
        shall be administered by the Committee with the assistance of the President
        of
        the Company. The Committee shall approve annually, prior to the beginning
        of
        each Plan Year, the list of eligible Participants, and the target incentive
        award level for each position within the Plan. The Plan's performance targets
        for the year shall be approved by the Committee no later than its regularly
        scheduled February meeting during that Plan Year. The Committee shall have
        final
        discretion to determine actual award payment levels, method of payment, and
        whether or not payments shall be made for any Plan Year.

      The
        Board
        of Directors of the Company may, at any time and from time to time, alter,
        amend, supersede or terminate the Plan in whole or in part, provided that
        no
        termination, amendment or modification of the Plan shall adversely affect
        in any
        material way an award that has met all requirements for payment without the
        written consent of the Participant holding such award, unless such termination,
        modification or amendment is required by applicable law.

      

      IV. ELIGIBILITY

      Key
        executives of the Company or the Subsidiaries who are determined by the
        Committee to have a key role in both the establishment and achievement of
        Company and/or Subsidiary objectives shall be eligible to participate in
        the
        Plan.

      Nothing
        in the Plan shall interfere with or limit in any way the right of the Company
        or
        any Subsidiary to terminate any Participant's employment at any time, for
        any
        reason or no reason in the Company's or a Subsidiary's sole discretion, or
        confer upon any Participant any right to continue in the employment of the
        Company or any Subsidiary. No executive shall have the right to be selected
        to
        receive an award under the Plan, or, having been so selected, to be selected
        to
        receive a future award.

      

      V. PLAN
        PERFORMANCE MEASURES

      Performance
        measures shall be established that consider shareholder and customer interests.
        These measures shall be evaluated annually based on achievement of specified
        goals. 

      The
        performance measure reflective of shareholders' interest will be the percentage
        attainment of corporate goals, as determined each year by the Committee.
        This
        measure may be applied at the Company level for some individuals, such as
        the
        President, whose major or sole impact is Company-wide, or at the Subsidiary
        level for individuals whose major or sole impact is on Subsidiary
        results.

      Individual
        performance will be assessed based on the achievement of annually established
        individual objectives.

      Threshold,
        target and maximum award levels will be established annually for each
        performance measure. The Committee will retain the right to make all
        interpretations as to the actual attainment of the desired results and will
        determine whether any circumstances beyond the control of management need
        to be
        considered.

      

      VI. TARGET
        INCENTIVE AWARDS

      Target
        incentive awards will be expressed as a percentage of each Participant's
        Salary.
        These percentages shall vary by position and reflect larger reward opportunity
        for positions having greater effect on the establishment and accomplishment
        of
        the Company's or a Subsidiary's objectives. A schedule showing the target
        awards
        as a percentage of Salary for eligible positions will be prepared by the
        Committee for each Plan Year.

      

      VII. INCENTIVE
        FUND DETERMINATION

      The
        target incentive fund is the sum of the individual target incentive awards
        for
        all eligible Participants. Once the incentive targets have been determined
        by
        the Committee, a target incentive fund shall be established and accrued ratably
        by the Company. The incentive fund and accruals may be adjusted during the
        year.

      After
        the
        close of each Plan Year, the Company will prepare an analysis showing the
        Company's and each Subsidiary's performance in relation to each of the
        performance measures employed. This will be provided to the Committee for
        review
        and comparison to threshold, target and maximum performance levels. In addition,
        any recommendations of the President will be presented at this time. The
        Committee will then determine the amount of the target incentive fund
        earned.

      

      VIII. INDIVIDUAL
        AWARD DETERMINATION

      Each
        individual Participant's award will be based first upon the level of performance
        achieved by the Company and/or the Subsidiary and secondly based upon the
        individual's performance. The criteria applicable for assessing individual
        performance will be approved by the Committee no later than its regularly
        scheduled February meeting during the Plan Year. The assessment by the
        Committee, after consultation with the President, of achievement relative
        to the
        established criteria, as determined by a percentage from 0 percent to 200
        percent, will be applied to the Participant's target incentive award which
        has
        been first adjusted for Company or Subsidiary performance.

      

      IX. PAYMENT
        OF AWARDS

      Except
        as
        provided below or as otherwise determined by the Committee, in order to receive
        an award under the Plan, the Participant must remain in the employment of
        the
        Company or the Subsidiary for the entire Plan Year. If a Participant terminates
        employment with the Company pursuant to Section 5.01 of the Company's Bylaws
        which provides for mandatory retirement for certain officers on their 65th
        birthday (or terminates employment with a Subsidiary pursuant to a similar
        Subsidiary Bylaw provision) and if the Participant's 65th birthday occurs
        during
        the Plan Year, determination of whether the performance measures have been
        met
        will be made at the end of the Plan Year, and to the extent met, payment
        of the
        award will be made to the Participant, prorated. Proration of awards shall
        be
        based upon the number of full months elapsed from and including January to
        and
        including the month in which the Participant's 65th birthday occurs.

      A
        Participant who transfers between the Company or a Subsidiary and another
        company in the MDU Resources Group, Inc. system may receive a prorated award
        at
        the discretion of the Committee. 

      Payments
        made under this Plan will not be considered part of compensation for pension
        purposes. Payments will be made in cash no later than March 15 of the year
        following the end of the calendar year for which the award is earned. Incentive
        awards may be deferred if the appropriate elections have been executed on
        or
        prior to December 31 of the year preceding the Plan Year for which such
        incentive awards are earned or, if later, within 30 days after a Participant
        first becomes eligible for the Plan. Deferred amounts will accrue interest
        at a
        rate determined annually by the Committee.

      In
        the
        event of a "Change in Control" (as defined by the Committee in its Rules
        and
        Regulations), any award deferred by a Participant shall become immediately
        payable to the Participant in cash, together with accrued interest thereon
        to
        the date of payment. In the event the Participant files suit to collect the
        Participant's deferred award, all of the court costs, other expenses of
        litigation, and attorneys' fees shall be paid by the Company in the event
        the
        Participant prevails upon any of the Participant's claims for payment of
        a
        deferred award.

      

      X. ACCOUNTING
        RESTATEMENTS.
        

      This
        Section X shall apply only to incentive awards granted to Participants in
        the
        Plan who are employees of the Company. Notwithstanding anything in the Plan
        or
        the Plan's Rules and Regulations to the contrary, if the Company's audited
        financial statements are restated, the Committee may, in accordance with
        the
        Company's Guidelines
        for Repayment of Incentives Due to Accounting Restatements,
        take
        such actions as it deems appropriate (in its sole discretion) with respect
        to

      (a) unpaid
        incentive awards under the Plan (including incentive awards relating to
        completed Plan Years, but with respect to which payments have not yet been
        made
        or deferred) ("Outstanding Awards") and 

      (b) prior
        incentive awards that were paid (or deferred) within the 3 year period preceding
        the restatement ("Prior Awards"), provided such Prior Awards were not paid
        prior
        to the date the Plan was amended to add this Section X, 

      if
        the
        calculation of the amounts payable, paid or deferred under such awards are,
        or
        would have been, directly impacted by the restatement, including, without
        limitation, (i) securing (or causing to be secured) repayment of some or
        all
        payments made pursuant to (or deferrals relating to) Prior Awards, (ii) making
        (or causing to be made) additional payments (or crediting additional deferrals),
        (iii) reducing or otherwise adjusting the amount payable pursuant to Outstanding
        Awards and/or (iv) causing the forfeiture of Outstanding Awards. The Committee
        may, in its sole discretion, take different actions pursuant to this Section
        X
        with respect to different awards, different Participants (or beneficiaries)
        and/or different classes of awards or Participants (or beneficiaries). The
        Committee has no obligation to take any action permitted by this Section
        X. The
        Committee may consider any factors it chooses in taking (or determining whether
        to take) any action permitted by this Section X, including, without limitation,
        the following:

      (A) The
        reason for the restatement of the financial statements;

      (B) The
        amount of time between the initial publication and subsequent restatement
        of the
        financial statements; and

      (C) The
        Participant's current employment status, and the viability of successfully
        obtaining repayment.

      If
        the
        Committee requires repayment of all or part of a Prior Award, the amount
        of
        repayment may be based on, among other things, the difference between the
        amount
        paid to the individual and the amount that the Committee determines in its
        sole
        discretion should have been paid based on the restated results. The Committee
        shall determine whether repayment shall be effected (i) by seeking repayment
        from the Participant, (ii) by reducing (subject to applicable law and the
        terms
        and conditions of the applicable plan, program or arrangement) the amount
        that
        would otherwise be provided to the Participant under any compensatory plan,
        program or arrangement maintained by the Company or any of its affiliates,
        (iii)
        by withholding payment of future increases in compensation (including the
        payment of any discretionary bonus amount) or grants of compensatory awards
        that
        would otherwise have been made in accordance with the Company's otherwise
        applicable compensation practices, or (iv) by any combination of the foregoing.
        Additionally, by accepting an incentive award under the Plan, Participants
        acknowledge and agree that the Committee may take any actions permitted by
        this
        Section X with respect to Outstanding Awards to the extent repayment is to
        be
        made pursuant to another plan, program or arrangement maintained by the Company
        or any of its affiliates.

      
        
           

        

        
           

          
            

          

        

         

      

      WBI
        HOLDINGS, INC. 

      

      EXECUTIVE
        INCENTIVE COMPENSATION PLAN

      

      RULES
        AND REGULATIONS

      

      The
        Compensation Committee of the Board of Directors of WBI Holdings, Inc. (formerly
        known as Williston Basin Interstate Pipeline Company) (the "Company") hereby
        adopts the following Rules and Regulations for the administration of the
        Executive Incentive Compensation Plan (the "Plan"). 

      

      I. DEFINITIONS

      The
        following definitions shall be used for purposes of these Rules and Regulations
        and for the purpose of administering the Plan:

      
        	 	
                1.

              	
                The
                  "Committee" shall be the Compensation Committee of the Board of
                  Directors
                  of the Company.

              

      

      

      
        	 	
                2.

              	
                The
                  "Company" shall refer to WBI Holdings,
                  Inc.

              

      

      

      
        	 	
                3.

              	
                "Participants"
                  for any Plan Year shall be those key executives of the Company
                  or
                  Subsidiaries who have been approved by the Committee as eligible
                  for
                  participation in the Plan for such Plan
                  Year.

              

      

      

      
        	 	
                4.

              	
                "Payment
                  Date" shall be the date set by the Committee for payment of awards,
                  other
                  than those awards deferred pursuant to Section IX of the Plan and
                  Section
                  VII of these Rules and Regulations, which shall be no later than
                  March 15
                  of the year following the end of the calendar year for which the
                  award is
                  earned.

              

      

      

      
        	 	
                5.

              	
                The
                  "Plan" shall refer to the WBI Holdings, Inc. Executive Incentive
                  Compensation Plan.

              

      

      

      6.  The
        "Plan
        Year" shall be January 1 through December 31.

      

      
        	 	
                7.

              	
                "Change
                  in Control" shall mean the earliest of the following to occur:
                  (a) the
                  sale or other disposition of all or substantially all of the assets
                  of the
                  Company, other than to a subsidiary of MDU Resources Group, Inc.
                  or to a
                  subsidiary of the Company; or (b) the sale or other disposition
                  of voting
                  stock of the Company, other than to a subsidiary of MDU Resources
                  Group,
                  Inc. or to a subsidiary of the Company, such that, immediately
                  following
                  such sale or other disposition, MDU Resources Group, Inc. and/or
                  its
                  subsidiaries would own less than 50 percent of the outstanding voting
                  stock of the Company; or (c) the sale or other disposition of voting
                  stock
                  of the Company, other than to a subsidiary of MDU Resources Group,
                  Inc. or
                  to a subsidiary of the Company, such that, immediately following
                  such sale
                  or other disposition, MDU Resources Group, Inc, and/or its subsidiaries
                  would no longer possess the ability to elect a majority of the
                  Board of
                  Directors of the Company.

              

      

      

      
        	 	
                8.

              	
                The
                  "Prime Rate" shall be the base rate on corporate loans posted by
                  at least
                  75 percent of the nation's 30 largest banks as reported daily in
                  The
                  Wall Street Journal.

              

      

      

      
        	 	
                    
                  9.

              	
                "Retirement"
                  means the later of the day the Participant attains age 55 or the
                  day the
                  Participant ceases to be an employee of the Company, MDU Resources
                  Group,
                  Inc. or any subsidiary of MDU Resources Group,
                  Inc.

              

      

      

      
        	 	
                   10.

              	
                "Subsidiary"
                  means any subsidiary of the Company participating in the
                  Plan.

              

      

      

      II. ADMINISTRATION

      

      
        	 	
                1.

              	
                The
                  Committee shall have the full power to construe and interpret the
                  Plan and
                  to establish and to amend these Rules and Regulations for its
                  administration.

              

      

      

      
        	 	
                2.

              	
                No
                  member of the Committee shall participate in a decision as to that
                  member's own eligibility for, or award of, an incentive award
                  payment.

              

      

      

      
        	 	
                3.

              	
                Prior
                  to the beginning of each Plan Year, the Committee shall approve
                  a list of
                  eligible key executives and notify those so approved that they
                  are
                  eligible to participate in the Plan for such Plan
                  Year.

              

      

      

      
        	 	
                4.

              	
                Prior
                  to the beginning of each Plan Year, the Committee shall approve
                  an Annual
                  Operating Plan. The Annual Operating Plan shall include the Plan's
                  performance measures and target incentive award levels for each
                  salary
                  grade covered by the Plan for the following Plan Year. The Committee
                  shall
                  set threshold, target and maximum award levels for performance.
                  These
                  levels shall be included in the Annual Operating Plan. The Plan's
                  performance targets for the year shall be approved by the Committee
                  no
                  later than its regularly scheduled February meeting during the
                  Plan Year.
                  The Annual Operating Plan, insofar as it is relevant to each individual
                  Participant, shall be made available by the Committee to each Participant
                  in the Plan.

              

      

      

      
        	 	
                5.

              	
                The
                  Committee shall have final discretion to determine actual award
                  payment
                  levels and whether or not payments shall be made for any Plan Year.
                  However, unless the Plan's performance objectives are met for the
                  Plan
                  Year, no award shall be made for that Plan Year. Performance targets
                  modified pursuant to Section II of the Plan will be deemed performance
                  targets for purposes of determining whether or not these targets
                  have been
                  met.

              

      

      

      III. PLAN
        PERFORMANCE MEASURES

      

      
        	 	 	
                1.

              	
                The
                  Committee shall establish the percentage attainment of corporate
                  performance measure and the percentage attainment of individual
                  goals
                  measure. The Committee may establish more or fewer performance
                  measures as
                  it deems necessary.

              

      

      

      
        	 	 	
                2.

              	
                The
                  corporate performance measure may be set by reference to earnings,
                  return
                  on invested capital or any other measure or combination of measures
                  deemed
                  appropriate by the Committee. It may be established for the Company
                  or for
                  a Subsidiary.

              

      

      

      
        	 	 	
                3.

              	
                Individual
                  performance will be assessed based on the achievement of annually
                  established individual objectives.

              

      

      

      
        	 	 	
                4.

              	
                Plan
                  performance measures may be applied at the Company level for individuals
                  such as the President whose major or sole impact is Company-wide,
                  or at
                  the Subsidiary level for individuals whose major or sole impact
                  is on
                  Subsidiary results. The Annual Operating Plan shall contain a list
                  of
                  individuals to whom the Plan performance measures will be applied
                  at the
                  Company level and a list of those individuals for whom the Plan
                  performance measures will be applied at the Subsidiary level. The
                  relevant
                  Subsidiary for each individual will be
                  identified.

              

      

      

      
        	 	 	
                5.

              	
                The
                  Committee shall set threshold, target and maximum award levels
                  for the
                  performance measures for each Subsidiary and for the Company. Those
                  levels
                  shall be included in the Annual Operating
                  Plan.

              

      

      

      
        	 	 	
                6.

              	
                The
                  Committee will retain the authority to determine whether or not
                  the actual
                  attainment of these measures has been
                  made.

              

      

      

      IV. TARGET
        INCENTIVE AWARDS 

      

      
        	 	 	
                1.

              	
                Target
                  incentive awards will be a percentage of each Participant's Salary,
                  as
                  defined in the Plan.

              

      

      

      
        	 	 	
                2.

              	
                Target
                  incentive awards shall be set by the Committee annually and will
                  be
                  included in the Annual Operating
                  Plan.

              

      

      

      V. INCENTIVE
        FUND DETERMINATION

      

      
        	 	
                1.

              	
                The
                  target incentive fund is the sum of the individual target incentive
                  awards
                  for all eligible Participants.

              

      

      

      
        	 	
                2.

              	
                Once
                  individual incentive targets have been determined, a target incentive
                  fund
                  shall be established and accrued ratably by the Company. The incentive
                  fund and accruals may be adjusted during the
                  year.

              

      

      

      
        	 	
                3.

              	
                As
                  soon as practicable following the close of each Plan Year, the
                  President
                  will provide the Committee with an analysis showing the Company's
                  and each
                  Subsidiary's performance in relation to the performance measures.
                  The
                  Committee will review the analysis and determine, in its sole discretion,
                  the amount of the actual incentive
                  fund.

              

      

      

      
        	 	
                4.

              	
                In
                  determining the actual incentive fund, the Committee may consider
                  any
                  recommendations of the President.

              

      

      

      VI. INDIVIDUAL
        AWARD DETERMINATION

      

      
        	 	
                1.

              	
                The
                  Committee shall have the sole discretion to determine each individual
                  Participant's award. The Committee's decision will be based first
                  upon the
                  level of performance achieved by the Company and/or the Subsidiary
                  and
                  secondly upon the individual's
                  performance.

              

      

      

      
        	 	
                2.

              	
                The
                  Committee, after consultation with the President, shall set the
                  award as a
                  percentage from 0 percent to 200 percent of the Participant's target
                  incentive award, adjusted for Company or Subsidiary
                  performance.

              

      

      

      VII. PAYMENT
        OF AWARDS

      

      
        	 	
                1.

              	
                On
                  the date the Committee determines the awards to be made to individual
                  Participants, it shall also establish the Payment
                  Date.

              

      

      

      
        	 	
                2.

              	
                Except
                  as provided below or as the Committee otherwise determines, in
                  order to
                  receive an award under the Plan, a Participant must remain in the
                  employment of the Company or the Subsidiary for the entire Plan
                  Year.

              

      

      

      
        	 	
                3.

              	
                A
                  Participant who transfers between the Company or a Subsidiary and
                  another
                  company in the MDU Resources Group, Inc. system may receive a prorated
                  award at the discretion of the
                  Committee.

              

      

      

      
        	 	
                4.

              	
                If
                  a Participant terminates employment with the Company pursuant to
                  Section
                  5.01 of the Company's Bylaws which provides for mandatory retirement
                  for
                  certain officers on their 65th
                  birthday (or terminates employment with a Subsidiary pursuant to
                  a similar
                  Subsidiary Bylaw provision) and if the Participant's 65th
                  birthday occurs during the Plan Year, determination of whether
                  the
                  performance measures have been met will be made at the end of the
                  Plan
                  Year, and to the extent met, payment of the award will be made
                  to the
                  Participant, prorated. Proration of awards shall be based upon
                  the number
                  of full months elapsed from and including January to and including
                  the
                  month in which the Participant's 65th
                  birthday occurs.

              

      

      

      
        	 	
                5.

              	
                Payment
                  of the award shall be made in cash. Payments shall be made on the
                  Payment
                  Date unless the Participant has deferred, in whole or in part,
                  the receipt
                  of the award by making an election on the deferral form provided
                  by the
                  Company, on or prior to December 31 of the year preceding the Plan
                  Year
                  for which such incentive awards are earned or, if later, within
                  30 days
                  after a Participant first becomes eligible for the
                  Plan.

              

      

      

      
        	 	
                6.

              	
                In
                  the event a Participant has elected to defer receipt of all or
                  a portion
                  of the award, the Company shall set up an account in the Participant's
                  name. The amount of the Participant's award to the extent deferred
                  will be
                  credited to the Participant's account on the Payment
                  Date.

              

      

      

      
        	 	
                7.

              	
                The
                  balance credited to an account of a Participant who has elected
                  to defer
                  receipt of an award will be an unsecured, unfunded obligation of
                  the
                  Company.

              

      

       

      
        	 	
                8.

              	
                Interest
                  shall accrue on the balance credited to a Participant's account.
                  The rate
                  of interest shall be the Prime Rate plus 1 percentage point as
                  reported on the last Friday in January of each year. Interest on
                  the
                  balance in an account shall accrue at the rate so determined from
                  the
                  Payment Date immediately following the determination to the Payment
                  Date
                  of the following year.

              

      

      

      
        	 	
                9.

              	
                Interest
                  shall be credited to the account on the day preceding Payment Date
                  and
                  shall be calculated on the balance in the Participant's account
                  as of that
                  date.

              

      

      

            
        10.     
        A
        Participant may elect to defer any percentage, not to exceed l00, of an annual
        award.

      

            
        11.    
A
        Participant electing to defer any part of an award must elect one of the
        following dates for payment:

      

      
        	 	 	 	
                (a)

              	
                Payment
                  Date next following termination of employment with the Company
                  or an
                  affiliated company; or

              

      

      

      
        	 	 	 	
                (b)

              	
                Payment
                  Date of the fifth year following the year in which the award may
                  be
                  made.

              

      

      

      
        	 	 	
                12.

              	
                At
                  the same time a Participant makes a deferral election, a Participant
                  may
                  elect to receive the deferred amounts accumulated in the Participant's
                  account in monthly installments, not to exceed 120. In the event
                  the
                  Participant elects to receive the amounts in the Participant's
                  account in
                  more than one installment, interest shall continue to accrue on
                  the
                  balance remaining in their account at the applicable rate or rates
                  determined annually by the
                  Committee.

              

      

      

      
        	 	 	
                13.

              	
                In
                  the event of the death of a Participant in whose name a deferred
                  account
                  has been set up, the Company shall, within six months thereafter,
                  pay to
                  the Participant's estate or the designated beneficiary the entire
                  amount
                  in the deferred account.

              

      

      

      
        	 	 	
                14.

              	
                In
                  the event of a "Change in Control" any award deferred by a Participant
                  shall become immediately payable to the Participant. In the event
                  the
                  Participant files suit to collect a deferred award, all of the
                  Participant's court costs, other expenses of litigation, and attorneys'
                  fees shall be paid by the Company in the event the Participant
                  prevails
                  upon any of the claims for
                  payment.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]