Master agreement status

Please see comments regading Thresholds and advise as soon as possible.

Thanks

Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax 713-646-3490

----- Forwarded by Debra Perlingiere/HOU/ECT on 05/09/2001 10:49 AM -----

"Robin Masciangelo" <rmasciangelo@duke-energy.com<
05/07/2001 03:17 PM

To: Debra.Perlingiere@enron.com
cc:
Subject: Master agreement status

Hi Debra,

Have you had any word back from credit regarding the Exposure Thresholds?
When last we spoke, Enron wanted Duke to be reduced to $1M regarding Early
Termination Damages due to current exposure rates. Our credit department
came back and said the Enron's exposure to Duke was such that they would
then want to see an equal reduction in Enron's Early Termination Damges
amount.

Basically, our credit department has asked that these amounts be reciprocal
in nature as we have a situation where our exposure to one another is
almost equal.

Please let me know what they say.

Robin