Document:

EX-10.11

 Exhibit 10.11 

NORTHWEST NATURAL GAS COMPANY 

UMBRELLA TRUSTTM FOR DIRECTORS 

EFFECTIVE JANUARY 1, 1991 

RESTATED AS OF OCTOBER 1, 2018 
  

			
	 NORTHWEST NATURAL GAS COMPANY
 One Pacific
Square
 220 N.W. 2nd
 Portland, Oregon 97209
	  	Company

  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION

Wells Fargo Institutional Retirement and Trust 100 North Main Street

Winston-Salem, North Carolina 27101
	  	Trustee

 TABLE OF CONTENTS 
  

									
	 	 	 	  	 	  	Page	 
	Preamble	 		  		  			
			
	ARTICLE I	 	 Effective Date; Duration 
	  	 	2	 
				
		 	1.01	  	 Effective Date.
	  	 	2	 
		 	1.02	  	 Duration.
	  	 	2	 
		 	1.03	  	 Revocability.
	  	 	3	 
		 	1.04	  	 Change in Control.
	  	 	3	 
			
	ARTICLE II	 	 Trust Fund 
	  	 	5	 
				
		 	2.01	  	 Contributions.
	  	 	5	 
		 	2.02	  	 Investments.
	  	 	6	 
		 	2.03	  	 Recapture of Excess Assets.
	  	 	9	 
		 	2.04	  	 Subtrusts.
	  	 	9	 
		 	2.05	  	 Substitution of Other Property.
	  	 	9	 
		 	2.06	  	 Administrative Powers of Trustee.
	  	 	10	 
			
	ARTICLE III	 	 Administration 
	  	 	13	 
				
		 	3.01	  	 Committee.
	  	 	13	 
		 	3.02	  	 Payment of Benefits.
	  	 	13	 
		 	3.03	  	 Records.
	  	 	14	 
		 	3.04	  	 Accountings.
	  	 	14	 
		 	3.05	  	 Expenses and Fees.
	  	 	15	 
			
	ARTICLE IV	 	 Liability 
	  	 	15	 
				
		 	4.01	  	 Indemnity.
	  	 	15	 
		 	4.02	  	 Bonding.
	  	 	15	 
			
	ARTICLE V	 	 Insolvency 
	  	 	15	 
				
		 	5.01	  	 Determination of Insolvency.
	  	 	15	 
		 	5.02	  	 Insolvency Administration.
	  	 	16	 
		 	5.03	  	 Termination of Insolvency Administration.
	  	 	16	 
		 	5.04	  	 Creditors’ Claims During Solvency.
	  	 	17	 
			
	ARTICLE VI	 	 Successor Trustees
	  	 	17	 
				
		 	6.01	  	 Resignation and Removal.
	  	 	17	 
		 	6.02	  	 Appointment of Successor.
	  	 	18	 
		 	6.03	  	 Accountings; Continuity.
	  	 	18	 

  
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	 	 	 	  	 	  	Page	 
			
	ARTICLE VII	 	 General Provisions 
	  	 	18	 
				
		 	7.01	  	 Interests Not Assignable.
	  	 	18	 
		 	7.02	  	 Amendment.
	  	 	18	 
		 	7.03	  	 Applicable Law.
	  	 	19	 
		 	7.04	  	 Agreement Binding on All Parties.
	  	 	19	 
		 	7.05	  	 Notices and Directions.
	  	 	19	 
		 	7.06	  	 No Implied Duties.
	  	 	19	 
				
	EXHIBIT A	 		  		  			

 INDEX OF TERMS 
  

							
	 TERM
	  	PROVISION	  	PAGE	 
	Acquiror Stock	  	2.02-3	  	 	7	 
	Act	  	1.04-2(c)	  	 	4	 
			
	Board	  	1.02-3	  	 	2	 
			
	Cash Benefits	  	2.01-1	  	 	5	 
	Change in Control	  	1.04-2	  	 	4	 
	Code	  	1.02-3	  	 	2	 
	Committee	  	Preamble	  	 	1	 
	Company	  	Heading	  	 	1	 
	Contract(s)	  	2.02-1	  	 	6	 
	Corporate Transaction	  	1.04-3	  	 	4	 
			
	DDCP	  	Preamble	  	 	1	 
	DRSPP	  	2.02-2	  	 	7	 
			
	ERISA Funding	  	1.02-4	  	 	3	 
	Excess Assets	  	2.03-2	  	 	9	 
	Experts	  	2.06-2	  	 	11	 
			
	Incumbent Directors	  	1.04-2(b)	  	 	3	 
	Insolvency Administration	  	5.01-3	  	 	16	 
	Insolvent	  	5.01-1	  	 	15	 
	Insurer	  	2.02-1	  	 	6	 
			
	Merger	  	1.04-2(a)	  	 	4	 
			
	NEDSCP	  	2.01-2	  	 	5	 
			
	Parent	  	Preamble	  	 	1	 
	Parent Common Stock	  	Preamble	  	 	1	 
	Plans	  	Preamble	  	 	1	 
	Potential Change In Control	  	2.01-3	  	 	6	 
			
	Retirement Bylaw	  	Preamble	  	 	1	 
			
	Solvency	  	5.04-2	  	 	17	 
	Subtrusts	  	2.04	  	 	9	 
			
	Tax Funding	  	1.02-5	  	 	3	 
	Triggering Event	  	2.01-3	  	 	5	 
	Trustee	  	Heading	  	 	1	 
			
	Voting Securities	  	1.04-2(a)	  	 	4	 
			
	Written Consent of Participants	  	1.02-6	  	 	3	 

  
 iii 

 NORTHWEST NATURAL GAS COMPANY 

UMBRELLA TRUSTTM FOR DIRECTORS 

EFFECTIVE JANUARY 1, 1991 

RESTATED AS OF OCTOBER 1, 2018 
  

			
	 NORTHWEST NATURAL GAS COMPANY
 One Pacific
Square
 220 N.W. 2nd
 Portland, Oregon 97209
	  	Company

  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION
 Wells
Fargo Institutional Retirement and Trust
 100 North Main Street

Winston-Salem, North Carolina 27101
	  	Trustee

 The Company has adopted the following plans (the “Plans”) for the benefit of directors of the
Company and its affiliates: 
 Northwest Natural Gas Directors Deferred Compensation Plan (“DDCP”) 

Bylaws Article III, Section 5 on Directors Retirement Benefits (“Retirement Bylaw”) 

The Plans are administered by an administrative committee (the “Committee”) appointed by the Company. If the Plans are administered by more than one
(1) Committee at any time, references in this Trust Agreement to the Committee which relate to a particular Plan shall refer to the Committee which administers that Plan, and, if the reference does not relate to a particular Plan, shall refer
to all of such Committees. The purpose of this trust is to give Plan participants greater security by placing assets in trust for use only to pay benefits or, if the Company becomes insolvent, to pay creditors. The trust is intended to be a grantor
trust, the income of which is taxable to the Company. No contribution to or income of the trust is to be taxable to Plan participants until benefits are distributed to them. 

The Company and the original trustee of this trust established this trust effective as of January 1, 1991 pursuant to a Trust Agreement
dated as of that date. The Company and the Trustee restated this trust effective as of December 1, 2001, amended it effective as of February 27, 2003 pursuant to an Amendment No. 1 dated as of that date and amended it again effective
as of February 24, 2005 pursuant to an Amendment No. 2 dated as of that date. The Company and the Trustee amended and restated this trust effective as of December 15, 2005. 

  
 1 

 Effective October 1, 2018, the Company became a wholly-owned subsidiary of Northwest
Natural Holding Company (“Parent”) and holders of Company common stock became holders of Parent common stock (“Parent Common Stock”). To make appropriate changes to the Trust in relation to the foregoing corporate transaction,
the Company and the Trustee now hereby amend and restate the Trust effective as of October 
1, 2018 on the following terms: 
 ARTICLE I 

Effective Date; Duration 

1.01    Effective Date. 

This trust shall be effective January 1, 1991. The trust year shall coincide with the Company’s fiscal year, which is the calendar
year. 
 1.02    Duration. 

1.02-1    This trust shall continue in effect until all the assets of the trust
fund are exhausted through distribution of benefits to participants, reimbursement of benefits paid by the Company pursuant to Section 3.02-5, payment to general creditors in the event of insolvency,
payment of fees and expenses of the Trustee, and return of remaining funding of a Subtrust pursuant to 1.02-2. 

1.02-2    Except as provided in 1.03, the trust shall be irrevocable with respect
to amounts contributed to it for a Plan until all benefit rights covered by the Subtrust for that Plan are satisfied. The Trustee shall then return to the Company any assets remaining in the Subtrust for that Plan. 

1.02-3    If the existence of this trust is held to be ERISA Funding or Tax Funding
by a federal court and appeals from that holding are no longer timely or have been exhausted, this trust shall terminate. The board of directors of Parent (the “Board”) may also terminate this trust if it determines, based on an opinion of
legal counsel which is satisfactory to the Trustee, that either (i) judicial authority or the opinion of the U.S. Department of Labor, Treasury Department or Internal Revenue Service (as expressed in proposed or final regulations, advisory
opinions or rulings, or similar administrative announcements) creates a significant risk that the trust will be held to be ERISA Funding or Tax Funding, or (ii) ERISA or the Internal Revenue Code (the “Code”) requires the trust to be
amended in a way that creates a significant risk that the trust will be held to be ERISA Funding or Tax Funding, and failure to so amend the trust could subject the Company to material penalties. Upon such determination, the assets of each Subtrust
remaining after payment of the Trustee’s fees and expenses shall be distributed as follows: 
 (a)    Such assets
shall be transferred to a new trust established by the Company which is not deemed to be ERISA Funding or Tax Funding, but which is similar in all other respects to this trust, if the Company determines that it is possible to establish such a trust.

 (b)    If the Company determines that it is not possible to establish the trust in (a) above, then the assets
shall be distributed to the Company if the Written Consent of Participants, as defined in 1.02-6, is obtained for such distribution. 

  
 2 

 (c)    If the Company determines that it is not possible to establish
the trust in (a) above and the Written Consent of Participants is not obtained to distribute the assets to the Company, then the assets shall be allocated in proportion to the accrued and vested benefits of the participants and distributed to
them in lump sums. Any assets remaining shall be distributed to the Company. 
 (d)    Notwithstanding the foregoing,
the Trustee shall distribute funds to a participant to the extent that a federal court has held that the interest of the participant in this trust is includible for federal income tax purposes in the gross income of the participant prior to actual
payment of Plan benefits to the participant and appeals from that holding are no longer timely or have been exhausted. This provision shall also apply to any beneficiary of a participant. 

1.02-4    This trust is “ERISA Funding” if it prevents any of the Plans
from meeting the “unfunded” criterion of the exceptions to various requirements of Title I of the Employee Retirement Income Security Act of 1974 (“ERISA”) for plans that are unfunded and maintained primarily for the purpose of
providing deferred compensation for a select group of management or highly compensated employees. 

1.02-5    This trust is “Tax Funding” if it causes the interest of a
participant in this trust to be includible for federal income tax purposes in the gross income of the participant prior to actual payment of Plan benefits to the participant. 

1.02-6    “Written Consent of Participants” means, for the purposes of
this trust, consent in writing by participants who (i) are a majority in number and (ii) have at least sixty-six and two-thirds percent (66-2/3%) in value of the accrued benefits of all participants in the Plans which are subject to this trust on the date of such consent. 

1.03    Revocability. 

1.03-1    This trust shall become irrevocable upon the issuance by the Internal
Revenue Service of a private letter ruling establishing that its existence and ownership of assets do not cause the benefit rights of participants under the Plans to be taxable currently. If such a ruling is denied or if the Internal Revenue Service
declines to issue such a ruling, the Company may revoke the trust and take possession of all assets held by the Trustee for the trust. 
 1.03-2    Notwithstanding the provisions of 1.03-1, if any of the events described in 2.01-4 has occurred, the
Company may declare the trust to be irrevocable. 
 1.04    Change in Control.

 1.04-1    On a Change in Control described in
1.04-2, the trust assets shall be held for participants who had benefit rights under the Plans before the Change in Control occurred. If the Company makes contributions for benefits owed to new participants
under a Plan following a Change in Control, such contributions and any insurance contracts or other assets purchased with them shall be held in a new Subtrust separate from the existing Subtrust for previous participants. The existing Subtrust shall
cover all the benefits provided by the Plan for a previous participant, including benefits accrued after the Change in Control. 

  
 3 

 1.04-2    A “Change in
Control” means the occurrence of any of the following events: 
 (a)    The consummation of: 

(i)    any consolidation, merger or plan of share exchange involving Parent (a “Merger”) as a result of which
the holders of outstanding securities of Parent ordinarily having the right to vote for the election of directors (“Voting Securities”) immediately prior to the Merger do not continue to hold at least 50% of the combined voting power of
the outstanding Voting Securities of the surviving corporation or a parent corporation of the surviving corporation immediately after the Merger, disregarding any Voting Securities issued to or retained by such holders in respect of securities of
any other party to the Merger; 
 (ii)    any consolidation, merger, plan of share exchange or other transaction
involving the Company as a result of which Parent does not continue to hold, directly or indirectly. at least 50% of the outstanding securities of the Company ordinarily having the right to vote for the election of directors; or 

(iii)    any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or
substantially all, the assets of Parent or the Company; 
 (b)    At any time during a period of two consecutive years,
individuals who at the beginning of such period constituted the board of directors of Parent (“Incumbent Directors”) shall cease for any reason to constitute at least a majority thereof; provided, however, that the term “Incumbent
Director” shall also include each new director elected during such two-year period whose nomination or election was approved by two-thirds of the Incumbent
Directors then in office; or 
 (c)    Any person (as such term is used in Section 14(d) of the Securities Exchange
Act of 1934 (the “Act”), other than Parent or the Company or any employee benefit plan sponsored by Parent or the Company) shall, as a result of a tender or exchange offer, open market purchases or privately negotiated purchases from
anyone other than Parent, have become the beneficial owner (within the meaning of Rule 13d-3 under the Act), directly or indirectly, of Voting Securities representing twenty percent (20%) or more of the
combined voting power of the then outstanding Voting Securities. 

1.04-3    “Corporate Transaction” means any of the following: 

(a)    any consolidation, merger or plan of share exchange involving Parent pursuant to which shares of Parent Common
Stock would be converted into cash, securities or other property; or 
 (b)    any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all, or substantially all, the assets of Parent. 

  
 4 

 ARTICLE II 

Trust Fund 
 
2.01    Contributions. 
 2.01-1    The Company
shall contribute to the trust such amounts as the Committee shall reasonably decide are necessary to provide for all benefits payable under the Plans in cash (“Cash Benefits”). The time of payment of such contributions shall be decided by
the Committee, except as provided in 2.01-3. 

2.01-2    If a participant in the DDCP elects under the DDCP to defer shares of
Parent Common Stock awarded to the participant under the Company’s Non-Employee Directors Stock Compensation Plan (the “NEDSCP”), promptly after the deferral election becomes irrevocable the
Administrator of the NEDSCP shall cause the Parent Common Stock subject to such irrevocable deferral to be transferred to the Trustee as a contribution to this trust. The Parent Common Stock so contributed shall nevertheless remain subject to
forfeiture under the terms of the NEDSCP prior to vesting under the NEDSCP. If a participant in the DDCP elects under the DDCP to defer Fees (as defined in the DDCP) into the participant’s Stock Account (as defined in the DDCP), the amount of
such Fees deferred to the participant’s Stock Account shall be contributed by the Company to the trust at the time that Fees are paid to other directors who do not elect to defer the payment of such Fees. As soon as practicable after
January 1, 1998, the Company shall contribute to the trust a number of shares of Parent Common Stock equal to the number of shares of Parent Common Stock credited to the Retirement Benefit Accounts (as defined in the DDCP) of all Directors
under the DDCP. 
 2.01-3    The Company shall, upon the occurrence of any of the
events described in 2.01-4 (“Triggering Event”) and annually thereafter if the Triggering Event results in a Change in Control, contribute to the trust the sum of the following: 

(a)    The present value of the remaining premiums and the interest on any policy loan on insurance contracts held in the
trust. 
 (b)    The amount by which the present value of all Cash Benefits payable under the Plans exceeds the value of
all trust assets other than those required under 2.02-2 or 2.02-3 to be invested in Parent Common Stock or Acquiror Stock. Each participant’s Cash Benefit for purposes of calculating present value shall
be the highest Cash Benefit the participant would have under the Plan within the twenty-four (24) months following the Triggering Event, assuming that no changes are made in the participant’s level of income or deferral, that service on
the Board continues for twenty-four (24) months at the same rate of compensation, and that the participant receives any benefit enhancement provided by the Plans upon a Change in Control. The insurance contracts shall be valued at cash
surrender value, and other assets of the trust shall be valued at their fair market value. 
 (c)    A reasonable
estimate provided by the Trustee of its fees due over the remaining duration of the trust. 

  
 5 

 Any contribution to the trust under 2.01-3 due to a
Triggering Event shall be returned to the Company one (1) year after delivery of such contribution to the Trustee unless a Change in Control shall have occurred during such one (1) year period, if the Company requests such return within
forty-five (45) days after such one (1) year period. If no such request is made within the forty-five (45) day period, then, subject to 2.03-1, the contribution shall become a permanent part of
the trust fund. The one (1) year period shall start over again in the event of and upon the date of any subsequent Potential Change in Control. A “Potential Change in Control” shall include the events described in 2.01-4(a) or (b). 
 2.01-4    The events
referred to in 2.01-3 shall include the following: 
 (a)    The Company becomes
aware that preliminary or definitive copies of a proxy statement and information statement or other information have been filed with the Securities and Exchange Commission pursuant to Rule 14a-6, Rule 14c-5, or Rule 14f-1 under the Act relating to a Potential Change in Control of Parent. 

(b)    The delivery to Parent pursuant to Rule 14d-3 under the Act of a Tender
Offer Statement relating to Voting Securities of Parent. 
 (c)    The termination of any of the Plans by the Company or
any amendment to any of the Plans which would reduce the accrued benefits currently provided for under any of such Plans. 

(d)    Failure by the Company to contribute, within sixty (60) days of receipt of a written notice from the Trustee,
the full amount of any insufficiency in trust assets that is required to pay any benefit that is payable upon a direction from the Committee pursuant to 3.02-2. 

2.01-5    The calculations required under
2.01-3 shall be based on the actuarial assumptions set forth in the attached Exhibit A, which, prior to a Change in Control, may be revised by the Committee from time to time. For purposes of 2.01-3(a), the discount rate shall be the same as the rate applied to determine the present value of all Cash Benefits payable under the Plans. 

2.01-6    The Trustee shall accept the contributions made by the Company and shall
hold them as a trust fund for the payment of benefits under the Plans. The Trustee shall not be responsible for determining the required amount of contributions or for collecting any contribution not voluntarily paid. Contributions may be in cash or
in kind. 
 2.02    Investments. 

2.02-1    Except as provided in 2.02-2 or 2.02-3, the trust fund may be invested in insurance contracts (“Contracts”). Such Contracts may be purchased by the Company and transferred to the Trustee as in-kind
contributions or may be purchased by the Trustee with the proceeds of cash contributions. The purchase and holding of such Contracts shall be an investment directed by the Company, pursuant to 2.02-5. The
Trustee shall have the power to exercise all rights, privileges, options and elections granted by or permitted under any Contract or under the rules of the insurance company (“Insurer”). Prior to the occurrence of any of the events
referred to in 2.01-4, the exercise by the Trustee of any incidents of ownership under any Contract shall be subject to the direction of the Committee. 

  
 6 

 Notwithstanding anything contained herein to the contrary, neither the Company nor the
Trustee shall be liable for the refusal of any Insurer to issue or change any Contract or Contracts or to take any other action requested by the Trustee; nor for the form, genuineness, validity, sufficiency or effect of any Contract or Contracts
held in the trust; nor for the act of any person or persons that may render any such Contract or Contracts null and void; nor for failure of any Insurer to pay the proceeds of any such Contract or Contracts as and when the same shall become due and
payable; nor for any delay in payment resulting from any provision contained in any such Contract or Contracts; nor for the fact that for any reason whatsoever (other than its own negligence or willful misconduct) any Contract or Contracts shall
lapse or otherwise become uncollectible. 
 2.02-2    To the extent that
contributions of Parent Common Stock are made to this trust under 2.01-2, the trust fund shall continue to be invested in such shares of Parent Common Stock. Any cash contributions made to this trust under 2.01-2 shall be invested by the Trustee in Parent Common Stock by purchasing Parent Common Stock under Parent’s Dividend Reinvestment and Direct Stock Purchase Plan (the “DRSPP”) on the next
Investment Date (as defined in the DRSPP). All dividends received on Parent Common Stock held in the trust under this 2.02-2 shall be reinvested in Parent Common Stock pursuant to the DRSPP. The purchase and
holding of Common Stock under this 2.02-2 shall be an investment directed by the Company, pursuant to 2.02-5. 

2.02-3    Notwithstanding 2.02-2, following
a Corporate Transaction, the trust fund shall no longer be invested in Parent Common Stock. Except as provided below, if Parent Common Stock is converted or exchanged in the Corporate Transaction in whole or in part for common stock of the acquiring
company (“Acquiror Stock”), then (a) the trust fund shall continue to be invested in such shares of Acquiror Stock, (b) any cash contributions thereafter made to this trust under 2.01-2
shall be invested by the Trustee in Acquiror Stock by purchasing Acquiror Stock in the public market as soon as practicable, with related brokerage commissions paid by the Company, and (c) the purchase and holding of Acquiror Stock under this 2.02-3 shall be an investment directed by the Company, pursuant to 2.02-5. If a participant elects pursuant to Paragraph 3(g)(iv) of the DDCP to transfer the amount credited
in the participant’s Stock Account and Retirement Benefit Account to the participant’s Cash Account, then the Trustee shall sell the number of shares of Acquiror Stock equal to the number of shares then credited to the participant’s
Stock Account and Retirement Benefit Account, in the public market as soon as practicable following the effectiveness of such election, with related brokerage commissions paid by the Company. 

2.02-4    If the Trustee is required to invest cash contributions by purchasing
Parent Common Stock or Acquiror Stock in the public market or is required to sell Parent Common Stock or Acquiror Stock in the public market, the following provisions shall apply: 

(a)    Purchases and sales of Parent Common Stock or Acquiror Stock shall be made on the date on which the Trustee
receives from the Company in good order all information and documentation necessary to accurately effect such purchases and sales (or, in the case of purchases, the subsequent date on which the Trustee has received a wire transfer of the funds
necessary to make such purchases). Purchases and sales of Parent Common Stock or Acquiror Stock shall be made on the open market on such day unless the following applies: 

(i)    The Trustee is unable to determine the number of shares required to be purchased or sold on such day; or 

  
 7 

 (ii)    If the Trustee is unable to purchase or sell the total number
of shares required to be purchased or sold on such day as a result of market conditions; or 
 (iii)    If the Trustee
is prohibited by the Securities and Exchange Commission, the New York Stock Exchange, or any other regulatory body from purchasing or selling any or all of the shares required to be purchased or sold on such day. 

(b)    In the event of the occurrence of the circumstances described in (i), (ii) or (iii) above, the Trustee shall
purchase or sell such shares as soon as possible thereafter and shall determine the price of such purchases or sales to be the average purchase or sale price of all such shares purchased or sold. The Trustee may follow written directions from the
Company to deviate from the above purchase procedures. 
 2.02-5    Except as
otherwise required by 2.02-2 or 2.02-3, the Trustee shall invest the trust fund in accordance with written directions by the Committee. The Trustee shall act only as an
administrative agent in carrying out the directed investment transactions and shall not be responsible for the investment decision. If a directed transaction violates the duty to diversify, to maintain liquidity or to meet any other investment
standard under this trust or applicable law, the entire responsibility shall rest upon the Company. The Trustee shall be fully protected in acting upon or complying with any investment objectives, guidelines, restrictions or directions provided in
accordance with this paragraph. 
 2.02-6    If the Trustee does not receive
instructions from the Committee for the investment of part or all of the trust fund, the Trustee shall invest it in securities or other property in accordance with applicable law. Permissible investments shall include, but not be limited to, the
following: 
 (a)    Preferred or common stocks, notes, debentures, bonds or other securities. 

(b)    Mutual funds, money market funds, commercial paper, savings and loan accounts, certificates of deposit and savings
accounts, including deposits bearing a reasonable rate of interest in the savings department of the Trustee. 

(c)    Real estate or mortgages. 

2.02-7    The Company shall be responsible for filing appropriate registration
forms and all other reports required under Federal or state securities laws with respect to the ownership by this trust of Parent Common Stock, including, without limitation, any reports required under Section 13 or 16 of the Act, and shall
immediately notify the Trustee in writing of any requirement to stop purchases of Parent Common Stock pending the filing of any report. The Company shall be responsible for the registration of any Plan interests required under Federal or state
securities laws. 

  
 8 

 2.03    Recapture of Excess
Assets. 
 2.03-1    In the event any Subtrust shall hold Excess Assets, the
Committee, at its option, may direct the Trustee to return part or all of such Excess Assets to the Company. 
 2.03-2    “Excess Assets” are (a) assets of any Subtrust (other than those required under 2.02-2 or
2.02-3 to be invested in Parent Common Stock or Acquiror Stock) exceeding one hundred twenty-five percent (125%) of the present value of the Cash Benefits due participants in such Subtrust, (b) shares of
Parent Common Stock required by 2.02-2 to be held in any Subtrust in excess of the number of shares of Parent Common Stock then credited to the Stock Accounts and Retirement Benefit Accounts of all
participants under the DDCP, and (c) shares of Acquiror Stock required by 2.02-3 to be held in any Subtrust in excess of the number of shares of Acquiror Stock then credited to the Stock Accounts and
Retirement Benefit Accounts of all participants under the DDCP. 
 2.03-3    The
calculation required by 2.03-2 shall be based on the terms of the Plans and the actuarial assumptions set forth in Exhibit A. Before a Change in Control, the calculations shall be made by an actuary selected
by the Company. After a Change in Control, the calculations shall be made by an actuary selected by the Trustee, provided the Committee may select the actuary with the Written Consent of Participants. 

2.04    Subtrusts. 

2.04-1    The Trustee shall establish a Subtrust for each Plan to which it shall
credit contributions for that Plan. The account shall reflect an undivided interest in assets of the trust fund and shall not require any segregation of particular assets, except that an insurance contract covering benefits of a particular Plan
shall be held in the Subtrust for that Plan and Parent Common Stock or Acquiror Stock covering benefits of a particular Plan shall be held in the Subtrust for that Plan. 

2.04-2    The Trustee shall allocate investment earnings and losses of the trust
fund among the Subtrusts in proportion to their balances, except that changes in the value of an insurance contract shall be allocated to the Subtrust for which it is held and changes in the value of, and dividends paid on, Parent Common Stock or
Acquiror Stock shall be allocated to the Subtrust for which it is held. Payments to general creditors during Insolvency Administration under 5.02 shall be charged against the Subtrusts in proportion to their balances, except that the payment of
benefits to a Plan participant as a general creditor shall be charged against the Subtrust for that Plan. 

2.05    Substitution of Other Property. 

2.05-1    The Company shall have the power to reacquire part or all of the trust
fund (other than fund assets required under 2.02-2 or 2.02-3 to be invested in Common Stock or Acquiror Stock) at any time, by substituting for it other property of
equivalent value. Such power is exercisable in a nonfiduciary capacity. 

  
 9 

 2.05-2    The value of any
insurance contracts reacquired under 2.05-1 shall be the present value of future projected cash flow of benefits payable under the Contract. The projection shall include death benefits based on reasonable
mortality assumptions. The value of all other assets in the trust fund shall be at their fair market value. Values shall be determined by the Trustee. 

2.06    Administrative Powers of Trustee. 

2.06-1    Subject in all respects to applicable provisions of this Trust Agreement
and the Plans, the Trustee shall have the rights, powers and privileges of an absolute owner when dealing with property of the trust, including (without limiting the generality of the foregoing) the powers listed below: 

(a)    To sell, convey, transfer, exchange, partition, lease, and otherwise dispose of any of the assets of the trust at
any time held by the Trustee under this Trust Agreement; 
 (b)    To exercise any option, conversion privilege or
subscription right given the Trustee as the owner of any security held in the trust; to vote any corporate stock, including Parent Common Stock or Acquiror Stock, either in person or by proxy, with or without power of substitution; to consent to or
oppose any reorganization, consolidation, merger, readjustment of financial structure, sale, lease or other disposition of the assets of any corporation or other organization, the securities of which may be an asset of the trust; and to take any
action in connection therewith and receive and retain any securities resulting therefrom; 
 (c)    To deposit any
security with any protective or reorganization committee, and to delegate to such committee such power and authority with respect thereto as the Trustee may deem proper, and to agree to pay out of the trust such portion of the expenses and
compensation of such committee as the Trustee, in its discretion, shall deem appropriate; 
 (d)    To cause any
property of the trust to be issued, held or registered in the name of the Trustee as trustee, or in the name of one (1) or more of its nominees, or one (1) or more nominees of any system for the central handling of securities, or in such
form that title will pass by delivery, provided that the records of the Trustee shall in all events indicate the true ownership of such property; 

(e)    To renew or extend the time of payment of any obligation due or to become due; 

(f)    To commence or defend lawsuits or legal or administrative proceedings; to compromise, arbitrate or settle claims,
debts or damages in favor of or against the trust; to deliver or accept, in either total or partial satisfaction of any indebtedness or other obligation, any property; to continue to hold for such period of time as the Trustee may deem appropriate
any property so received; and to pay all costs and reasonable attorneys’ fees in connection therewith out of the assets of the trust; 

(g)    To grant options to purchase or to acquire options to purchase any real property; 

  
 10 

 (h)    To foreclose any obligation by judicial proceeding or otherwise;

 (i)    To manage any real property in the trust in the same manner as if the Trustee were the absolute owner thereof,
including the power to lease the same for such term or terms within or beyond the existence of the trust and upon such conditions, including (but not by way of limitation) agreements for the purchase or disposal of buildings thereon and options to
the tenant to renew such lease from time to time, or to purchase such property, as the Trustee may deem proper; 

(j)    To borrow money from any person in such amounts, upon such terms and for such purposes as the Trustee, in its
discretion, may deem appropriate; and in connection therewith, to execute promissory notes, mortgages or other obligations and to pledge or mortgage any trust assets as security; and to lend money on a secured or unsecured basis to any person other
than a party in interest; 
 (k)    To appoint one (1) or more persons or entities as ancillary trustee or sub-trustee for the purpose of investing in and holding title to real or personal property or any interest therein located outside the State of North Carolina; provided that any such ancillary trustee or sub-trustee shall act with such power, authority, discretion, duties, and functions of the Trustee as shall be specified in the instrument establishing such ancillary or
sub-trust, including (without limitation) the power to receive, hold and manage property, real or personal, or undivided interests therein; and the Trustee may pay the reasonable expenses and compensation of
such ancillary trustees or sub-trustees out of the trust; 
 (l)    To deposit
any securities held in the trust with a securities depository; 
 (m)    To hold such part of the assets of the trust
uninvested for such limited periods of time as may be necessary for purposes of orderly account administration or pending required directions, without liability for payment of interest; 

(n)    To determine how all receipts and disbursements shall be credited, charged or apportioned as between income and
principal, and the decision of the Trustee shall be final and not subject to question by any participant or beneficiary of the trust; and 

(o)    Generally to do all acts, whether or not expressly authorized, which the Trustee may deem necessary or desirable
for the orderly administration or protection of the trust fund. 
 2.06-2    The
Trustee may engage one (1) or more independent attorneys, accountants, actuaries, appraisers or other experts (the “Experts”) for any purpose, including the determination of Excess Assets. The determination of the Experts shall be
final and binding on the Company, the Trustee, and all of the participants unless within thirty (30) days after receiving a determination deemed by any participant to be adverse, any participant initiates suit in a court of competent
jurisdiction seeking appropriate relief. The Trustee shall have no duty to oversee or independently evaluate the determination of the Experts. The Trustee shall be authorized to pay the fees and expenses of any Experts out of the assets of the trust
fund. 

  
 11 

 2.06-3    The Company shall from
time to time pay taxes (references in this Trust Agreement to the payment of taxes shall include interest and applicable penalties) of any and all kinds whatsoever which at any time are lawfully levied or assessed upon or become payable in respect
of the trust fund, the income or any property forming a part thereof, or any security transaction pertaining thereto. To the extent that any taxes levied or assessed upon the trust fund are not paid by the Company or contested by the Company
pursuant to the last sentence of this paragraph, the Trustee shall pay such taxes out of the trust fund, and the Company shall upon demand by the Trustee deposit into the trust fund an amount equal to the amount paid from the trust fund to satisfy
such tax liability. If requested by the Company, the Trustee shall, at the Company’s expense, contest the validity of such taxes in any manner deemed appropriate by the Company or its counsel, but only if it has received an indemnity bond or
other security satisfactory to it to pay any expenses of such contest. Alternatively, the Company may itself contest the validity of any such taxes, but any such contest shall not affect the Company’s obligation to reimburse the trust fund for
taxes paid from the trust fund. 
 2.06-4    In the event a participant’s
beneficiary designation results in a participant or the participant’s spouse being deemed to have made a “generation-skipping transfer” as defined in Section 2611 of the Code, then to the extent that the participant or
participant’s “executor,” as said term is defined in the Code (or the spouse of the participant or said spouse’s statutory executor in the case of a generation-skipping transfer deemed to have been made by a participant’s
spouse), have not previously used the total generation-skipping transfer exemption that is available under Section 2631 of the Code to such transferor, such unused exemption shall be allocated in the manner prescribed by Section 2632 of
the Code, except that (a) any generation-skipping transfer resulting from said beneficiary designation shall be excluded from the allocation; and (b) the method of allocation under Section 2632 shall be reversed so that such unused
portion of said transferor’s exemption shall be applied first to trusts or trust equivalents of which transferor is the deemed transferor and from which taxable distributions occur and, second, to direct skips occurring at said
transferor’s death. Any portion of said transferor’s total generation-skipping transfer exemption not used pursuant to the provisions of the previous sentence shall be allocated to the transfer resulting from the beneficiary designation
that gives rise to the generation-skipping transfer hereunder. 
 Notwithstanding any provisions in the Plans or this Trust Agreement to the
contrary, the Company and the Trustee may withhold any benefits payable to a beneficiary as a result of the death of the participant or any other beneficiary until such time as (a) the Company or Trustee is able to determine whether a
generation-skipping transfer tax, as defined in Chapter 13 of the Code, or any substitute provision therefor, is payable by the Company or Trustee; and (b) the Company or Trustee has determined the amount of generation-skipping transfer tax
that is due, including interest thereon. If any such tax is payable, the Company or Trustee shall reduce the benefits otherwise payable hereunder to such beneficiary by the amount necessary to provide said beneficiary with a benefit equal to the
amounts that would have been payable if the original benefits had been calculated on the basis of a present value at the time of the generation skipping transfer equal to the then present value of the originally contemplated benefit less an amount
equal to the generation-skipping transfer tax and any interest thereon that is payable as a result of 

  
 12 

 
the death in question. The Company or Trustee may also withhold from distribution by further reduction of the then net present value of benefits calculated in accordance with the terms of the
previous sentence such amounts as the Company or Trustee feels are reasonably necessary to pay additional generation-skipping transfer tax and interest thereon from amounts initially calculated to be due. Any amounts so withheld shall be payable as
soon as there is a final determination of the applicable generation-skipping tax and interest thereon. No interest shall be payable by the Company or Trustee to any beneficiary for the period of time that is required from the date of death to the
time when the aforementioned generation-skipping transfer tax determinations are made and the amount of benefits payable to a beneficiary can be fully determined. 

ARTICLE III 

Administration 
 
3.01    Committee. 
 3.01-1    The Committee is
the plan administrator for the Plans and has general responsibility to interpret the Plans and determine the rights of participants and beneficiaries. 

3.01-2    The Trustee shall be given the names and specimen signatures of the
Chairman, Secretary and members of the Committee. The Trustee shall accept and rely upon the names and signatures until notified of change. Instructions to the Trustee shall be signed for the Committee by the Chairman or such other person as the
Committee may designate. 
 3.02    Payment of Benefits. 

3.02-1    Except as provided in 3.02-5, the
Trustee shall pay benefits to participants and beneficiaries on behalf of the Company in satisfaction of its obligations under the Plans. Benefit payments from a Subtrust shall be made in full until the assets of the Subtrust are exhausted. Payments
due on the date the Subtrust is exhausted shall be covered pro rata. The Company’s obligation shall not be limited to the trust fund and a participant shall have a claim against the Company for any payment not made by the Trustee. 

3.02-2    The Trustee shall make payments in accordance with the written direction
from the Committee. The Trustee shall make any required income tax withholding and shall pay amounts withheld to taxing authorities on the Company’s behalf or determine that such amounts have been paid by the Company. 

3.02-3    A participant’s entitlement to benefits under the Plans shall be
determined by the Committee. Any claim for such benefits shall be considered and reviewed under the claims procedures set out in the Plans. 

3.02-4    The Trustee shall use the assets of the trust or any Subtrust to make
benefit payments or other payments in the following order of priority: 
 (a)    Parent Common Stock shall be used to
pay any benefits required under the Plans to be paid in Parent Common Stock and Acquiror Stock shall be use to pay any benefits required under the Plans to be paid in Acquiror Stock; 

  
 13 

 (b)    All assets of the trust or Subtrust other than Contracts with
Insurers, in such order as the Committee may request; 
 (c)    Cash contributions from the Company; and the Company
hereby agrees to make cash contributions to the trust to enable the Trustee to make all benefit payments and other payments when due, unless the Company makes such payments directly, whenever the Trustee advises the Company that the assets of the
trust or Subtrust, other than Contracts with Insurers, are insufficient to make such payments; and 
 (d)    Contracts
with Insurers held in the trust or Subtrust; and in using any such Contracts, the Trustee shall first borrow the cash surrender value of each such Contract, proceeding in order of Contracts from the Contracts which have been in force for the longest
times (and in alphabetical order based on the last name of the insured for Contracts placed in force on the same date) to the Contracts which have most recently been placed in force; and thereafter the Trustee shall surrender Contracts in the same
order of priority as set forth above. 
 Notwithstanding the foregoing, the Trustee may use the assets of the trust or any Subtrust in any
other order of priority directed by the Committee with the Written Consent of Participants affected thereby. 
 3.02-5    With respect to any benefit payments due to participants and beneficiaries under the Plans, the Committee may direct by notice in advance to the Trustee that the Company shall make such
payments and that the Trustee shall, upon receipt of evidence of such payments satisfactory to the Trustee, reimburse the Company for such payments from the applicable Subtrust. In such cases, the Company shall make any required income tax
withholding and reporting, and shall pay amounts withheld to taxing authorities. 

3.03    Records. 

The Trustee shall keep complete records on the trust fund open to inspection by the Company and the Committee at all reasonable times. In
addition to accountings required below, the Trustee shall furnish to the Company and Committee any information requested about the trust fund. 

3.04    Accountings. 

3.04-1    The Trustee shall furnish the Committee with a complete statement of
accounts annually within sixty (60) days after the end of the trust year showing assets and liabilities and income and expense for the year of each Subtrust. The form and content of the account shall be sufficient for the Company to include in
computing its taxable income and credits the income, deductions and credits against tax that are attributable to the trust fund. 
 3.04-2    The Committee may object to an accounting within sixty (60) days after it is furnished and require that it be settled by audit by a qualified, independent certified public
accountant. The auditor shall be chosen by the Trustee from a list of at least five (5) such accountants furnished by the Committee at the time the audit is requested. Either the Committee or the Trustee may require that the account be settled
by a court of competent jurisdiction, in lieu of or in conjunction with the audit. All expenses of any audit or court proceedings, including reasonable attorneys’ fees, shall be allowed as administrative expenses of the trust. 

  
 14 

 3.04-3    If the Committee does
not object to an accounting within the time provided, the account shall be settled for the period covered by it. 
 3.04-4    When an account is settled, it shall be final and binding on all parties, including all participants and persons claiming through them. 

3.05    Expenses and Fees. 

3.05-1    The Trustee shall be reimbursed for all expenses and shall be paid a
reasonable fee fixed by it from time to time. No increase in the fee shall be effective before sixty (60) days after the Trustee gives notice to the Company of the increase. The Trustee shall notify the Committee periodically of expenses and
fees. 
 3.05-2    The Company shall pay administrative fees or expenses. If not
so paid, the fees and expenses shall be paid from the trust fund. The Company shall reimburse the trust fund for any fees and expenses paid out of it. 

ARTICLE IV 

Liability 
 
4.01    Indemnity. 
 The Company shall indemnify and defend the Trustee from any claim, loss, liability or
expense arising from any action or inaction in administration of this trust based on direction or information from the Committee, absent willful misconduct or bad faith. 

4.02    Bonding. 

The Trustee need not give any bond or other security for performance of its duties under this trust. 

ARTICLE V 

Insolvency 
 
5.01    Determination of Insolvency. 

5.01-1    The Company is “Insolvent” for purposes of this trust if: 

(a)    The Company is unable to pay its debts as they come due; or 

(b)    The Company is the subject of a pending proceeding as a debtor under the Bankruptcy Code. 

  
 15 

 5.01-2    The Chief Executive
Officer and the Board of Directors of the Company shall promptly give notice to the Trustee upon becoming Insolvent. If the Trustee receives such notice or receives from any other person claiming to be a creditor of the Company a written allegation
that the Company is Insolvent, the Trustee shall independently determine whether such insolvency exists. The expenses of such determination shall be allowed as administrative expenses of the trust. 

5.01-3    The Trustee shall continue making payments from the trust fund to
participants under the Plans while it is determining the existence of insolvency. Such payments shall cease and the Trustee shall commence “Insolvency Administration” under 5.02 upon the earlier of: 

(a)    A determination by the Trustee that the Company is Insolvent; or 

(b)    Thirty (30) days after the notice or allegation of insolvency is received under
5.01-2, unless the Trustee has determined that the Company is not Insolvent since receipt of such notice or allegation. 

5.01-4    The Trustee shall have no obligation to investigate the financial
condition of the Company prior to receiving a notice or allegation of insolvency under 5.01-2. 
 
5.02    Insolvency Administration. 

5.02-1    During Insolvency Administration, the Trustee shall hold the trust fund
for the benefit of the general creditors of the Company and make payments only in accordance with 5.02-2. The Trustee shall continue the investment of the trust fund in accordance with 2.02. 

5.02-2    The Trustee shall make payments out of the trust fund in one (1) or
more of the following ways: 
 (a)    To general creditors in accordance with instructions from a court, or a person
appointed by a court, having jurisdiction over the Company’s condition of insolvency; 
 (b)    To Plan
participants and beneficiaries in accordance with such instructions; or 
 (c)    In payment of its own fees or
expenses. 
 5.02-3    The Trustee shall be a secured creditor with a priority
claim to the trust fund with respect to its own fees and expenses. 

5.03    Termination of Insolvency Administration. 

5.03-1    Insolvency Administration shall terminate when the Trustee determines
that the Company: 
 (a) Is not Insolvent, in response to a notice or allegation of insolvency under
5.01-2; or 

  
 16 

 (b)    Has ceased to be Insolvent. 

5.03-2    Upon termination of Insolvency Administration under 5.03-1, the trust fund shall continue to be held for the benefit of the participants in the Plans. Benefit payments due during the period of Insolvency Administration shall be made as soon as practicable, together
with interest from the due dates at the following rates: 
 (a)    For the DDCP, the rate credited on the
participant’s account under the DDCP. 
 (b)    For the Retirement Bylaw, a rate equal to the interest rate fixed
by the Pension Benefit Guaranty Corporation for valuing immediate annuities in the preceding month for terminated single employer plans. 
 
5.04    Creditors’ Claims During Solvency. 

5.04-1    During periods of Solvency, the Trustee shall hold the trust fund
exclusively to pay benefits and fees and expenses until all have been paid. Creditors of the Company shall not be paid during Solvency from the trust fund, which may not be seized by or subjected to the claims of such creditors in any way. 

5.04-2    A period of “Solvency” is any period not covered by 5.02. 

ARTICLE VI 

Successor Trustees 
 
6.01    Resignation and Removal. 
 6.01-1    The
Trustee may resign at any time by notice to the Committee, which shall be effective in sixty (60) days unless the Committee and the Trustee agree otherwise. 

6.01-2    The Trustee may be removed by the Committee on sixty (60) days’
notice or shorter notice accepted by the Trustee. 
 6.01-3    When resignation
or removal is effective, the Trustee shall begin transfer of assets to the successor Trustee immediately. The transfer shall be completed within sixty (60) days, unless the Committee extends the time limit. 

6.01-4    If the Trustee resigns or is removed, the Committee shall appoint a
successor by the effective date of resignation or removal under 6.01-1 or 6.01-2. If no such appointment has been made, the Trustee may apply to a court of competent
jurisdiction for appointment of a successor or for instructions. All expenses of the Trustee in connection with the proceeding shall be allowed as administrative expenses of the trust. 

  
 17 

 6.02    Appointment of
Successor. 
 6.02-1    The Committee may appoint any bank or trust company
that has total assets in excess of $5 million as a successor to replace the Trustee upon resignation or removal. The appointment shall be effective when accepted in writing by the new Trustee, who shall have all of the rights and powers of the
former Trustee including ownership rights in the trust assets. The former Trustee shall execute any instrument necessary or reasonably requested by the Committee or the successor Trustee to evidence the transfer. 

6.02-2    The successor Trustee need not examine the records and acts of any prior
Trustee and may retain or dispose of existing trust assets, subject to Article II. The successor Trustee shall not be responsible for and the Company shall indemnify and defend the successor Trustee from any claim or liability because of any action
or inaction of any prior Trustee or any other past event, any existing condition or any existing assets. 

6.03    Accountings; Continuity. 

6.03-1    A Trustee who resigns or is removed shall submit a final accounting to
the Committee as soon as practicable. The accounting shall be received and settled as provided in 3.04 for regular accountings. 
 6.03-2    No resignation or removal of the Trustee or change in identity of the Trustee for any reason shall cause a termination of the Plans or this trust. 

ARTICLE VII 

General Provisions 
 
7.01    Interests Not Assignable. 
 7.01-1    The
interest of a participant in the trust fund may not be assigned, seized by legal process, transferred or subjected to the claims of the participant’s creditors in any way. 

7.01-2    The Company may not create a security interest in the trust fund in favor
of any of its creditors. The Trustee shall not make payments from the trust fund of any amounts to creditors of the Company who are not Plan participants, except as provided in 5.02. 

7.01-3    The participants shall have no interest in the assets of the trust fund
beyond the right to receive payment of Plan benefits and reimbursement of expenses from such assets subject to the instructions for Insolvency Administration referred to in 5.02-2. During Insolvency
Administration the participants’ rights to trust assets shall not be superior to those of any other general creditor of the Company. 

7.02    Amendment. 

The Company and the Trustee may amend this trust at any time by a written instrument executed by both parties and with the Written Consent of
Participants. Notwithstanding the foregoing, any amendment may be made by written agreement of the Company and the Trustee without the Written Consent of Participants if such amendment will not have a material adverse effect on the rights of any
Participant hereunder or is necessary to comply with any laws, regulations or other legal requirements. 

  
 18 

 7.03    Applicable Law. 

This trust shall be construed according to the laws of Oregon except as preempted by federal law. 

7.04    Agreement Binding on All Parties. 

This agreement shall be binding upon the heirs, personal representatives, successors and assigns of any and all present and future parties.
The term successors as used herein in respect of Parent or the Company 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 Parent or the Company, and successors of any such corporation or other business entity. 

7.05    Notices and Directions. 

Any notice or direction under this trust shall be in writing and shall be effective when actually delivered or, if mailed, when deposited
postpaid as first-class mail. Mail to a party shall be directed to the address stated in this trust or to such other address as either party may specify by notice to the other party. Notices to the Committee shall be sent to the address of the
Company. 
 7.06    No Implied Duties. 

The duties of the Trustee shall be those stated in this Trust, and no other duties shall be implied. 

 

							
	 Company:
	 		 	NORTHWEST NATURAL GAS COMPANY
				
		 		 	By:	 	/s/ DAVID H. ANDERSON
		 		 	Its:	 	Chief Executive Officer
		 		 	Executed: October 1, 2018
			
	 Trustee:
	 		 	WELLS FARGO BANK, NATIONAL ASSOCIATION
				
		 		 	By:	 	/s/ Alan C. Frazier
		 		 	Its:	 	Senior Vice President
		 		 	Executed: September 27, 2018

  
 19 

 EXHIBIT A 

Assumptions and Methodology for 

Calculation Required Under 2.01-3 and 2.03 

 

	1.	 The liability will be calculated using two (2) different assumptions as to when the director terminates
service on the Board and receives a change of control benefit: 

  

	 	a)	 As of the date of the Triggering Event. 

 

	 	b)	 Twenty-four (24) months after the date of the Triggering Event assuming future compensation continues at
current levels. 

 The benefit liability will be the greater of the liabilities calculated in accordance with a) and b)
above. 
  

	2.	 Calculations will be based upon the most valuable optional form of payment available to the participant.

  

	3.	 The benefit liability is equal to the present value of benefits discounted to the trigger date at the
Applicable Interest Rate determined under Code Sec. 417(e)(3) and the regulations thereunder. The Applicable Interest Rate shall be determined on each December 31 and shall apply to all calculations in the next calendar year.

  

	4.	 No mortality is assumed prior to the commencement of benefits. Future mortality is assumed to occur in
accordance with the mortality table used for purposes of Code Sec. 417(e)(3), as set forth in Rev. Rul. 2001-62 (2001-2 C.B. 632) and subsequent rulings.

  

	5.	 Where left undefined by 1. through 4. above, calculations will be performed in accordance with generally
accepted actuarial principles. 

  

	6.	 For the purposes of projecting deferral account balances, the interest crediting rate on all DDCP Cash Accounts
is assumed to remain at the Applicable Interest Rate determined under 3. above.Exhibit

Executive Employment Agreement

This Employment Agreement is entered into as of October 1, 2018, by and between Perma-Pipe International Holdings, Inc, (PPIH), a Delaware corporation ("PPIH" or "the Company"), and D. Bryan Norwood ("Employee").
In consideration of the mutual promises and covenants set forth herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, PPIH and Employee hereby agree as follows:
		
	1.
	Position of Employment.

The Company will appoint the Employee to the initial position of Vice President, Finance transitioning to Vice President and Chief Financial Officer on November 01, 2018, PPIH, and, in that position, Employee will report to the President and CEO of PPIH.  PPIH retains the right to change Employee's title, duties, and reporting relationships as may be determined to be in the best interests of the Company; provided, however, that any such change in Employee's duties shall be reasonably consistent with Employee's training, experience, and qualifications. During his employment, the Employee must conduct himself in a manner (in all forums) as not to undermine the Company’s reputation.  The employment term shall be considered to start on the date indicated in this Employment Agreement. 
The terms and conditions of the Employee's employment shall, to the extent not addressed or described in this Employment Agreement, be governed by the PPIH Policies and Procedures and existing practices. In the event of a conflict between this Employment Agreement and the PPIH Policies and Procedures or existing practices, the terms of this Employment Agreement shall govern.
		
	2.
	Term of Employment.

Employee's employment with PPIH shall begin on October 01, 2018 and shall continue for a period of 2-years (the “Initial Term”), and then automatically renew annually for successive one-year terms (each, a “Renewal Term”, together with the Initial Term, the “Term”) unless;
		
	a.
	either party gives the other party written notice otherwise at least 90 days before the end of the Initial Term or a Renewal Term; or

		
	b.
	Employee's employment is terminated by either party in accordance with the terms of Section 5 of this Employment Agreement; or

		
	c.
	Such term of employment is extended or shortened by a subsequent agreement duly executed by each of the parties to this Employment Agreement, in which case such employment shall be subject to the terms and conditions contained in the subsequent written agreement.

		
	3.
	Compensation and Benefits.

		
	a.
	Base Salary. Employee shall be paid a base salary of $9,615.38 bi-weekly, which is $250,000 annually ("Base Salary"), subject to applicable federal, state, and local withholding, such Base Salary to be paid to Employee in the same manner and on the same payroll schedule in which all exempt PPIH employees receive payment.  Salary will be reviewed annually and adjusted by the President and CEO and upon approval by the Board of Directors based on performance and external benchmarking of market compensation for equivalent 

1

positions. Timing of any adjustments will be aligned to overall Corporate annual salary review.

		
	b.
	Incentive Compensation. Employee shall be eligible to participate in incentive compensation programs available to other similarly-situated executives of PPIH as outlined below.  Nothing in this Employment Agreement shall be deemed to require the payment of bonuses, awards, or incentive compensation to Employee. 

		
	i)
	Short Term Incentive (STI). Employee will be eligible to receive Short Term Incentive in the form of an annual cash bonus opportunity with a target incentive set at 50% of base salary. Performance measures applicable to the STI bonus will be based on Company performance metrics aligned to financial and strategic plans approved by the Board.  Bonus payment award and timing will align with corporate annual bonus payouts following completion of annual financial calendar.  For the first fiscal year of the Term, bonus eligibility will be pro-rata for the portion of the fiscal year 2019 worked and based on part year metrics for the same time period.

		
	ii)
	Long Term Incentive (LTI). Employee will be eligible to receive Long Term Incentive in the form of Restricted Stock with a target annual award of 33% of base salary. Under the Company’s current plan, Restricted Stock would be granted that vests over a 3-year period, with 1/3 vesting at the end of each anniversary of the grant. The actual award may be adjusted up or down based on compensation benchmarking and/or performance as determined in good faith by the Board.  The Board reserves the right to amend the LTI program and terms as deemed necessary.

		
	c.
	Employee Benefits. Employee shall be eligible to participate in all employee benefit plans, policies, programs, or perquisites made available by the Company to similarly-situated employees. Notwithstanding anything herein to the contrary, the terms and conditions of Employee's participation in PPIH's employee benefit plans, policies, programs, or perquisites shall be governed by the terms of each such plan, policy, or program. Complete details of the plans including Health, Dental, Retirement, and Incentives will be provided separately.  

		
	d.
	Vacation. Employee will be entitled to 4 weeks of paid vacation annually.

		
	4.
	Duties and Performance. The Employee acknowledges and agrees that he is being offered a position of employment by PPIH with the understanding that the Employee possesses a unique set of skills, abilities, and experiences which will benefit the Company, and he agrees that his continued employment with the Company, whether during the Term of this Employment Agreement or thereafter, is contingent upon his successful performance of his duties in his position as noted above, or in such other position to which additional or different duties may be assigned.

		
	a.
	General Duties:

		
	1.
	Employee shall render to the very best of Employee's ability, on behalf of the Company, services to and on behalf of the Company, and shall undertake diligently all duties assigned to him by the Company.

		
	2.
	Employee shall devote his full time, energy and skill to the performance of the services in which the Company is engaged, at such time and place as the Company may direct. Employee shall not undertake, either as an owner, director, shareholder, employee or otherwise, the performance of services for compensation (actual or expected) for any 

2

other entity without the express written consent of the President and CEO or Board of Directors.  Such consent will not be unreasonably withheld for a paid Board of Directors position offered to Employee as long as such role is not in conflict with Employee’s role and position in the Company.
		
	3.
	Employee shall faithfully and industriously assume and perform with skill, care, diligence and attention all responsibilities and duties connected with his employment on behalf of the Company.

		
	4.
	Employee shall have no authority to enter into any contracts binding upon the Company, or to deliberately create any obligations on the part of the Company, except as may be specifically authorized by the President and CEO, Board of Directors of PPIH and as outlined in the Company Delegation of Authority policy.

		
	5.
	Foster a Company with underlying values in safety, integrity and ethics.

      b.   Specific Duties Prior to November 1, 2018:
		
	1.
	Transition into the role of Vice President and Chief Financial Officer. 

		
	2.
	Perform any specific tasks or assignments as may be requested by the President and CEO.

      c.   Specific Duties Effective as of November 1, 2018:
		
	1.
	Oversee the organization’s capital structure with a focus on minimizing the cost of capital.

		
	2.
	Evaluate and participate in strategic business development opportunities resulting in top line growth and mitigation of the effect of economic volatility

		
	3.
	Raise capital to support the Company’s growth, including negotiating and finalizing financing agreements, and monitor, assess and manage Company risk.

		
	4.
	Serve as the Corporate Secretary and/or Treasurer, or have a direct report or reports in those roles.  

		
	5.
	Serve as the Principal Financial Officer and Principal Accounting Officer of the Company as such offices are defined under applicable law and all statutory requirements.

		
	6.
	Develop quarterly and annual operating targets.

		
	7.
	Lead a high performance, results driven culture that meets or exceeds commitments.

		
	8.
	Ensure a system is in place which drives operational excellence and continuous improvement.

		
	9.
	Prioritize the best growth and investment strategies to pursue given limited resources.

		
	10.
	Provide visibility and strong communication skills to internal and external stakeholders.

		
	5.
	Termination of Employment. Employee's employment with the Company may be terminated in accordance with any of the following provisions:

		
	a.
	Termination by Employee. The Employee may terminate employment at any time during the course of this Employment Agreement by giving 90 days’ notice in writing to the President and CEO of PPIH. During the notice period,  Employee must fulfill all duties and responsibilities set forth above and use his best efforts to train and support his replacement, if any.  Failure to comply with this requirement may result in Termination for Cause described below, but otherwise Employee's salary and benefits will remain unchanged during the notification period.

		
	b.
	Termination by the Company Without Cause.  PPIH may terminate Employee's employment at any time during the course of this Employment Agreement by giving ninety (90) days’ notice in writing to the Employee. During the notice period, Employee must fulfill all of Employee's duties and responsibilities set forth above and use Employee's best efforts to train and support Employee's replacement, if any. Failure of Employee to comply with this 

3

requirement may result in Termination for Cause described below, but otherwise Employee's salary and benefits will remain unchanged during the notification period.  Should PPIH terminate Employee’s employment without Cause, contingent on Employee signing a  release of claims,  Employee will receive (12) months of Severance plus pro rata STI for the year of termination at 100% of target, and retain all rights to vested Restricted Stock, and any unvested Restricted Stock and RSUs and any other equity awards will be forfeited except that Restricted Stock due to vest in the current year will vest pro rata for the number of months Employee was employed in that year.

		
	c.
	Termination by Employee for Good Reason.  Employee may terminate his employment with the Company for Good Reason (as defined below) by giving 90 days’ notice in writing to the Company.  During the notice period, Company shall have the right to cure any Good Reason as defined in this Agreement.  If requested by the Company, Employee must fulfill all of Employee's duties and responsibilities set forth above during the 90 day notice period and use Employee's best efforts to train and support Employee's replacement, if any.  Failure of Employee to comply with this requirement may result in Termination for Cause described below, but otherwise Employee's salary and benefits will remain unchanged during the notification period.  Should Company fail to cure Employee’s stated Good Reason within 90 days and, as a result, termination for Good Reason occurs, contingent on Employee signing a release of claims, Employee will receive (12) months of Severance plus pro rata STI for the year of termination at 100% of target, and retain all rights to vested Restricted Stock, and any unvested Restricted Stock and RSUs and any other equity awards will be forfeited except that Restricted Stock due to vest in the current year will vest pro rata for the number of months Employee was employed in that year.  For the purposes of this Agreement, “Good Reason” is defined as material diminution in Employee's compensation or material negative changes by the Company affecting the Employee’s duties, responsibilities, reporting or authority as outlined in this Employment Agreement.  Good Reason shall not exist at any time that the Employee could be terminated for Cause.  

		
	d.
	Termination by the Company for Cause. The Company may, at any time and without notice, terminate the Employee for "Cause".  Termination for "Cause" shall include but not be limited to termination based upon any of the following: (a) repeated failure to perform the duties of the Employee's position in a satisfactory manner; (b) fraud, misappropriation, embezzlement or acts of similar dishonesty; (c) conviction of or entrance of a plea of no contest for a felony involving moral turpitude; (d) illegal use of drugs or excessive use of alcohol in the workplace; (e) intentional and willful misconduct that may subject the Company to criminal or civil liability; (f) breach of the  Employee's duty of loyalty, including the diversion or usurpation of corporate opportunities properly belonging to the Company; (g) willful disregard of Company policies and procedures; (h) breach of any of the material terms of the Employment Agreement; and (i) insubordination or deliberate refusal to follow the lawful instructions of the Board of Directors of PPIH. Termination for Cause will result in immediate termination, no Severance, no STI for the year of termination, and forfeiture of all unvested Restricted Stock, RSUs and any other  equity awards.  Cause shall not exist under subsections (a), (f), or (h) unless the Employee fails to cure the alleged misconduct, breach or violation after being given thirty (30) days' written notice by the Company of the alleged misconduct, breach or violation that is asserted as the basis for Cause.

		
	e.
	Termination by Death or Disability. The Employee's employment and rights to compensation under this Employment Agreement shall terminate if the Employee is unable to perform the 

4

duties of his position due to death, or disability lasting more than 90 days, taking into consideration the accommodation obligations under the Americans with Disabilities Act or parallel state law based on the applicable facts of any such disability, and the Employee's heirs, beneficiaries, successors, or assigns shall not be entitled to any of the compensation or benefits to which Employee is entitled under this Employment Agreement, except: (a) to the extent specifically provided in this Employment Agreement (b) to the extent required by law; or (c) to the extent that such benefit plans or policies under which Employee is covered provide a benefit to the Employee's heirs, beneficiaries, successors, or assigns.

		
	f.
	Change in Control (CIC). CIC is defined by a change in ownership or a sale of substantially all of the Company’s assets and a material diminution of Employee’s duties, responsibilities, reporting or authority within 12 months following such ownership change.  In the event of a CIC, Employee may terminate his employment with Good Reason.  In addition, all RSU vesting will be accelerated.  For purposes of determining whether a CIC has occurred, Company shall mean only PPIH, Inc.

		
	g.
	Severance. Severance means a payment equal to Employee’s Annual Base Salary plus continuation of group health and welfare benefits via COBRA for the for the Severance period.  Severance will be paid in equal installments for the length of the Severance period, beginning with the first payroll period on or after 30 days after Employee signs the  release of claims referenced herein.

		
	h.
	Release. Any post-termination Severance or benefits are subject to Employee signing a  release of claims prior to receipt.

		
	6.
	Confidentiality. To the fullest extent permitted by applicable law, the terms of the Confidentiality Agreement executed by the Employee are incorporated by reference into this Employment Agreement and are made a part hereto as if they appeared in this Employment Agreement itself. The terms of such Confidentiality Agreement, as incorporated herein, will extend for the duration of any Severance period.

		
	7.
	Non-Solicitation/Non-Compete. To the fullest extent permitted by applicable law, the terms of the Non-Solicitation/Non-Compete Agreement executed by the Employee are incorporated by reference into this Employment Agreement and are made a part hereto as if they appeared in this Employment Agreement itself. The terms of such Non-Solicitation/Non-Compete Agreement, as incorporated herein, will extend for the duration of any Severance period.

		
	8.
	Code of Conduct and Compliance with Laws.  Employee agrees to be bound by the provisions of the PPIHH Code of Conduct and Global Anti-corruption Policy and Procedure.  Employee asserts he has no conflict of interests in any other business dealings to PPIH.  In the event a potential conflict of interest arises, Employee will promptly notify CEO in writing.

		
	9.
	Assignment of Inventions, Improvements and Developments. The Employee hereby assigns and agrees to assign to the Company the entire worldwide right, in all inventions, improvements and developments, patentable or unpatentable, which, during his employment by the Company he shall have made or conceived or hereafter may make or conceive, either solely or jointly with others (a) with the use of the Company’s time, equipment, materials, supplies, facilities, or trade secrets or confidential business information or (b) resulting from or suggested by his work for the Company or (c) contemplated business of the Company, including, but not limited to, pre-insulated and/or secondarily contained piping systems for district heating and cooling systems, oil and gas flow lines, chemical transportation and related products and materials. All 

5

such inventions, improvements and developments shall automatically and immediately be deemed to be the property of the Company as soon as made or conceived. This assignment includes all rights to claim for any patent application for such inventions, improvements and developments the full benefits and priority rights under the Patent Cooperation Treaty, the Paris Convention, and any other international intellectual property agreement. This assignment includes all rights to sue for all infringements, including those which may have occurred before this assignment. It is understood that this Employment Agreement does not apply to an invention for which no equipment, supplies, facility or trade secret information of the Company was used and which was developed entirely on the Employee’s own time, unless the invention (i) is related to the business of the Company, (ii) is related to the Company’s actual or demonstrably anticipated research or development, or (iii) results from any work performed by the Employee for the Company.

		
	10.
	Disclosure. Employee agrees to disclose promptly to the Company all such inventions, improvements and developments when made or conceived. Upon termination of his employment for any reason, Employee shall immediately give to the Company all written records of such inventions, improvements and developments and make all full disclosures thereof, whether or not they have been reduced to writing.

		
	11.
	Aid and Assistance.  The Employee agrees, (a) to execute all documents necessary to protect inventions, improvement and developments assigned pursuant to Section 9, and to obtain, maintain, modify, or enforce any United States or foreign patent on such invention, improvements or developments; and (b) to cooperate with the Company in every reasonable way possible in obtaining evidence for use in any such proceedings to obtain, maintain, modify or enforce any such patent. 

		
	12.
	Office Location:  You will be  based at the PPIH offices at 24900 Pitkin Road, Spring, Texas or similar Company location.  However, the Company headquarters is in Chicago, IL and you will need to spend time working from the Chicago office.  As such, the Company will cover all reasonable expenses, per the Company's policies, for travel between Houston and Chicago for Company business activities for up to one year including lodging, living and transportation costs incurred while working away from home.  This timeframe maybe extended upon approval from the Board.  Decision on hotel vs. apartment and car lease vs. rental will be decided based on what is the most cost effective.  You  will also be required to travel to other locations as necessary.

		
	13.
	Parachute Payment Limitation.  Notwithstanding any contrary provision above, if Employee is a "disqualified individual" (as defined in Section 280G of the Internal Revenue Code), and the CIC Benefits, together with any other payments which the Employee has the right to receive from the Company, would constitute a "parachute payment" (as defined in Section 280G of the Code), the payments and benefits provided under this Agreement shall be either (i) reduced (but not below zero) so that the aggregate present value of such payments and benefits received by the Employee from the Company shall be $1.00 less than three times Employee's "base amount" (as defined in Section 280G of the Code) and so that no portion of such payments received by Employee shall be subject to the excise tax imposed by Section 4999 of the Code, or (ii) paid in full, whichever produces the better net after-tax result for Employee (taking into account any applicable excise tax under Section 4999 of the Code and any applicable income tax).  If a reduced payment is made to Employee pursuant to clause (i) above and through error or otherwise that payment, when aggregated with other payments from the Company used in determining if a parachute payment exists, exceeds $1.00 less than three times Employee's base amount, Employee must immediately repay such excess to the Company upon notification that an overpayment has been made.

6

		
	14.
	Indemnification and Insurance.  The Company will defend, indemnify and hold Employee, his heirs, executors and administrators harmless against and in respect of any and all damages, losses, obligations, liabilities, claims, deficiencies, costs and expenses (including, but not limited to, attorneys’ fees and other costs and expenses incident to any suit, action, investigation, claim or proceeding) suffered, sustained, incurred or required to be paid by Employee by reason of or on account of Employee’s performance of work on behalf of the Company,  except to the extent due to any act or omission by Employee that constitutes a breach of this Employment Agreement or is outside the scope of his authority under this Employment Agreement.  In addition, the Company will maintain directors and officer’s liability insurance in place, with reasonable and customary limits, pursuant to which Employee shall be a named, additional or covered insured. Employee shall cooperate with reasonable requests of the Company in connection with any indemnifiable claim and shall provide such documentation or information which is reasonably necessary to defend the indemnifiable claim. 

		
	15.
	General Provisions.

		
	a.
	Notices. All notices and other communications required or permitted by this Employment Agreement to be delivered by PPIH or Employee to the other party shall be delivered in writing to the address shown below, either personally, or by registered, certified or express mail, return receipt requested, postage prepaid, to the address for such party specified below or to such other address as the party may from time to time advise the other party, and shall be deemed given and received as of actual personal delivery, or upon the date or actual receipt shown on any return receipt if registered, certified or express mail is used, as the case may be.

PPIH, Inc.:
6410 W. Howard Street 
Niles, IL. 60714
Attention: President and CEO

D. Bryan Norwood
4509 Elm Street
Bellaire, TX. 77401
(Or such other address in the Company’s employment records.)

		
	b.
	Amendments and Termination; Entire Agreement. This Employment Agreement may not be amended or terminated except in writing executed by all of the parties hereto. This Employment Agreement constitutes the entire agreement of PPIH and Employee relating to the subject matter hereof and supersedes all prior oral and written understandings and agreements relating to such subject matter.

		
	c.
	Existing Agreements.  The Employee represents to the Company that he is not subject or a party to any employment or consulting agreement, confidentiality, non-competition covenant or other agreement, covenant or understanding which might prohibit him from executing this Employment Agreement or limit his ability to fulfill his responsibilities hereunder.

		
	d.
	Successors and Assigns. The rights and obligations of the parties hereunder are not assignable to another person without prior written consent; provided, however, that PPIH, without obtaining Employee's consent, may assign its rights and obligations hereunder to a wholly-owned subsidiary and provided further that any post-employment restrictions shall 

7

be assignable by PPIH to any entity which purchases all or substantially all of the Company's assets.  In addition, in the event of any sale, transfer or other disposition of all or substantially all of the Company’s assets or business, whether by merger, consolidation or otherwise, the Company may assign this Employment Agreement and its rights hereunder without obtaining Employee’s consent, provided that the assignee assumes all of the obligations of the Company hereunder, and upon such assignment and assumption, the Employee shall have no right to look to the Company for obligations arising hereunder after the effective date of such assignment.

		
	e.
	Severability Provisions Subject to Applicable Law. All provisions of this Employment Agreement shall be applicable only to the extent that they do not violate any applicable law, and are intended to be limited to the extent necessary so that they will not render this Employment Agreement invalid, illegal or unenforceable under any applicable law. If any provision of this Employment Agreement or any application thereof shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of other provisions of this Employment Agreement or of any other application of such provision shall in no way be affected thereby.

		
	f.
	Waiver of Rights. No waiver by PPIH or Employee of a right or remedy hereunder shall be deemed to be a waiver of any other right or remedy or of any subsequent right or remedy of the same kind.

		
	g.
	Definitions, Headings, and Number. A term defined in any part of this Employment Agreement shall have the defined meaning wherever such term is used herein. The headings contained in this Employment Agreement are for reference purposes only and shall not affect in any manner the meaning or interpretation of this Employment Agreement. Where appropriate to the context of this Employment Agreement, use of the singular shall be deemed also to refer to the plural, and use of the plural to the singular.

		
	h.
	Counterparts. This Employment Agreement may be executed in separate counterparts, each of which shall be deemed an original but both of which taken together shall constitute but one and the same instrument.

		
	i.
	Governing Laws and Forum. This Employment Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Texas.  The Company and Employee agree that any claim, dispute, or controversy arising under or in connection with the Employment Agreement, or otherwise in connection with Employee’s employment by the Company (including, without limitation, any such claim, dispute, or controversy arising under any federal, state, or local statute, regulation, or ordinance or any of the Company's employee benefit plans, policies, or programs) shall be resolved solely and exclusively by final and binding arbitration. The arbitration shall be held in the city of Houston, Texas (USA) and the language shall be English. The arbitration shall be conducted in accordance with the Rules of the American Arbitration Association (the "AAA") in effect at the time of the arbitration and each party shall appoint one arbitrator of its own choosing with a third arbitrator on a panel of three (3) being appointed by the parties’ respective arbitrators. All fees and expenses of the arbitration, including a transcript if either requests, shall be borne equally by the parties. Any judgement upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. 

IN WITNESS WHEREOF, PPIH and Employee have executed and delivered this Employment Agreement as of the date written below.

8

	
					
	 
	 
	PPIH, Inc.

By:
	 

	/s/ D. Bryan Norwood
	 
	 
	/s/ David Mansfield

	D. Bryan Norwood
	 
	Name:
	David Mansfield

	 
	 
	Title:
	President and CEO

	 
	 
	Date:
	October 1, 2018

9

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