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CA Sempra Energy <br />May 18, 2012 <br />BY FEDERAL EXPRESS <br />City of Eugene <br />1820 Roosevelt Blvd. <br />Eugene, OR 97402 -4159 <br />Attention: CREDIT DEPARTMENT <br />Richard A. Vaccari <br />Vice President & <br />Treasurer <br />101 Ash Street, HQ 18 <br />San Diego, CA 921 01 -301 7 <br />Tel: 619- 696 -1815 <br />Fax: 619- 696 -4474 <br />Mobile: 619.254.5638 <br />RVaccar @Sempra.com <br />Re: Sempra Energy Guarantee(s) to City of Eugene; and City of Eugene, acting <br />by /through Eugene Water and Electric Board with respect to the obligations of <br />Sempra Energy Affiliates <br />Dear Sir or Madam: <br />Sempra Energy is hereby terminating any and all guarantees issued by Sempra Energy <br />(collectively, the "Guarantee ") to you and /or your affiliates identified as "Beneficiary" <br />thereunder (which Beneficiaries are listed on the attached Schedule 1) relative to the <br />Transactions (as such term is defined in the Guarantee) guaranteed thereunder and conducted <br />with any and /or all of the Sempra Affiliates (as such term is defined in the Guarantee) (which <br />Sempra Affiliates are listed on the attached Schedule 2). This termination is effective thirty (30) <br />calendar days from the date of this letter (the "Effective Date "). This termination is being made <br />in accordance with the terms of the Guarantee and shall only affect Transactions entered into <br />after the Effective Date of this termination. <br />If you have any questions, please feel free to contact Brenda Warbritton at 619 - 699 -5025 <br />or bwarbritton @sempra.com. <br />Sincerely, <br />SEMPRA ENERGY <br />A j-644 4. VoaaU�. <br />Richard Vaccari <br />Vice President and Treasurer <br />