Document:

Deferred Compensation Plan for Directors and Executives

 Exhibit 10.1 
  
 NORTHWEST NATURAL GAS COMPANY 
  

DEFERRED COMPENSATION PLAN FOR DIRECTORS AND EXECUTIVES 
  

EFFECTIVE JANUARY 1, 2005 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

			
	 1.
	  	Purpose; Effective Date	  	1
			
	 2.
	  	Eligibility	  	1
			
	 3.
	  	Deferral Elections	  	1
			
	 4.
	  	Matching Contributions for Executives	  	3
			
	 5.
	  	FICA Withholding on Executives	  	3
			
	 6.
	  	Accounts	  	3
			
	 7.
	  	Payment of Benefits	  	6
			
	 8.
	  	Supplemental Retirement Benefit	  	8
			
	 9.
	  	Administration	  	9
			
	 10.
	  	Claims Procedure	  	10
			
	 11.
	  	Amendment and Termination of the Plan	  	10
			
	 12.
	  	Miscellaneous	  	11

 NORTHWEST NATURAL GAS COMPANY 
  
 DEFERRED COMPENSATION PLAN FOR DIRECTORS AND EXECUTIVES 
  
 1. Purpose; Effective Date. The Board of Directors (the “Board”) of Northwest Natural Gas Company (the
“Company”) adopts this Deferred Compensation Plan for Directors and Executives (the “Plan”) for the purpose of providing an unfunded nonqualified deferred compensation plan for directors and a select group of top management
personnel. The Plan is effective as of January 1, 2005, although initial deferral elections under the Plan may be submitted at any time after November 30, 2004. 
  

2. Eligibility. Persons eligible to defer compensation under the Plan shall consist of (a) all directors of the Company (“Directors”),
and (b) a select group of management or highly compensated employees of the Company, which shall consist of all executive officers of the Company and such other employees of the Company as may be designated in writing by the Chief Executive Officer
of the Company as eligible to defer compensation under the Plan for the applicable calendar year (“Executives”). Any person who is both a Director and an Executive at any time shall be considered an Executive, and not a Director, at such
time. For all purposes of this Plan, a person who is an employee of a subsidiary of the Company shall be considered an employee of the Company. 
  
 3. Deferral Elections. A Director or Executive may elect to defer compensation under the Plan by submitting a “Participation Agreement”
to the Company on a form specified by the Company no later than the applicable deferral deadline. The minimum annual aggregate deferral for all forms of compensation specified in a Participation Agreement shall be $2,000. Any Director or Executive
who has submitted a Participation Agreement is hereafter referred to as a “Participant.” A Participation Agreement submitted by a Participant shall automatically continue from year to year and shall be irrevocable with respect to
compensation once the deferral deadline for that compensation has passed, but the Participant may modify or terminate a Participation Agreement for compensation payable in any year by submitting a revised Participation Agreement or otherwise giving
written notice to the Company at any time on or prior to the deferral deadline for that compensation. 
  
 (a) Elections by Directors. 
  
 (i) Fees. A Director may elect to defer receipt of all or any whole percentage of the annual retainer, meeting fees and any other cash fees
payable for service as a director (“Fees”). The deferral deadline for an election to defer Fees for services performed in any calendar year shall be the last day of the prior calendar year. 
  
 (ii) NEDSCP Shares. A Director may elect to defer receipt of all or
any whole percentage of the unvested shares (“NEDSCP Shares”) of common stock of the Company (“Common Stock”) awarded to the Director under the Company’s Non-Employee Directors Stock Compensation Plan (“NEDSCP”).
The deferral deadline for an election to defer NEDSCP Shares scheduled to vest in any calendar year shall be the last day of the prior calendar year, except that the deferral deadline for an election to defer NEDSCP Shares scheduled to vest

  

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 on January 1 in any calendar year shall be the last day of the second preceding calendar year. No deferral shall be
allowed of NEDSCP Shares as to which a Director has made an election under Section 83(b) of the Internal Revenue Code. 
  
 (b) Elections by Executives. 
  
 (i) Salary. An Executive may elect to defer receipt of any whole percentage (up to a maximum of 50 percent) of the Executive’s base annual
salary, specifically excluding other forms of compensation referred to below as well as commissions and any non-cash compensation (“Salary”). The deferral deadline for an election to defer Salary for services performed in any calendar year
shall be the last day of the prior calendar year. 
  
 (ii)
Bonus. An Executive may elect to defer receipt of all or any whole percentage of the Executive’s annual bonus payable under the Company’s Executive Annual Incentive Plan or other similar annual incentive plan (“Bonus”).
Payments under the Key Goals program shall not be considered Bonus and shall not be eligible for deferral under the Plan. The deferral deadline for an election to defer Bonus earned with respect to the Executive’s or the Company’s
performance in any calendar year shall be the last day of the prior calendar year. Notwithstanding the foregoing, the deferral deadline for an election to defer Bonus earned with respect to the Executive’s or the Company’s performance in
2004 shall be the last day of 2004; provided, however, that any deferral of 2004 Bonus under this sentence shall be void if the Internal Revenue Service does not issue regulations or other guidance pursuant to which such deferral shall not be
considered to violate the deferral election timing rule of Section 409A(a)(4)(B)(i) of the Internal Revenue Code. 
  
 (iii) LTIP Compensation. An Executive may elect to defer receipt of all or any whole percentage of compensation payable to the Executive pursuant
to an award under the Company’s Long Term Incentive Plan (“LTIP Compensation”). The deferral deadline for an election to defer any portion of an award of LTIP Compensation that becomes payable or vests based solely on continued
service to the Company (“Time-Based Award”) shall be the last day of the calendar year prior to the commencement of the Vesting Period for such portion of the Time-Based Award. The “Vesting Period” for any portion of a Time-Based
Award is the period during which services are performed to earn that portion of the award, and shall commence on the later of the grant date of the award or the day after the last date on which any prior portion of the same award became payable or
vested. The deferral deadline for an election to defer LTIP Compensation that becomes payable or vests based on satisfaction of performance conditions over a performance period shall be the last day of the calendar year prior to the last year of the
performance period. 
  
 (c) New Directors and
Executives. A person who first becomes a Director or Executive during a calendar year may elect to defer any of the types of compensation referred to in paragraphs (a) and (b) above that is payable solely for services performed during the
remainder of the calendar year after submission of the Participation Agreement, subject to all of the provisions of paragraphs (a) and (b), except that the deferral deadline for any such election shall be 30 days after the date the person becomes
eligible under the Plan. 
  

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 4. Matching Contributions for Executives. The Company shall credit a “Matching
Contribution” to an Executive’s Cash Account (as defined below) each year based on the amount of Salary and Bonus deferred under the Plan by the Executive during that year; provided, however, that no Matching Contribution shall be made
with respect to any Salary or Bonus deferred under the Plan at a time when the Executive is not a participant in the Company’s Retirement K Savings Plan. The amount of the Matching Contribution shall be equal to the excess of (a) the lesser of
(i) sixty percent (60%) of the Executive’s Salary and Bonus deferred during the calendar year, or (ii) three and six-tenths percent (3.6%) of the Executive’s total Salary and Bonus during such calendar year, over (b) the amount the Company
would have contributed for such calendar year as a matching contribution for the Executive under the Retirement K Savings Plan if the Executive had deferred into the Retirement K Savings Plan the maximum amount of compensation permitted under that
plan and applicable tax law for the year. Matching Contributions shall be credited to the Executive’s Account no later than January 31 of the year immediately following the calendar year in which the Matching Contribution was earned.

  
 5. FICA Withholding on Executives. Under current law,
all compensation and Matching Contributions credited to an Executive’s Accounts will be treated as wages subject to FICA tax, and the Company will be required to withhold FICA tax from the Executive. The amount required to be withheld for FICA
tax with respect to any amount of deferred compensation or related Matching Contribution shall be withheld from the non-deferred portion, if any, of the same compensation; provided, however, that if the non-deferred portion of the compensation is
insufficient to cover the full required withholding, the Company shall withhold the remaining amount from other non-deferred compensation payable to the Executive unless the Executive otherwise pays such remaining amount to the Company. 

 
 6. Accounts. 
  
 (a) Accounts. The Company shall establish on its books one or two
separate accounts (individually, an “Account” and collectively, the “Accounts”) for each Participant: a Company Stock Account, which shall be denominated in shares of Common Stock, including fractional shares, and a Cash Account,
which shall be denominated in U.S. dollars. 
  
 (b) Allocation
of Deferrals Among Accounts. The number of NEDSCP Shares deferred by a Director shall be credited to the Company Stock Account. Any LTIP Compensation payable in shares of Common Stock that is deferred by an Executive may be credited to the
Company Stock Account or the Cash Account, as elected by the Executive. All other compensation deferred by a Participant shall be credited to the Cash Account. To the extent a choice is permitted, Participants may elect to have deferrals credited
among Accounts in increments of one percent. This election shall be made in each Participant’s Participation Agreement, and may be modified by the Participant from time to time subject to such rules and conditions as may be approved by the
Committee. 
  
 (c) Crediting of Deferrals. The credits for
deferred Salary, Bonus and Fees shall be entered on the Company’s books of account at the time that such compensation would otherwise be paid. The credit for deferred NEDSCP Shares shall be entered on the Company’s books of account as soon
as practicable after January 1 of the first year in which such deferral is irrevocable. The credit for deferred LTIP Compensation shall be entered on the Company’s books of account at the time that such compensation would otherwise be paid or
vested. 
  

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 (d) Transfers Among Accounts. Subject to such rules and conditions as may be approved by the
Committee, Participants may elect to transfer amounts previously credited to the Cash Account to the Company Stock Account. No transfers may be made out of a Company Stock Account unless otherwise permitted under Section 6(i)(iv). The Committee may
require that designated fees be deducted from amounts transferred to or from Company Stock Accounts. 
  
 (e) Valuation of Stock; Dividend Credits. Any dollar amount transferred or credited to a Company Stock Account shall be deemed to increase the
number of shares of Common Stock recorded as the balance of that Account based on the closing market price of the Common Stock reported for the day of the transfer or credit or, if such day is not a trading day, the next trading day. The same
closing market price shall be used to value any LTIP Compensation payable in shares of Common Stock that is deferred to the Cash Account. As of each date for payment of dividends on the Common Stock, each Company Stock Account shall be credited with
the amount of dividends that would be paid on the number of shares recorded as the balance of that Account as of the record date for such dividend. 
  
 (f) Cash Account Interest. Interest shall be credited to the Cash Account of each Participant as of the last day of each calendar quarter. The rate
of interest to be applied at the end of each calendar quarter shall be the quarterly equivalent of an annual yield that is two percentage points (2%) higher than the annual yield on Moody’s Average Corporate Bond Yield for the preceding
quarter, as published by the Moody’s Investors Service, Inc. (or any successor thereto), or if such index is no longer published, a substantially similar index selected by the Board. At no time shall the interest rate be less than six percent
(6%) annually. Interest shall be calculated for each calendar quarter based upon the average daily balance of the Participant’s Cash Account during the quarter. 
  
 (g) Forfeitures. If any NEDSCP Shares deferred by a Director under this Plan are forfeited under the terms of the
NEDSCP, the Director’s Company Stock Account shall be reduced by the number of shares so forfeited. 
  
 (h) Statement of Account. At the end of each calendar quarter, a report shall be issued by the Company to each Participant setting forth the
balances of the Participant’s Accounts under the Plan. 
  
 (i) Effect of Corporate Transaction on Company Stock Accounts. At the time of consummation of a Corporate Transaction (as defined below), if any, the amount credited to a Participant’s Company Stock Account shall be converted
into a credit for cash or common stock of the acquiring company (“Acquiror Stock”) based on the consideration received by shareholders of the Company in the Corporate Transaction, as follows: 
  
 (i) Stock Transaction. If holders of Common Stock receive Acquiror
Stock in the Corporate Transaction, then (1) the amount credited to each Participant’s Company Stock Account shall be converted into a credit for the number of shares of Acquiror Stock that the Participant would have received as a result of the
Corporate Transaction if the Participant had 
  

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 actually held the Common Stock credited to his or her Company Stock Account immediately prior to the consummation of the
Corporate Transaction, and (2) Company Stock Accounts will thereafter be denominated in shares of Acquiror Stock and ongoing deferrals of NEDSCP Shares, if any, shall continue to be made in accordance with outstanding deferral elections into the
Company Stock Accounts as so denominated. 
  
 (ii) Cash or
Other Property Transaction. If holders of Common Stock receive cash or other property in the Corporate Transaction, then the amount credited to a Participant’s Company Stock Account shall be transferred to the Participant’s Cash
Account and converted into a cash credit for the amount of cash or the value of the property that the Participant would have received as a result of the Corporate Transaction if the Participant had actually held the Common Stock credited to his or
her Company Stock Account immediately prior to the consummation of the Corporate Transaction. 
  
 (iii) Combination Transaction. If holders of Common Stock receive Acquiror Stock and cash or other property in the Corporate Transaction, then (1) the amount credited to each Participant’s Company Stock
Account shall be converted in part into a credit for Acquiror Stock under Section 6(i)(i) and in part into a credit for cash under Section 6(i)(ii) in the same proportion as such consideration is received by shareholders, and (2) ongoing deferrals
of NEDSCP Shares, if any, shall continue to be made in accordance with outstanding deferral elections into Company Stock Accounts in accordance with Section 6(i)(i). 
  
 (iv) Election Following Stock Transaction. For a period of 12 months following the consummation of any Corporate
Transaction which results in Participants having Company Stock Accounts denominated in Acquiror Stock, each Participant shall have a one-time right to elect to transfer the entire amount in the Participant’s Company Stock Account into the
Participant’s Cash Account. Such election shall be made by written notice to the Company and shall be effective on the date received by the Company. If such an election is made, the amount of cash to be credited to the Participant’s Cash
Account shall be determined by multiplying the number of shares of Acquiror Stock in the Participant’s Company Stock Account by the closing market price of the Acquiror Stock reported for the effective date of the election or, if such day is
not a trading day, the next trading day. 
  
 (v) For purposes of
this Plan, a “Corporate Transaction” shall mean any of the following: 
  
 (1) any consolidation, merger or plan of share exchange involving the Company (a “Merger”) pursuant to which shares of Common Stock would be converted into cash, securities or other property; 
  
 (2) any sale, lease, exchange or other transfer (in one transaction or a
series of related transactions) of all, or substantially all, the assets of the Company; or 
  
 (3) the adoption of any plan or proposal for the liquidation or dissolution of the Company. 
  

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 7. Payment of Benefits. 
  
 (a) Plan Benefits. The Company shall pay Plan benefits to each Participant equal to the Participant’s Accounts.
Each Participation Agreement shall include an election by the Participant as to the term of benefit payments with respect to amounts deferred under the Participation Agreement, and Participation Agreements from Executives shall also include an
election as to the commencement of benefit payments. Except as otherwise provided in this Section 7, such elections shall be irrevocable with respect to compensation once the deferral deadline for that compensation has passed. Participants may make
different payment elections with respect to subsequent deferrals of compensation, but no Participant may at any time have compensation deferred under the Plan payable under more than three different payment elections. 
  
 (b) Commencement of Payments. Payment of benefits to Executives from
their Accounts shall commence in the later of (i) January of the year following termination of employment with the Company, or (ii) the seventh month following the month of termination of employment with the Company; provided, however, that
Executives may elect in their Participation Agreements to have benefits from their Accounts commence in January of a year specified by the Executive if such year is earlier than the year following termination of employment. Benefits for Directors
shall commence in January of the year following the year in which service as a Director of the Company ceases. 
  
 (c) Term of Payments. Participants may elect in their Participation Agreements to have benefits from their Accounts paid in (i) annual installments
over 5, 10 or 15 years, (ii) a single lump sum payment, or (iii) a combination of a partial lump sum payment (expressed as a percentage) and the remainder in installments over 5, 10 or 15 years. 
  
 (d) Form of Payments. Benefits payable to a Participant from a Company
Stock Account shall be paid as a distribution of Common Stock plus cash for fractional shares. Benefits payable to a Participant from a Cash Account shall be paid in cash. 
  
 (e) Payment Timing and Valuation. All lump sum payments or installment payments due under the Plan in any year shall
be paid on a date in January determined by the Company, except that if Section 7(b) requires benefits to commence in a month other than January, the initial payment shall be paid on a date in that month determined by the Company. All payments shall
be based on Account balances as of the close of business on the last trading day of the immediately preceding month. Each partial lump sum payment and installment payment to a Participant shall be paid in the same proportion from each of the
Accounts of the Participant subject to the applicable payment election. The amount of each installment payment from each Account shall be determined by dividing the Account balance by the number of remaining installments, including the current
installment to be paid. 
  
 (f) Modification of Payment
Elections. 
  
 (i) An Executive who has elected to have any
benefit commence in a specified year prior to termination of employment as permitted in Section 7(b) may elect (after such election has otherwise become irrevocable) to specify a later year for commencement of 
  

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 such benefit, provided (1) such election is made in writing delivered to the Company no later than the last day of the
second year preceding the previously specified year, and (2) the later year so specified is at least 5 years later than the previously specified year. 
  
 (ii) After a Participant’s election under Section 7(c) regarding the term of any benefit payments has otherwise become irrevocable, the Participant
may elect to change such term of payments, provided (1) no such change may increase the percentage of benefits to be paid in a full or partial lump sum payment or shorten the installment period, and (2) no such change shall be effective to delay any
payment unless the change election is made in writing delivered to the Company no later than the last day of the second year preceding the year in which the payment otherwise would be made. 
  
 (g) Unforeseeable Emergency. Notwithstanding the foregoing provisions
of this Section 7, an accelerated payment from a Participant’s Accounts may be made to the Participant in the sole discretion of the Committee based upon a finding that the Participant has suffered an Unforeseeable Emergency. For this purpose,
“Unforeseeable Emergency” means a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, loss of the Participant’s property due to
casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. Unforeseeable Emergency shall be determined by the Committee on the basis of information supplied by the
Participant in accordance with uniform guidelines promulgated from time to time by the Committee. The amount of any accelerated payment under this Section 7(g) shall be limited to the amount reasonably necessary to meet the Participant’s needs
resulting from the Unforeseeable Emergency, after taking into account insurance and other potential sources of funds to meet such needs, plus the amount reasonably necessary to cover income and withholding taxes on the accelerated payment. Any such
accelerated payment shall be paid as promptly as practicable following approval by the Committee and shall be paid pro-rata from the Participant’s Accounts based on the account balances as of the close of business on the day prior to the
payment date. 
  
 (h) Designation of Beneficiaries; Death.

  
 (i) Each Participant shall have the right, at any time, to
designate any person or persons as the Participant’s beneficiary or beneficiaries (both primary as well as secondary) to whom benefits under this Plan shall be paid in the event of the Participant’s death prior to complete distribution of
the benefits due under the Plan. If greater than fifty percent (50%) of the benefit is designated to a beneficiary other than the Participant’s spouse, such beneficiary designation shall be consented to by the Participant’s spouse. Each
beneficiary designation shall be in written form prescribed by the Company and will be effective only if filed with the Company during the Participant’s lifetime. Such designation may be changed by the Participant at any time without the
consent of a beneficiary, subject to the spousal consent requirement above. If no designated beneficiary survives the Participant, the balance of the Participant’s benefits shall be paid to the Participant’s surviving spouse or, if no
spouse survives, to the Participant’s estate. 
  
 (ii) Upon
the death of a Participant, any benefits payable to a surviving spouse as beneficiary shall be paid in accordance with the payment elections for such benefits 
  

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 that would have applied if the Participant had not died, and any benefits payable to any other beneficiary (including a
secondary beneficiary following the death of a surviving spouse) shall be paid in a single lump sum payment in January of the year following death. 
  
 (i) Payment to Guardian. If a benefit under the Plan is payable to a minor or a person declared incompetent or to a person incapable of handling
the disposition of his property, the Committee may direct payment of such Plan benefit to the guardian, legal representative or person responsible for the care and custody of such minor, incompetent or person. The Committee may require proof of
incompetence, minority, incapacity or guardianship as it may deem appropriate prior to distribution of the Plan benefit. Such distribution shall completely discharge the Committee and the Company from all liability with respect to such benefit.

  
 (j) Withholding; Payroll Taxes. The Company shall
withhold from payments made hereunder any taxes required to be withheld from such payments under federal, state or local law. 
  
 8. Supplemental Retirement Benefit. Any Executive who elects to defer compensation under this Plan and who also satisfies the eligibility
requirements for payment of any benefit under the Company’s Retirement Plan for Non-Bargaining Unit Employees (the “Retirement Plan”) shall qualify for further payment by the Company of supplemental retirement benefits payable as an
annuity under this Plan, as provided below: 
  
 (a)
Amount. The amount payable by the Company each month during the time an annuity benefit is payable to the Executive or Executive’s beneficiaries under the Retirement Plan shall be: 
  
 (i) The amount that would be payable at such time under the Retirement Plan
determined under Section 8(c) by treating all accrued benefits under the Retirement Plan as being payable only in the annuity form and by treating all Salary and Bonus deferred by the Executive under this Plan and under the Company’s former
Executive Deferred Compensation Plan (the “Prior Plan”) as though it had been “paid” to or “received” by Executive in the year when the deferral was made, provided that all such deferred amounts shall be subject to the
other applicable definitions and rules of the Retirement Plan relating to benefit determination; plus 
  
 (ii) The reduction, if any, in the amount of the “primary Social Security Benefit” which will actually be payable to the Executive, provided
that such reduction results from the fact that compensation deferred under this Plan causes the primary Social Security Benefit payable to the Executive to be reduced and that such reduction is not otherwise payable under Section 8(a)(i) above or
under the Prior Plan; minus 
  
 (iii) The sum of (1) the amount
actually payable at such time under the Retirement Plan as determined under Section 8(c) by treating all accrued benefits under the Retirement Plan as being payable only in the annuity form, and (2) the monthly amount payable under the comparable
benefit set forth in Section 5.7 of the Prior Plan. 
  

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 (b) Form and Duration. The form of supplemental retirement benefit payable by the Company shall be
the same annuity form, and shall be paid by the Company for the same duration, as the annuity benefit actually payable under the Retirement Plan. Such annuity benefit forms include (subject to any change in the Retirement Plan at the time payment
begins) a standard life annuity (no survivorship benefit); a half (50%) or full (100%) joint and survivor annuity to the Executive and surviving spouse with or without a “pop-up” if the spouse dies before the Executive; a ten (10) year
certain annuity which can provide death benefits to any surviving designated beneficiary; and a full (100%) joint and survivor benefit for the spouse of a vested married Executive who dies before retirement; and payees include the Executive and, if
the operative form provides for payment after the Executive’s death, the Executive’s surviving spouse or other surviving designated Beneficiary(ies) or estate. 
  
 (c) Retirement Plan Lump Sum Election Ignored. Notwithstanding any election by an Executive to receive a portion of
Executive’s Retirement Plan benefit as a lump sum, the amount of the supplemental retirement benefit as determined under Section 8(a) and the form and duration of the supplemental retirement benefit as determined under Section 8(b) shall be
calculated and determined as if Executive were to receive Executive’s entire Retirement Plan accrued benefit in the same annuity form that applies to the annuity portion of Executive’s Retirement Plan benefit. 
  
 (d) Six-Month Minimum Delay. Notwithstanding the foregoing, no
supplemental retirement benefit payments under this Section 8 shall be paid to any Executive until the seventh month following the month of the Executive’s termination of employment with the Company. Any payments that would have been paid if
not for this Section 8(d) shall be accumulated and paid in full in the seventh month following the month of the Executive’s termination of employment with the Company. 
  
 9. Administration. 
  
 (a) Committee Duties. This Plan shall be administered by the Organization and Executive Compensation Committee of the Board (the
“Committee”). The Committee shall have responsibility for the general administration of the Plan and for carrying out its intent and provisions. The Committee shall interpret the Plan and have such powers and duties as may be necessary to
discharge its responsibilities. The Committee may, from time to time, employ other agents and delegate to them such administrative duties as it sees fit, and may from time to time consult with counsel who may be counsel to the Company. 

 
 (b) Tax Law Compliance. The Committee shall have the authority to
cancel any Participation Agreement in whole or in part, and immediately distribute any compensation deferred under such Participation Agreement, if the Committee determines that deferral of compensation in accordance with such Participation
Agreement will or may cause the Plan to be operated in violation of Section 409A of the Internal Revenue Code. 
  
 (c) Binding Effect of Decisions. The decision or action of the Committee in respect of any question arising out of or in connection with the
administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan. 
  

 9 

 10. Claims Procedure. 
  
 (a) Claim. Any person claiming a benefit, requesting an interpretation or ruling under the Plan, or requesting
information under the Plan shall present the request in writing to the Committee, which shall respond in writing as soon as practicable. 
  
 (b) Denial of Claim. If the claim or request is denied, the written notice of denial shall state: 
  
 (i) The reasons for denial, with specific reference to the Plan provisions
on which the denial is based; 
  
 (ii) A description of any
additional material or information required and an explanation of why it is necessary; and 
  
 (iii) An explanation of the Plan’s claim review procedure. 
  
 (c) Review of Claim. Any person whose claim or request is denied or who has not received a response within thirty (30) days may request review by
notice given in writing to the Committee. The claim or request shall be reviewed by the Committee who may, but shall not be required to, grant the claimant a hearing. On review, the claimant may have representation, examine pertinent documents, and
submit issues and comments in writing. 
  
 (d) Final
Decision. The decision on review shall normally be made within sixty (60) days. If an extension of time is required for a hearing or other special circumstances, the claimant shall be notified and the time limit shall be one hundred twenty (120)
days. The decision shall be in writing and shall state the reasons and the relevant Plan provisions. All decisions on review shall be final and bind all parties concerned. 
  
 11. Amendment and Termination of the Plan. 
  
 (a) Amendment. The Board may at any time amend the Plan in whole or in part; provided, however, that no amendment
shall without the consent of each affected Participant (i) decrease or restrict the amount credited to any Account maintained under the Plan as of the date of amendment, or (ii) accelerate or decelerate the payment of benefits with respect to
amounts credited to any Account as of the date of the amendment. 
  
 (b) Termination. The Board may at any time partially or completely terminate the Plan if, in its judgment, the tax, accounting, or other effects of the continuance of the Plan, or potential payments thereunder, would not be in the
best interests of the Company. 
  
 (i) Partial
Termination. The Board may partially terminate the Plan by instructing the Committee not to accept any additional Participation Agreements and terminating deferrals under all existing Participation Agreements. In the event of such a partial
termination, the Plan shall continue to operate and be effective with regard to all compensation deferred prior to the effective date of such partial termination. 
  

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 (ii) Complete Termination. The Board may completely terminate the Plan. In that event, on the
effective date of the complete termination, the Plan shall cease to operate and the Company shall determine the balance of each Participant’s Accounts as of the close of business on such effective date. The Company shall pay out such Account
balances to the Participants in a single lump sum payment as soon as practicable after such effective date. 
  
 12. Miscellaneous. 
  
 (a) Unsecured General Creditor. The Accounts shall be established solely for the purpose of measuring the amounts owed to a Participants or
beneficiaries under the Plan. Participants and their beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interest or claims in any property or assets of the Company, nor shall they be beneficiaries of, or have any
rights, claims or interests in any mutual funds, other investment products or the proceeds therefrom owned or which may be acquired by the Company. Except as may be provided in Section 12(b), such mutual funds, other investment products or other
assets of the Company shall not be held under any trust for the benefit of the Participants, their beneficiaries, heirs, successors or assigns, or held in any way as collateral security for the fulfilling of the obligations of the Company under this
Plan. Any and all of the Company’s assets shall be, and remain, the general, unpledged, unrestricted assets of the Company. The Company’s obligation under the Plan shall be that of an unfunded and unsecured promise to pay money in the
future, and the rights of Participants and beneficiaries shall be no greater than those of unsecured general creditors of the Company. 
  
 (b) Trust Fund. The Company shall be responsible for the payment of all benefits provided under the Plan. The Company shall establish one or more
trusts, with such trustees as the Board may approve, for the purpose of providing for the payment of such benefits, but the Company shall have no obligation to contribute to such trusts except as specifically provided in the applicable trust
documents. Such trust or trusts shall be irrevocable, but the assets thereof shall be subject to the claims of the Company’s creditors. To the extent any benefits provided under the Plan are actually paid from any such trust, the Company shall
have no further obligation with respect thereto, but to the extent not so paid, such benefits shall remain the obligation of, and shall be paid by, the Company. 
  

(c) Non-assignability. Neither a Participant nor any other person shall have the right to commute, sell, assign, transfer, pledge, anticipate,
mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly declared to be non-assignable and
nontransferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, nor be
transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency. 
  
 (d) Not a Contract of Employment. The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between the
Company and any Participant, and the Participants (and their beneficiaries) shall have no rights against the Company except as may otherwise be specifically provided herein. Moreover, nothing in this Plan shall be deemed to give a Participant the
right to be retained in the service of the Company or to interfere with the right of the Company to discipline or discharge the Participant at any time. 
  

 11 

 (e) Governing Law. The provisions of this Plan shall be construed and interpreted according to the
laws of the State of Oregon, except as preempted by federal law. 
  
 (f) Validity. In case any provision of this Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such
illegal and invalid provisions had never been inserted herein. 
  
 (g) Notice. Any notice or filing required or permitted to be given to the the Company or the Committee under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail, to the Secretary of
the Company. Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification. 
  
 (h) Successors. The provisions of this Plan shall bind and inure to
the benefit of the Company and its successors and assigns. The term successors as used herein shall include any corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise acquire all or substantially all
of the business and assets of the Company, and successors of any such corporation or other business entity. 
  
 The foregoing Plan was approved by the Board of Directors of Northwest Natural Gas Company on November 17, 2004. 
  

			
	 NORTHWEST NATURAL GAS COMPANY

		
	 By:
	 	 /s/ Mark S. Dodson

  

			
	Attest:	 	 /s/ C.J. Rue, Secretary

  

 122004 Management Incentive Plan

 Exhibit 10.1 
  
 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC. 
 2004 MANAGEMENT INCENTIVE PLAN 
  
 I. General Purpose of Plan 
  
 The Varian
Semiconductor Equipment Associates, Inc. 2004 Management Incentive Plan is designed to assist the Corporation and its Subsidiaries in attracting, retaining and providing incentives to Eligible Employees and to promote the identification of their
interests with those of the Corporation’s shareholders by providing for the payment of Incentive Awards subject to the achievement of specified Performance Goals. 
  
 II. Definitions 
  
 Terms not otherwise defined herein shall have the following meanings: 
  
 A. “Award Period” means the fiscal year of the Corporation, except to the extent the Committee determines otherwise. 
  
 B. “Base Salary” means as to any Award Period, the
Participant’s annualized salary on the last day of the Award Period. Such Base salary shall be before both (a) deductions for taxes or benefits, and (b) deferrals of compensation pursuant to Corporation-sponsored plans. 
  
 C. “Board” means the Board of Directors of the Corporation.

  
 D. “Committee” means the committee appointed by the
Board to establish and administer the Plan as provided herein. Unless otherwise determined by the Board, the Compensation Committee of the Board shall be the Committee. 
  
 E. “Corporation” means Varian Semiconductor Equipment Associates, Inc., a Delaware corporation, and its successors
and assigns and any corporation which shall acquire substantially all of its assets. 
  
 F. “Eligible Employee” means an employee described in Section IV hereof. 
  
 G. “Incentive Award” means an award payable to a Participant for an Award Period. 
  
 H. “Participant” means any Eligible Employee who has been selected to participate in the Plan for an Award Period.

  
 I. “Performance Goals” means the goal(s) determined
by the Committee, in its sole discretion, to be applicable to a Participant eligible for an Incentive Award during an Award Period, and which, for any Award Period, may be selected from, but not limited to, (a) earnings per share, (b) return on
average equity in relation to a peer group (the “Peer Group”) of companies designated by the Committee, (c) return on average assets in relation to the Peer Group, or (d) such other performance goals as may be established by the Committee
which may be based on earnings, earnings growth, earnings before interest, taxes, depreciation and amortization (EBITDA), operating income, operating margins, revenues, expenses, stock price, 

 market share, charge-offs, reductions in non-performing assets, regulatory compliance, satisfactory internal or external
audits, improvement of financial ratings, achievement of balance sheet or income statement objectives, net cash provided from continuing operations, stock price appreciation, total shareholder return, cost control, strategic initiatives, market
share, pre-tax or after-tax income, or any other objective goals established by the Committee, and may be absolute in their terms or measured against or in relationship to other companies comparably, similarly or otherwise situated. Such performance
goals may be particular to a Participant or the division, department, branch, line of business, Subsidiary or other unit in which the Participant works, or may be based on the performance of the Corporation generally, and may cover such period as
may be specified by the Committee. Such Performance Goals may be applied by excluding the impact of charges for restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring items, and the cumulative effects of
accounting changes, each as defined by generally accepted accounting principles. 
  
 J. “Plan” means the Varian Semiconductor Equipment Associates, Inc. 2004 Management Incentive Plan as set forth herein and as hereafter amended from time to time. 
  
 K. “Subsidiary” means a corporation of which at least 50% of the
total combined voting power of all classes of stock is owned by the Corporation, either directly or through one or more other Subsidiaries. 
  
 III. Administration 
  
 The Plan shall be administered by the Committee. The Committee shall have plenary authority, in its discretion, to determine the terms of all Incentive Awards, including, without limitation, the Eligible Employees to
whom, and the time or times at which, Incentive Awards are made, the Award Period to which each Incentive Award shall relate, the actual dollar amount to be paid pursuant to an Incentive Award, the Performance Goals to which payment of Incentive
Awards will be subject, and when payments pursuant to Incentive Awards shall be made (which payments shall, without limitation, be made within 120 days after the end of an Award Period, subject to an election of deferral pursuant to Section V(G)).
In making such determinations, the Committee may take into account the nature of the services rendered by the respective Eligible Employees, their present and potential contributions to the success of the Corporation and its Subsidiaries, and such
other factors as the Committee in its discretion shall deem relevant. Subject to the express provisions of the Plan, the Committee shall have plenary authority to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to
it and to make all other determinations deemed necessary or advisable for the administration of the Plan. The determinations of the Committee pursuant to its authority under the Plan shall be conclusive and binding. 
  
 IV. Eligibility 
  
 Incentive Awards for any Award Period may be granted only to officers of the Corporation or a Subsidiary selected by the Committee in its
sole discretion. 

 V. Incentive Share Awards; Terms of Awards; Payment 
  
 A. The Committee shall, in its sole discretion, determine which Eligible Employees shall receive Incentive Awards. For each
Award Period with respect to which the Committee determines to make Incentive Awards, the Committee may by resolution establish one or more Performance Goals applicable to such Incentive Awards and the other terms and conditions of the Incentive
Awards. Such Performance Goals and other terms and conditions shall be established by the Committee in its sole discretion. 
  
 B. After the end of each Award Period for which the Committee has granted Incentive Awards, the Committee shall determine the extent to which the
Performance Goals established by the Committee for the Award Period have been achieved and shall authorize the Corporation to make Incentive Award payments to Participants in accordance with the terms of the Incentive Awards. In no event shall the
amount paid to a Participant in accordance with the terms of an Incentive Award, by reason of Performance Goal achievement, exceed, for any Award Period, the lesser of (i) $3,000,000 or (ii) 300% of the Participant’s Base Salary for such Award
Period. Unless otherwise determined by the Committee, no Incentive Award payments shall be made to a Participant unless the Participant is employed by the Corporation or a Subsidiary as of the last day of the Award Period. 
  
 C. The Committee may at any time, in its sole discretion, cancel an Incentive
Award or increase, eliminate or reduce the amount payable pursuant to the terms of an Incentive Award without the consent of a Participant. 
  
 D. Incentive Award payments shall be subject to applicable federal, state and local withholding taxes and other applicable withholding in accordance with
the Corporation’s payroll practices as from time-to-time in effect. 
  
 E. The Committee shall have the power to impose such other restrictions on Incentive Awards as it may deem necessary or appropriate. 
  
 F. All obligations of the Corporation under the Plan, with respect to Incentive Awards granted hereunder, shall be binding
on any successor to the Corporation; and in the event of any acquisition, consolidation, merger or similar event involving substantially all of the business or assets of the Corporation, a pro rata portion of Incentive Awards shall be paid to
Participants based on the attainment of the applicable Performance Goals for such Incentive Awards for the portion of the applicable Award Period that has elapsed prior to such acquisition, consolidation, merger or similar event. 

 
 G. The Committee, in its sole discretion, may permit a Participant to
defer receipt of the payment of cash that would otherwise be delivered to a Participant under the Plan. Any such deferral elections shall be subject to such rules and procedures as shall be determined by the Committee in its sole discretion.

 VI. Transferability 
  
 Incentive Awards shall not be subject to the claims of creditors and may not be assigned, alienated, transferred or encumbered in any way other than by will or pursuant
to the laws of descent and distribution. 
  
 VII. Termination or Amendment

  
 The Committee may amend, modify or terminate the Plan in any respect at
any time without the consent of Participants, provided that except as provided in Section V(C), no amendment or termination of the Plan after the end of an Award Period may adversely affect the rights of Participants with respect to their Incentive
Awards for that Award Period. 
  
 VIII. Effective Date; Term of the Plan

  
 The Plan shall be effective as of October 4, 2003 and shall remain in
existence until it is terminated pursuant to Section VII. No Incentive Awards may be awarded under the Plan after its termination. Termination of the Plan shall not affect any Incentive Awards outstanding on the date of termination and such awards
shall continue to be subject to the terms of the Plan notwithstanding its termination. 
  
 IX. General Provisions 
  
 A. The establishment
of the Plan shall not confer upon any Eligible Employee any legal or equitable right against the Corporation or any Subsidiary, except as expressly provided in the Plan. 
  
 B. The Plan does not constitute an inducement or consideration for the employment of any Eligible Employee, nor is it a
contract between the Corporation, or any Subsidiary and any Eligible Employee. Participation in the Plan shall not give an Eligible Employee any right to be retained in the employ of the Corporation or any Subsidiary. 
  
 C. Nothing contained in this Plan shall prevent the Committee from adopting
other or additional compensation arrangements, subject to shareholder approval if such approval is required, and such arrangements may be either generally applicable or applicable only in specific cases. 
  
 D. The Plan shall be governed, construed and administered in accordance with
the laws of the State of Delaware.

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