AMENDMENT NO. 1 PORTLAND GENERAL CORPORATION AMENDED AND RESTATED OUTSIDE DIRECTORS' STOCK COMPENSATION PLAN WHEREAS, pursuant to Section 9.1 of the Portland General Corporation Amended and Restated Outside Directors' Stock Compensation Plan (the "Plan"), the Board of Directors of Portland General Corporation (the "Corporation") may amend the Plan so long as no amendment shall adversely affect any then outstanding Award, and WHEREAS, the Plan has not been amended within the past six months of adoption of this Amendment No. 1, and WHEREAS, the Board wishes to amend the Plan to provide for a delay of a new grant of stock to a Director who has made a "sale" under Section 16 of the Securities Exchange Act and the Rules thereunder, NOW THEREFORE, effective as of February 8, 1994, and subject to review and approval by the Securities Exchange Commission, as may be necessary and appropriate, the Plan is hereby amended as follows: 1. Section 2.3 is hereby deleted and the following new Section 2.3 is inserted as follows: "2.3 After all of the shares of Common Stock from an Award have vested, the award cycle shall be repeated for each Director unless the Board determines to terminate the Plan. The Award Date for the next Award to a Director shall be the later of the date of the PGC Annual Meeting of Shareholders coinciding with the last Anniversary Date for the prior Award to such Director or six (6) months after the date of the last preceding sale of any equity security of PGC by such Director. The next award shall be $50,000 worth of Common Stock, to the nearest whole share, subject to Section 2.2. Page 1 - AMENDMENT NO. 1 - OUTSIDE DIRECTOR STOCK PLAN 29 Such Common Stock shall be acquired, vest and otherwise be subject to all the provisions of this Plan." IN WITNESS WHEREOF, the Board of Directors of the Corporation has adopted this amendment on the 8th day of February 1994. PORTLAND GENERAL CORPORATION By: /s/ Ken L. Harrison Ken L. Harrison Chairman of the Board Page 2 - AMENDMENT NO. 1 - OUTSIDE DIRECTOR STOCK PLAN 30