<SUBMISSION>
<ACCESSION-NUMBER>0001130464-04-000296
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>7
<PERIOD>20040830
<ITEMS>1.01
<ITEMS>5.02
<ITEMS>9.01
<FILING-DATE>20040903
<DATE-OF-FILING-DATE-CHANGE>20040903
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BLACK HILLS CORP /SD/
<CIK>0001130464
<ASSIGNED-SIC>4911
<IRS-NUMBER>460458824
<STATE-OF-INCORPORATION>SD
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-31303
<FILM-NUMBER>041016421
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>625 9TH STREET
<STREET2>PO BOX 1400
<CITY>RAPID CITY
<STATE>SD
<ZIP>57709
<PHONE>6057212343
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>625 9TH STREET
<STREET2>PO BOX 1400
<CITY>RAPID
<STATE>SD
<ZIP>57709
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>BLACK HILLS HOLDING CORP
<DATE-CHANGED>20001222
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k_9-3.htm
<DESCRIPTION>FORM 8-K APPOINTMENT OF PRINCIPAL OFFICER
<TEXT>
<HTML>
<HEAD><TITLE>Black Hills Corp Form 8-K</TITLE></HEAD>

<BODY>


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<A NAME=A001></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>Washington, D.C. 20549 </FONT></H1>


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     <P ALIGN=CENTER>_________________ </P>

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<A NAME=A003></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>FORM 8-K </FONT></H1>

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     <P ALIGN=CENTER>_________________ </P>

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<A NAME=A004></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>CURRENT REPORT<BR>
PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>SECURITIES EXCHANGE
ACT OF 1934   </FONT></H1>
<BR>
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<A NAME=A006></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date of Report (Date
of earliest event reported) August 30, 2004 </FONT></H1>

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     <P ALIGN=CENTER>_________________ </P>

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<A NAME=A007></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>BLACK HILLS CORPORATION </FONT></H1>

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<A NAME=A008></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Exact name of
registrant as specified in its charter) </FONT></H1>

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     <P ALIGN=CENTER>_________________ </P>

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<A NAME=A009></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>South Dakota<BR>(State or other
jurisdiction of incorporation) </FONT></H1>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>             001-31303 </B>                     <BR>
     <B> (Commission File Number)</B>              <BR>
<BR>
   <B>625 Ninth Street, PO Box 1400 </B>           <BR>
       <B>Rapid City, South Dakota </B>            <BR>
   <B>(Address of principal executive offices)</B>
</FONT></TD>
     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">             <B> 46-0458824</B><BR>
   <B>(IRS Employer Identification No.)</B><BR>
<BR>
              <B>57709-1400</B><BR>
               <B>(Zip Code)</B>
</FONT></TD></TR>
</TABLE>



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<A NAME=A011></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>605.721.1700<BR>(Registrant&#146;s
telephone number, including area code) </FONT></H1>


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<A NAME=A013></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Not Applicable<BR>
(Former name or former address, if changed since last report) </FONT></H1>


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     <P ALIGN=CENTER>_________________ </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (<I>see</I>
General Instruction A.2. below): </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><img src="ballot.jpg">&nbsp;Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><img src="ballot.jpg">&nbsp;Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><img src="ballot.jpg">&nbsp;Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><img src="ballot.jpg">&nbsp;Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></P>

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<A NAME=A015></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Item 1.01 Entry into a
Material Definitive Agreement </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Registrant has entered into
certain employment related arrangements in conjunction with the August 30, 2004
appointment of David S. Smith to the position of Vice President &#150; Controller and
Chief Accounting Officer. A description of these arrangements has been provided below in
Item 5.02 &#147;Departure of Directors or Principal Officers; Election of Directors;
Appointment of Principal Officers&#148; of this Form 8-K. </FONT></P>

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<A NAME=A016></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Item 5.02 Departure of
Directors or Principal Officers; Election of Directors; Appointment of Principal Officers </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On August 30, 2004, David S. Smith,
age 60, was appointed Vice President &#150; Controller and Chief Accounting Officer of the
Registrant. The position of Controller and Chief Accounting Officer was previously held by
Roxann R. Basham, who recently was promoted to Vice President &#150; Governance and
Corporate Secretary. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mr. Smith&#146;s
career has spanned 28 years with companies in energy,           telecommunications and
technology. Prior to his appointment as the           Registrant&#146;s Vice President
&#150; Controller and Chief Accounting Officer,           Mr. Smith served in various
accounting, treasury and executive roles that have           given him extensive
experience with business management, internal controls,           financial policy,
accounting and tax. From 1996 through February 2002, Mr. Smith           was the
Corporate Controller of Montana Power Company, which was previously a           publicly
traded corporation listed on the New York Stock Exchange. From April           2002 until
August 2003 he served as business consultant for the publicly traded           company,
Touch America, working on special projects related to disputes on
asset divestiture contracts. Most recently, from September 2003 until July
          2004, Mr. Smith served as Controller for a privately held software company.
None           of Mr. Smith&#146;s prior appointments have been with the Registrant or
any of           its subsidiaries or affiliates.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In conjunction with Mr. Smith&#146;s
appointment, Mr. Smith and the Registrant have entered into a Change in Control Agreement
(form of Change in Control Agreement has previously been filed as Exhibit 10(af) to the
Registrant&#146;s Form 10-K for 1995) and Indemnification Agreement (form of
Indemnification Agreement has been filed as Exhibit 10.5 to this Form 8-K) as have
previously been provided to other executive officers of the Registrant. The Change in
Control Agreement provides for certain payments and other benefits to be payable upon a
change in control and a subsequent termination of employment, either voluntary or for a
good reason. The Indemnification Agreement provides indemnity to the officer against
liabilities incurred in the performance of his duties to the extent allowed by South
Dakota corporation law and the Registrant&#146;s Bylaws. In addition, Mr. Smith was
granted, pursuant to the Registrant&#146;s Black Hills Corporation 1999 Stock Option Plan
(filed as Exhibit 10.14 to the Registrant&#146;s Form 10-K for 2000), options to purchase
a total of 5,000 shares of the Registrant&#146;s common stock. These options have an
exercise price of $27.75 per share and expire 10 years from the grant date (form of Option
Agreement has been filed as Exhibit 10.1 to this Form 8-K). </FONT></P>



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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>
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<A NAME=A017></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Item 9.01 Financial
Statements and Exhibits </FONT></H1>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=3%></TD>
<TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits  </FONT></P></TD>
</TR>
</TABLE>
<BR>



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<A NAME=A019></A>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%></TD>
<TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form
of Stock Option Award Agreement  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<A NAME=A020></A>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%></TD>
<TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form
of Restricted Stock Award Agreement  </FONT></P></TD>
</TR>
</TABLE>
<BR>




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<A NAME=A021></A>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%></TD>
<TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form
of Restricted Stock Unit Award Agreement  </FONT></P></TD>
</TR>
</TABLE>
<BR>



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<A NAME=A022></A>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%></TD>
<TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form
of Performance Share Award Agreement  </FONT></P></TD>
</TR>
</TABLE>
<BR>



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<A NAME=A023></A>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%></TD>
<TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form
of Indemnification Agreement  </FONT></P></TD>
</TR>
</TABLE>
<BR>


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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></P>
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<A NAME=A024></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>SIGNATURES</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>
</TD>
</TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BLACK
HILLS CORPORATION </FONT>
</TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:
&nbsp;&nbsp;<U>/s/ Mark T. Thies</U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark T. Thies<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and Chief Financial Officer </FONT>
</TD>
</TR>
</TABLE>
<BR>



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<A NAME=A025></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: September 3, 2004 </FONT></P>

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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4</FONT></P>
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<A NAME=A026></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Exhibit Index </FONT></H1>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exhibit
No.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Description</U> </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Stock Option Award Agreement </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Restricted Stock Award Agreement </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Restricted Stock Unit Award Agreement </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Performance Share Award Agreement </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Indemnification Agreement </FONT>
</TD>
</TR>
</TABLE>
<BR>


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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5</FONT></P>





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MI7``W.T:EC@<#DGI3+GPKI=S>W5V6U"&:Z=9)C;:G<P*[!50';'(`#M11D#M
?6G8V5OINGVUC:1^5;6T2PPQ@D[44`*,GG@`=:`/_V3\_
`
end

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>ex10-1sep3_8k.htm
<DESCRIPTION>STOCK OPTION AWARD AGREEMENT
<TEXT>
<HTML>
<HEAD><TITLE>Stock Option Award Agreement</TITLE></HEAD>

<BODY>

<!-- MARKER FORMAT-SHEET="Head Right" FSL="Default" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10.1 </FONT></P>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A001></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Black Hills CorporationStock
<BR>Option PlanOption <BR>Award Agreement </FONT></H1>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=43% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Participant:</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=21% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>____________</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Date of Grant:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>____________</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Number of Shares Covered by this Option:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>____________</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Number of above Shares intended to be</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Incentive Stock Options ("ISOs")</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>within the meaning of Internal Revenue</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Codess. 422:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>____________</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Number of above shares intended to be</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nonqualified Stock Options ("NQSOs"):</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>____________</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Option Price for each Share:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>____________</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Date of Expiration:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>____________</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This document constitutes part of the
prospectus covering securities that have been registered under the Securities Act of 1933. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
AGREEMENT, effective as of the Date of Grant set forth above, represents the grant of
stock options by Black Hills Corporation, a South Dakota corporation (the
&#147;Company&#148;) to the Participant named above, pursuant to the provisions of the
Black Hills Corporation Stock Option Plan (&#147;Plan&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
capitalized terms used herein shall have the meanings ascribed to them in the Plan, unless
specifically set forth otherwise herein. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Plan provides a complete description of the terms and conditions governing the Option. If
there is any inconsistency between the terms of this Agreement and the terms of the Plan,
the Plan&#146;s terms shall completely supersede and replace the conflicting terms of this
Agreement. The parties hereto agree as follows: </FONT></P>



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<HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.&nbsp;&nbsp;&nbsp;&nbsp;<B>Grant
of Stock Options</B>. The Company hereby grants to the Participant an Option to purchase
the number of Shares set forth above, at the stated Option Price, which is 100 percent
(100%) of the Fair Market Value of a Share on the Date of Grant, in the manner and
subject to the terms and conditions of the Plan and this Agreement.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.&nbsp;&nbsp;&nbsp;&nbsp;<B>Exercise
of Stock Option</B>. Except as hereinafter provided, the Participant           may
exercise this Option at any time after the end of one year following the           Date
of Grant as to those Shares which have become vested according to the           vesting
schedule set forth below, provided that no exercise may occur subsequent           to the
close of business on the Date of Expiration (as defined on page 1 of this
          Agreement).  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Level 4" FSL="Default" -->
<A NAME=A003></A>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>VESTING
SCHEDULE</B>  </FONT></TD>
</TR>
</TABLE>
<BR>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
<TR VALIGN=Bottom>
     <TD COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Date</B></FONT></TD>
     <TD COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Shares for Which Option</B><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Becomes Exercisable</B></FONT></TD>
     <TD COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative Number of Shares</B><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Available for Purchase</B></FONT></TD></TR>



<TR>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Option may be exercised in whole or in part, but not for less than 100 Shares at any one
time, unless fewer than 100 Shares then remain subject to the Option, and the Option is
then being exercised as to all such remaining Shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.&nbsp;&nbsp;<B>Termination of Employment</B>:  </FONT></P>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)</FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>By death or Disability</I>: In the event of termination of employment by
               reason of death or disability, all Shares under this Option shall become
               immediately vested (100%) and the Shares may be purchased under the terms of
               this Agreement until the earlier of: (i) the expiration date of this Option; or
               (ii) the first anniversary of the date of death or Disability. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>By Retirement</I>: In the event of termination of employment by reason of
               retirement, all Shares under this Option shall become immediately vested (100%)
               and the Shares may be purchased under the terms of this Agreement until the
               earlier of: (i) the expiration date of this Option; or (ii) the third
               anniversary date of Retirement. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <I>For other reasons</I>: Shares which are vested as of the date of termination
               of employment of the Participant for any reason other than those reasons set
               forth in 3(a) or 3(b) above may be purchased under the terms of this Agreement
               until the earlier of: (i) the expiration date of this Option; or (ii) 90 days
               following the date of termination of employment. Shares which are not vested as
               of the date of termination shall immediately terminate, and shall be forfeited
               to the Company. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.&nbsp;&nbsp;<B>Change in Control</B>.
In the event of a Change in Control, all Shares under                this Option shall
become immediately vested (100%) and shall remain exercisable                for their
entire term.  </FONT></P>





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<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Change
in Control&#148; of the Company shall be deemed to have occurred (as of a particular day,
as specified by the Board) upon the occurrence of any event described in this Section 4 as
constituting a Change in Control. </FONT></P>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
          <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          An acquisition (other than directly from the Company) of any Shares of the
          Company by any Person immediately after which such Person has Beneficial
          Ownership of thirty percent (30%) or more of the Shares of the Company;
          provided, however, in determining whether a Change in Control has occurred,
          Shares which are acquired in a &#147;Non-Control Acquisition&#148; (as
          hereinafter defined) shall not constitute an acquisition which would cause a
          Change in Control. A &#147;Non-Control Acquisition&#148; shall mean an
          acquisition by (i) an employee benefit plan (or a trust forming a part thereof)
          maintained by (A) the Company; or (B) a Subsidiary; (ii) the Company or its
          Subsidiaries; or (iii) any Person in connection with a &#147;Non-Control
          Transaction&#148; (as hereinafter defined); </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
          <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The individuals who, as of the Effective Date hereof, are members of the Board
          (the &#147;Incumbent Board&#148;), cease for any reason to constitute at least
          two-thirds (2/3) of the members of the Board; provided, however, that if the
          election, or nomination for election by the Company&#146;s common shareholders,
          of any new director was approved by a vote of at least two-thirds (2/3) of the
          Incumbent Board, such new director shall, for purposes of this Plan, be
          considered as a member of the Incumbent Board; provided further, however, that
          no individual shall be considered a member of the Incumbent Board if such
          individual initially assumed office as a result of either an actual or
          threatened &#147;Election Contest&#148; (as described in Rule 14a-11 promulgated
          under the Exchange Act) or other actual or threatened solicitation of proxies or
          consents by or on behalf of a Person other than the Board (a &#147;Proxy
          Contest&#148;) including by reason of any agreement intended to avoid or settle
          any Election Contest or Proxy Contest; or </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
          <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Approval by shareholders of the Company of: </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
merger, consolidation, or reorganization involving the Company, unless such
          merger, consolidation, or reorganization is a &#147;Non-Control
          Transaction.&#148; A &#147;Non-Control Transaction&#148; shall mean a merger,
          consolidation, or reorganization of the Company where:  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(A)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=82%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
shareholders of the Company, immediately before such merger, consolidation,           or
reorganization, own directly or indirectly, immediately following such           merger,
consolidation, or reorganization, at least seventy percent (70%) of the
          combined voting power of the outstanding Voting Securities of the corporation
          resulting from such merger or consolidation or reorganization (the
          &#147;Surviving Corporation&#148;) in substantially the same proportion as
their           ownership of the Voting Securities immediately before such merger,
          consolidation, or reorganization;  </FONT></P></TD>
</TR>
</TABLE>
<BR>





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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(B)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=82%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
individuals who were members of the Incumbent Board immediately prior to the
          execution of the agreement providing for such merger, consolidation, or
          reorganization constitute at least two-thirds (2/3) of the members of the board
          of directors of the Surviving Corporation, or a corporation beneficially
          directly or indirectly owning a majority of the Voting Securities of the
          Surviving Corporation; and  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Level 5" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(C)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=82%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>no
Person other than (i) the Company; (ii) any Subsidiary; (iii) any employee
          benefit plan (or any trust forming a part thereof) maintained by the Company,
          the Surviving Corporation, or any Subsidiary; or (iv) any Person who,
          immediately prior to such merger, consolidation, or reorganization had
          Beneficial Ownership of thirty percent (30%) or more of the then outstanding
          Voting Securities), has Beneficial Ownership of thirty percent (30%) or more of
          the combined voting power of the Surviving Corporation&#146;s then outstanding
          Voting Securities.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
complete liquidation or dissolution of the Company; or  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Level 4" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>An
agreement for the sale or other disposition of all or substantially all of
                    the assets of the Company to any Person other than (x) a transfer to
a                     Subsidiary; or (y) a sale or transfer of a Subsidiary by the
Company except if                     such sale or transfer would be a sale or other
disposition of all or                     substantially all of the assets of the Company.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notwithstanding
the foregoing, (i) a Change in Control shall not be deemed to           occur solely
because any Person (the &#147;Subject Person&#148;) acquired           Beneficial
Ownership of more than the permitted amount of the then outstanding           Common
Stock as a result of the acquisition of Shares by the Company which, by
          reducing the number of Shares then outstanding, increases the proportional
          number of shares beneficially owned by the Subject Persons, provided that if a
          Change in Control would occur (but for the operation of this sentence) as a
          result of the acquisition of Shares by the Company, and after such stock
          acquisition by the Company, the Subject Person becomes the Beneficial Owner of
          any additional Shares which increases the percentage of the then outstanding
          Shares beneficially owned by the Subject Person, then a Change in Control shall
          occur; and (ii) a Change in Control shall not be deemed to occur unless and
          until all regulatory approvals required to effect a Change in Control of the
          Company have been obtained.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.&nbsp;&nbsp;&nbsp;&nbsp;<B>Restrictions
on Transfer</B>. This Option may not be sold, transferred,           pledged, assigned,
or otherwise alienated or hypothecated, other than by will or           by the laws of
descent and distribution. Further, this Option shall be           exercisable during the
Participant&#146;s lifetime only by the Participant or           the Participant&#146;s
legal representative.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.&nbsp;&nbsp;&nbsp;&nbsp;<B>Recapitalization</B>.
In the event there is any change in the Company&#146;s           Shares through the
declaration of stock dividends or through recapitalization           resulting in stock
splits or through merger, consolidation, exchange of Shares,           or otherwise, the
number and class of Shares subject to this Option, as well as           the Option Price,
may be equitably adjusted by the Committee, in its sole           discretion, to prevent
dilution or enlargement of rights.  </FONT></P>






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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.&nbsp;&nbsp;&nbsp;&nbsp;<B>Procedure
for Exercise of Option</B>. This Option may be exercised by           delivery of written
notice to the Company at its executive offices, addressed to           the attention of
its Secretary. Such notice: (a) shall be signed by the           Participant or his or
her legal representative; (b) shall specify the number of           full Shares then
elected to be purchased with respect to the Option; (c) unless           a Registration
Statement under the Securities Act of 1933 is in effect with           respect to the
Shares to be purchased, shall contain a representation of the           Participant that
the Shares are being acquired by him or her for investment and           with no present
intention of selling or transferring them, and that he or she           will not sell or
otherwise transfer the Shares except in compliance with all           applicable
securities laws and requirements of any stock exchange upon which the           Shares
may then be listed; and (d) shall be accompanied by payment in full of           the
Option Price of the Shares to be purchased, and the Participant&#146;s copy           of
this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Option Price upon exercise of this Option shall be payable to the Company in full either:
(a) in cash or its equivalent (acceptable cash equivalents shall be determined at the sole
discretion of the Committee); or (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 the 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); or (c), by a
combination of (a) and (b). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Participant may also be permitted to exercise pursuant to a &#147;cashless exercise&#148;
procedure as permitted under the Federal Reserve Board&#146;s Regulation T, subject to
securities law restrictions. In the event the Participant exercises pursuant to a
&#147;cashless exercise&#148; procedure, any net gain on the &#147;cashless
exercise&#148;, after appropriate tax withholdings, shall be distributed to the
Participant in the form of Shares. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
promptly as practicable after receipt of notice and payment upon exercise, the Company
shall cause to be issued and delivered to the Participant or his or her legal
representative, as the case may be, certificates for the Shares so purchased, which may,
if appropriate, be endorsed with appropriate restrictive legends. The Share certificates
shall be issued in the Participant&#146;s name (or, at the discretion of the Participant,
jointly in the names of the Participant and the Participant&#146;s spouse). The Company
shall maintain a record of all information pertaining to the Participant&#146;s rights
under this Agreement, including the number of Shares for which their Option is
exercisable. If the Option shall have been exercised in full, this Agreement shall be
returned to the Company and canceled. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.&nbsp;&nbsp;&nbsp;&nbsp;<B>Beneficiary Designation</B>.
The Participant may, from time to time, name any                beneficiary or
beneficiaries (who may be named contingently or successively) to                whom any
benefit under this Agreement 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 Participant, shall
be in a form                prescribed by the Company, and will be effective only when
filed by the                Participant in writing with the Secretary of the Company
during the                Participant&#146;s lifetime. In the absence of any such
designation, benefits                remaining unpaid at the Participant&#146;s death
shall be paid to the                Participant&#146;s estate.  </FONT></P>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.&nbsp;&nbsp;&nbsp;&nbsp;<B>Rights as a Shareholder</B>.
The Participant shall have no rights as a                shareholder of the Company with
respect to the Shares subject to this Option                Agreement including, without
limitation, any right to dividends, until such time                as the purchase price
has been paid, and the Shares have been issued and                delivered to him or
her.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.&nbsp;&nbsp;&nbsp;&nbsp;<B>Continuation of
Employment</B>. This Option Agreement shall not confer upon                the
Participant any right to continuation of employment by the Company, nor
               shall this Option Agreement interfere in any way with the Company&#146;s
right                to terminate the Participant&#146;s employment at any time. A
transfer of the                Participant&#146;s employment between the Company and any
one of its                Subsidiaries (or between Subsidiaries) shall not be deemed a
termination of                employment.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.&nbsp;&nbsp;&nbsp;&nbsp;<B>Limitation</B>.
Participant shall not exercise any shares which are intended                to be ISOs
hereunder if and to the extent that the Participant would thereby be
               entitled to purchase Shares in any one calendar year, the value of which,
               determined at the time of the Date of Grant, would exceed $100,000.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.&nbsp;&nbsp;&nbsp;&nbsp;<B>Miscellaneous</B>.  </FONT></P>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               This Option Agreement and the rights of the Participant hereunder are subject to
               all the terms and conditions of the Plan, as the same may be amended from time
               to time, as well as to such rules and regulations as the Committee may adopt for
               administration of the Plan. The Committee shall have the right to impose such
               restrictions on any Shares acquired pursuant to the exercise of this Option, as
               it may deem advisable, including, without limitation, restrictions under
               applicable Federal securities laws, under the requirements of any stock exchange
               or market upon which such Shares are then listed and/or traded, and under any
               blue sky or state securities laws applicable to such Shares. It is expressly
               understood that the Committee is authorized to administer, construe, and make
               all determinations necessary or appropriate to the administration of the Plan
               and this Option Agreement, all of which shall be binding upon the Participant. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               With the approval of the Board, the Committee may terminate, amend, or modify
               the Plan; provided, however, that no such termination, amendment, or
               modification of the Plan may in any material way adversely affect the
               Participant&#146;s rights under this Agreement, without the written consent of
               the Participant. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Company shall have the power and the right to deduct or withhold, or require
               the Participant to remit to the Company, an amount sufficient to satisfy
               federal, state, and local taxes (including Participant&#146;s FICA obligation)
               required by law to be withheld with respect to any exercise of the
               Participant&#146;s rights under this Agreement. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Participant may elect, subject to any procedural rules adopted by the Committee, to
satisfy the withholding requirement, in whole or in part, by having the Company withhold
Shares having an aggregate Fair Market Value on the date the tax is to be determined,
equal to the amount required to be withheld.  </FONT></TD>
</TR>
</TABLE>
<BR>






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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Participant agrees to take all steps necessary to comply with all applicable
               provisions of federal and state securities law in exercising his or her rights
               under this Agreement. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               This Agreement 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. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               All obligations of the Company under the Plan and this Agreement, with respect
               to this Option, 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. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               To the extent not preempted by federal law, this Agreement shall be governed by,
               and construed in accordance with, the laws of the State of South Dakota. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Date of
Grant. </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>
</TD>
</TR>
</TABLE>
<BR>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BLACK
HILLS CORPORATION </FONT>
</TD>
</TR>
</TABLE>
<BR>



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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By________________________________________ </FONT>
</TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ATTEST: </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>______________________________ </FONT></P>


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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;___________________________________________<BR>
                                                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Participant </FONT>
</TD>
</TR>
</TABLE>
<BR>




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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>4
<FILENAME>ex10-2sep3_8k.htm
<DESCRIPTION>RESTRICTED STOCK AWARD AGREEMENT
<TEXT>
<HTML>
<HEAD><TITLE>Restricted Stock Award Agreement</TITLE></HEAD>

<BODY>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10.2 </FONT></P>


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<A NAME=A002></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Black Hills Corporation<BR>Omnibus
Incentive Compensation Plan<BR>Restricted Stock Award Agreement </FONT></H1>

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<P>_________________ </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Congratulations on your selection as
a Participant of Black Hills Corporation Omnibus Incentive Compensation Plan (the
&#147;Plan&#148;). This Agreement and the Plan together govern your rights under the Plan
and set forth all of the conditions and limitations affecting such rights. Terms used in
this Agreement that are defined in the Plan shall have the meanings ascribed to them in
the Plan. If there is any inconsistency between the terms of this Agreement and the terms
of the Plan, the Plan&#146;s terms shall supersede and replace the conflicting terms of
this Agreement. </FONT></P>

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<A NAME=A003></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Overview of Your Award </FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Number of Restricted Shares Granted.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ____ Shares </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Date of Grant</B>.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;__________ </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Date of Lapse of
Restrictions</B>. </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
<TR VALIGN=Bottom>
     <TD COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Shares</U></FONT></TD>
     <TD COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Date</U></FONT></TD></TR>
<TR>
     <TD COLSPAN=2 ALIGN=RIGHT><BR><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><BR><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
</TABLE>


<BR>
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          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Employment by the Company</B>. This Restricted Stock is awarded on the
          condition that the Participant remain in the employ of Black Hills Corporation
          (the &#147;Company&#148;) from the Date of Grant through (and including) the
          Dates of Lapse of Restrictions. The Award of this Restricted Stock, however,
          shall not impose upon the Company any obligations to retain the Participant in
          its employ for any given period or upon any specific terms of employment. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Certificate Legend</B>. Shares of Restricted Stock granted pursuant to the
          Plan shall be held by the Company in book entry form and shall be designated to
          have the following legend: </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;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 set forth in the Black Hills Corporation Omnibus Incentive Compensation Plan and
in a Restricted Stock Award Agreement. A copy of the Plan and such Restricted Stock
Agreement may be obtained from the Secretary of Black Hills Corporation.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>






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<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.</FONT></TD>
<TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Removal of
Restrictions</B>. Except as otherwise provided in the Plan, each of the Shares of
Restricted Stock granted under this Agreement shall become freely transferable by the
Participant on each of the &#147;Dates of Lapse of Restrictions&#148; set forth on
Paragraph 3 herein.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Once
the shares are released from the restrictions, the Participant shall be entitled to
receive certificates representing the Shares of stock which have been vested, without the
restrictive legend required by Paragraph 5 of this Agreement. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Notwithstanding
the terms of this Agreement, no stock shall be issued by the Corporation while its stock
transfer books are closed. </FONT></TD>
</TR>
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<BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Voting Rights and Dividends</B>. During the Period of Restriction, the
          Participant may exercise full voting rights and is entitled to receive all
          dividends and other distributions paid with respect to the Shares of Restricted
          Stock while they are held. If any such dividends or distributions are paid in
          shares of Common Stock of the Company, the Shares shall be subject to the same
          restrictions on transferability as the Shares of Restricted Stock with respect
          to which they were paid. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Termination of Employment By Reasons of Death, Disability, Retirement, and
          Vesting in </B> <B>Connection with a Change in Control</B>. In the event the
          Participant&#146;s employment is terminated by reason of Death, Disability,
          Retirement, or in the event of a Change in Control prior to the Dates of Lapse
          of Restrictions, all Shares of Restricted Stock then outstanding shall
          immediately vest one hundred percent (100%), and as soon as is administratively
          practicable, the stock certificates representing the Shares of Restricted Stock
          without any restrictions or legend thereon, shall be delivered to the
          Participant&#146;s beneficiary or estate. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Beneficiary Designation</B>. The Participant may, from time to time, name any
          beneficiary or beneficiaries (who may be named contingently or successively) to
          whom any benefit under this Agreement is to be paid in case of his or her death
          prior to the Dates of Lapse of Restrictions. Each such designation shall revoke
          all prior designations by the 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&#146;s lifetime. In the absence of any
          such designation, benefits remaining unpaid at the Participant&#146;s death
          shall be paid to the Participant&#146;s estate. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Termination of Employment for Other Reasons</B>. In the event the
          Participant&#146;s employment is terminated for reasons other than those
          described in Section 8 herein prior to the Dates of the Lapse of Restrictions,
          all outstanding Shares of unvested Restricted Stock granted hereunder shall
          immediately be forfeited by the Participant. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Transferability</B>. This Restricted Stock is not transferable by the
          Participant, whether voluntarily or involuntarily, by operation of laws or
          otherwise, during the Restriction Period, except as provided in the Plan. If any
          assessment, pledge, transfer, or other disposition, voluntary or involuntary, of
          this Restricted Stock shall be made, or if any attachment, execution,
          garnishment, or client shall be issued against or placed upon the Restricted
          Stock, then the Participant&#146;s right to the Restricted Stock shall
          immediately cease and terminate and the Participant shall promptly forfeit to
          the Company all Restricted Stock awarded under this Agreement. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>






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<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.</FONT></TD>
<TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Tax Treatment</B>.
The following is a brief summary of the principal federal income tax consequences related
to grants of restricted stock. This summary is based on the Company&#146;s understanding
of present federal income tax law and regulations. The summary does not purport to be
complete or applicable to every specific situation.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
value of restricted stock granted to the Participant will be taxable to the Participant in
the year in which it is no longer subject to substantial risk of forfeiture (i.e., when
the restrictions lapse). When the restrictions lapse, there is an ordinary income tax
event to the Participant equal to the number of shares multiplied by the market price of
the shares at the time the restrictions lapse. The Participant must satisfy federal and
state withholding requirements and may do so by having the Company sell sufficient shares
to meet the withholding requirements. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Participant has the option to make a Code Section 83(b) election on a grant of restricted
stock. Code Section 83(b) allows the Participant to choose to be taxed immediately on the
amounts received in connection with a substantially &#147;nonvested&#148; right (i.e.,
compensation that has not been constructively received). This is accomplished by the
Participant filing an election with the IRS stating that he or she will pay ordinary
income on the value as measured at the time of grant. Any future appreciation in the stock
property will be treated as capital gain when sold. This election must be made within 30
days after the stock is received. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
If
the Participant elects Section 83(b) treatment and later forfeits the subject stock, he or
she will not be entitled to any refund for the taxes paid; however, he or she will be
entitled to treat the forfeiture as a sale of the stock at a loss (i.e., capital loss)
<I>(limited to the amount paid for shares &#151; typically </I> <I>zero).</I> </FONT></TD>
</TR>
</TABLE>
<BR>

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<A NAME=A006></A>
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<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.</FONT></TD>
<TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Withholding.</B></FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Tax
Withholding</B>. The Company shall have the power and the right to deduct or withhold, or
require the Participant to remit to the Company, an amount sufficient to satisfy federal,
state and local taxes (including Participant&#146;s FICA obligation), domestic or foreign,
required by law or regulation to be withheld with respect to any taxable event arising as
a result of this Plan. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Share
Withholding</B>. With respect to withholding required upon the lapse of restrictions or
upon any other taxable event arising as a result of the Awards granted hereunder, the
Participants may elect, subject to the approval of the Board, to satisfy the withholding
requirement, in whole or in part, by having the Company withhold shares having a Fair
Market Value on the date the tax is to be determined equal to the minimum statutory total
tax that could be imposed on the transaction. All such elections shall be irrevocable,
made in writing, signed by the Participant, and shall be subject to any restrictions or
limitations that the Committee, in its sole discretion, deems appropriate. </FONT></TD>
</TR>
</TABLE>
<BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Requirements of Law</B>. 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. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Inability to Obtain Authorization</B>. The inability of the Company to obtain
          authority from any regulatory body having jurisdiction, which authority is
          deemed by the Company&#146;s counsel to be necessary to the lawful issuance of
          any Shares hereunder, shall relieve the Company of any liability in respect of
          the failure to issue such Shares as to which such requisite authority shall not
          have been obtained. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>





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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Severability</B>. In the event any provision of this Agreement shall be held
          to be illegal or invalid for any reason, the illegality or invalidity shall not
          affect the remaining parts of this Agreement, and the Agreement shall be
          construed and enforced as if the illegal or invalid provision had not been
          included. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Continuation of Employment</B>. This Agreement shall not confer upon the
          Participant any right to continuation of employment by the Company, nor shall
          this Agreement interfere in any way with the Company&#146;s right to terminate
          the Participant&#146;s employment at any time. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Applicable Laws and Consent to Jurisdiction</B>. The validity, construction,
          interpretation and enforceability of this Agreement shall be determined and
          governed by the laws of the State of South Dakota without giving effect to the
          principles of conflicts of law. For the purpose of litigating any dispute that
          arises under this Agreement, the parties hereby consent to exclusive
          jurisdiction in South Dakota and agree that such litigation shall be conducted
          in the courts of Pennington County or the federal courts of the United States
          for the District of South Dakota, Western Division. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Miscellaneous</B>. The Plan may be amended at any time, and from time to
          time, by a written instrument approved by the Board of Directors of Black Hills
          Corporation. 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. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Plan and this Agreement are binding upon Participant, as well as his/her heirs, executors,
personal representatives, trustees, attorneys, agents, administrators, and successors. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please refer any questions you may
have regarding your restricted stock to _________________. Once again, congratulations on
receipt of your restricted stock. </FONT></P>

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<A NAME=A007></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely,<BR>
<BR>__________________________________________ </FONT></P>
<BR>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please acknowledge your agreement to
participate in the Plan and this Agreement, and to abide by all of the governing terms and
provisions, by signing the following representation: </FONT></P>

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<A NAME=A008></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Agreement to
Participate </FONT></H1>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
By
signing a copy of this Agreement and returning it to ________________, of Black Hills
Corporation, I acknowledge that I have read the Plan, and that I fully understand all of
my rights under the Plan, as well as all of the terms and conditions which may limit my
eligibility to exercise this Award. Without limiting the generality of the preceding
sentence, I understand that my right to exercise this Award is conditioned upon my
continued employment with Black Hills Corporation or its Subsidiaries. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;___________________________________________________  </FONT>
</TD>
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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>ex10-3sep3_8k.htm
<DESCRIPTION>RESTRICTED STOCK UNIT AWARD AGREEMENT
<TEXT>
<HTML>
<HEAD><TITLE>Restricted Stock Unit Award Agreement</TITLE></HEAD>

<BODY>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10.3  </FONT></P>


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<A NAME=A001></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Black Hills Corporation<BR>
Omnibus Incentive Compensation Plan<BR>Restricted Stock Unit Agreement </FONT></H1>

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<P>_________________ </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Congratulations on your award under
the Black Hills Corporation Omnibus Incentive Compensation Plan (the &#147;Omnibus
Plan&#148;) and your participation in the Black Hills Corporation Nonqualified Deferred
Compensation Plan (the &#147;NDC Plan&#148;) (collectively, the &#147;Plans&#148;). This
Agreement and the Plans together govern your rights to the award and set forth all of the
conditions and limitations affecting such rights. Copies of the Plans have been delivered
to you. Terms used in this Agreement that are defined in the Plans shall have the meanings
ascribed to them in the respective Plan. If there is any inconsistency between the terms
of this Agreement and the terms of the Plans, the Plans&#146; terms shall supersede and
replace the conflicting terms of this Agreement. By signing below, you agree to be bound
by all the provisions of the Plans and this Agreement. </FONT></P>

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<A NAME=A002></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Overview of Your Award. </FONT></H1>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Number of Restricted Stock Units Granted. </B><U>_______</U> Restricted Stock
          Units (&#147;RSUs&#148;), each unit corresponding to one share of Black Hills
          Corporation Common Stock. Each RSU constitutes only an unsecured promise of the
          Company to deliver a share of Common Stock to the Participant under the terms of
          the NDC Plan. As a holder of RSUs, the Participant has only the rights of a
          general unsecured creditor of the Company. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.</FONT></TD>
<TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Date
of Grant</B>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B> _____________</B> </FONT></P></TD>
</TR>
</TABLE>
<BR>



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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.</FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Date of Vesting. </B>Subject to continued employment under Section 4 below,
          the RSUs shall vest and become nonforfeitable in accordance with the following
          schedule (each date is a &#147;Vesting Date&#148;): </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
<TR VALIGN=Bottom>
     <TD COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Shares</U></FONT></TD>
     <TD COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Date</U></FONT></TD></TR>
<TR>
     <TD COLSPAN=2 ALIGN=RIGHT><BR><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><BR><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
</TABLE>

<BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Employment by the Company. </B>This Restricted Stock Unit Award is
          conditioned on the Participant&#146;s remaining as an employee of Black Hills
          Corporation and its Affiliates (the &#147;Company&#148;) from the Date of Grant
          through (and including) the Vesting Dates. The Award of these Restricted Stock
          Units, however, shall not impose upon the Company any obligations to retain the
          Participant in its employ for any given period or upon any specific terms of
          employment. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Termination of Employment by Reasons of Death, Disability, Retirement, and
          Vesting in Connection with a Change </B> <B>in Control. </B>In the event the
          Participant&#146;s employment is terminated by reason of Death, Disability,
          Retirement or in the event of a Change in Control prior to any one of the
          Vesting Dates, all RSUs then unvested and outstanding shall immediately vest one
          hundred percent (100%), and, as soon as is administratively practicable, the
          awards shall be settled in accordance with Section 7. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Termination of Employment for Other Reasons. </B>In the event the
          Participant&#146;s employment is terminated for reasons other than those
          described in Section 5 herein prior to the Vesting Dates, then all outstanding
          RSUs granted hereunder that are unvested shall immediately be forfeited by the
          Participant. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Settlement of RSU Award.</B> </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Settlement.</B>&nbsp;The
Company shall credit to Participant&#146;s Account under the NDC Plan
                    (or any successor Plan that may be adopted by the Company) as soon as
                    practicable following the execution of this Agreement, the number of
units                     specified above; provided, however, that any RSUs deferred
remain subject to (a)                     the relevant Vesting Date for such portion of
the Award and (b) any cancellation                     of the RSUs pursuant to Section 6.
If the RSU does not vest, the deferral into                     the NDC Plan shall be
null and void.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Dividend
and Stock Split Equivalents. </B>For so long as Participant holds RSUs in his or her
Account under the NDC Plan, at the time any dividend is paid with respect to a share of
Common Stock or any forward stock split occurs, the Company shall pay to Participant on
the same date (or as soon as practicable thereafter) in respect of each RSU held by the
Participant as of the record date for such dividend or split an amount at the
Company&#146;s sole, absolute and unfettered discretion, in cash, Common Stock, or other
property, or in a combination thereof, in each case having a value equal to the dividend
or split. Such amounts shall vest and shall be paid at the same time as the underlying RSU
award is settled. </FONT></TD>
</TR>
</TABLE>
<BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Beneficiary Designation. </B>The Participant may, from time to time, name any
          beneficiary or beneficiaries (who may be named contingently or successively) to
          whom any benefit under this Agreement and the NDC Plan is to be paid. The
          designation of a beneficiary shall be made in accordance with the beneficiary
          designation procedures specified in the NDC Plan. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Transferability. </B>The RSUs are not transferable by the Participant,
          whether voluntarily or involuntarily, by operation of laws or otherwise. If any
          assessment, pledge, transfer, or other disposition, voluntary or involuntary, of
          the RSUs shall be made, or it any attachment, execution, garnishment, or client
          shall be issued against or placed upon the RSUs, then the Participant&#146;s
          right to the RSUs shall immediately cease and terminate and the Participant
          shall promptly forfeit to the Company all RSUs awarded under this Agreement. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Withholding. </B>The Company shall have the power and the right to deduct or
          withhold, or require the Participant to remit to the Company, an amount
          sufficient to satisfy federal, state and local taxes (including
          Participant&#146;s FICA obligation), domestic or foreign, required by law or
          regulation to be withheld with respect to any taxable event arising as a result
          of this Agreement as specified under the NDC Plan. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Requirements of Law. </B>The issuance of Shares under the Plans following
          settlement of the RSUs 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. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Inability to Obtain Authorization. </B>The inability of the Company to obtain
          authority from any regulatory body having jurisdiction, which authority is
          deemed by the Company&#146;s counsel to be necessary to the lawful issuance of
          any Shares hereunder, shall relieve the Company of any liability in respect of
          the failure to issue such Shares as to which such requisite authority shall not
          have been obtained. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Severability. </B>In the event any provision of this Agreement shall be held
          to be illegal or invalid for any reason, the illegality or invalidity shall not
          affect the remaining parts of this Agreement, and the Agreement shall be
          construed and enforced as if the illegal or invalid provision had not been
          included. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Continuation of Employment. </B>This Agreement shall not confer upon the
          Participant any right to continuation of employment by the Company, nor shall
          this Agreement interfere in any way with the Company&#146;s right to terminate
          the Participant&#146;s employment at any time. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Applicable Laws and Consent to Jurisdiction. </B>The validity, construction,
          interpretation and enforceability of this Agreement shall be determined and
          governed by the laws of the State of South Dakota without giving effect to the
          principles of conflicts of law. For the purpose of litigating any dispute that
          arises under this Agreement, the parties hereby consent to exclusive
          jurisdiction in South Dakota and agree that such litigation shall be conducted
          in the courts of Pennington County or the federal courts of the United States
          for the District of South Dakota, Western Division. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16. </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Miscellaneous. </B>The Plan may be amended at any time, and from time to
          time, by a written instrument approved by the Board of Directors of Black Hills
          Corporation. 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. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>




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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Plan and this Agreement are binding upon Participant, as well as his/her heirs, executors,
personal representatives, trustees, attorneys, agents, administrators, and successors. </FONT></TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please refer any questions you may
have regarding your RSU award to _____________. Once again, congratulations on receipt of
your award. </FONT></P>

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<A NAME=A003></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely,<BR>
<BR>
_________________________________________ </FONT></P>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please acknowledge your agreement to
participate in the Plans and this Agreement, and to abide by all of the governing terms
and provisions, by signing the following representation: </FONT></P>

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<A NAME=A004></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Agreement to
Participate </FONT></H1>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
By
signing a copy of this Agreement and returning it to ________________ of Black Hills
Corporation, I acknowledge that I have read the Plans, and that I fully understand all of
my rights under the Plans, as well as all of the terms and conditions which may limit my
eligibility to exercise this Award. Without limiting the generality of the preceding
sentence, I understand that my right to exercise this Award is conditioned upon my
continued employment with Black Hills Corporation or its Subsidiaries. </FONT></TD>
</TR>
</TABLE>
<BR>



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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>________________________________________________</FONT>
</TD>
</TR>
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<BR>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>6
<FILENAME>ex10-4sep3_8k.htm
<DESCRIPTION>PEFORMANCE SHARE AWARD AGREEMENT
<TEXT>
<HTML>
<HEAD><TITLE>Performance Share Award Agreement</TITLE></HEAD>

<BODY>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10.4 </FONT></P>


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<A NAME=A001></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Incentive Compensation
Plan<BR>
Performance Share Award Agreement </FONT></H1>

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<A NAME=A002></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Black Hills Corporation<BR>
<BR>
<BR>
____________________________________<BR>
<BR>
(Performance Period ______________ - _______________) </FONT></P>



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<A NAME=A003></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Contents </FONT></H1>

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<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=92% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Article 1. Performance Period</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Article 2. Value of Performance Shares</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Article 3. Performance Shares and Achievement of Performance Measure</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Article 4. Termination Provisions</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Article 5. Change in Control</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Article 6. Dividends</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Article 7. Form and Timing of Payment of Performance Shares</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Article 8. Nontransferability</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Article 9. Administration</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Article 10. Miscellaneous</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>



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<A NAME=A004></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Black Hills Corporation<BR>
Omnibus Incentive Compensation Plan<BR>Performance Share Award Agreement </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>You
have been selected to be a participant in the Black Hills Corporation Omnibus Incentive
Compensation Plan (the &#147;Plan&#148;), as specified below: </FONT></P>

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<A NAME=A005></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participant:</B>
_____________________</FONT></P>

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<A NAME=A006></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Target
Performance Share Award:</B> ______ shares</FONT></P>

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<A NAME=A007></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance
Period:</B> _____________ to _______________</FONT></P>

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<A NAME=A008></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Performance Measure:</B>
Total Shareholder Return (&#147;TSR&#148;).</FONT></P>



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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Peer
Index:</B>&nbsp;&nbsp;S&amp;P MID CAP UTILITY INDEX</FONT></P>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Alliant
Energy Corporation; DPL Inc.; Duquesne Light Holding Inc.; Great Plains Energy Inc.;
Hawaiian Electric Inds.; Idacorp Inc.; Northeast Utilities; Nstar; OGE Energy Corporation;
Pepco Holdings Inc.; PNM Resources Inc.; Puget Energy Inc.; Wisconsin Energy Corp,; and
WPS Resources Corp. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
AGREEMENT (the &#147;Agreement&#148;) effective _______________, represents the grant of
Performance Shares by Black Hills Corporation, a South Dakota corporation (the
&#147;Company&#148;), to the Participant named above, pursuant to the provisions of the
Plan. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Plan provides a complete description of the terms and conditions governing the Performance
Shares. If there is any inconsistency between the terms of this Agreement and the terms of
the Plan, the Plan&#146;s terms shall completely supersede and replace the conflicting
terms of this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
capitalized terms shall have the meanings ascribed to them in the Plan, unless
specifically set forth otherwise herein. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
parties hereto agree as follows: </FONT></P>

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<A NAME=A009></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article 1. Performance
Period </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Performance Period commences on ______________ and ends on ________________. </FONT></P>

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<A NAME=A010></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article 2. Value of
Performance Shares </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Performance Share shall represent and have a value equal to one share of common stock of
the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
anything herein to the contrary, the Performance Shares shall have no value whatsoever if
the Ending Stock Price (as defined herein) is not greater than Beginning Stock Price (as
defined herein), taking into account any adjustments made pursuant to Paragraph 4.3 of the
Plan. </FONT></P>

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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1 </FONT></P>
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<A NAME=A011></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article 3. Performance
Shares and Achievement of Performance Measure </FONT></H1>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The number of Performance Shares to be earned under this Agreement shall be
               based upon the achievement of pre-established TSR performance goals as set by
               the Compensation Committee of the Board of Directors (Committee) for the
               Performance Period, based on the following chart: </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
<TR VALIGN=Bottom>
     <TD COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;<B>TSR Performance<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Relative to</B><BR>
<U><B>Companies in Peer Index</B></U></FONT></TD>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Payout<BR>
<U>(% of Target)</U></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=77% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>80th Percentile or Above</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>175</FONT></TD>
        <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>70th Percentile</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>150</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60th Percentile</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>125</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50th Percentile</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>100</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40th Percentile</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30th Percentile or Below</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD></TR>
</TABLE>


<BR>


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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Interpolation
shall be used to determine the percentile rank in the event the Company&#146;s Percentile
Rank does not fall directly on one of the ranks listed in the above chart. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
For
this purpose, Total Shareholder Return shall be determined as follows:  </FONT></TD>
</TR>
</TABLE>
<BR>


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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Total Shareholder&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Change in Stock Price + Dividends Paid</U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Beginning Stock Price  </FONT></TD>
</TR>
</TABLE>
<BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Beginning
Stock Price shall mean the average closing price on the applicable stock exchange of one
share of stock for the twenty (20) trading days immediately prior to the first day of the
Performance Period; Ending Stock Price shall mean the average closing price on the
applicable stock exchange of one share of stock for the twenty (20) trading days
immediately prior to the last day of the Performance Period; Change in Stock Price shall
mean the difference between the Beginning Stock Price and the Ending Stock Price; and
Dividends Paid shall mean the total of all dividends paid on one (1) share of stock during
the Performance Period. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Following
the Total Shareholder Return determination, the Company&#146;s Percentile Rank shall be
determined as follows: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Percentile
Rank shall be determined by listing from highest Total Shareholder Return to lowest Total
Shareholder Return each company in the Peer Index (excluding the Company). The top company
would have a one hundred percentile (100%) rank and the bottom company would have a zero
percentile (0.0%) rank. Each company in between would be one hundred divided by n minus
one (100/n-1) above the company below it. The Company percentile rank would then be
interpolated based on the Company TSR. The Companies in the Peer Index shall remain
constant throughout the entire Performance Period. </FONT></TD>
</TR>
</TABLE>
<BR>


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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2</FONT></P>
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<A NAME=A012></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article 4. Termination
Provisions </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as provided below, a Participant shall be eligible for payment of awarded Performance
Shares, as determined in Section 3, only if the Participant&#146;s employment with the
Company continues through the end of the Performance Period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
participant retires, suffers a Disability, or dies during the Performance Period, the
Participant (or the Participant&#146;s estate) shall be entitled to that proportion of the
number of Performance Shares as such Participant is entitled to under Section 3 for such
Performance Period that the number of full months of participation during the Performance
Period bears to the total number of months in the Performance Period. The form and timing
of the payment of such Performance Shares shall be as set forth in Article 7. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination
of employment for any reason other than Retirement, Disability, or death during the
Performance Period shall require forfeiture of this entire award, with no payment to the
Participant. </FONT></P>

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<A NAME=A013></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article 5. Change in
Control </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
anything herein to the contrary, upon a Change in Control, the Participant shall be
entitled to that proportion of the number of Performance Shares as such Participant is
entitled to under Section 3 for such Performance Period that the number of full months of
participation during the Performance Period (as of the effective date of the Change in
Control) bears to the total number of months in the Performance Period. When there is a
Change in Control, the TSR shall be calculated as set forth in Article 3, except that the
Ending Stock Price shall mean the average closing price on the applicable stock exchange
of one share of stock for the twenty (20) trading days immediately prior to the Change in
Control. Performance Shares shall be paid out to the Participant in cash within thirty
(30) days of the effective date of the Change in Control. </FONT></P>

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<A NAME=A014></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article 6. Dividends </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the Performance Period, all dividends and other distributions paid with respect to the
shares of Common Stock shall accrue for the benefit of the Participant to be paid out to
the Participant pursuant to Article 7. </FONT></P>

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<A NAME=A015></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article 7. Form and
Timing of Payment of Performance Shares </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment
of the Performance Shares, including accrued dividends, shall be made fifty percent (50%)
in cash and fifty percent (50%) in shares of Company stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment
of Performance Shares shall be made within sixty (60) calendar days following the close of
the Performance Period, subject to the following: </FONT></P>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    The Participant shall have no right with respect to any Award or a portion there
                    of, until such award shall be paid to such Participant. </FONT></P></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    If the Committee determines, in its sole discretion, that a Participant at any
                    time has willfully engaged in any activity that the Committee determines was or
                    is harmful to the Company, any unpaid pending Award will be forfeited by such
                    Participant. </FONT></P></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    All appropriate taxes will be withheld from the cash portion of the award. </FONT></P></TD>
                    </TR>
                    </TABLE>
                    <BR>



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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></P>
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<A NAME=A016></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article 8.
Nontransferability </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. Further,
except as otherwise provided in a Participant&#146;s Award Agreement, a Participant&#146;s
rights under the Plan shall be exercisable during the Participant&#146;s lifetime only by
the Participant or the Participant&#146;s legal representative. </FONT></P>

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<A NAME=A017></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article 9. Administration </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement and the rights of the Participant hereunder are subject to all the terms and
conditions of the Plan, as the same may be amended from time to time by the Board of
Directors, as well as to such rules and regulations as the Committee may adopt for
administration of the Plan. It is expressly understood that the Committee is authorized to
administer, construe, and make all determinations necessary or appropriate to the
administration of the Plan and this Agreement, in its sole discretion, all of which shall
be binding upon the Participant. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
inconsistency between the Agreement and the Plan shall be resolved in favor of the Plan. </FONT></P>

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<A NAME=A018></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article 10. Miscellaneous </FONT></H1>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The selection of any employee for participation in the Plan shall not give such
               Participant any right to be retained in the employ of the Company. The right and
               power of the Company to dismiss or discharge any Participant at-will, is
               specifically reserved. Such Participant or any person claiming under or through
               the Participant shall not have any right or interest in the Plan or any Award
               thereunder, unless and until all terms, conditions, and provisions of the Plan
               that affect such Participant have been complied with as specified herein. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               With the approval of the Board, the Committee may terminate, amend, or modify
               the Plan; provided, however, that no such termination, amendment, or
               modification of the Plan may in any way adversely affect the Participant&#146;s
               rights under this Agreement without the Participant&#146;s written consent. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Participant shall not have voting rights with respect to the Performance Shares.
               Participant shall obtain voting rights upon the settlement of Performance Shares
               and distribution into shares of common stock of the Company. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Participant may defer such Participant&#146;s receipt of the payment of cash
               and the delivery of shares of common stock, that would otherwise be due to such
               Participant by virtue of the satisfaction of the performance goals with respect
               to the Performance Shares, pursuant to the rules of the Black Hills Corporation
               Nonqualified Deferred Compensation Plan and the procedures set forth by the
               Compensation Committee. If the Participant elects to defer the receipt of the
               award, the Participant will be required to pay any necessary taxes from their
               own funds. They will not be allowed to have their deferred award reduced for tax
               withholding. </FONT></P></TD>
               </TR>
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               <BR>

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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               This Agreement 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. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>



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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               To the extent not preempted by federal law, this Agreement shall be governed by,
               and construed in accordance with, the laws of the State of South Dakota. </FONT></P></TD>
               </TR>
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               <BR>

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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Any awards received by Participant are subject to the provisions of the Stock
               Ownership Guidelines approved by the Board of Directors. </FONT></P></TD>
               </TR>
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               <BR>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of
 __________________. </FONT></P>



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<TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>
</TD>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Black
Hills Corporation </FONT>
</TD>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:
_______________________ </FONT>
</TD>
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<A NAME=A019></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ATTEST:<BR>
<BR>__________________________________ </FONT></P>



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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;___________________________<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participant  </FONT>
</TD>
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<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>7
<FILENAME>ex10-5sep3_8k.htm
<DESCRIPTION>INDEMNIFICATION AGREEMENT
<TEXT>
<HTML>
<HEAD><TITLE>Indemnification Agreement</TITLE></HEAD>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10.5  </FONT></P>

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<A NAME=A002></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>INDEMNIFICATION
AGREEMENT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Indemnification Agreement (&#147;Agreement&#148;), dated as of the ____ day of
_____________, _____, is entered into between Black Hills Corporation, a South Dakota
corporation (&#147;Black Hills&#148;), and _________________ (&#147;Agent&#148;), who is
serving as an officer or a director, or both, of Black Hills or a subsidiary of Black
Hills, or both, with reference to the following facts: </FONT></P>



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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
A.&nbsp;&nbsp;&nbsp;&nbsp;The
Agent is more willing to continue to serve as a director or officer of
                    Black Hills or any one or more of its subsidiaries or any number of
such                     positions provided that he is furnished the indemnity provided
under this                     Agreement; provided the Agent reserves the right to
terminate any of such                     positions or refuse to accept any new
positions.  </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
B.&nbsp;&nbsp;&nbsp;&nbsp;The
South Dakota corporation law (the &#147;SDCL&#148;) empowers Black Hills to
                    indemnify its directors, officers, employees and agents and to
indemnify persons                     who serve, at the request of Black Hills, as the
directors, officers, employees                     or agents of other corporations or
enterprises. The SDCL and the Bylaws of Black                     Hills both specifically
provide that the indemnification provided for therein is                     not
exclusive, and the Bylaws specifically authorize Black Hills to enter into
                    agreements with officers and directors providing indemnification
rights and                     procedures different from those set forth therein.  </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
C.&nbsp;&nbsp;&nbsp;&nbsp;Black
Hills has purchased Directors and Officers Liability Insurance                     (&#147;D&amp;O
Insurance&#148;) as shown in the schedule attached hereto as                     Appendix
A (the &#147;Coverage&#148;) insuring against certain litigation and
                    related expenses and liabilities which may be incurred by its
directors and                     officers and those of its subsidiaries in the
performance of their duties for                     Black Hills or its subsidiaries (when
&#147;subsidiaries&#148; is used herein it                     shall also mean
subsidiaries of subsidiaries). The Coverage attached as Appendix                     A
may have been issued subsequent to the date of this Agreement due to the fact
                    that the execution of the Agreement may have occurred following the
date of the                     Agreement. Notwithstanding, Appendix A shall be
considered the applicable                     Coverage as if the same had been attached
and executed on the date of the                     Agreement.  </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
D.&nbsp;&nbsp;&nbsp;&nbsp;Recent
developments with respect to the terms and availability of D&amp;O
                    Insurance and with respect to the application, amendment and
enforcement of                     statutory and bylaw indemnification provisions
generally have raised questions                     concerning the adequacy and
reliability of the protection afforded thereby.  </FONT></TD>
</TR>
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<BR>


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<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
E.&nbsp;&nbsp;&nbsp;&nbsp;Black
Hills desires that the Agent remain free in his service as a director or
                    officer, or both, of Black Hills or one or more of its subsidiaries
to exercise                     his best judgment in the performance of his duties
without undue concern for                     litigation claims for damages arising out
of or related to the performance of                     such duties.  </FONT></TD>
</TR>
</TABLE>
<BR>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in order to induce the Agent to continue to serve as a Director or officer of
Black Hills or one or more of its subsidiaries or any number of such positions and in
consideration of his continued service after the date hereof, Black Hills and the Agent
agree as follows: </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Actions,
Suits or Proceedings Other Than By or In the Right of Black                     Hills</U>.
Black Hills shall indemnify the Agent against all liabilities, costs,
                    charges, expenses (including, without limitation, attorneys&#146; fees
and                     related disbursements), judgments, fines and amounts paid in
settlement actually                     and reasonably incurred by him or on his behalf
in connection with the                     investigation, defense or settlement of any
threatened, pending or completed                     action, suit or proceeding, whether
civil, criminal, administrative or                     investigative (other than an
action by or in the right of Black Hills covered by <U>Section 2</U> of this Agreement)
and any appeal therefrom to which the Agent                     was or is a party or is
threatened to be made a party by reason of the fact that                     he is or was
or has agreed to become a director or officer of Black Hills or of
                    one or more of its subsidiaries or in any capacity with respect to
any employee                     compensation or benefit plan of Black Hills or any of
its subsidiaries or by                     reason of any action alleged to have been
taken or omitted in any such capacity,                     if he acted in good faith and
in a manner he reasonably believed to be within                     the scope of his
authority and in, or not opposed to, the best interests of                     Black
Hills and, if applicable, such subsidiary, and, with respect to any
                    criminal action or proceeding, had no reasonable cause to believe
that his                     conduct was unlawful.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<U>Actions
or Suits By or In the Right of Black Hills</U>. Black Hills shall
                    indemnify the Agent against all costs, charges and expenses
(including, without                     limitation, attorneys&#146; fees and related
disbursements) actually and                     reasonably incurred by him or on his
behalf in connection with the                     investigation, defense or settlement of
any threatened, pending or completed                     action or suit by or in the
right of Black Hills to procure a judgment in its                     favor and any
appeal therefrom, to which the Agent was or is a party or is
                    threatened to be made a party by reason of the fact that he is or was
or has                     agreed to become a director or officer of Black Hills or one
or more of its                     subsidiaries or in any capacity with respect to any
employee compensation or                     benefit plans of Black Hills or any of its
subsidiaries or by reason of any                     action alleged to have been taken or
omitted in any such capacity if he acted in                     good faith and in a
manner he reasonably believed to be within the scope of his                     authority
and in, or not opposed to, the best interests of Black Hills, and if
                    applicable, such subsidiary, except that no indemnification shall be
made in                     respect of any claim, issue or matter as to which such person
shall have been                     adjudged to be liable to Black Hills unless and only
to the extent that the                     Courts of South Dakota or the court in which
such action or suit was brought                     shall determine upon application
that, despite the adjudication of such                     liability but in view of all
the circumstances of the case, the Agent is fairly                     and reasonably
entitled to indemnity for such costs, charges and expenses which                     the
Court or such other court shall deem proper.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification
for Costs, Charges and Expenses of Successful Party</U>.
                    Notwithstanding any other provision of this Agreement, to the extent
that the                     Agent has been successful, on the merits or otherwise,
including, without                     limitation, the dismissal of an action without
prejudice, in defense of any                     action, suit or proceeding referred to
in <U>Sections 1 or 2</U> of this                     Agreement, or in defense of any
claim, issue or matter therein, he shall be                     indemnified against all
costs, charges and expenses (including attorneys&#146;                    fees) actually
and reasonably incurred by him or on his behalf in connection
                    therewith.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<U>Determination
of Right to Indemnification</U>. Any indemnification under <U>Sections 1 or 2</U> of this
Agreement (unless ordered by a court) shall be                     paid by Black Hills
unless a determination is made (i) by the board of directors                     of Black
Hills by a majority vote of the directors who were not parties to such
                    action, suit or proceeding, or if such majority of disinterested
directors so                     directs, (ii) by independent legal counsel in a written
opinion, or (iii) by the                     shareholders, that indemnification of the
Agent is not proper in the                     circumstances because he has not met the
applicable standard of conduct set                     forth in <U>Sections 1 or 2</U> of
this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination
of Actions, Suits or Proceedings</U>. For purposes of                     determining
whether the Agent has met the applicable standard of conduct set
                    forth in <U>Sections 1 or 2</U> of this Agreement, the termination of
any                     action, suit or proceeding by judgment, order, settlement,
conviction, or upon a                     plea of nolo contendere or its equivalent,
shall not, of itself, create any                     presumption that the Agent did not
act in good faith and in a manner which he                     reasonably believed to be
within the scope of his authority and in, or not                     opposed to, the best
interests of, Black Hills and if applicable, any                     subsidiary, and,
with respect to any criminal action or proceeding, had                     reasonable
cause to believe that his conduct was unlawful.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<U>Advance
of Costs. Charges and Expenses</U>. Costs, charges and expenses
                    (including, without limitation, attorneys&#146; fees and related
disbursements)                     incurred by the Agent in defending a civil or criminal
action, suit or                     proceeding shall be paid by Black Hills in advance of
the final disposition of                     such action, suit or proceeding; provided,
however, that the Agent agrees that                     the Agent will repay all amounts
so advanced in the event that it shall                     ultimately be determined by
final judicial decision from which there is no                     further right of
appeal that the Agent is not entitled to be indemnified by                     Black
Hills for such costs, charges and expenses as authorized in this
                    Agreement.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<U>Procedure
of Indemnification</U>. Any indemnification under <U>Sections 1,                     2,
or 3</U> of this Agreement, or advance of costs, charges and expenses under <U>Section 6</U> of
this Agreement shall be made promptly upon, and in any event                     within
60 days after, the written request of the Agent therefor. The right to
                    indemnification or advances granted by this Agreement shall
enforceable by the                     Agent in any court of competent jurisdiction if
Black Hills denies such request,                     in whole or in part, or if no
disposition thereof is made within 60 days. It                     shall be a defense to
any such action (other than an action brought to enforce a                     claim for
the advance of costs, charges and expenses under <U>Section 6</U> of
                    this Agreement where the required undertaking, if any, has been
received by                     Black Hills) that the claimant has not met the standard
of conduct set forth in <U>Sections 1 and 2</U> of this Agreement, but the burden of
provingsuch defense                     shall be on Black Hills. Neither the failure of
Black Hills (including its board                     of directors, its independent legal
counsel and its shareholders) to have made a                     determination prior to
the commencement of such action that indemnification of                     the Agent is
proper in the circumstances because he has met the applicable
                    standard of conduct set forth in <U>Sections 1 or 2</U> of this
Agreement, nor                     the fact that there has been an actual determination
by Black Hills (including                     its board of directors, its independent
legal counsel and its shareholders) that                     the Agent has not met such
applicable standard of conduct, shall be a defense to                     the action or
create any presumption that the Agent has not met the applicable
                    standard of conduct.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;<U>Settlement</U>.
Black Hills shall not be obligated to reimburse the costs of                     any
settlement to which it has not agreed. If any action, suit or proceeding,
                    including any appeal, within the scope of <U>Sections 1 or 2</U> of
this                     Agreement, the Agent shall have unreasonably failed to enter
into a settlement                     thereof offered or assented to by the opposing
party or parties in such action,                     suit or proceeding, then
notwithstanding any other provision hereof, the                     indemnification
obligation of Black Hills to the Agent in connection with such
                    action, suit or proceeding shall not exceed the total of the amount
at which                     such offered or agreed upon settlement could have been made
and the expenses                     incurred by the Agent prior to the time such
settlement could reasonably have                     been effected.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;
 <U>Maintenance of Insurance </U></FONT></P>



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(a)&nbsp;&nbsp;Subject only to the provisions of <U>Section 9(b)</U> of this Agreement,
Black                     Hills hereby agrees that, so long as the Agent shall continue
to serve as a                     director or officer of Black Hills or one or more of
its subsidiaries and                     thereafter so long as the Agent shall be subject
to any possible claim or any                     threatened, pending or completed action,
suit or proceeding, whether civil,                     criminal or investigative, by
reason of the fact that he is or was or has agreed                     to become a
director or officer of Black Hills or one or more of its                     subsidiaries
or in any capacity with respect to any employee compensation or
                    benefit plans of Black Hills or any of its subsidiaries, Black Hills
will                     purchase and maintain in effect for the benefit of the Agent one
or more valid,                     binding and enforceable policies of D&amp;O Insurance
providing, in all                     respects, coverage at least comparable to that
provided by the Coverage.  </FONT></TD>
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(b)&nbsp;&nbsp;Black Hills shall not be required to maintain any policies of D&amp;O
Insurance                     described in <U>Section 9(a)</U> of this Agreement in
effect if, in the                     reasonable business judgment of the directors of
Black Hills (i) such insurance                     is not reasonably available, or (ii)
the premium cost for such insurance is                     substantially disproportionate
to the amount of coverage provided, or (iii) the                     coverage provided by
such insurance is so limited by exclusions that there would                     be
insufficient benefit from such insurance.  </FONT></TD>
</TR>
</TABLE>
<BR>

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(c)&nbsp;&nbsp;Notwithstanding any other provision of this Agreement, in the event
Black Hills                     does not purchase and maintain in effect a policy or
policies of D&amp;O                     Insurance meeting the requirements specified in
<U>Section 9(a)</U> of this                     Agreement, whether for reasons of
availability, cost or otherwise, Black Hills                     agrees to hold harmless
and indemnify the Agent to the full extent of the                     coverage that would
otherwise have been provided for the benefit of the Agent                     pursuant to
the Coverage. The obligation of Black Hills to indemnify set forth                     in
this <U>Section 9(c)</U> is in addition to and not in limitation of those
                    other obligations to indemnify which are set forth in <U>Sections 1,
2, 3</U>                    and elsewhere in this Agreement.  </FONT></TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;<U>Subsequent
Amendment</U>. No amendment, termination or repeal of Article V                     of
Black Hills&#146; Bylaws, or any successor Bylaws thereto, or of any relevant
                    provisions of the SDCL or any other applicable laws shall affect or
diminish in                     any way the rights of the Agent to indemnification or the
obligation of Black                     Hills arising under this Agreement whether the
alleged actions or conduct giving                     rise to the necessity of such
indemnification arose before or after any such                     amendment, termination
or appeal.  </FONT></P>


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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6</FONT></P>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;<U>Other
Rights: Continuation of Right to Indemnification</U>. The
                    indemnification provided by this Agreement shall not be deemed
exclusive of, or                     to diminish or otherwise restrict, any other rights
to which the Agent may be                     entitled under any law (common or
statutory), provision of Black Hills&#146;                    Bylaws or Restated Articles
of Incorporation, agreement, vote of shareholders or                     disinterested
directors or otherwise, both as to action in his official capacity
                    and as to action in any other capacity while holding office or while
employed by                     or acting as agent for Black Hills or any of its
subsidiaries or in any capacity                     with respect to any employee
compensation or benefit plans of Black Hills or any                     of its
subsidiaries, and shall continue as to the Agent after he has ceased to
                    be a director of Black Hills or any of its subsidiaries and to act in
any of the                     foregoing capacities.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;<U>Notification
and Defense of Claim</U>. Promptly after receipt by the Agent                     of
notice of the commencement of any action, suit or proceeding, the Agent will,
                    if a claim in respect thereof is to be made against Black Hills under
this                     Agreement, notify Black Hills of the commencement thereof. With
respect to any                     such action, suit or proceeding.  </FONT></P>



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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(a)&nbsp;&nbsp;Black Hills will be entitled to participate therein at its own expense; and  </FONT></TD>
</TR>
</TABLE>
<BR>




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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(b)&nbsp;&nbsp;Except as otherwise provided below, to the extent that it may wish,
Black Hills                     will be entitled to assume the defense thereof, with
counsel reasonably                     acceptable to the Agent. After notice from Black
Hills to the Agent of its                     election so to assume such defense, Black
Hills shall not be liable to the Agent                     under this Agreement for any
legal or other expenses subsequently incurred by                     the Agent in
connection with such action, suit or proceeding, other than
                    reasonable costs of investigation or as otherwise provided below. The
Agent                     shall have the right to employ his own counsel in such action,
suit or                     proceeding but the fees and expenses of such counsel incurred
after notice from                     Black Hills of its assumption of the defense
thereof shall be at the expense of                     the Agent unless (i) the
employment of counsel by the Agent has been authorized                     by Black
Hills, (ii) the Agent shall have reasonably concluded that there may be
                    a conflict of interest or position between Black Hills and the Agent
in the                     conduct of the defense of such action or (iii) Black Hills
does not in fact have                     employed counsel to assume the defense of such
action, in each of which cases                     the fees and expenses of counsel for
the Agent shall be at the expense of Black                     Hills. Black Hills shall
not be entitled to assume the defense of any action,                     suit or
proceeding brought by or on behalf of Black Hills or as to which the
                    Agent shall have made the conclusion provided for in ii above.  </FONT></TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;<U>Other
Payments</U>. Black Hills shall not be liable to make any payment
                    under this Agreement for any liabilities, costs, charges, expenses,
                    attorneys&#146; fees or disbursements for which payment is actually
made to the                     Agent under any valid and collectible Coverage, or for
which the Agent is                     indemnified by Black Hills or one or more of its
subsidiaries otherwise than                     pursuant to this Agreement.  </FONT></P>

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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7</FONT></P>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;
                     <U>Savings Clause</U>. Each of the provisions of this Agreement is a separate
                    and distinct agreement and independent of the others. If this Agreement or any
                    portion hereof shall be invalidated on any ground by any court of competent
                    jurisdiction, then Black Hills shall nevertheless indemnify the Agent as to any
                    liabilities, costs, charges, expenses (including, without limitation,
                    attorneys&#146; fees and related disbursements), judgments, fines and amounts
                    paid in settlement with respect to any action, suit or proceeding, whether
                    civil, criminal, administrative or investigative, including an action by or in
                    the right of Black Hills, to the full extent permitted by any applicable portion
                    of this Agreement that shall not have been invalidated and to the full extent
                    permitted by applicable law. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;<U>Subsequent
Legislation</U>. If the SDCL is amended after the date of this
                    Agreement to further expand the indemnification permitted to the
Agent, then                     Black Hills shall indemnify such Agent to the fullest
extent permitted by the                     SDCL, as so amended.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;<U>Enforcement</U>.  </FONT></P>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(a)&nbsp;&nbsp;Black Hills expressly confirms and agrees that it has entered into this
                    Agreement and assumed the obligations imposed on Black Hills hereby
in order to                     induce the Agent to continue as a director or officer of
Black Hills or one or                     more of its subsidiaries, and acknowledges that
the Agent is relying upon this                     Agreement in continuing in such
capacity.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(b)&nbsp;&nbsp;Black Hills shall reimburse the Agent for all of the Agent&#146;s costs and
                    expenses incurred in connection with successfully establishing his
right to                     indemnification under this agreement, in whole or in part.  </FONT></TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;<U>Not
an Agreement to Elect or Appoint</U>. This Agreement does not constitute
                    any agreement to reelect a director, to continue any officer in
office for any                     period of time or an agreement of the Agent to
continue any position for any                     length of time or accept any new
position.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law</U>. This Agreement shall be governed by and construed in
                    accordance with South Dakota law.  </FONT></P>


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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8</FONT></P>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;<U>Binding
Effect</U>. This Agreement shall be binding upon the Agent and upon
                    Black Hills, its successors and assigns (including any transferee of
all or                     substantially all of its assets and any successor by merger or
operation of law)                     and shall inure to the benefit of the Agent, his
heirs, personal                     representatives, estate and assigns.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment
and Termination</U>. No amendment, modification, termination or
                    cancellation of this Agreement shall be effective unless in writing
signed by                     both parties hereto.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;&nbsp;&nbsp;&nbsp;<U>Third
Party Benefit</U>. Nothing in this Agreement, whether express or
                    implied, is intended to confer any rights or remedies under or by
reason of this                     Agreement on any person other than parties to this
Agreement and their                     respective heirs, personal representatives,
successors and assigns.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;&nbsp;&nbsp;&nbsp;<U>Effective
Date</U>. The effective date of this Agreement is the date set                     forth
in the first paragraph hereof, notwithstanding that the execution of the
                    Agreement may have occurred after the effective date.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
signed as of the day and year first above written. </FONT></P>


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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BLACK
HILLS CORPORATION </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:______________________________________
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer </FONT>
</TD>
</TR>
</TABLE>
<BR>



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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agent </FONT>
</TD>
</TR>
</TABLE>
<BR>



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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9</FONT></P>
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