Document:

exhibit10b.htm

MDU RESOURCES GROUP, INC.

NON-EMPLOYEE DIRECTOR STOCK COMPENSATION PLAN

	
I.

	
Purpose

           The purpose of the MDU Resources Group, Inc. Non-Employee Director Stock Compensation Plan is to provide ownership of the Company's stock to non-employee members of the Board of Directors in order to improve the Company's ability to attract and retain highly qualified individuals to serve as directors of the Company and to strengthen the commonality of interest between directors and stockholders.

	
II.

	
Definitions

	 	
When used herein, the following terms shall have the respective meanings set forth below:

	 	
"Agent" means a securities broker-dealer selected by the Company and registered under the Exchange Act.

	 	
"Annual Retainer" means the annual retainer payable by the Company to Non-Employee Directors and shall include, for purposes of this Plan, meeting fees, cash retainers and any other cash compensation payable to Non-Employee Directors by the Company for services as a Director.

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

	 	
"Committee" means a committee whose members meet the requirements of Section IV(A) hereof, and who are appointed from time to time by the Board to administer the Plan.

	 	
"Common Stock" means the common stock, $1.00 par value, of the Company.

	 	
"Company" means MDU Resources Group, Inc., a Delaware corporation, and any successor corporation.

	 	
"Effective Date" means April 25, 1995.

	 	
"Employee" means any officer or other common law employee of the Company or of any of its business units or divisions or of any Subsidiary.

  

  

  

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

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

	 	
"Plan" means the Company's Non-Employee Director Stock Compensation Plan, adopted by the Board on February 9, 1995, and approved by the stockholders on April 25, 1995, as it may be amended from time to time.

	 	
"Plan Year" means the period commencing on the Effective Date of the Plan and ending the next following December 31 and, thereafter, the calendar year.

	 	
"Stock Payment" means that portion of the Annual Retainer to be paid to Non-Employee Directors in shares of Common Stock rather than cash for services rendered as a director of the Company, as provided in Section V hereof, including that portion of the Stock Payment resulting from any election specified in Section VI hereof.

	 	
"Subsidiary" means any corporation that is a "subsidiary corporation" of the Company, as that term is defined in Section 424(f) of the Internal Revenue Code of 1986, as amended.

	
III.

	
Shares of Common Stock Subject to the Plan

           Subject to Section VII below, the maximum aggregate number of shares of Common Stock that may be delivered under the Plan is 699,897 shares.  The Common Stock to be delivered under the Plan will be made available from authorized but unissued shares of Common Stock, treasury stock or shares of Common Stock purchased on the open market.  Shares of Common Stock purchased on the open market shall be purchased by the Agent.

	
IV.

	
Administration

           A.           The Plan will be administered by a committee appointed by the Board, consisting of two or more persons who are not eligible to participate in the Plan.  Members of the Committee

  

2

  

need not be members of the Board.  The Company shall pay all costs of administration of the Plan.

           B.           Subject to and not inconsistent with the express provisions of the Plan, the Committee has and may exercise such powers and authority of the Board as may be necessary or appropriate for the Committee to carry out its functions under the Plan.  Without limiting the generality of the foregoing, the Committee shall have full power and authority (i) to determine all questions of fact that may arise under the Plan, (ii) to interpret the Plan and to make all other determinations necessary or advisable for the administration of the Plan and (iii) to prescribe, amend and rescind rules and regulations relating to the Plan, including, without limitation, any rules which the Committee determines are necessary or appropriate to ensure that the Company and the Plan will be able to comply with all applicable provisions of any federal, state or local law.  All interpretations, determinations and actions by the Committee will be final and binding upon all persons, including the Company and the Participants.

	
V.

	
Determination of Annual Retainer and Stock Payments

           A.           The Board shall determine the Annual Retainer payable to all Non-Employee Directors of the Company.

           B.           Each director of the Company who is a Non-Employee Director at any time during the Plan Year shall receive on or about the Wednesday following the Board's regularly-scheduled November meeting a Stock Payment of 4,050 shares of Common Stock as a portion of the Annual Retainer payable to such director for the Plan Year in which such date occurs.  The Stock Payment shall be prorated for any Non-Employee Director who does not serve the entire Plan Year by multiplying 4,050 by a fraction, the numerator of which is the number of actual or expected months (with a partial month counted as a full month) of service on the Board during the Plan Year and the denominator of which is twelve.  Certificates evidencing the shares of Common Stock constituting Stock Payments shall be registered in the respective names of the Participants and shall be issued to each Participant.  The cash portion of the Annual Retainer shall be paid to Non-Employee Directors at such times and in such manner as may be determined by the Board of Directors.

  

3

  

	
VI.

	
Election to Increase Amount of Stock Payment

           In lieu of receiving the cash portion of the Annual Retainer for any Plan Year, a Participant may make a written election to reduce the cash portion of such Annual Retainer by a specified dollar amount and have such amount applied to purchase additional shares of Common Stock of the Company.  The election shall be made on a form provided by the Committee and must be returned to the Committee on or before the last business day of the year prior to the year in which the election is to be effective.  The election form shall state the amount by which the Participant desires to reduce the cash portion of the Annual Retainer, which shall be applied toward the purchase of Common Stock; provided, however, that no fractional shares shall be purchased.  Stock to be delivered to Participants pursuant to this election shall be delivered in December of each year.  Cash in lieu of any fractional share shall be paid to the Participant.  An election shall continue in effect until changed or revoked by the Participant.  No Participant shall be allowed to change or revoke any election for the then current year, but may change an election for any subsequent Plan Year.  All shares of Common Stock received pursuant to an election under this Article VI must be held by a Participant for six months after receipt thereof.

	
VII.

	
Adjustment For Changes in Capitalization

           In the event of any equity restructuring (within the meaning of Financial Accounting Standards No. 123(R)), such as a stock dividend, stock split, spinoff, rights offering or recapitalization through a large, nonrecurring cash dividend, the Committee shall cause an equitable adjustment to be made in the number of shares to be granted annually and the maximum number of shares and/or the kind of shares of Common Stock that may be delivered under the Plan to prevent dilution or enlargement of rights. In the event of any other change in corporate capitalization, such as a merger, consolidation or liquidation, the Committee may, in its sole discretion, cause an equitable adjustment as described in the foregoing sentence to be made to prevent dilution or enlargement of rights.  Adjustments made by the Committee pursuant to this Section VII shall be final, binding and conclusive.  The maximum number of shares issuable under the Plan as a result of any such adjustment shall be rounded down to the nearest whole share.

  

4

  

	
VIII.

	
Amendment and Termination of Plan

           The Board will have the power, in its discretion, to amend, suspend or terminate the Plan at any time provided; however, that no amendment that is required by law, rule or regulation to be approved by the Company’s stockholders shall be effective unless such amendment shall be approved by the requisite vote of stockholders of the Company entitled to vote thereon.

	
IX.

	
Effective Date and Duration of the Plan

           The Plan became effective upon the Effective Date, and shall remain in effect, subject to the right of the Board of Directors to terminate the Plan at any time pursuant to Section VIII, until all shares subject to the Plan have been purchased or acquired according to the Plan's provisions.

	
X.

	
Miscellaneous Provisions

	 	
A.

	
Continuation of Directors in Same Status

           Nothing in the Plan or any action taken pursuant to the Plan shall be construed as creating or constituting evidence of any agreement or understanding, express or implied, that the Company will retain a Non-Employee Director as a director or in any other capacity for any period of time or at a particular retainer or other rate of compensation, as conferring upon any Participant any legal or other right to continue as a director or in any other capacity, or as limiting, interfering with or otherwise affecting the right of the Company to terminate a Participant in his capacity as a director or otherwise at any time for any reason, with or without cause, and without regard to the effect that such termination might have upon him as a Participant under the Plan.

	 	
B.

	
Compliance with Government Regulations

           Neither the Plan nor the Company shall be obligated to issue any shares of Common Stock pursuant to the Plan at any time unless and until all applicable requirements imposed by any federal and state securities and other laws, rules and regulations, by any regulatory agencies or by any stock exchanges upon which the Common Stock may be listed have been fully met.  As a condition precedent to any issuance of shares of Common Stock and delivery of certificates evidencing such

  

5

  

shares pursuant to the Plan, the Board or the Committee may require a Participant to take any such action and to make any such covenants, agreements and representations as the Board or the Committee, as the case may be, in its discretion deems necessary or advisable to ensure compliance with such requirements.  The Company shall in no event be obligated to register the shares of Common Stock deliverable under the Plan pursuant to the Securities Act of 1933, as amended, or to qualify or register such shares under any securities laws of any state upon their issuance under the Plan or at any time thereafter, or to take any other action in order to cause the issuance and delivery of such shares under the Plan or any subsequent offer, sale or other transfer of such shares to comply with any such law, regulation or requirement.  Participants are responsible for complying with all applicable federal and state securities and other laws, rules and regulations in connection with any offer, sale or other transfer of the shares of Common Stock issued under the Plan or any interest therein including, without limitation, compliance with the registration requirements of the Securities Act of 1933, as amended (unless an exemption therefrom is available), or with the provisions of Rule 144 promulgated thereunder, if applicable, or any successor provisions.  Certificates for shares of Common Stock may be legended as the Committee shall deem appropriate.

	 	
C.

	
Nontransferability of Rights

           No Participant shall have the right to assign the right to receive any Stock Payment or any other right or interest under the Plan, contingent or otherwise, or to cause or permit any encumbrance, pledge or charge of any nature to be imposed on any such Stock Payment (prior to the issuance of stock certificates evidencing such Stock Payment) or any such right or interest.

	 	
D.

	
Severability

           In the event that any provision of the Plan is held invalid, void or unenforceable, the same shall not affect, in any respect whatsoever, the validity of any other provision of the Plan.

	 	
E.

	
Governing Law

           To the extent not preempted by Federal law, the Plan shall be governed by the laws of the State of Delaware.

  

6exhibit10c.htm

INSTRUMENT OF AMENDMENT TO THE

MDU RESOURCES GROUP, INC.

401(k) RETIREMENT PLAN

The MDU Resources Group, Inc. 401(k) Retirement Plan (as amended and restated June 1, 2009) (the “K-Plan”), is hereby further amended, effective January 1, 2011, unless otherwise indicated, as follows:

	
1.  

	
By replacing the table in Section D-1-2 Eligibility to Share in the Profit Sharing Feature of Supplement D-1,  Provisions Relating to the Profit Sharing Feature for Certain Participating Affiliates, in its entirety, with the following table:

	
Participating Affiliate

	
Current Effective Date

(Original Effective Date)2

	
Anchorage Sand & Gravel Company, Inc. (excluding President)

	
January 1, 1999

	
Baldwin Contracting Company, Inc.

	
January 1, 1999

	
Bell Electrical Contractors, Inc.

	
January 1, 2002

	
Bitter Creek Pipelines, LLC1

	
January 1, 2010

(January 1, 2001)

	
Cascade Natural Gas Corporation

	
January 1, 2011

July 2, 2007

	
Concrete, Inc.

	
January 1, 2001

	
Connolly-Pacific Co.

	
January 1, 2007

	
DSS Company

	
January 1, 2004

(July 8, 1999)

	
E.S.I., Inc.

	
January 1, 2008

(January 1, 2003)

	
Fairbanks Materials, Inc.

	
May 1, 2008

	
Frebco, Inc.

	
January 1, 2008

(July 1, 2000)

	
Granite City Ready Mix, Inc.

	
June 1, 2002

 

  

1

  

 

	
Participating Affiliate

	
Current Effective Date

(Original Effective Date)2

	
Great Plains Natural Gas Co.

	
January 1, 2008

	
Hawaiian Cement (non-union employees hired after December 31, 2005)

	
January 1, 2009

	
Intermountain Gas Company

	
January 1, 2011

	
Jebro Incorporated

	
November 1, 2005

	
Kent’s Oil Service

	
January 1, 2007

	
Knife River Corporation – Northwest (the Central Oregon Division, f/k/a HTS)

	
January 1, 2010

(January 1, 1999)

	
Knife River Corporation – Northwest (the Southern Idaho Division)

	
January 1, 2010

(January 1, 2006)

	
Knife River Corporation – Northwest (the Spokane Division)

	
January 1, 2010

(January 1, 2006)

	
Knife River Corporation - South

(f/k/a Young Contractors, Inc.)

	
January 1, 2008

(January 1, 2007)

	
LTM, Incorporated

	
 

January 1, 2003

 

	
Montana-Dakota Utilities Co. (including union employees)

	
January 1, 2008

	
Wagner Industrial Electric, Inc.

	
 

January 1, 2008

 

	
Wagner Smith Equipment Co.

	
January 1, 2008

(July 1, 2000)

	
WBI Holdings, Inc.1

	
 

January 1, 2009

 

	
WHC, Ltd.

	
 

September 1, 2001

 

	
Williston Basin Interstate Pipeline Company1

	
January 1, 2009

 

1Requirement to be an Active Employee on the last day of the Plan Year does not apply.

  

2

  

 

Eligible employees participating in a management incentive compensation plan or an executive incentive compensation plan are not eligible for a Profit Sharing Contribution. Employees of the Total Corrosion Solutions division of Bitter Creek Pipelines, LLC are excluded from this feature.

2In the event a Participating Affiliate 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 Supplement D-1 Participant shall be based upon Compensation, excluding bonuses, received while in the employ of the Participating Affiliate after the date of acquisition by the Company or any Affiliate.

Explanation: This amendment adds Intermountain Gas Company (IGC) as a Participating Affiliate of Supplement D-1 of the K-Plan and reflects Cascade Natural Gas Corporation (Cascade) as a Participating Affiliate in this Supplement D-1 as of January 1, 2011 due to removal of the separate Supplement D-4 (see #3 below). These changes are the result of standardizing retirement benefits for the Utility Group Participating Affiliates.

	
2.  

	
By replacing the table and subsequent paragraphs in Section D-2-2 Eligibility to Share in the Retirement Contribution of Supplement D-2,  Provisions Relating to the Retirement Contribution Feature for Certain Participating Affiliates, in its entirety, with the following table and subsequent paragraph:

	
Participating Affiliate

	
Current Effective 

Date (Original 

Effective Date)

	
Special Contribution 

Amount – Percentage 

of Compensation

	
Bitter Creek Pipelines, LLC1

	
January 1, 2006 

(January 1, 2001)

	
5%

	
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)

	
July 2, 2007

 

	
4%

	
Fidelity Exploration & Production Company2

	
January 1, 2006  

(July 2, 2001)

	
5%

	
Great Plains Natural Gas Co.

	
January 1, 2003

	
5%

	
Hamlin Electric Company

	
January 1, 2005

	
5%

	
Intermountain Gas Company

	
January 1, 2011

October 12, 2008

	
5%

	
Rocky Mountain Contractors, Inc. (Union3)

	
January 1, 2008

	
3%

	
Rocky Mountain Contractors, Inc.

	
January 1, 2005

	
5%

  

3

  

 

1The following participants of Bitter Creek Pipelines, LLC are excluded: Brien Beadle, Grady Breipohl, Jon Forbes, Richard Guderjahn, Steven Haag, Raymond Harms, Wade Hasler, Douglas Henry, Pamela Lynn, Todd Mandeville, Marlin Mogan, Dale Sudbrack, and Barbara Sunford due to participation in the appropriate pension plans.

2The following participants of Fidelity Exploration & Production Company are excluded: Harlan R. Jirges, Timothy M. Ree, Marvin E. Rygh, Judy A. Schmitt, and Dennis M. Zander due to participation in the appropriate pension plans.

3Requirement to be compensated for 1,000 hours of service does not apply to Rocky Mountain Contractors, Inc.-Union.

In order to share in the allocation of any Retirement Contribution made by a Supplement D-2 Company pursuant to Paragraph 3 below for a given Plan Year, Participants employed by a Supplement D-2 Company must be compensated for 1,000 Hours of Service (prorated for the Plan Year in which the Retirement Contribution Feature becomes effective) in that Plan Year and must not be covered by a collectively bargained unit to which the Retirement Contribution has not been extended. However, if the Participant’s failure to be compensated for 1,000 Hours of Service in that Plan Year is due to the Participant’s Disability, Death, or Retirement on or after attaining age 60 during such Plan Year, such Participant shall nevertheless be entitled to share in the allocation of the Retirement Contributions for such Plan Year.  Participants who meet the requirements of this paragraph are referred to herein as “Supplement D-2 Participants.”

Explanation: This amendment adds IGC as a Participating Affiliate of Supplement D-2 of the K-Plan and reflects Cascade as a Participating Affiliate of Supplement D-2 due to removal of the separate Supplement D-4 (see #3 below). These changes are the result of standardizing retirement benefits for the Utility Group Participating Affiliates. The amendment also removes the year-end requirement and Active Employee definition as they are no longer required for Hamlin Electric Company and Rocky Mountain Contractors, Inc., effective January 1, 2011.

	
3.  

	
By replacing Supplement D-4, Provisions Relating to the Cascade Natural Gas Corporation Retirement Contribution, Special Transition Contribution and Profit Sharing Feature in its entirety with the word RESERVED, effective January 1, 2011.

Explanation: This supplement is removed as a result of standardizing retirement benefits for the Utility Group Participating Affiliates allowing Cascade to be included as a Participating Affiliate in Supplements D-1 and D-2 of the K-Plan. The definition of compensation no longer includes incentive compensation.

	
4.  

	
By replacing the first paragraph in Section D-6-2 Eligibility to Share in the Retirement Contribution of Supplement D-6,  Provisions Relating to the MDU Resources Group, Inc. Retirement Contribution, in its entirety, with the following:

  

4

  

 

	
  

	
D-6-2

	
Eligibility to Share in the Retirement Contribution. Participation in the Retirement Contribution for any Plan Year is limited to employees who are hired after December 31, 2005, and satisfy the Plan’s definition of Eligible Employee for the following Participating Affiliates:

	
Knife River Corporation

	
MDU Construction Services Group, Inc.

	
MDU Resources Group, Inc.

	
Montana- Dakota Utilities Co.

	
Prairielands Energy Marketing, Inc.

	
WBI Holdings, Inc.

	
Williston Basin Interstate Pipeline Company

Explanation: This amendment removes Great Plains Natural Gas Co. (GPNG) as a Participating Affiliate in Supplement D-6 as a result of standardizing retirement benefits for the Utility Group Participating Affiliates.  All participants of GPNG receive the same Retirement Contribution regardless of date of hire, allowing them to be reflected on Supplement D-2 only.

IN WITNESS WHEREOF, MDU Resources Group, Inc., as Sponsoring Employer of the Plan, has caused this amendment to be duly executed by a member of the MDU Resources Group, Inc. Employee Benefits Committee (“EBC”) on this 2nd day of September, 2010.

	  	
MDU RESOURCES GROUP, INC.

	  	
   EMPLOYEE BENEFITS COMMITTEE

	  	  	  
	  	  	  
	  	
By:

	
/s/ Doran N. Schwartz                           

	  	  	
Doran N. Schwartz, Chairman

  

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00180-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00180-of-00352.parquet"}]]