EXHIBIT 10(A)
000 XX 0XX XXXXXX
XXXXXXXX, XX 00000
MEMORANDUM [LOGO] NW NATURAL TEL 000.000.0000
www. xxxxxxxxx.xxx
RETIREMENT AGREEMENT
Xxxxx Xxxxxxxx will retire effective November 1, 2000. Following are the
retirement provisions agreed upon between NW Natural and Xxxxx Xxxxxxxx, as
approved by the Board of Directors on July 27, 2000.
o Payment of a minimum $35,000 bonus in 2001 for 2000 performance. Xxxxx will
already be eligible for a bonus under the Executive Annual Incentive Plan
based on her retirement date. This provision establishes the minimum bonus
at 25% of her annual salary, which is the target level for her position.
Payment will be made in March of 2001.
o Inclusion of the above bonus in Final Average Compensation (FAC) for
purposes of determining the ESRIP target. This provision offsets the impact
on Xxxxx's FAC of the absence of a bonus in 1999 for 1998 company
performance. The resulting FAC will be at least $161,700.
o Reduction of the early retirement factor applied to the ESRIP target from
6% to 3% per year. The resulting target compensation at age 56, absent
social security, would be no less that $78,700 based on the straight life
annuity.
o Payment of a lump sum of $15,000 to help offset future increases in medical
premiums, to be paid in November of 2000.
o Payment of a $35,000 consulting fee for assistance with the transition from
November 1, 2000 through January 31, 2001. The amount will be paid in three
payments as follows: $12,000 each on November 15 and December 15, 2000 and
$11,000 on January 15, 2001. The need for additional consulting in 2001
will be evaluated at the end of January.
All other benefits and provisions will be those that are normally provided to
officers by plans detailed in separate Company documents.
/s/ Xxxxxxx X. Xxxxxx 9/20/00 /s/ Xxxxx X. Xxxxxxxx 9/20/00
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Xxxxxxx X. Xxxxxx Date Xxxxx X. Xxxxxxxx Date
President & CEO Vice President Human Resources &
Administrative Services
