Document:

Twenty -First Supplemental Indenture

 Exhibit 4.1 

 
  

 
 NORTHWEST NATURAL GAS COMPANY

 TO 

DEUTSCHE BANK TRUST COMPANY AMERICAS 
 (FORMERLY KNOWN AS BANKERS TRUST COMPANY) 
 AND 

STANLEY BURG (SUCCESSOR TO R. G. PAGE AND J. C. KENNEDY), 
 As Trustees under the Mortgage and Deed of Trust, dated 

            as of July 1, 1946, of Portland Gas & Coke

             Company (now Northwest Natural Gas Company)

 TWENTY-FIRST SUPPLEMENTAL INDENTURE 
 PROVIDING, AMONG OTHER THINGS, FOR 
 FIRST MORTGAGE BONDS, 4.00% SERIES DUE 2042

  
  

DATED AS OF OCTOBER 15, 2012 
  

 
  

 TWENTY-FIRST SUPPLEMENTAL INDENTURE 

INDENTURE, dated as of the 15th day of October, 2012, made and entered into by and between NORTHWEST NATURAL GAS COMPANY (formerly
Portland Gas & Coke Company), an Oregon corporation, with offices at One Pacific Square, 220 N.W. Second Avenue, Portland, Oregon 97209 (hereinafter sometimes called the Company), and DEUTSCHE BANK TRUST COMPANY AMERICAS (formerly known as
BANKERS TRUST COMPANY), a New York corporation, with offices at 60 Wall Street, 27th Floor, New York, New York 10005 (hereinafter sometimes called the Corporate Trustee) and STANLEY BURG (successor to R. G. PAGE and J. C. KENNEDY), with offices at
c/o Deutsche Bank Trust Company Americas, 60 Wall Street, New York, New York 10005 (hereinafter sometimes called the Co-Trustee) (the Corporate Trustee and the Co-Trustee together sometimes called the Trustees), as Trustees under the Mortgage and
Deed of Trust, dated as of July 1, 1946 (hereinafter called the Mortgage), executed and delivered by Portland Gas & Coke Company (now Northwest Natural Gas Company) to secure the payment of bonds issued or to be issued under and in
accordance with the provisions of the Mortgage, this indenture (hereinafter called Twenty-first Supplemental Indenture) being supplemental thereto; 
 WHEREAS the Mortgage was or is to be recorded in the official records of various counties in the States of Oregon and Washington which counties include or will include all counties in which this
Twenty-first Supplemental Indenture is to be recorded; and 
 WHEREAS by the Mortgage the Company covenanted that it would
execute and deliver such supplemental indenture or indentures and such further instruments and do such further acts as might be necessary or proper to carry out more effectually the purposes of the Mortgage and to make subject to the lien of the
Mortgage any property thereafter acquired, made or constructed and intended to be subject to the lien thereof; and 
 WHEREAS
the Company executed and delivered to the Trustees its First Supplemental Indenture, dated as of June 1, 1949 (hereinafter called its First Supplemental Indenture), its Second Supplemental Indenture, dated as of March 1, 1954 (hereinafter
called its Second Supplemental Indenture), its Third Supplemental Indenture, dated as of April 1, 1956 (hereinafter called its Third Supplemental Indenture), its Fourth Supplemental Indenture, dated as of February 1, 1959 (hereinafter
called its Fourth Supplemental Indenture), its Fifth Supplemental Indenture, dated as of July 1, 1961 (hereinafter called its Fifth Supplemental Indenture), its Sixth Supplemental Indenture, dated as of January 1, 1964 (hereinafter called
its Sixth Supplemental Indenture), its Seventh Supplemental Indenture, dated as of March 1, 1966 (hereinafter called its Seventh Supplemental Indenture), its Eighth Supplemental Indenture, dated as of December 1, 1969 (hereinafter called
its Eighth Supplemental Indenture), its Ninth Supplemental Indenture, dated as of April 1, 1971 (hereinafter called its Ninth 

 
Supplemental Indenture), its Tenth Supplemental Indenture, dated as of January 1, 1975 (hereinafter called its Tenth Supplemental Indenture), its Eleventh Supplemental Indenture, dated as of
December 1, 1975 (hereinafter called its Eleventh Supplemental Indenture), its Twelfth Supplemental Indenture, dated as of July 1, 1981 (hereinafter called its Twelfth Supplemental Indenture), its Thirteenth Supplemental Indenture, dated
as of June 1, 1985 (hereinafter called its Thirteenth Supplemental Indenture), its Fourteenth Supplemental Indenture, dated as of November 1, 1985 (hereinafter called its Fourteenth Supplemental Indenture), its Fifteenth Supplemental
Indenture, dated as of July 1, 1986 (hereinafter called its Fifteenth Supplemental Indenture), its Sixteenth Supplemental Indenture, dated as of November 1, 1988 (hereinafter called its Sixteenth Supplemental Indenture), its Seventeenth
Supplemental Indenture, dated as of October 1, 1989 (hereinafter called its Seventeenth Supplemental Indenture), its Eighteenth Supplemental Indenture, dated as of July 1, 1990 (hereinafter called its Eighteenth Supplemental Indenture),
and its Nineteenth Supplemental Indenture, dated as of June 1, 1991 (hereinafter called its Nineteenth Supplemental Indenture); and 
 WHEREAS the First through Nineteenth Supplemental Indentures were filed for record, and were recorded and indexed, as a mortgage of both real and personal property, in the official records of various
counties in the States of Oregon and Washington which counties include or will include all counties in which this Twenty-first Supplemental Indenture is to be recorded; and 
 WHEREAS the Company executed and delivered to the Trustees its Twentieth Supplemental Indenture, dated as of June 1, 1993 (hereinafter called its Twentieth Supplemental Indenture); and 

WHEREAS said Twentieth Supplemental Indenture was filed for record, and was recorded and indexed, as a mortgage of both real and personal
property, and financing statements were filed, in the official records of the several counties and other offices in the States of Oregon and Washington listed below, as follows: 

IN THE STATE OF OREGON 
  

 
 Real Property
Mortgage Records 
  

									
	 No.
	  	 County
	  	 Date Recorded
	  	 Book, Film or Reel
	  	 Page

	11	  	Benton	  	 June 23, 1993
 June 29, 1993
(re-recorded)
	  	 M-166017-93

M-166297-93
	  	-
 -

	12	  	Clackamas            	  	June 22, 1993	  	93-43287	  	-
	13	  	Clatsop	  	June 23, 1993	  	816	  	534
	14	  	Columbia	  	June 23, 1993	  	93-5185	  	-
	15	  	Coos	  	June 30, 1993	  	93061396	  	-
	32	  	Douglas	  	June 24, 1993	  	1241	  	840
	17	  	Hood River	  	June 23, 1993	  	932082	  	-
	18	  	Lane	  	June 23, 1993	  	9338274	  	-
	19	  	Lincoln	  	June 23, 1993	  	263	  	1293
	20	  	Linn	  	June 23, 1993	  	645	  	804
	21	  	Marion	  	June 24, 1993	  	1074	  	290
	22	  	Multnomah	  	June 23, 1993	  	2711	  	1885
	23	  	Polk	  	June 25, 1993	  	270	  	245
	24	  	Tillamook	  	June 23, 1993	  	351	  	718
	25	  	Wasco	  	June 23, 1993	  	932338	  	-
	26	  	Washington	  	June 23, 1993	  	93049394	  	-
	27	  	Yamhill	  	June 23, 1993	  	F288P1700	  	-

  
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 Filed as a Financing Statement 

 

							
	 No.
	  	 Office
	  	 Date Filed for Record
	  	 File No.

	9	  	Secretary of State	  	June 23, 1993	  	R61325

 IN THE STATE OF WASHINGTON 

 
  

Real Property Mortgage Records 
  

									
	 No.
	  	 County
	  	 Date Recorded
	  	 Book, Film or Reel
	  	 Page

	29	  	Clark	  	June 24, 1993	  	399	  	1
	30	  	Klickitat	  	June 23, 1993	  	297	  	650
	31	  	Skamania	  	June 24, 1993	  	136	  	172

 Filed as a Financing Statement 

 

							
	 No.
	  	 Office
	  	 Date Filed for Record
	  	 File No.

	28	  	Secretary of State	  	June 25, 1993	  	93-176-0202

 WHEREAS an instrument dated as of June 14, 1951, was executed by the Company appointing J. C.
KENNEDY as Co-Trustee in succession to said R. G. PAGE (resigned) under the Mortgage and by J. C. KENNEDY accepting the appointment as Co-Trustee under the Mortgage in succession to R. G. PAGE, which instrument was recorded in various counties in
the States of Oregon and Washington; and 

  
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 WHEREAS, in the Ninth Supplemental Indenture STANLEY BURG was appointed by the Company as
Co-Trustee under the Mortgage in succession to J. C. KENNEDY (resigned) and in the Ninth Supplemental Indenture STANLEY BURG accepted such appointment as Co-Trustee under the Mortgage in succession to J. C. KENNEDY; and 

WHEREAS in addition to the property described in the Mortgage, as heretofore supplemented, the Company has acquired certain other
property, rights and interests in property; and 
 WHEREAS, the Company has heretofore issued, in accordance with the provisions
of the Mortgage, as supplemented, and on the date hereof there remain outstanding, the following series of First Mortgage Bonds: 
  

					
	 Series
	  	Principal Amount Outstanding	 
	 Secured Medium-Term Notes, Series A
	  	$	10,000,000	  
	 Secured Medium-Term Notes, Series B
	  	$	591,700,000	  

 ; and 
 WHEREAS Section 8 of the Mortgage provides that the form of each series of bonds (other than the First Series) issued thereunder shall be established by Resolution of the Board of Directors of the
Company; that the form of such series, as established by the Board of Directors, shall specify the descriptive title of the bonds and various other terms thereof; and that such Series may also contain such provisions not inconsistent with the
provisions of the Mortgage as the Board of Directors may, in its discretion, cause to be inserted therein expressing or referring to the terms and conditions upon which such bonds are to be issued and/or secured under the Mortgage; and 

WHEREAS Section 120 of the Mortgage provides, among other things, that any power, privilege or right expressly or impliedly reserved
to or in any way conferred upon the Company by any provision of the Mortgage, whether such power, privilege or right is in any way restricted or is unrestricted, may (to the extent permitted by law) be in whole or in part waived or surrendered or
subjected to any restriction if at the time unrestricted or to additional restriction if already restricted, and the Company may enter into any further covenants, limitations or restrictions for the benefit of any one or more series of bonds issued
thereunder, or the Company may cure any ambiguity contained therein or in any supplemental indenture or may (in lieu of establishment by Resolution as provided in Section 8 of the Mortgage) establish the terms and provisions of any series of
bonds other than said First Series, by an instrument in writing executed and acknowledged by the 

  
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Company in such manner as would be necessary to entitle a conveyance of real estate to record in all of the states in which any property at the time subject to the lien of the Mortgage shall be
situated; and 
 WHEREAS the Company now desires to create a new series of bonds and (pursuant to the provisions of
Section 120 of the Mortgage) to add to its covenants and agreements contained in the Mortgage, as heretofore supplemented, certain other covenants and agreements to be observed by it and to alter and amend in certain respects the covenants and
provisions contained in the Mortgage, as heretofore supplemented and amended; and 
 WHEREAS the execution and delivery by the
Company of this Twenty-first Supplemental Indenture, and the terms of the bonds of the Twenty-second Series hereinafter referred to, have been duly authorized by the Board of Directors of the Company by appropriate resolutions of the Board of
Directors; 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 

That Northwest Natural Gas Company, in consideration of the above premises and such other valuable consideration, the receipt and
sufficiency whereof is hereby acknowledged, and in further assurance of the estate, title and rights of the Trustees, and in order further to secure the payment both of the principal of and interest and premium, if any, on the bonds from time to
time issued under the Mortgage, according to their tenor and effect, and the performance of all the provisions of the Mortgage (including any instruments supplemental thereto and any modification made as in the Mortgage provided) and of said bonds,
hereby grants, bargains, sells, releases, conveys, assigns, transfers, mortgages, pledges, sets over and confirms (subject, however, to Excepted Encumbrances, as defined in Section 6 of the Mortgage) unto Stanley Burg and (to the extent of its
legal capacity to hold the same for the purposes hereof) to Deutsche Bank Trust Company Americas, as Trustees under the Mortgage, and to their successor or successors in said trust, and to said Trustees and their successors and assigns forever, all
property, real, personal and mixed, acquired by the Company after the date of the Mortgage, of the kind or nature specifically mentioned in Article XXI of the Mortgage or of any other kind or nature (except any herein or in the Mortgage expressly
excepted) now owned or, subject to the provisions of subsection (I) of Section 87 of the Mortgage, hereafter acquired by the Company (by purchase, consolidation, merger, donation, construction, erection or in any other way) and wheresoever
situated, including (without in anywise limiting or impairing by the enumeration of the same the scope and intent of the foregoing) all lands, gas plants, by-product plants, gas holders, gas mains and pipes; all power sites, water rights,
reservoirs, canals, raceways, dams, aqueducts, and all other rights or means for appropriating, conveying, storing and supplying water; all rights of way and roads; all plants for the generation of electricity by steam, water and/or other power; all
power houses, street lighting systems, standards and other equipment incidental thereto, telephone, radio, television and air-conditioning systems and 

  
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equipment incidental thereto, water works, water systems, steam heat and hot water plants, substations, lines, service and supply systems, bridges, culverts, tracts, ice or refrigeration plants
and equipment, offices, buildings and other structures and the equipment thereof; all machinery, engines, boilers, dynamos, gas, electric and other machines, regulators, meters, transformers, generators, motors, gas, electrical and mechanical
appliances, conduits, cables, gas, water, steam heat or other pipes, service pipes, fittings, valves and connections, pole and transmission lines, wires, cables, tools, implements, apparatus, furniture and chattels; all franchises, consents or
permits; all lines for the transmission and distribution of gas, electric current, steam heat or water for any purpose including mains, pipes, conduits, towers, poles, wires, cables, ducts and all apparatus for use in connection therewith; all real
estate, lands, easements, servitudes, licenses, permits, franchises, privileges, rights of way and other rights in or relating to public or private property, real or personal, or the occupancy of such property and (except as herein or in the
Mortgage, as heretofore supplemented, expressly excepted) all right, title and interest the Company may now have or may hereafter acquire in and to any and all property of any kind or nature wheresoever situated. 

TOGETHER WITH all and singular the tenements, hereditaments, prescriptions, servitudes and appurtenances belonging or in anywise
appertaining to the aforementioned property or any part thereof, with the reversion and reversions, remainder and remainders and (subject to the provisions of Section 57 of the Mortgage) the tolls, rents, revenues, issues, earnings, income,
product and profits thereof, and all the estate, right, title and interest and claim whatsoever, at law as well as in equity, which the Company now has or may hereafter acquire in and to the aforementioned property and franchises and every part and
parcel thereof. 
 IT IS HEREBY AGREED by the Company that, subject to the provisions of subsection (I) of Section 87
of the Mortgage, all the property, rights, and franchises acquired by the Company (by purchase, consolidation, merger, donation, construction, erection or in any other way) after the date hereof, except any herein or in the Mortgage, as heretofore
supplemented, expressly excepted, shall be and are as fully granted and conveyed hereby and by the Mortgage, and as fully embraced within the lien hereof and the lien of the Mortgage, as supplemented, as if such property, rights and franchises were
now owned by the Company and were specifically described herein or in the Mortgage, as heretofore supplemented, and conveyed hereby or thereby. Provided that the following are not and are not intended to be now or hereafter granted, bargained, sold,
released, conveyed, assigned, transferred, mortgaged, pledged, set over or confirmed hereunder and are hereby expressly excepted from the lien and operation of this Twenty-first Supplemental Indenture and from the lien and operation of the Mortgage,
as heretofore supplemented, viz: (1) cash, shares of stock, bonds, notes and other obligations and other securities not hereafter specifically pledged, paid, deposited, delivered or held under the Mortgage, as heretofore supplemented, or
covenanted so to be; (2) merchandise, equipment, apparatus, materials or supplies held for the purpose of sale or other disposition in the usual course of business; fuel, oil and similar materials and supplies

  
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consumable in the operation of any of the properties of the Company; all aircraft, tractors, rolling stock, trolley coaches, buses, motor coaches, automobiles, motor trucks, and other vehicles
and materials and supplies held for the purpose of repairing or replacing (in whole or in part) any of the same; (3) bills, notes and accounts receivable, judgments, demands and choses in action, and all contracts, leases and operating
agreements not specifically pledged under the Mortgage, as heretofore supplemented, or covenanted so to be; (4) the last day of the term of any lease or leasehold which may be or become subject to the lien of the Mortgage; (5) gas,
petroleum, carbon, chemicals, light oils, tar products, electric energy, steam, water, ice, and other materials or products, manufactured, stored, generated, produced, purchased or acquired by the Company for sale, distribution or use in the
ordinary course of its business; all timber, minerals, mineral rights and royalties and all Natural Gas and Oil Production Property, as defined in Section 4 of the Mortgage; and (6) the Company’s franchise to be a corporation;
provided, however, that the property and rights expressly excepted from the lien and operation of this Twenty-first Supplemental Indenture and from the lien and operation of the Mortgage, as heretofore supplemented, in the above subdivisions
(2) and (3) shall (to the extent permitted by law) cease to be so excepted in the event and as of the date that either or both of the Trustees or a receiver or trustee shall enter upon and take possession of the Mortgaged and Pledged
Property in the manner provided in Article XIII of the Mortgage by reason of the occurrence of a Default as defined in Section 65 thereof. 
 TO HAVE AND TO HOLD all such properties, real, personal and mixed, granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged, pledged, set over or confirmed by the Company as
aforesaid, or intended so to be, unto Stanley Burg and (to the extent of its legal capacity to hold the same for the purposes hereof) to Deutsche Bank Trust Company Americas, as Trustees, and their successors and assigns forever. 

IN TRUST NEVERTHELESS, for the same purposes and upon the same terms, trusts and conditions and subject to and with the same provisos and
covenants as are set forth in the Mortgage, as heretofore supplemented, this Twenty-first Supplemental Indenture being supplemental thereto. 
 AND IT IS HEREBY COVENANTED by the Company that all the terms, conditions, provisos, covenants and provisions contained in the Mortgage, as heretofore supplemented, shall affect and apply to the property
hereinbefore described and conveyed, and to the estates, rights, obligations and duties of the Company and the Trustees and the beneficiaries of the trust with respect to said property, and to the Trustees and their successors in the trust, in the
same manner and with the same effect as if the said property had been owned by the Company at the time of the execution of the Mortgage, and had been specifically and at length described in and conveyed to said Trustees by the Mortgage as a part of
the property therein stated to be conveyed. 

  
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 The Company further covenants and agrees to and with the Trustees and their successors in
said trust under the Mortgage, as follows: 
 ARTICLE I. 
 Twenty-second Series of Bonds. 
 SECTION 1.01 There shall be a series of bonds
designated “4.00% Series due 2042” (herein sometimes referred to as the “Twenty-second Series”), each of which shall also bear the descriptive title “First Mortgage Bond”, and the form thereof attached hereto as Exhibit
A, as established by Resolution of the Board of Directors of the Company and shall contain suitable provisions with respect to the matters hereinafter in this Article I specified. Bonds of the Twenty-second Series shall be issued from time to time
as fully registered bonds in denominations of One Hundred Thousand Dollars and, at the option of the Company, in any multiple or multiples of One Thousand Dollars (the exercise of such option to be evidenced by the execution and delivery thereof).
Bonds of the Twenty-second Series shall mature on October 31, 2042 (the “Stated Maturity”) and bear interest at the rate of 4.00% per annum, payable semi-annually on February 1 and August 1 of each year, commencing
February 1, 2013; and the principal of, and premium, if any, and, unless otherwise agreed between the Company and the registered owner of any bonds of the Twenty-second Series registered in the name of such registered owner, interest on, each
such bond shall be payable at the office or agency of the Company in the Borough of Manhattan, The City of New York or as otherwise provided in the form of bond of the Twenty-second Series, in such coin or currency of the United States of America as
at the time of payment is legal tender for public and private debts. Bonds of the Twenty-second Series shall be dated as in Section 10 of the Mortgage provided. 
 The bonds of the Twenty-second Series shall be payable and have and be subject to such other terms as provided in the form of bond of the Twenty-second Series established by the Board of Directors in a
Resolution filed with the Corporate Trustee referring to the Twenty-second Series and shall have and be subject to such other terms as are provided in the Mortgage. 
 All references in the Mortgage to the principal amount of bonds shall, when used with respect to the bonds of the Twenty-second Series, mean the unpaid principal amount thereof, except that, (a) for
the purposes of transfers of fully registered bonds under Section 13 of the Mortgage, the term “like principal amount” shall, when used with respect to the bonds of the Twenty-second Series, mean “like aggregate unpaid principal
amount”, and (b) for the purposes of exchanges of temporary bonds under Section 15 of the Mortgage, the term “like aggregate principal amount” shall, when used with respect to the bonds of the Twenty-second Series, mean
“like aggregate unpaid principal amount”. 

  
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 (I) Optional Redemption. At any time prior to April 30, 2042 (six months prior
to the Stated Maturity), the Company may, at its option, upon notice as provided below, redeem at any time all, or from time to time any part of, the bonds of the Twenty-second Series at 100% of the principal amount so redeemed, and the Make-Whole
Amount determined for the Settlement Date specified by the Company in such notice with respect to such principal amount. The Company will give each registered owner of bonds of the Twenty-second Series written notice (by first class mail or such
other method as may be agreed upon by the Company and such registered owner) of each optional redemption under this subsection (I) mailed or otherwise given not less than 30 days and not more than 60 days prior to the date fixed for such
redemption, to each such registered owner at his, her or its last address appearing on the bond register. Each such notice shall specify the Settlement Date (which shall be a Business Day), the aggregate principal amount of the bonds of the
Twenty-second Series to be redeemed on such date, the principal amount of each bond held by such registered owner to be redeemed (determined in accordance with subsection (II) of this section), and the interest to be paid on the Settlement Date with
respect to such principal amount being redeemed, and shall be accompanied by a certificate signed by a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such redemption (calculated as if the date of such notice
were the date of the redemption), setting forth the details of such computation. Two Business Days prior to such Settlement Date, the Company shall send to each registered owner of bonds of the Twenty-second Series (by first class mail or by such
other method as may be agreed upon by the Company and such registered owner) a certificate signed by a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified Settlement Date. As promptly as practicable
after the giving of the notice and the sending of the certificates provided in this subsection, the Company shall provide a copy of each to the Corporate Trustee. The Trustees shall be under no duty to inquire into, may conclusively presume the
correctness of, and shall be fully protected in relying upon the information set forth in any such notice or certificate. 
 At
any time on or after April 30, 2042, the bonds of the Twenty-second Series will be redeemable at the option of the Company, in whole or in part, on not less than 30 nor more than 60 days’ notice prior to the Settlement Date, at a
redemption price equal to 100% of the principal amount of the bonds of the Twenty-second Series to be redeemed, plus accrued and unpaid interest thereon to the Settlement Date. The bonds of the Twenty-second Series are not otherwise subject to
voluntary or optional redemption. 
 (II) Allocation of Partial Redemptions. In the case of each partial redemption of
the bonds of the Twenty-second Series, the principal amount of the bonds of the Twenty-second Series to be redeemed shall be allocated by the Company among all of the bonds of the Twenty-second Series at the time outstanding in proportion, as nearly
as practicable, to the respective unpaid principal amounts thereof not theretofore called for redemption. 

  
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 (III) Maturity; Surrender, Etc. In the case of each notice of redemption of bonds of
the Twenty-second Series pursuant to this section, if cash sufficient to pay the principal amount to be redeemed on the Settlement Date (which shall be a Business Day), together with interest on such principal amount accrued to such date and the
applicable Make-Whole Amount, if any, is not paid as agreed upon by the Company and each registered owner of the affected bonds, or, to the extent that there is no such agreement entered into with one or more such owners, deposited with the
Corporate Trustee on or before the Settlement Date, then such notice of redemption shall be of no effect. If such cash is so paid or deposited, such principal amount of the bonds of the Twenty-second Series shall be deemed paid for all purposes and
interest on such principal amount shall cease to accrue. In case the Company pays any registered owner pursuant to an agreement with that registered owner, whether in the case of redemption or at maturity or otherwise, the Company shall notify the
Corporate Trustee as promptly as practicable of such agreement and payment, and shall furnish the Corporate Trustee with a copy of such agreement and evidence of such payment, which may include a confirmation of wire transfer or other credit to an
account designated by the registered owner, cancelled check or a receipt signed by the registered owner; in case the Company deposits any cash with the Corporate Trustee, the Company shall provide therewith a list of the registered owners and the
amount of such cash each registered owner is to receive. The Trustees shall be under no duty to inquire into, may conclusively presume the correctness of, and shall be fully protected in relying upon the information set forth in any such notice,
evidence of payment, list or agreement, and shall not be chargeable with knowledge of any of the contents of any such agreement. Any bond redeemed in full shall be surrendered to the Company or the Corporate Trustee for cancellation on or before the
Settlement Date (unless otherwise agreed between the Company and the registered owner) or, with respect to cash deposited with the Corporate Trustee, before payment of such cash by the Corporate Trustee; any bond redeemed in part shall be
surrendered to the Company or the Corporate Trustee on or before the Settlement Date (unless otherwise agreed between the Company and the registered owner) or, with respect to cash deposited with the Corporate Trustee before payment of such cash by
the Corporate Trustee, for a substitute bond in the principal amount remaining unpaid. 
 (IV) Make-Whole Amount.

 “Make-Whole Amount” means, with respect to any bond of the Twenty-second Series, an amount equal to the excess, if
any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such bond of the Twenty-second Series over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than
zero. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings: 
 “Business
Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York City are required or authorized to be closed. 

  
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 “Called Principal” means, with respect to any bond of the Twenty-second Series,
the principal of such bond that is to be redeemed pursuant to subsection (I) of this section. 
 “Discounted
Value” means, with respect to the Called Principal of any bond of the Twenty-second Series, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to
the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the bonds of the Twenty-second Series is payable)
equal to the Reinvestment Yield with respect to such Called Principal. 
 “Reinvestment Yield” means, with respect to
the Called Principal of any bond of the Twenty-second Series, 0.50% (50 basis points) over the yield to maturity implied by (i) the yields reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date
with respect to such Called Principal, on the display designated as “Page PX1” on the Bloomberg Financial Markets Service (or such other display on the Bloomberg Financial Markets Service having the same information as PX1 if PX1 is
replaced by the Bloomberg Financial Markets Service) for the most recently issued actively traded on-the-run benchmark U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement
Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the treasury constant maturity series yields reported, for the latest day for which
such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded
U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to
bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the most recently issued, actively traded on-the-run benchmark U.S. Treasury security with the maturity closest to and greater
than such Remaining Average Life and (2) the most recently issued, actively traded on-the-run benchmark U.S. Treasury security with the maturity closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to
the number of decimal places as appears in the interest rate of the applicable bond of the Twenty-second Series. 

“Remaining Average Life” means, with respect to any Called Principal, the number of years (calculated to the nearest
one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by
(b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment. 

  
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 “Remaining Scheduled Payments” means, with respect to the Called Principal of any
bond of the Twenty-second Series, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled
due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the bonds of the Twenty-second Series, then the amount of the next succeeding scheduled interest payment will be reduced
by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to subsection (I) of this section. 
 “Settlement Date” means, with respect to the Called Principal of any bond of the Twenty-second Series, the date on which such Called Principal is to be redeemed pursuant to subsection
(I) of this section. 
 “Senior Financial Officer” means the chief financial officer, principal accounting
officer, treasurer or controller of the Company. 
 (V) Exchanges and Transfers. At the option of the registered owner,
any bonds of the Twenty-second Series, upon surrender thereof, for cancellation, at the office or agency of the Company in the Borough of Manhattan, The City of New York, together with a written instrument of transfer whenever required by the
Company duly executed by the registered owner or by his duly authorized attorney, shall (subject to the provisions of Section 12 of the Mortgage) be exchangeable for a like aggregate unpaid principal amount of bonds of the same series of other
authorized denominations. 
 Transfers of bonds of the Twenty-second Series may be registered (subject to the provisions of
Section 12 of the Mortgage) at the office or agency of the Company in the Borough of Manhattan, The City of New York. 

Upon any registration of transfer or exchange of bonds of the Twenty-second Series, the Company may make a charge therefor sufficient to
reimburse it for any tax or taxes or other governmental charge, as provided in Section 12 of the Mortgage, but the Company hereby waives any right to make a charge in addition thereto for any registration of exchange or transfer of bonds of the
Twenty-second Series. 

  
 12 

 ARTICLE II. 
 Miscellaneous Provisions. 
 SECTION 2.01 Subject to the amendments provided for in
this Twenty-first Supplemental Indenture, the terms defined in the Mortgage, as heretofore supplemented, shall, for all purposes of this Twenty-first Supplemental Indenture, have the meanings specified in the Mortgage, as heretofore supplemented.

 SECTION 2.02 The holders of bonds of the Twenty-second Series consent that the Company may, but shall not be obligated to,
fix a record date for the purpose of determining the holders of bonds of the Twenty-second Series entitled to consent to any amendment, supplement or waiver. If a record date is fixed, those persons who were holders at such record date (or their
duly designated proxies), and only those persons, shall be entitled to consent to such amendment, supplement or waiver or to revoke any consent previously given, whether or not such persons continue to be holders after such record date. No such
consent shall be valid or effective for more than 90 days after such record date. 
 SECTION 2.03 The Trustees hereby accept the
trusts hereby declared, provided, created or supplemented, and agree to perform the same upon the terms and conditions herein and in the Mortgage, as heretofore supplemented, set forth, including the following: 

The Trustees shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Twenty-first
Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made by the Company solely. In general each and every term and condition contained in Article XVII of the Mortgage shall apply to and form part
of this Twenty-first Supplemental Indenture with the same force and effect as if the same were herein set forth in full, with such omissions, variations and insertions, if any, as may be appropriate to make the same conform to the provisions of this
Twenty-first Supplemental Indenture. 
 SECTION 2.04 Whenever in this Twenty-first Supplemental Indenture any of the parties
hereto is named or referred to, this shall, subject to the provisions of Articles XVI and XVII of the Mortgage, be deemed to include the successors or assigns of such party, and all the covenants and agreements in this Twenty-first Supplemental
Indenture contained by or on behalf of the Company or by or on behalf of the Trustees shall bind and inure to the benefit of the respective successors and assigns of such parties whether so expressed or not. 

SECTION 2.05 Nothing in this Twenty-first Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer
upon, or to give to, any person, firm or corporation, other than the parties hereto and the holders of the bonds and 

  
 13 

 
coupons outstanding under the Mortgage, any right, remedy, or claim under or by reason of this Twenty-first Supplemental Indenture or any covenant, condition, stipulation, promise or agreement
hereof, and all the covenants, conditions, stipulations, promises and agreements by or on behalf of the Company as set forth in this Twenty-first Supplemental Indenture shall be for the sole and exclusive benefit of the parties hereto, and of the
holders of the bonds and of the coupons outstanding under the Mortgage. 
 SECTION 2.06 Except to the extent specifically
provided herein, no provision of this Twenty-first Supplemental Indenture is intended to reinstate any provisions in the Mortgage which were amended and superseded by the amendments to the Trust Indenture Act of 1939 effective as of
November 15, 1990. 
 SECTION 2.07 This Twenty-first Supplemental Indenture has been executed in several identical
counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 

  
 14 

 IN WITNESS WHEREOF, Northwest Natural Gas Company, has caused its corporate name to be
hereunto affixed, and this instrument to be signed and sealed by its President or one of its Vice Presidents, and its corporate seal to be attested by its Secretary or one of its Assistant Secretaries for and in its behalf on the 24th day of
October, 2012, as of October 15, 2012, in Portland, Oregon; Deutsche Bank Trust Company Americas, has caused its corporate name to be hereunto affixed, and this instrument to be signed and sealed by its Vice Presidents or its Assistant Vice
Presidents and its corporate seal to be attested by one of its Vice Presidents, Assistant Vice Presidents, one of its Assistant Secretaries or one of its Associates on the 25th day of October, 2012, as of October 15, 2012, in The City of New
York; and Stanley Burg has hereunto set his hand and affixed his seal, in The City of New York, on the 24th day of October, 2012, as of October 15, 2012. 

 

			
	NORTHWEST NATURAL GAS COMPANY
		
	By	 	         /s/ David H. Anderson

		 	        David H. Anderson
		 	        Senior Vice President and Chief
		 	        Financial Officer

  

	
	Attest:
	
	         /s/ MardiLyn Saathoff

	        MardiLyn Saathoff
	        Corporate Secretary
	
	Executed, sealed and delivered by
	 NORTHWEST NATURAL GAS COMPANY

in the presence of:

	
	         /s/ Shawn M. Filippi

	        Shawn M. Filippi
	
	         /s/ Stephen P. Feltz

	        Stephen P. Feltz

  
 15 

 
			
	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee,
		
	By	 	         /s/ Carol Ng

		 	        Carol Ng
		 	        Vice President
		
	By	 	         /s/ David Contino

		 	        David Contino
		 	        Vice President

 Attest: 
  

	
	         /s/ Renee Cummins

	        Renee Cummins
	        Associate

  

	
	 /s/ Stanley Burg

	STANLEY BURG, as Trustee

 Executed, sealed and delivered by 
 DEUTSCHE BANK TRUST COMPANY AMERICAS and 
 STANLEY BURG in the presence of: 

 

	
	         /s/ Jeffrey Schoenfeld

	        Jeffrey Schoenfeld
	        Associate

  

	
	         /s/ Chris Niesz

	        Chris Niesz
	        Associate

  
 16 

			
	STATE OF OREGON	 	)
		 	: ss.:
	COUNTY OF MULTNOMAH        	 	)

 October 24, A.D. 2012. 
 Before me personally appeared David H. Anderson, who, being duly sworn, did say that he is the Senior Vice President and Chief Financial Officer, of NORTHWEST NATURAL GAS COMPANY and that the seal affixed
to the foregoing instrument is the corporate seal of said Corporation and that said instrument was signed and sealed in behalf of said Corporation by authority of its Board of Directors; and he acknowledged said instrument to be its voluntary act
and deed. 
 On this 24th day of October, 2012, before me personally appeared David H. Anderson, to me known to be the Senior
Vice President and Chief Financial Officer of NORTHWEST NATURAL GAS COMPANY, one of the corporations that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said Corporation,
for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument and that the seal affixed is the corporate seal of said Corporation. 

IN WITNESS WHEREOF I have hereunto set my hand and affixed my official seal the day and year first above written. 

 

	
	 /s/ Pamela L. Villaloboz

	Notary Public—Oregon
	Commission No. 453759
	My Commission Expires 12/23/14

  
 17 

			
	STATE OF NEW YORK	 	)
		 	: ss.:
	COUNTY OF NEW YORK        	 	)

 October 25th, A.D. 2012. 
 Before me personally appeared Carol Ng, who, being duly sworn, did say that [he/she] is a Vice President of DEUTSCHE BANK TRUST COMPANY AMERICAS and that the seal affixed to the foregoing instrument is
the corporate seal of said Corporation and that said instrument was signed and sealed in behalf of said Corporation by authority of its Board of Directors; and [he/she] acknowledged said instrument to be its voluntary act and deed. 

On this 25th day of October, 2012, before me personally appeared Carol Ng, David Contino and Renee Cummins, to me known to be,
respectively, a Vice President, a Vice President and Associate of DEUTSCHE BANK TRUST COMPANY AMERICAS, one of the corporations that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and
deed of said Corporation, for the uses and purposes therein mentioned, and on oath stated that they were authorized to execute said instrument and that the seal affixed is the corporate seal of said Corporation. 

IN WITNESS WHEREOF I have hereunto set my hand and affixed my official seal the day and year first above written. 

 

	
	 /s/ Teddy Banica

	Teddy Banica
	Notary Public, State of New York
	No. 01BA6266801
	Qualified in New York County
	Commission Expires August 6, 2016

  
 18 

			
	STATE OF NEW YORK	 	)
		 	: ss.:
	COUNTY OF NEW YORK        	 	)

 October 24, 2012 
 Before me personally appeared the above-named STANLEY BURG and acknowledged the foregoing instrument to be his voluntary act and deed. 

On this day personally appeared before me STANLEY BURG to me known to be the individual described in and who executed the within and
foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. 
 Given under my hand and official seal this 24 day of October, 2012. 
  

	
	 /a/ Annie V. Jaghatspanyan

	Annie V. Jaghatspanyan
	Notary Public, State of New Jersey
	I.D. #2421080
	My Commission Expires 5/21/2017

  
 19 

 EXHIBIT A TO SUPPLEMENTAL INDENTURE 
 THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES OR “BLUE SKY” LAWS OF ANY OTHER JURISDICTION, AND MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH
SUCH REGISTRATION REQUIREMENTS OR UNDER AN EXEMPTION THEREFROM. 
 IF AGREED BETWEEN THE COMPANY AND THE REGISTERED OWNER OF THIS BOND, THE
PRINCIPAL OF THIS BOND MAY BE REDEEMED IN WHOLE OR IN PART WITHOUT SURRENDER OF THIS BOND OR NOTATION ON THIS BOND OF SUCH REDEMPTION. ANY PURCHASER OF THIS BOND, BY ACCEPTANCE HEREOF, AGREES THAT THE UNPAID PRINCIPAL AMOUNT AS OF ANY DATE MAY BE
LESS THAN THE PRINCIPAL AMOUNT SHOWN ON THIS BOND. CONFIRMATION OF THE UNPAID PRINCIPAL AMOUNT OF THIS BOND MAY BE OBTAINED FROM THE COMPANY OR THE CORPORATE TRUSTEE. 
 Registered No. 
 FORM OF TEMPORARY REGISTERED BOND 

NORTHWEST NATURAL GAS COMPANY 
 First Mortgage Bond 
 4.00% Series due 2042 

CUSIP: 667655 B*4 
 Interest Payment Dates:
February 1 and August 1 
 Interest Rate: 4.00% 
 Maturity Date: October 31, 2042 
 Principal Amount: 

Registered Holder: 
 NORTHWEST
NATURAL GAS COMPANY, a corporation of the State of Oregon (hereinafter called the “Company”), for value received, hereby promises to pay to the Registered Holder named above, or assigns in whose name this bond is registered in the bond
register, the unpaid portion of the Principal Amount specified above on the Maturity Date specified above, at the office or agency of the Company in the Borough of Manhattan, The City of New York (unless otherwise agreed by the Company and the
registered owner), in such coin or currency of the United States of America as at the time of payment is legal tender for public and private debts, and to pay to the registered owner hereof interest on the principal amount

  
 A-1

 
remaining unpaid from time to time from             , 2012 [Date of initial authentication and delivery of bonds of this series] or
from the most recent interest payment date to which interest has been paid, at the Interest Rate specified above in like coin or currency on each interest payment date specified above of each year, commencing February 1, 2013, until the
Company’s obligation with respect to the payment of such principal shall have been discharged. 
 This bond is a temporary
bond and one of an issue of bonds of the Company issuable in series and is one of a series known as its First Mortgage Bonds, 4.00% Series due 2042, all bonds of all series issued and to be issued under and equally secured (except in so far as any
sinking or other fund, established in accordance with the provisions of the Mortgage hereinafter mentioned, may afford additional security for the bonds of any particular series) by a Mortgage and Deed of Trust (herein, together with any indenture
supplemental thereto, including the Twenty-first Supplemental Indenture dated as of October 15, 2012, called the Mortgage) dated as of July 1, 1946, executed by Portland Gas & Coke Company (now Northwest Natural Gas Company) to
Deutsche Bank Trust Company Americas (formerly known as Bankers Trust Company) and R.G. Page (Stanley Burg, successor), as Trustees. Reference is made to the Mortgage for a description of the property mortgaged and pledged, the nature and extent of
the security, the rights of the holders of the bonds and of the Trustees in respect thereof, the duties and immunities of the Trustees, the terms and conditions upon which the bonds are and are to be secured, the circumstances under which additional
bonds may be issued and the rights of the Company to amend the Mortgage without any consent or other action by the holders of any series of bonds (including this series). With the consent of the Company and to the extent permitted by and as provided
in the Mortgage, the rights and obligations of the Company and/or the rights of the holders of the bonds and/or coupons and/or the terms and provisions of the Mortgage may be modified or altered by the affirmative vote of the holders of at least
seventy per centum (70%) in principal amount of the bonds then outstanding under the Mortgage and, if the rights of the holders of one or more, but less than all, series of bonds then outstanding are to be affected, then also by the affirmative
vote of the holders of at least seventy per centum (70%) in principal amount of the bonds then outstanding of each series of bonds so to be affected (excluding in any case bonds disqualified from voting by reason of the Company’s interest
therein as provided in the Mortgage); provided that, without the consent of the holder hereof, no such modification or alteration shall, among other things, impair or affect the right of the holder to receive payment of the principal of (and
premium, if any) and interest on this bond, on or after the respective due dates expressed herein, or permit the creation of any lien equal or prior to the lien of the Mortgage or deprive the holder of the benefit of a lien on the mortgaged and
pledged property. The Company has the right, without any consent or other action by the holders of any series of bonds (including this series), to amend the Mortgage so as to change seventy per centum (70%) in the foregoing sentence to
sixty-six and two-thirds per centum (66-2/3%). 
 Capitalized terms used in this bond which are not otherwise defined herein
shall have the meanings ascribed thereto in the Mortgage. 
 The unpaid principal hereof may be declared or may become due prior
to the Maturity Date hereinbefore named on the conditions, in the manner and at the time set forth in the Mortgage, upon the occurrence of a default as in the Mortgage provided. 

  
 A-2

 Except as otherwise agreed between the Company and the registered owner of this bond,
payment of the unpaid principal of this bond and interest payable on the Maturity Date will be made when due upon presentation and surrender hereof at the office of the Corporate Trustee or at such other office specified pursuant to Section 35
of the Mortgage and payments of interest (other than that payable on the Maturity Date hereof) shall be made, without presentation or surrender hereof, by check mailed to the registered address of the registered owner of this bond as such address
shall appear on the bond register maintained pursuant to the Mortgage. 
 The transfer of this bond may be registered as
prescribed in the Mortgage by the registered owner hereof in person, or by his duly authorized attorney, at the office or agency of the Company in the Borough of Manhattan, The City of New York, upon surrender for cancellation of this bond, together
with a written instrument of transfer wherever required by the Company duly executed by the registered owner or by his duly authorized attorney, and, thereupon, a new fully registered bond of the same series for a like unpaid principal amount will
be issued to the transferee in exchange herefor as provided in the Mortgage. The Company and the Trustees may deem and treat the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment and for
all other purposes and neither the Company nor the Trustees shall be affected by any notice to the contrary. 
 In the manner
prescribed in the Mortgage, any bonds of this series, upon surrender thereof, for cancellation, at the office or agency of the Company in the Borough of Manhattan, The City of New York, are exchangeable for a like aggregate unpaid principal amount
of bonds of the same series of other authorized denominations. 
 At any time prior to April 30, 2042 (six months prior to
the Maturity Date), the Company may, at its option, upon notice as provided in the Twenty-first Supplemental Indenture to the Mortgage, redeem at any time all, or from time to time any part of, this bond at 100% of the principal amount so redeemed,
and the Make-Whole Amount determined for the Settlement Date specified by the Company with respect to such principal amount, together with accrued and unpaid interest thereon. Reference is made to the Twenty-first Supplemental Indenture for the
terms and conditions of such redemption and the definitions of Make-Whole Amount and Settlement Date. 
 At any time on or after
April 30, 2042, this bond will be redeemable at the option of the Company, in whole or in part, on not less than 30 nor more than 60 days’ notice prior to the Settlement Date, at a redemption price equal to 100% of the principal amount of
this bonds to be redeemed, plus accrued and unpaid interest thereon to the Settlement Date. This bond is not otherwise subject to voluntary or option redemption. 
 As provided in the Mortgage, the Company shall not be required to register transfers or make exchanges of bonds of any series for a period of ten days next preceding any interest payment date for bonds of
such series, or next preceding any designation of bonds of such series to be redeemed, and the Company shall not be required to make transfers or exchanges of any bonds designated in whole or in part for redemption. 

The Lien of the Mortgage is subject to being legally discharged prior to the Maturity Date of this bond upon the deposit with the
Corporate Trustee of money or certain 

  
 A-3

 
obligations of, guaranteed by or backed by securities of, the government of the United States of America sufficient to pay the unpaid principal of, premium (if any) and interest on this bond when
due, all in accordance with the terms and conditions of the Mortgage. 
 No recourse shall be had for the payment of the
principal or Make-Whole Amount, if any, of or interest on this bond against any incorporator or any past, present or future subscriber to the capital stock, stockholder, officer or director of the Company or of any predecessor or successor
corporation, as such, either directly or through the Company or any predecessor or successor corporation, under any rule of law, statute or constitution or by the enforcement of any assessment or otherwise, all such liability of incorporators,
subscribers, stockholders, officers and directors being released by the holder or owner hereof by the acceptance of this bond and being likewise waived and released by the terms of the Mortgage. 

This bond shall not become obligatory until Deutsche Bank Trust Company Americas (formerly known as Bankers Trust Company), the Corporate
Trustee under the Mortgage, or its successor thereunder, shall have signed the form of authentication certificate endorsed hereon. 

  
 A-4

 IN WITNESS WHEREOF, NORTHWEST NATURAL GAS COMPANY has caused this bond to be signed in its
corporate name by its President or one of its Vice Presidents by his signature or a facsimile thereof, and its corporate seal to be impressed or imprinted hereon and attested by its Secretary or one of its Assistant Secretaries by his signature or a
facsimile thereof. 
 Dated: 
  

							
		 		  	NORTHWEST NATURAL GAS COMPANY
				
	Attest:	 		  		  	
		 		  	By	  	  

	[SEAL]	 		  		  	[Title]

  

	
	  

	[Title]

 This bond is one of the bonds, of the series herein designated, described or provided for in the
within-mentioned Mortgage. 
  

			
	 DEUTSCHE BANK TRUST COMPANY AMERICAS,
 (New York)

	
	Corporate Trustee
		
	By	 	  

		 	                    Authorized Officer

  
 A-5

 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

 

					
	  
	 		  	  

	 [please insert social security
	 		  	[name and address
of                        
	 or other identifying
	 		  	transferee must be
printed                        
	 number of assignee]
	 		  	or
typewritten]                        
		 		  	
	  
  

 

 the within bond of NORTHWEST NATURAL GAS COMPANY and does hereby irrevocably constitute and appoint 

 

	
	  

 

	  

 attorney, to transfer said bond on the books of the within-mentioned Company, with full power of substitution in the
premises. 
  

							
	 Dated:
	 	  
	 		 	  

  
 A-6Stock Option Plan

 EXHIBIT 4.01 
 STOCK OPTION PLAN OF BRASILAGRO – COMPANHIA BRASILEIRA DE PROPRIEDADES AGRÍCOLAS, APPROVED BY THE ANNUAL AND SPECIAL SHAREHOLDERS’ MEETING, HELD ON OCTOBER 29, 2008 

 

	1.	Plan Objective 

 The
objective of the Stock Option Plan (“Plan”) is to grant the Administrators and Managers (as defined in Item 3 of this Plan) of BrasilAgro – Companhia Brasileira de Propriedades Agrícolas (“Company”) and
its direct and indirect subsidiaries (“Subsidiaries”) options for the purchase of common shares (“Shares”) issued by the Company, in order to promote the expansion, success and execution of the Company’s
objectives, align the interests of the Company’s shareholders with those of its Administrators and Managers, and motivate said Administrators and Managers to contribute substantially to the Company’s success. 

The present Plan establishes the general conditions for the granting of options for the purchase of shares issued by the Company, pursuant
to Paragraph 3, Article 168 of Law 6,404/79, and amendments thereto. 
  

	2.	Administration of Plan 

Administration of Plan. The present Plan will be administrated by the Board of Directors, which may at any time institute a
Compensation Committee (“Committee”) with advisory duties to be created pursuant to the Company’s Bylaws and composed of members of the Company’s Board of Directors, in order to assist the Board of Directors in the
Administration of the Plan and to hire specialized consulting firms. The resolutions of the Board of Directors are binding for the Company in all matters related to the Plan. 
 Powers. In the exercise of their duties, the Board of Directors and the Committee are subject to the limits provided for by law, the Company’s Bylaws, governing laws and regulations, the Plan
and the guidelines established by the Company’s shareholders convened at a General Meeting. The Board of Directors shall have broad powers to implement the Plan and take all necessary and appropriate measures to its administration. Any
omissions will be regulated by the Board of Directors, subject to the consultation of the Meeting of Shareholders’ if required by law or the Company’s Bylaws, or whenever deemed necessary by the Board of Directors, at its sole discretion.

 The Board of Directors has the following powers, among others: 

 

	 	(i)	introduce and enforce general rules related to the granting of options under the terms of this Plan and clarify any issues involving the interpretation of the Plan;

  

	 	(ii)	set performance targets for the Administrators and Managers of the Company and its Subsidiaries in order to establish objective criteria for the selection of
Participants; 

  

	 	(iii)	select Participants of the Plan and authorize the granting of stock options on their behalf, establishing all the conditions of the options granted, as well as
modifying said conditions when necessary to conform the options to governing law or regulations; 

	 	(iv)	issue new Company shares within the limit of the Company’s authorized capital as a result of the stock options exercised by Participants; and

  

	 	(v)	establish supplementary rules to this Plan and review its conditions, pursuant to item 11 of this Plan. 

 

	3.	Participants 

Participants. The professionals selected to participate in the Plan are selected at the sole discretion of the Board of Directors
from among the Administrators and Managers of the Company and its Subsidiaries. For the purposes of this Plan: (a) “Administrators” means the members of the Board of Directors and the Executive Officers of the Company and its
subsidiaries; and (b) “Managers” mean the employees in the exercise of management duties employed by the Company and its Subsidiaries, as well as individuals and companies rendering services to the Company or its subsidiaries.

 Continuance of Employment or Position. No provision of this Plan may be construed as conferring rights to Participants
related to the guarantee of their continuation as an employee or service provider at the Company or its Subsidiaries or interfere in any way with the right of the Company or its Subsidiaries to rescind at any time the relationship with the
Participant, subject to the legal conditions and those included in the labor contract or service contract, as the case may be. In addition, no provision of this Plan may be construed as constituting rights to any stock option holder related to a
guarantee of their continuation until the end of their term as Executive Officer or member of the Board of Directors, or interfere in any way with the right of the Company or its Subsidiaries to terminate them, nor assure their right to reelection.

 Compensation. The granting of stock options and their exercise by Participants are not in any way related to or linked
to the fixed and variable compensation owed at the time by the Company. 
 Participation. Each Plan Participant must
expressly commit to the plan by signing the term of commitment, without any restrictions, pledging to comply with all the provisions set forth herein. 
  

	4.	Stock Option Programs 

Stock Option Programs. The granting of options for the subscription or acquisition of shares to the Participants selected by the
Board of Directors will be performed through Stock Granting Option Programs (“Stock Option Programs”). The Board of Directors shall create specific Stock Option Programs for the categories of Administrators and Managers. 

Stock Option Programs. Pursuant to the provisions of this Plan, the Board of Directors must establish for each Stock Option
Program, in accordance with the general criteria established in this Plan, (i) the overall number of Company shares to be included in each grant issued under the scope of the Plan; (ii) the terms and/or events making the option for the
subscription or acquisition of shares exercisable; (iii) the option exercise price and price adjustment index until the option exercise date (automatically applicable at the shortest frequency provided for by law). The Board of Directors may at
any time change the adjustment index; (iv) the payment conditions of the exercise price; (v) the maximum period for exercising the option or the criteria for determining said period; (vi) any restrictions on the trading of shares
subscribed or acquired as a result of the exercise of the option; and (vii) potential penalties. 

  
 2 

 Stock Option Agreement. The granting of options under the terms of the Plan will be
performed individually for each Participant, through the signing of stock option agreements (“Stock Option Agreements”) between the Company and the Participant, which must specify, without prejudice to other conditions imposed by
the Board of Directors, the number of shares to be included in the option, the conditions for acquiring the right to exercise the option, the deadline for the exercise of the option, the exercise price of the option and the payment conditions. The
Board of Directors may impose terms and/or conditions precedent for the exercise of the option, and impose restrictions on the transfer of the shares acquired upon the exercise of the options, and may also reserve for the Company repurchase options
or preference rights in the event of the sale by the Participant of said shares, until the end of the period and/or compliance with the established conditions. 
 Special Treatment. The Board of Directors may establish special terms and conditions for each Stock Option Agreement, with no need for the application of any equal or analogous treatment rules
between Participants, even if they are in similar or identical situations. 
 Interpretation of Stock Option Programs and
Agreements. The options granted in accordance with any Stock Option Program and Agreement are subject to all the terms and conditions set forth in this Plan. The granting of options under a Stock Option Program and Agreement to any Participant
does not oblige the Company to grant additional options to the same Participant in future fiscal years. In the case of any conflict between the Plan and the provisions of the Stock Option Programs or Agreement or any instrument or agreement executed
as a result of the Plan, the provisions included in the Plan should prevail. 
  

	5.	Shares included in the Plan 

 Number of shares included in the Plan. Stock options granted under the Plan may confer rights over a number of shares that may not exceed at any time the maximum and cumulative amount of 2% (two
percent) of the shares issued by the Company, including in this calculation all of the options already granted under the Plan, whether exercised or not, except for those cancelled and non-exercised, with the overall number of shares issued or that
may potentially be issued under the Plan is always kept within the limits of the Company’s authorized capital. In order to satisfy the exercise of options granted under the Plan, the Company may, at the Board of Directors’ discretion,
(i) issue new shares within the limits of the Company’s capital stock, or (ii) sell shares held in treasury. 

Class of shares included in the Plan. Stock options granted under the Plan will confer its holders the rights provided for under
governing law and in the Company’s Bylaws, subject to the provisions of item 8 below, as well as to any provision to the contrary established by the Board of Directors. 
 Adjustments. If the number of shares issued by the Company is subjected to increases, decreases, splits, groupings or the payment of dividends, the Board of Directors must effect the appropriate
adjustments in the number of shares issued in accordance with the options already exercised and those granted but not exercised. The adjustments may not modify the overall subscription or acquisition price of the options granted but not exercised.
No share fractions will be issued as a result of the Plan or any of these adjustments. 

  
 3 

	6.	Exercise Price of the Options 

 Exercise Price of the Options. The Board of Directors is responsible for setting the exercise price of the options on a case-by-case basis, observing as a minimum the average price of the
Company’s shares in the trading sessions of the São Paulo Stock Exchange (Bovespa), weighted by trading volume, during the 30 (thirty) trading sessions prior to the granting of the options. 

Form and Term of Payment. The exercise price of the options must be paid in the form and within the term established by the Board
of Directors. The exercise price must be paid in full before the shares acquired through the exercise of the option under the conditions of the Plan may be sold to a third party, except with the previous authorization by the Board of Directors, in
which case the proceeds of the sale may be allocated in advance to settle a debit owed by the Participant to the Company. 

Dividends. Unless resolved otherwise by the Board of Directors, the shares acquired as a result of the exercise of the options will
be entitled to dividend payments in cash, including interest on equity and on the income declared in the fiscal year in which the subscription or acquisition of the shares that are the object of the option occurred, depending on the case.

  

	7.	Exercise of Option 

Exercise of Option. The options granted under the Plan may be exercised, in part or full, in accordance with the terms and
conditions stipulated by the Board of Directors and the terms and conditions provided for in the respective Stock Option Agreement. 
 Form of Exercise. Participants wishing to exercise their stock options must notify the Company in writing of their intent to do so and indicate the number of shares they wish to acquire, observing
the communication model to be disclosed by the Board of Directors. The Company will inform the Participant the exercise price to be paid, based on the number of shares informed by the Participant, with the Company’s administrators responsible
for taking all measures required to formalize the acquisition of the shares that are the object of the exercise. 
 Term of
Option. Without prejudice to any provision to the contrary in the Stock Option Plan or Agreement, the options granted under the Plan will extinguish automatically, along with all their associated rights, in the following cases: 

 

	 	(i)	as a result of their full exercise; 

  

	 	(ii)	following the lapse of the term of the option; 

  

	 	(iii)	if the Company is dissolved, liquidated or declares bankruptcy; or 

  

	 	(iv)	in the situations provided for in items 8 and 9 below. 

 Extinguishment. The portion of the option not exercised within the stipulated terms and conditions will automatically be considered extinguished, with no right to indemnity. 

Suspension. The Board of Directors may determine the suspension of the right to exercise the options upon the verification of
situations that, under applicable laws or regulations, restrict or impede the trading of shares by the Participant. 

  
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 Preference Rights Pursuant to Article 171, Paragraph 3 of Law 6,404/76, and
amendments thereto, shareholders do not enjoy any preference in the acquisition or exercise of the stock options under the Plan. 

Shareholder Rights. Participants only gain the rights and privileges of the shareholders in the Company after their options are
duly exercised in accordance with the Plan and the respective Stock Option Agreement. No shares will be delivered to bearers as a result of the exercise of options unless all legal and regulatory requirements have been fully fulfilled. 

 

	8.	Termination 

Termination. For the purpose of this Plan, “Termination” means any act or fact, justified or otherwise, that ends
the legal relationship of the Participant with the Company or with the subsidiaries that granted the stock option. Termination does not encompass the following situations: (i) a change in the legal relationship of the Participant with the
Company in which after said change the Participant is still considered an Administrator or Manager, as defined in item 3 of this Plan, (ii) death or permanent disability, and (iii) retirement. Termination includes the situations of
removal, replacement or failure to be reelected as administrator, and rescission of labor or service agreement. 
 Termination
upon initiative of the Participant or upon initiative of the Company. In the case of Termination upon the Initiative of the Participant or upon the initiative of the Company or its Subsidiary for any reason, except for just cause, all options
that were granted and not yet exercisable, and their associated rights, are automatically extinguished, independent of any advance notice or indemnity. However, the Participant does maintain the right to exercise the options that are already
exercisable as of the date of Termination, within the period determined by the Board of Directors and upon delivery of a written notice. 
 Termination for Just Cause. In the case of the Termination of the Participant for just cause, all options granted, regardless if exercisable or not on the Termination date, and their associated
rights, are automatically extinguished, independent of any advance notice or indemnity. 
  

	9.	Death, Permanent Disability or Retirement of Participant 

 Death or Permanent Disability. In the event of the death or permanent disability of the Participant, the Board of Directors will decide if the grace period of the unexercised options makes them
immediately exercisable. The options already exercisable on the date of death or permanent disability of the Participant may be exercised by the heirs or successors of the Participants, by means of legal succession or will or by the executor of the
estate of the Participant, in the event of the death of the Participant, or by the actual Participant, in the event of permanent disability, with the period determined by the Board of Directors, upon delivery of written notice. 

Retirement. In the event of the retirement of the Participant, the Board of Directors will decide if the grace period of the
unexercised options makes them immediately exercisable. The options already exercisable as of the date of retirement of the Participant may be exercised within the period determined by the Board of Directors, upon delivery of a written notice.

  
 5 

	10.	Date of Validity and Termination of Plan 

 Validity. The Plan will come into effect on the date of its approval by the Meeting of Shareholders’ of the Company and terminate, at any time, (a) by a decision of the Meeting of
Shareholders’ or the Board of Directors of the Company; (b) upon the cancellation of the Company’s registration as a publicly held company; (c) upon the cessation of trading in the Company’s shares in the organized or
unorganized over-the-counter market on the stock exchange. (d) as a result of the reorganization of the Company’s ownership structure; or (e) upon the dissolution or liquidation of the Company, whichever occurs first. 

Extinguishment by Resolution. The extinguishment of the Plan by resolution of the Company’s Shareholders or by the members of
the Board of Directors will not affect the effectiveness of previously granted options that are still valid, nor the restrictions on trading in shares and/or the preference rights instituted herein. 

Extinguishment by Cancellation of Registration, Cessation of Trading, Dissolution or Liquidation. In the event of the cancellation
of the company’s registration as a publicly held company, the cessation of trading in the Company’s shares in the organized or unorganized over-the-counter market on the stock exchange, the dissolution or liquidation of the Company, the
Plan and the associated options granted will automatically be extinguished. 
  

	11.	General Provisions 

Applicable Regulations. This Stock Option Plan, each individual Stock Option Program, the options granted based on these
instruments and the subscription of new shares arising from the options or the acquisition of shares issued by the Company held in Treasury, must, depending on the individual case, comply with Law 6,404/76, as amended, and the applicable
regulations. Each Participant pledges, by signing the Stock Option Agreement, to observe the regulations of the Securities and Exchange Commission of Brazil (CVM), in particular CVM Instruction 358 of January 3, 2002, and amendments thereto,
and the Policy for Trading in the Company’s Shares, if one exists. 
 Revision of Plan. The Board of Directors, in the
interest of the Company and its shareholders, may revise and modify the conditions of the Plan, with the exception of those included in items 1, 2, 5 and 6 of this Plan. Any significant legal modification related to the regulations governing
corporate law, publicly held companies and/or the tax effects of stock option plans could result in the full revision or termination of this Plan. 

  
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