Document:

EXHIBIT 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

BETWEEN

 

ENBRIDGE INC.

 

- and -

 

STEPHEN J. J. LETWIN

 

Dated as of

 

April 14, 2003

 

 

ENBRIDGE INC.

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

TABLE
OF CONTENTS

 

	
  ARTICLE 1 DEFINITIONS AND INTERPRETATION

  	
  2

  
	
  1.1

  	
  Definitions

  	
  2

  
	
  1.2

  	
  Headings

  	
  5

  
	
  1.3

  	
  Governing Law and Attornment

  	
  5

  
	
  1.4

  	
  Singular; Gender

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 EMPLOYMENT 

  	
  5

  
	
  2.1

  	
  Position, Duties and Responsibilities of
  Executive

  	
  5

  
	
  2.2

  	
  Term of Agreement

  	
  5

  
	
  2.3

  	
  Services During Certain Events

  	
  6

  
	
  2.4

  	
  Termination of Agreement upon Disability of
  Executive

  	
  6

  
	
  2.5

  	
  Termination of Agreement by the Corporation
  for Cause

  	
  6

  
	
  2.6

  	
  Termination of Employment by the
  Corporation or the Executive

  	
  6

  
	
  2.7

  	
  Other Termination by Executive

  	
  9

  
	
  2.8

  	
  Supplemental Benefit Pension Plan

  	
  9

  
	
  2.9

  	
  Continuing Provisions

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 NON-COMPETITION AND
  CONFIDENTIALITY

  	
  10

  
	
  3.1

  	
  Non-Competition

  	
  10

  
	
  3.2

  	
  Confidentiality

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 GENERAL

  	
  11

  
	
  4.1

  	
  Notices

  	
  11

  
	
  4.2

  	
  Time

  	
  11

  
	
  4.3

  	
  Legal Fees and Expenses

  	
  12

  
	
  4.4

  	
  Integration

  	
  12

  
	
  4.5

  	
  Waivers

  	
  12

  
	
  4.6

  	
  Further Assurances

  	
  12

  
	
  4.7

  	
  Severability

  	
  12

  
	
  4.8

  	
  Enurement

  	
  13

  

 

i

 

ENBRIDGE INC.

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS AGREEMENT made as of the 14th day of April, 2003.

 

BETWEEN:

 

ENBRIDGE INC., a
body corporate under the Canada Business
Corporations Act, with offices in the City of Calgary in the
Province of Alberta (hereinafter called the “Corporation”)

 

OF THE FIRST PART

 

- and -

 

STEPHEN J. J. LETWIN,
of the City of Toronto, in the Province of Ontario (hereinafter called the
“Executive”)

 

OF THE SECOND PART

 

WHEREAS:

 

(a)           The
Executive is an executive of the Corporation and is considered by the Board of
Directors of the Corporation to be a valued employee of the Corporation and has
acquired outstanding and special skills and abilities and an extensive
background in and knowledge of the Corporation’s business and the industry in
which it is engaged;

 

(b)           The
Board of Directors recognizes that it is essential, in the best interests of
the Corporation, that the Corporation retain the continuing dedication of the
Executive to his office and employment and that this can best be accomplished
if the personal uncertainty facing the Executive in the event of a material
change in the ownership or the Executive’s role within the organization of the
Corporation is alleviated;

 

(c)           The
Board of Directors further believes that the service of the Executive to the
Corporation requires that the Executive receive fair treatment, particularly in
the event of a termination of employment or loss of office following a material
change in the ownership or the Executive’s role within the Corporation;

 

NOW
THEREFORE THIS AGREEMENT WITNESSETH that in
consideration of the mutual covenants herein contained and in consideration of
the Executive remaining in office and in the employment of the Corporation at
the present time and throughout the period of a material change of ownership or
organization of the Corporation, it is hereby agreed as follows:

 

1

 

ARTICLE 1

DEFINITIONS
AND INTERPRETATION

 

1.1                           Definitions

 

In this Agreement:

 

(a)           “affiliate” has the meaning ascribed to that term in the Canada Business
Corporations Act;

 

(b)           “Annual
Compensation” means the sum of the Annual Salary
and the Annual Incentive Bonus;

 

(c)           “Annual
Salary” means the annual salary of the Executive established by the
HRCC payable by the Corporation or its subsidiaries or affiliates, calculated
as at the end of the month immediately preceding the month in which the termination
of employment occurs and if an annual salary level has not been established, it
shall be calculated by multiplying the monthly salary of the Executive in
effect for the month preceding the month in which a termination of employment
occurs pursuant to Article 2, by twelve.

 

(d)           “Annual
Incentive Bonus” means the annual incentive bonus
of the Executive for the applicable year and if no such bonus has then been
established for a particular year, the annual incentive bonus most recently
earned by or paid to the Executive by the Corporation or its subsidiaries or
affiliates;

 

(e)           “associate”
has the meaning ascribed to that term in the Canada Business Corporations Act;

 

(f)            “change of
control” means:

 

(i)            the
sale to a person or acquisition by a person not affiliated with the Corporation
or its subsidiaries of net assets of the Corporation or its subsidiaries having
a value greater than 50% of the fair market value of the net assets of the
Corporation and its subsidiaries determined on a consolidated basis prior to
such sale whether such sale or acquisition occurs by way of reconstruction,
reorganization, recapitalization, consolidation, amalgamation, arrangement,
merger, transfer, sale or otherwise;

 

(ii)           any
change in the holding, direct or indirect, of shares of the Corporation by a
person not affiliated with the Corporation as a result of which such person, or
a group of persons, or persons acting in concert, or persons associated or
affiliated with any such person or group within the meaning of the Securities
Act (Alberta), 

 

2

 

are in a position to exercise effective control of the Corporation
whether such change in the holding of such shares occurs by way of takeover
bid, reconstruction, reorganization, recapitalization, consolidation,
amalgamation, arrangement, merger, transfer, sale or otherwise; and for the
purposes of this Agreement, a person or group of persons holding shares or
other securities in excess of the number which, directly or following conversion
thereof, would entitle the holders thereof to cast 20% or more of the votes
attaching to all shares of the Corporation which, directly or following
conversion of the convertible securities forming part of the holdings of the
person or group of persons noted above, may be cast to elect directors of the
Corporation shall be deemed, other than a person holding such shares or other
securities in the ordinary course of business as an investment manager who is
not using such holding to exercise effective control, to be in a position to
exercise effective control of the Corporation;

 

(iii)          any
reconstruction, reorganization, recapitalization, consolidation, amalgamation,
arrangement, merger, transfer, sale or other transaction involving the
Corporation where shareholders of the Corporation immediately prior to such
reconstruction, reorganization, recapitalization, consolidation, amalgamation,
arrangement, merger, transfer, sale or other transaction hold less than 60% of
the shares of the Corporation or of the continuing corporation following
completion of such reconstruction, reorganization, recapitalization,
consolidation, amalgamation, arrangement, transfer, sale or other transaction;

 

(iv)          the
Corporation ceases to be a distributing corporation as that term is defined in
the Canada Business Corporations Act;

 

(v)           any
event or transaction which the Board of Directors, in its discretion, deems to
be a Change of Control; or

 

(vi)          Incumbent
Directors ceasing to be a majority of the Board of Directors.

 

(g)           “Confidential
Information” means the information, processes, know-how, data, trade
secrets, techniques, knowledge and other confidential information not generally
known to the public relating to or connected with the business or corporate
affairs and operations of the Corporation and its affiliates;

 

(h)           “constructive
dismissal” means, unless consented to by the Executive, any action
that constitutes constructive dismissal of the Executive, including without
limiting the generality of the foregoing:

 

3

 

(i)            where
the Executive ceases to be an officer of the Corporation, unless the Executive
is appointed as an officer of a successor to a material portion of the assets
of the Corporation;

 

(ii)           a
material decrease in the title, position, responsibilities, powers or reporting
relationships of the Executive;

 

(iii)          a
reduction in the Annual Salary (excluding the Annual Incentive Bonus) of the
Executive; or

 

(iv)          any
material reduction in the value of the Executive’s employee benefits, plans and
programs (other than the Annual Incentive Bonus);

 

(i)            “defined
benefit pension plan” means the Corporation’s registered pension
plan, entitled “Retirement Plan for the Employees of Enbridge Inc. and
Affiliates”, dated July 1, 2001, as amended or replaced from time to time;

 

(j)            “Human
Resources and Compensation Committee” or “HRCC”
means the Committee of the Board of Directors of the Corporation from time to
time appointed to fix the remuneration of executives of the Corporation or, if
such Committee has not been appointed, means the Board of Directors of the
Corporation;

 

(k)           “Incentive
Stock Option Plan” or “ISOP” means the
Incentive Stock Option Plan (2002) of the Corporation, as amended or replaced
from time to time;

 

(l)            “Incumbent
Director” means any member of the Board of
Directors who was a member of the Board of Directors immediately prior to the
occurrence of the transaction, elections or appointments giving rise to a
Change of Control and any successor to an Incumbent Director who was
recommended for election at a meeting of the shareholders of the Corporation,
or elected or appointed to succeed any Incumbent Director, by the affirmative
vote of the directors, which affirmative vote includes a majority of the
Incumbent Directors then on the Board of Directors;

 

(m)          “person”
shall have the meaning ascribed to that term in the Canada Business
Corporations Act;

 

(n)           “subsidiary”
has the meaning ascribed to that term in the Canada Business Corporations Act;
and

 

(o)           “supplemental
benefit pension plan” means the non-registered supplemental pension
plan, entitled “The Enbridge Supplemental Pension Plan” dated January 1, 2000,
as amended or replaced from time to time.

 

4

 

1.2                           Headings

 

The headings of the articles, sections, clauses and paragraphs herein
are inserted for convenience of reference only and shall not affect the meaning
or construction hereof.

 

1.3                           Governing
Law and Attornment

 

This Agreement shall be construed and interpreted in accordance with
the laws of the Province of Alberta and the federal laws of Canada applicable
therein. Each of the parties hereby irrevocably attorns to the jurisdiction of
the courts of the Province of Alberta with respect to any matters arising out of
this Agreement.

 

1.4                           Singular;
Gender

 

All words importing the singular number include the plural and vice
versa, and all words importing gender include the masculine, feminine and
neuter genders.

 

ARTICLE 2

EMPLOYMENT

 

2.1                           Position,
Duties and Responsibilities of Executive

 

The Executive shall have such responsibilities and powers as the board
of directors or the bylaws of the Corporation or Executive’s superiors may from
time to time prescribe and are contemplated by his position Group Vice
President Gas Strategy and Corporate Development or similarly equivalent duties
and responsibilities. Except as may be authorized by the Board of Directors of
the corporation or by the Executive’s superiors from time to time, the
Executive shall devote the whole of his time to the Executive’s duties
hereunder and shall use his best efforts to promote the interests of the
Corporation and its affiliates and subsidiaries.

 

2.2                           Term
of Agreement

 

The term of this Agreement shall commence on the date hereof, and
subject to Section 2.9 shall continue in effect to and including the earliest
of:

 

(a)           the
date of voluntary retirement of the Executive in accordance with the retirement
policies established for senior employees of the Corporation;

 

(b)           the
voluntary resignation of the Executive other than pursuant to Section
2.6(a)(ii) or 2.6(a)(iii);

 

(c)           the
death of the Executive; or

 

(d)           termination
of the employment of the Executive by the Corporation.

 

5

 

2.3                           Services
During Certain Events

 

In the event that a person makes a tender, exchange offer or takeover
bid, or circulates a proxy to shareholders of the Corporation or takes other
steps seeking to effect a change of control of the Corporation, the Executive
agrees that he will not terminate his employment with the Corporation or cease
to be an officer of the Corporation or its affiliates or subsidiaries until
that person has abandoned or terminated his or its efforts to effect a change
of control or merger or until after such a change of control or merger has been
effected.

 

2.4                           Termination
of Agreement upon Disability of Executive

 

If at
the end of any month the Executive is and has been for a period of more than 12
months unable to perform the essential duties specified pursuant to this
Agreement in the normal and regular manner due to mental or physical
disability, this Agreement may be terminated by the Corporation on 30 days’
prior written notice. Notwithstanding anything contained in this Section 2.4,
the Executive shall be entitled to all benefits provided under the disability
and pension plans of the Corporation or its affiliates applicable to the
Executive at the date of and during the term of this Agreement.

 

2.5                           Termination
of Agreement by the Corporation for Cause

 

The Corporation may terminate this Agreement at any time without notice
in the event the Executive shall be convicted of a criminal act of dishonesty
resulting or intending to result directly or indirectly in gain or personal
enrichment of the Executive at the expense of the Corporation, or for just
cause as defined in common law and pursuant to written notice setting forth
particulars of such cause.

 

2.6                           Termination
of Employment by the Corporation or the Executive

 

(a)           Except where such
termination is pursuant to Sections 2.2(a), (b) or (c), 2.5 or 2.7 the
provisions of this Section 2.6 shall apply:

 

(i)            where
the Corporation terminates the employment of the Executive for any reason;

 

(ii)           where
the Executive terminates his employment with the Corporation within a period of
90 days following constructive dismissal of the Executive. For this purpose the
Executive may within a period of 90 days following the constructive dismissal
of the Executive terminate his employment with the Corporation upon 30 days’ prior
written notice to the Corporation. For greater clarity, the said 30 day notice
may be given at any time up to the 60th day of the said 90-day period;

 

6

 

(iii)          where
the Executive terminates his employment with the Corporation following one (1)
year from the occurrence of a change of control. For this purpose, the
Executive may, within a period of 90 days following from one (1) year of the
occurrence of a change of control, terminate his employment with the Corporation,
upon 30 days’ prior written notice to the Corporation. For greater clarity, the
said 30 day notice may be given at any time up to the 60th day of
the said 90-day period; or

 

(iv)          where
the Corporation terminates this Agreement pursuant to Section 2.4.

 

(b)           In the event of termination
of employment as provided in Section 2.6(a), the Executive shall be entitled to
receive, and the Corporation shall pay to the Executive, a retiring allowance
(the “Retiring Allowance”) computed as hereinafter provided, which shall
include all statutory entitlement under employment standards legislation and
all common law entitlement to reasonable notice. The Retiring Allowance shall
be that amount which is equal to two times the sum of:

 

(i)            the
Annual Salary; and

 

(ii)           the
average of the last two payments of the Annual Incentive Bonus paid to the
Executive immediately preceding the date of such termination of employment.

 

(c)           In addition to the Retiring
Allowance calculated in accordance with Section 2.6(b):

 

(i)            the
Corporation shall pay to the Executive the cash value of two times the last
annual flex credit allowance provided to the Executive immediately preceding
the date of such termination of employment under the Corporation’s flexible
benefit program unless the Executive continues to be covered through the
Corporation’s annuitant benefit program or the benefits program of another
employer;

 

(ii)           the
Corporation shall pay to the Executive the Annual Incentive Bonus for the
calendar year in which the termination of employment occurs, pro rated based
upon the number of days of employment of the Executive in the calendar year to
the number of days in the year and the Executive shall receive all accrued and
unpaid annual vacation pay to the date of termination;

 

(iii)          the
Corporation shall pay to the Executive the cash value of two times the last
annual flexible perquisite allowance provided to the Executive immediately
preceding the date of such termination of 

 

7

 

employment under the Corporation’s executive flexible perquisites
program less any amounts paid to the Executive but unearned by virtue of such
termination of employment;

 

(iv)          the
Corporation will pay for financial counselling and/or career counselling assistance
for the Executive to a maximum of $10,000.

 

(d)           The Executive will have two
years of additional service added to the service already accrued at date of
termination, under the Corporation’s defined benefit pension plan and
supplemental benefit pension plan, as more precisely described in Section 2.8.

 

(e)           If, at the time of
termination of employment as provided in Section 2.6(a), the Executive holds
exercisable but unexercised options for the purchase of shares of the
Corporation under any of the Corporation’s or its affiliates’ stock option
plans, the Executive shall be entitled to exercise all options so held in
accordance with the terms of such plans and pursuant to law. If the Executive
holds options for the purchase of shares under any of the Corporation’s or its
affiliates’ stock option plans which are not exercisable at the date of
termination of employment in circumstances where this Section 2.6 applies, the
Corporation will pay to the Executive a cash amount representing the excess, if
any, of the fair market value of the shares on the date of termination of
employment over the exercise price for such options. Payment of such amount
shall result in cancellation of the related stock options and any stock
appreciation rights associated with the stock options. The fair market value on
the date of termination of employment shall mean the last board lot sale price
on The Toronto Stock Exchange on the last trading day prior to the date of
termination of employment.

 

(f)            The Corporation and the
Executive agree that the provisions of Section 2.6 are fair and reasonable and
that the amounts payable by the Corporation to the Executive pursuant to
Section 2.6 are reasonable estimates of the damages which will be suffered by
the Executive in the event of the termination of his employment with the
Corporation in the circumstances set out in Section 2.6 and shall not be
construed as a penalty.

 

(g)           The amounts payable by the
Corporation to the Executive pursuant to Section 2.6 shall not be reduced by
any amounts earned by the Executive after the termination of the employment of
the Executive.

 

(h)           All amounts paid by the
Corporation to the Executive pursuant to Section 2.6 shall satisfy and forever
discharge all liabilities, claims or actions that the Executive may or shall
have against the Corporation arising from the termination of employment of the
Executive whether at common law or under statute or otherwise.

 

8

 

(i)            Subject to the provisions
of Sections 2.6(c) and 2.6(e), the Corporation shall, at the option of the
Executive, pay the amounts provided under this Section 2.6 to the Executive on
the date that the employment of the Executive is terminated, or as soon
thereafter as reasonably practical, less all applicable statutory deductions;
or arrange a schedule of instalment payments of such amounts as determined by
the Executive. Upon payment to the Executive of the amounts provided for under
this Section 2.6 or mutual agreement of payment terms, the Executive and the
Corporation shall execute and deliver to the other the releases in the forms of
Schedules A and B, respectively.

 

2.7                           Other
Termination by Executive

 

Notwithstanding anything to the contrary
herein, in addition to the right of the Executive to terminate his employment
under the circumstances described in Section 2.6, the Executive shall be
entitled to terminate this Agreement and his employment with the Corporation at
his pleasure upon 30 days’ prior written notice to such effect. In such event,
the Executive shall not be entitled to any further compensation from the date
of termination of employment. The Corporation acknowledges and agrees that the
Corporation shall have no remedy against the Executive, in law or otherwise,
upon the termination of this Agreement and the Executive’s employment with the
Corporation in accordance with this Section 2.7.

 

2.8                           Supplemental
Benefit Pension Plan

 

(a)           The Corporation undertakes and agrees with the Executive (herein,
the “supplementary undertakings”) to pay or cause to be paid the amounts
provided for in the supplemental benefit pension plan as modified by this
Section 2.8. In particular, the Executive (or the Executive’s spouse or
beneficiary as defined in the supplemental benefit pension plan) is entitled to
receive:

 

(i)            benefits
determined in accordance with the supplemental benefit pension plan, being
certain amounts that would be payable from the defined benefit pension plan but
for limitations imposed by the Income Tax Act, all as specified in the
supplemental benefit pension plan;

 

(ii)           benefits
determined in accordance with the supplemental benefit pension plan as if his
credited service prior to January 1, 2000 in the lifetime retirement income
formula in the defined benefit pension plan were increased by six (6) years;
and

 

(iii)          if
Section 2.6(d) applies, benefits determined in accordance with the supplemental
benefit pension plan pursuant to (i) as if:

 

9

 

A.            two additional years of
credited service were applied in the lifetime retirement income formula in the
defined benefit pension plan, and two additional years of continuous service
were granted for other purposes of the defined benefit pension plan; and

 

B.            for each of the two
additional years of credited service earnings are deemed to be received equal
to Annual Compensation for the purposes of determining final or best average
earnings.

 

(b)           The
Executive acknowledges and accepts that prior to January 1, 2001 the
Corporation had not funded the supplementary undertaking. The Executive further
acknowledges and accepts, and the Corporation undertakes to the Executive, that
effective January 1, 2001 the supplementary undertaking will be funded by the
Corporation over a period of seven years in a separately maintained retirement
compensation arrangement (as referred to in the Income Tax Act (Canada)) to be
separately maintained and established by the Corporation (the “RCA”). The
supplementary undertaking will be paid from amounts in the RCA with any amount
that cannot be paid from the RCA being paid by the Corporation.

 

2.9                           Continuing
Provisions

 

Notwithstanding the termination of this Agreement under Article 2, the
provisions of Section 2.6, Section 2.8 and Article 3 and all other provisions
hereof which by their terms are to be performed following the termination
hereof shall survive such termination and be continuing obligations.

 

ARTICLE 3

NON-COMPETITION
AND CONFIDENTIALITY

 

3.1                           Non-Competition

 

The Executive recognizes and understands that in performing the duties
and responsibilities of his employment as outlined in this Agreement, he will
occupy a position of high fiduciary trust and confidence, pursuant to which he
has developed and will develop and acquire wide experience and knowledge with
respect to the businesses carried on by the Corporation and its affiliates and
the manner in which such businesses are conducted. It is the expressed intent
and agreement of the Executive and of the Corporation that such knowledge and
experience shall be used solely and exclusively in the furtherance of the
business interests of the Corporation and its affiliates and not in any manner
detrimental to them. The Executive therefore agrees that so long as he is
employed by the Corporation pursuant to this Agreement he shall not engage in
any practice or business in competition with the business of the Corporation or
any of its affiliates.

 

10

 

3.2                           Confidentiality

 

The Executive further recognizes and understands that in the performance
of his employment duties and responsibilities outlined in this Agreement, he
will become knowledgeable, aware and possessed of Confidential Information
concerning the business of the Corporation and its affiliates. The Executive
agrees that, except with the consent of the board of directors, he will not
disclose such Confidential Information to any unauthorized persons so long as
he is employed by the Corporation pursuant to this Agreement and for a period
of 2 years thereafter; provided that the foregoing shall not apply to any
Confidential Information which is or becomes known to the public or to the
competitors of the Corporation and/or its affiliates other than by a breach of
this Agreement by the Executive.

 

ARTICLE 4

GENERAL

 

4.1                           Notices

 

Any notice required or permitted to be given to a party hereunder shall
be in writing and may be given by mailing the same, postage prepaid, or
delivering the same, addressed to such party at the following address:

 

To the Corporation:

 

	
  Enbridge Inc.

  	
   

  
	
  3000, 425 – 1st Street S.W.

  	
   

  
	
  Calgary, Alberta T2P 3L8

  	
   

  
	
   

  
	
  Attention:

  	
  President & Chief Executive Officer

  
			

 

To the Executive:

 

	
  Mr. Stephen J. J. Letwin

  	
   

  	
   

  
	
  64 Hodgkinson Crescent

  	
   

  	
   

  
	
  Aurora, Ontario L4G 6K7

  	
   

  	
   

  

 

Any notice aforesaid if delivered shall be
deemed to have been delivered on the first business day following the date on
which it was delivered or if mailed shall be deemed to have been received on
the third day following the date on which it was mailed. Any party may change
its address for service from time to time by a notice given in accordance with
the foregoing.

 

4.2                           Time

 

Time shall be of the essence of this Agreement.

 

11

 

4.3                           Legal
Fees and Expenses

 

The Corporation shall pay all reasonable costs incurred by the
Executive, as determined in the sole discretion of the President & Chief
Executive Officer, in respect of legal, consulting and accounting expenses in
connection with the negotiation, execution and interpretation of this
Agreement. The Corporation shall pay all costs, charges and expenses incurred
in respect of legal, consulting and accounting expenses (including legal
expenses on a solicitor and his or his own client basis) incurred by the
Executive or his estate in taking any action or enforcing any right or benefit
provided to the Executive by this Agreement; provided only that the Executive
is substantially successful in any such action or in enforcing any such right
or benefit, and providing further that payments pursuant to this Section 4.3 shall
not exceed a maximum amount of $10,000.

 

4.4                           Integration

 

The provisions of this Agreement are in addition to and not in
substitution for the other terms, conditions and provisions concerning the
employment of the Executive by the Corporation and where there is any conflict
between this Agreement and such other terms, conditions and provisions this
Agreement shall govern. This Agreement together with such other terms,
conditions and provisions constitute the entire agreement between the parties
hereto pertaining to the subject matter. This Agreement may not be amended or
modified in any respect except by written instrument signed by the parties
hereto.

 

4.5                           Waivers

 

No waiver by either party hereto of any breach of any of the provisions
of this Agreement shall take effect or be binding upon the party unless in
writing and signed by such party. Unless otherwise provided therein, such
waiver shall not limit or affect the rights of such party with respect to any
other breach.

 

4.6                           Further
Assurances

 

The parties hereto agree to execute and deliver such further and other
documents and perform and cause to be performed such further and other acts and
things as may be necessary or desirable in order to give full effect to this
Agreement and every part thereof.

 

4.7                           Severability

 

If any provision of this Agreement shall be held to be invalid, illegal
or unenforceable, the validity, legality or enforceability of the remaining
provisions of this Agreement shall not in any way be affected or impaired
thereby.

 

12

 

•                              Enurement

 

This Agreement shall enure to the benefit of and be binding upon the
parties hereto and their respective heirs, legal personal representatives,
successors and permitted assigns.

 

IN WITNESS WHEREOF the Corporation has hereunto affixed its corporate
seal attested to by its duly authorized officers in that behalf and the
Executive has hereunto set his hand and seal as of the day and year first above
written.

 

	
   

  	
   

  	
  ENBRIDGE INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Patrick D. Daniel

  	
   

  
	
   

  	
   

  	
   

  	
  Patrick D. Daniel

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
  SIGNED, SEALED AND

  	
  )

  	
   

  	
   

  
	
  DELIVERED in the presence of:

  	
  )

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   /s/ Stephen J. J. Letwin

  	
   

  
	
  WITNESS as to the signature of 

  	
  )

  	
   Stephen J. J. Letwin

  	
   

  	
   

  
	
  Stephen J. J. Letwin

  	
  )

  	
   

  	
   

  	
   

  
								

 

13

 

SCHEDULE A

 

Release

 

KNOW ALL MEN BY THESE PRESENTS that I, Stephen J. J. Letwin, of the
City of Toronto, in the Province of Ontario, in consideration of the amounts
provided in Sections 2.6 and 2.8 of the Executive Employment Agreement (the
“Contract”) dated as of April 14, 2003 between me and Enbridge Inc. (the
“Corporation”) and for other good and valuable consideration, inclusive of any
statutory severance or benefits in accordance with the Employment Standards
Code (Alberta), the receipt and sufficiency of which is hereby acknowledged, do
for myself, my executors and assigns hereby remise, release and forever
discharge the Corporation, its respective predecessors, successors and assigns,
from all manner of actions, causes of action, claims or demands, past, present
or future, which against the Corporation, their respective predecessors,
successors and assigns, I ever had, now have, or can, shall or may hereafter
have, by reason of or arising out of any cause, matter or thing whatsoever done
or admitted to be done, occurring or existing up to and inclusive of the day of
these presents and in particular, without in any way restricting the generality
of the foregoing, in respect of all claims, past, present or future, directly
or indirectly related to or arising out of or in connection with my
relationship with the Corporation, its respective predecessors, successors and
assigns, as an employee, officer or director, and the termination of my
employment from the Corporation, on                                             ,
200•.

 

AND FOR THE SAID CONSIDERATION I, Stephen J. J. Letwin, represent and
warrant that I have not assigned to any person, firm or corporation any of the
actions, causes of action, claims, suits, executions or demands which I release
by this Release, or with respect to which I agree not to make any claim or take
any proceeding herein.

 

Notwithstanding anything contained herein, this Release shall not
extend to or affect, or constitute a release of, my right to sue, claim against
or recover from the Corporation and shall not constitute an agreement to
refrain from bringing, taking or maintaining any action against the Corporation
in respect of:

 

(a)           any corporate indemnity
existing by statute, contract or pursuant to any of the constating documents of
the Corporation provided in my favour in respect of my having acted at any time
as a director, officer or both of the Corporation;

 

(b)           my entitlement to any
insurance maintained for the benefit or protection of the directors and/or
officers of the Corporation, including without limitation, directors’ and
officers’ liability insurance; or

 

(c)           my entitlement to any
amounts that may arise under the Sections and Articles of the Contract referred
to in Section 2.9 of the Contract.

 

1

 

IT IS HEREBY AGREED that, except as provided herein, the terms of the
Contract and of this Release will be kept confidential. Subject to the
following, no party hereto shall communicate any such terms to any third party
under any circumstances whatsoever, although either party shall be at liberty
to disclose to third parties that a mutually acceptable Release was agreed
upon. In addition, Stephen J. J. Letwin shall be permitted to disclose the terms
of the Contract and this Release to his spouse, his tax and financial advisors,
his legal advisors and to make any disclosures of the terms of this Contract
and this Release as may be required to allow him to comply with any applicable
provision of the law. In such event, Stephen J. J. Letwin shall require that
his spouse, his tax and financial advisors and his legal advisors shall execute
the undertaking provided as Schedule “C” hereof prior to the disclosure of the
terms of this Contract and this Release and shall advise the Corporation of
such disclosure and provide the Corporation with a copy of such undertaking. In
the event of any disclosure required by law, Stephen J. J. Letwin shall
promptly advise the Corporation of the required disclosure. The invalidity and
unenforceability of any provision of this Release shall not affect the validity
or enforceability of any other provision of this Release, which shall remain in
full force and effect.

 

I HEREBY DECLARE that I have read all of this Release, fully understand
the terms of this Release and voluntarily accept the consideration stated
herein as the sole consideration for this Release for the purpose of making a
full and final settlement with the Corporation. I further acknowledge and
confirm that I have been given an adequate period of time to obtain independent
legal counsel upon the meaning and the significance of the terms herein and the
covenants mutually exchanged.

 

IN WITNESS WHEREOF, I have hereunto set my hand and seal this             
day of                                            
A.D. 200•

 

	
   

  	
   

  	
   

  
	
  Witness

  	
   

  	
  Stephen J. J. Letwin

  

 

2

 

SCHEDULE B

 

Release

 

KNOW ALL MEN BY THESE PRESENTS that ENBRIDGE INC. (the “Corporation”),
a corporation incorporated under the laws of the Province of Alberta, in
consideration of the delivery by Stephen J. J. Letwin (the “Executive”), of a
Release dated the date hereof and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, for itself and its
respective successors and assigns, hereby remises, releases and forever
discharges the Executive, his executors and assigns from all manner of actions,
causes of action, claims or demands, past, present or future, which against the
Executive, his executors and assigns, the Corporation, its respective
successors and assigns ever had, now have, or can, shall or may hereafter have,
by reason of or arising out of any cause, matter or thing whatsoever done or
admitted to be done, occurring or existing up to and inclusive of the day of
these presents and in particular, without in any way restricting the generality
of the foregoing, in respect of all claims, past, present or future, directly
or indirectly related to or arising out of or in connection with the
Corporation’s relationship with the Executive, as an employee, director or
officer of the Corporation.

 

AND FOR THE SAID CONSIDERATION the Corporation represents and warrants
that it has not assigned to any person, firm or corporation any of the actions,
causes of action, claims, suits, executions or demands which it releases by
this Release, or with respect to which it agrees not to make any claim or take
any proceeding herein. The invalidity and unenforceability of any provision of
this Release shall not affect the validity or enforceability of any other
provision of this Release, which shall remain in full force and effect.

 

IT IS HEREBY AGREED that, except as provided for in Schedule “A”
hereof, the terms of the Executive Employment Agreement dated as of April 14,
2003 between the Corporation and the Executive and of this Release will be kept
confidential. No party hereto shall communicate any such terms to any third
party under any circumstances whatsoever, although either party shall be at
liberty to disclose to third parties that a mutually acceptable Release was
agreed upon.

 

IN WITNESS WHEREOF, the Corporation has duly executed and delivered
this Release this                     
day of                                      
A.D. 200•.

 

	
   

  	
  ENBRIDGE INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Per:

  	
   

  	
   

  

 

 

SCHEDULE C

 

Undertaking

 

I,
                                    ,
of                                ,
in the City of                           ,
in the Province of                        

	
            [name]

  	
         [address]

  

being the                                                                                                                                                              ,

   [describe
relationship to Stephen J. J. Letwin, e.g. spouse, tax, financial or legal
advisor]

for good and valuable consideration, the
receipt of which I acknowledge, agree to keep strictly confidential the terms
and conditions of the Executive Employment Agreement dated as of April 14, 2003
made between Enbridge Inc. and Stephen J. J. Letwin, and any Release thereof,
all as may be disclosed to me by Stephen J. J. Letwin.

 

I further acknowledge that I will make no use
whatsoever of the information comprising the terms and conditions of the
Executive Employment Agreement, except as may be required for the purposes of
my providing advice and direction to Stephen J. J. Letwin in my aforesaid
capacity.

 

IN WITNESS WHEREOF, I have hereunto set my hand and seal this                       
day of                                     
A.D. 200•.

 

	
   

  	
   

  	
   

  
	
  WitnessEXHIBIT 10.1

 

 

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

BETWEEN

 

 

ENBRIDGE INC.

 

- and -

 

STEPHEN J. J. LETWIN

 

 

Dated as of

 

April 14, 2003

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1 DEFINITIONS AND INTERPRETATION

  	
  2

  
	
  1.1

  	
  Definitions

  	
  2

  
	
  1.2

  	
  Headings

  	
  5

  
	
  1.3

  	
  Governing Law and Attornment

  	
  5

  
	
  1.4

  	
  Singular; Gender

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 EMPLOYMENT

  	
  5

  
	
  2.1

  	
  Position, Duties and Responsibilities of Executive

  	
  5

  
	
  2.2

  	
  Term of Agreement

  	
  5

  
	
  2.3

  	
  Services During Certain Events

  	
  6

  
	
  2.4

  	
  Termination of Agreement upon Disability of Executive

  	
  6

  
	
  2.5

  	
  Termination of Agreement by the Corporation for Cause

  	
  6

  
	
  2.6

  	
  Termination of Employment by the Corporation or the Executive

  	
  6

  
	
  2.7

  	
  Other Termination by Executive

  	
  9

  
	
  2.8

  	
  Supplemental Benefit Pension Plan

  	
  9

  
	
  2.9

  	
  Continuing Provisions

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 NON-COMPETITION AND CONFIDENTIALITY

  	
  10

  
	
  3.1

  	
  Non-Competition

  	
  10

  
	
  3.2

  	
  Confidentiality

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 GENERAL

  	
  11

  
	
  4.1

  	
  Notices

  	
  11

  
	
  4.2

  	
  Time

  	
  11

  
	
  4.3

  	
  Legal Fees and Expenses

  	
  12

  
	
  4.4

  	
  Integration

  	
  12

  
	
  4.5

  	
  Waivers

  	
  12

  
	
  4.6

  	
  Further Assurances

  	
  12

  
	
  4.7

  	
  Severability

  	
  13

  
	
  4.8

  	
  Enurement

  	
  13

  

 

i

 

THIS AGREEMENT made as of the 14th  day of April, 2003.

 

BETWEEN:

 

ENBRIDGE
INC., a body corporate under the Canada Business Corporations Act, with offices in the City
of Calgary in the Province of Alberta (hereinafter called the “Corporation”)

 

OF THE FIRST PART

 

- and -

 

STEPHEN J. J. LETWIN, of the City of Toronto, in the Province of Ontario (hereinafter
called the “Executive”)

 

OF THE SECOND PART

 

WHEREAS:

 

(a)                                  The Executive is an executive of the Corporation and is considered
by the Board of Directors of the Corporation to be a valued employee of the
Corporation and has acquired outstanding and special skills and abilities and
an extensive background in and knowledge of the Corporation’s business and the
industry in which it is engaged;

 

(b)                                 The Board of Directors recognizes that it is essential, in the best
interests of the Corporation, that the Corporation retain the continuing
dedication of the Executive to his office and employment and that this can best
be accomplished if the personal uncertainty facing the Executive in the event
of a material change in the ownership or the Executive’s role within the
organization of the Corporation is alleviated;

 

(c)                                  The Board of Directors further believes that the service of the
Executive to the Corporation requires that the Executive receive fair
treatment, particularly in the event of a termination of employment or loss of
office following a material change in the ownership or the Executive’s role within
the Corporation;

 

NOW
THEREFORE THIS AGREEMENT WITNESSETH that in
consideration of the mutual covenants herein contained and in consideration of
the Executive remaining in office and in the employment of the Corporation at
the present time and throughout the period of a material change of ownership or
organization of the Corporation, it is hereby agreed as follows:

 

1

 

ARTICLE 1

DEFINITIONS
AND INTERPRETATION

 

1.1                                                                                 Definitions

 

In this Agreement:

 

(a)                                  “affiliate” has the meaning ascribed to that term in the Canada Business
Corporations Act;

 

(b)                                 “Annual
Compensation” means the sum of the Annual Salary
and the Annual Incentive Bonus;

 

(c)                                  “Annual Salary” means the annual salary of the Executive
established by the HRCC payable by the Corporation or its subsidiaries or
affiliates, calculated as at the end of the month immediately preceding the
month in which the termination of employment occurs and if an annual salary
level has not been established, it shall be calculated by multiplying the
monthly salary of the Executive in effect for the month preceding the month in
which a termination of employment occurs pursuant to Article 2, by twelve.

 

(d)                                 “Annual
Incentive Bonus” means the annual incentive bonus
of the Executive for the applicable year and if no such bonus has then been
established for a particular year, the annual incentive bonus most recently
earned by or paid to the Executive by the Corporation or its subsidiaries or
affiliates;

 

(e)                                  “associate” has the meaning ascribed to that term in the
Canada Business Corporations Act;

 

(f)                                    “change of control” means:

 

(i)                                     the
sale to a person or acquisition by a person not affiliated with the Corporation
or its subsidiaries of net assets of the Corporation or its subsidiaries having
a value greater than 50% of the fair market value of the net assets of the
Corporation and its subsidiaries determined on a consolidated basis prior to
such sale whether such sale or acquisition occurs by way of reconstruction, reorganization,
recapitalization, consolidation, amalgamation, arrangement, merger, transfer,
sale or otherwise;

 

(ii)                                  any
change in the holding, direct or indirect, of shares of the Corporation by a
person not affiliated with the Corporation as a result of which such person, or
a group of persons, or persons acting in concert, or persons associated or
affiliated with any such person or group within the meaning of the Securities
Act (Alberta),

 

2

 

are in a
position to exercise effective control of the Corporation whether such change
in the holding of such shares occurs by way of takeover bid, reconstruction,
reorganization, recapitalization, consolidation, amalgamation, arrangement,
merger, transfer, sale or otherwise; and for the purposes of this Agreement, a
person or group of persons holding shares or other securities in excess of the
number which, directly or following conversion thereof, would entitle the
holders thereof to cast 20% or more of the votes attaching to all shares of the
Corporation which, directly or following conversion of the convertible
securities forming part of the holdings of the person or group of persons noted
above, may be cast to elect directors of the Corporation shall be deemed, other
than a person holding such shares or other securities in the ordinary course of
business as an investment manager who is not using such holding to exercise
effective control, to be in a position to exercise effective control of the
Corporation;

 

(iii)                               any reconstruction,
reorganization, recapitalization, consolidation, amalgamation, arrangement,
merger, transfer, sale or other transaction involving the Corporation where
shareholders of the Corporation immediately prior to such reconstruction,
reorganization, recapitalization, consolidation, amalgamation, arrangement,
merger, transfer, sale or other transaction hold less than 60% of the shares of
the Corporation or of the continuing corporation following completion of such
reconstruction, reorganization, recapitalization, consolidation, amalgamation,
arrangement, transfer, sale or other transaction;

 

(iv)                              the
Corporation ceases to be a distributing corporation as that term is defined in
the Canada Business Corporations Act;

 

(v)                                 any
event or transaction which the Board of Directors, in its discretion, deems to
be a Change of Control; or

 

(vi)                              Incumbent
Directors ceasing to be a majority of the Board of Directors.

 

(g)                                 “Confidential Information” means the information, processes,
know-how, data, trade secrets, techniques, knowledge and other confidential
information not generally known to the public relating to or connected with the
business or corporate affairs and operations of the Corporation and its
affiliates;

 

(h)                                 “constructive dismissal” means, unless consented to by the
Executive, any action that constitutes constructive dismissal of the Executive,
including without limiting the generality of the foregoing:

 

3

 

(i)                                     where
the Executive ceases to be an officer of the Corporation, unless the Executive
is appointed as an officer of a successor to a material portion of the assets
of the Corporation;

 

(ii)                                  a
material decrease in the title, position, responsibilities, powers or reporting
relationships of the Executive;

 

(iii)                               a
reduction in the Annual Salary (excluding the Annual Incentive Bonus) of the
Executive; or

 

(iv)                              any
material reduction in the value of the Executive’s employee benefits, plans and
programs (other than the Annual Incentive Bonus);

 

(i)                                     “defined benefit pension plan” means the Corporation’s
registered pension plan, entitled “Retirement Plan for the Employees of
Enbridge Inc. and Affiliates”, dated July 1, 2001, as amended or replaced from
time to time;

 

(j)                                     “Human Resources and Compensation Committee” or “HRCC” means the Committee of the Board of Directors of the
Corporation from time to time appointed to fix the remuneration of executives
of the Corporation or, if such Committee has not been appointed, means the
Board of Directors of the Corporation;

 

(k)                                  “Incentive Stock Option Plan” or “ISOP”
means the Incentive Stock Option Plan (2002) of the Corporation, as amended or
replaced from time to time;

 

(l)                                     “Incumbent Director” means
any member of the Board of Directors who was a member of the Board of Directors
immediately prior to the occurrence of the transaction, elections or
appointments giving rise to a Change of Control and any successor to an
Incumbent Director who was recommended for election at a meeting of the
shareholders of the Corporation, or elected or appointed to succeed any
Incumbent Director, by the affirmative vote of the directors, which affirmative
vote includes a majority of the Incumbent Directors then on the Board of
Directors;

 

(m)                               “person” shall have the meaning ascribed to that term in the
Canada Business Corporations Act;

 

(n)                                 “subsidiary” has the meaning ascribed to that term in the
Canada Business Corporations Act; and

 

(o)                                 “supplemental benefit pension plan” means the non-registered
supplemental pension plan, entitled “The Enbridge Supplemental Pension Plan”
dated January 1, 2000, as amended or replaced from time to time.

 

4

 

1.2                                                                                 Headings

 

The headings of the articles, sections, clauses and paragraphs herein
are inserted for convenience of reference only and shall not affect the meaning
or construction hereof.

 

1.3                                                                                 Governing
Law and Attornment

 

This Agreement shall be construed and interpreted in accordance with
the laws of the Province of Alberta and the federal laws of Canada applicable
therein. Each of the parties hereby irrevocably attorns to the jurisdiction of
the courts of the Province of Alberta with respect to any matters arising out
of this Agreement.

 

1.4                                                                                 Singular;
Gender

 

All words importing the singular number include the plural and vice
versa, and all words importing gender include the masculine, feminine and
neuter genders.

 

ARTICLE 2

EMPLOYMENT

 

2.1                                                                                 Position,
Duties and Responsibilities of Executive

 

The Executive shall have such responsibilities and powers as the board
of directors or the bylaws of the Corporation or Executive’s superiors may from
time to time prescribe and are contemplated by his position Group Vice
President Gas Strategy and Corporate Development or similarly equivalent duties
and responsibilities. Except as may be authorized by the Board of Directors of
the corporation or by the Executive’s superiors from time to time, the
Executive shall devote the whole of his time to the Executive’s duties
hereunder and shall use his best efforts to promote the interests of the
Corporation and its affiliates and subsidiaries.

 

2.2                                                                                 Term
of Agreement

 

The term of this Agreement shall commence on the date hereof, and
subject to Section 2.9 shall continue in effect to and including the earliest
of:

 

(a)                                  the date of voluntary retirement of the Executive in accordance with
the retirement policies established for senior employees of the Corporation;

 

(b)                                 the voluntary resignation of the Executive other than pursuant to
Section 2.6(a)(ii) or 2.6(a)(iii);

 

(c)                                  the death of the Executive; or

 

(d)                                 termination of the employment of the Executive by the Corporation.

 

5

 

2.3                                                                                 Services
During Certain Events

 

In the event that a person makes a tender, exchange offer or takeover
bid, or circulates a proxy to shareholders of the Corporation or takes other
steps seeking to effect a change of control of the Corporation, the Executive
agrees that he will not terminate his employment with the Corporation or cease
to be an officer of the Corporation or its affiliates or subsidiaries until
that person has abandoned or terminated his or its efforts to effect a change
of control or merger or until after such a change of control or merger has been
effected.

 

2.4                                                                                 Termination
of Agreement upon Disability of Executive

 

If at
the end of any month the Executive is and has been for a period of more than 12
months unable to perform the essential duties specified pursuant to this
Agreement in the normal and regular manner due to mental or physical disability,
this Agreement may be terminated by the Corporation on 30 days’ prior written
notice. Notwithstanding anything contained in this Section 2.4, the Executive
shall be entitled to all benefits provided under the disability and pension
plans of the Corporation or its affiliates applicable to the Executive at the
date of and during the term of this Agreement.

 

2.5                                                                                 Termination
of Agreement by the Corporation for Cause

 

The Corporation may terminate this Agreement at any time without notice
in the event the Executive shall be convicted of a criminal act of dishonesty
resulting or intending to result directly or indirectly in gain or personal
enrichment of the Executive at the expense of the Corporation, or for just
cause as defined in common law and pursuant to written notice setting forth
particulars of such cause.

 

2.6                                                                                 Termination
of Employment by the Corporation or the Executive

 

(a)                                  Except
where such termination is pursuant to Sections 2.2(a), (b) or (c), 2.5 or 2.7
the provisions of this Section 2.6 shall apply:

 

(i)                                     where
the Corporation terminates the employment of the Executive for any reason;

 

(ii)                                  where
the Executive terminates his employment with the Corporation within a period of
90 days following constructive dismissal of the Executive. For this purpose the
Executive may within a period of 90 days following the constructive dismissal
of the Executive terminate his employment with the Corporation upon 30 days’
prior written notice to the Corporation. For greater clarity, the said 30 day
notice may be given at any time up to the 60th day of the said 90-day period;

 

6

 

(iii)                               where
the Executive terminates his employment with the Corporation following one (1)
year from the occurrence of a change of control. For this purpose, the
Executive may, within a period of 90 days following from one (1) year of the
occurrence of a change of control, terminate his employment with the
Corporation, upon 30 days’ prior written notice to the Corporation. For greater
clarity, the said 30 day notice may be given at any time up to the 60th
day of the said 90-day period; or

 

(iv)                              where
the Corporation terminates this Agreement pursuant to Section 2.4.

 

(b)                                 In
the event of termination of employment as provided in Section 2.6(a), the
Executive shall be entitled to receive, and the Corporation shall pay to the
Executive, a retiring allowance (the “Retiring Allowance”) computed as
hereinafter provided, which shall include all statutory entitlement under
employment standards legislation and all common law entitlement to reasonable
notice. The Retiring Allowance shall be that amount which is equal to two times
the sum of:

 

(i)                                     the
Annual Salary; and

 

(ii)                                  the
average of the last two payments  of the
Annual Incentive Bonus paid to the Executive immediately preceding the date of
such termination of employment.

 

(c)                                  In
addition to the Retiring Allowance calculated in accordance with Section
2.6(b):

 

(i)                                     the
Corporation shall pay to the Executive the cash value of two times the last
annual flex credit allowance provided to the Executive immediately preceding
the date of such termination of employment under the Corporation’s flexible
benefit program unless the Executive continues to be covered through the
Corporation’s annuitant benefit program or the benefits program of another
employer;

 

(ii)                                  the
Corporation shall pay to the Executive the Annual Incentive Bonus for the
calendar year in which the termination of employment occurs, pro rated based
upon the number of days of employment of the Executive in the calendar year to
the number of days in the year and the Executive shall receive all accrued and
unpaid annual vacation pay to the date of termination;

 

(iii)                               the
Corporation shall pay to the Executive the cash value of two times the last
annual flexible perquisite allowance provided to the Executive immediately
preceding the date of such termination of

 

7

 

employment
under the Corporation’s executive flexible perquisites program less any amounts
paid to the Executive but unearned by virtue of such termination of employment;

 

(iv)                              the
Corporation will pay for financial counselling and/or career counselling
assistance for the Executive to a maximum of $10,000.

 

(d)                                 The
Executive will have two years of additional service added to the service
already accrued at date of termination, under the Corporation’s defined benefit
pension plan and supplemental benefit pension plan, as more precisely described
in Section 2.8.

 

(e)                                  If,
at the time of termination of employment as provided in Section 2.6(a), the
Executive holds exercisable but unexercised options for the purchase of shares
of the Corporation under any of the Corporation’s or its affiliates’ stock
option plans, the Executive shall be entitled to exercise all options so held
in accordance with the terms of such plans and pursuant to law. If the
Executive holds options for the purchase of shares under any of the Corporation’s
or its affiliates’ stock option plans which are not exercisable at the date of
termination of employment in circumstances where this Section 2.6 applies, the
Corporation will pay to the Executive a cash amount representing the excess, if
any, of the fair market value of the shares on the date of termination of
employment over the exercise price for such options. Payment of such amount
shall result in cancellation of the related stock options and any stock
appreciation rights associated with the stock options. The fair market value on
the date of termination of employment shall mean the last board lot sale price
on The Toronto Stock Exchange on the last trading day prior to the date of
termination of employment.

 

(f)                                    The
Corporation and the Executive agree that the provisions of Section 2.6 are fair
and reasonable and that the amounts payable by the Corporation to the Executive
pursuant to Section 2.6 are reasonable estimates of the damages which will be
suffered by the Executive in the event of the termination of his employment
with the Corporation in the circumstances set out in Section 2.6 and shall not
be construed as a penalty.

 

(g)                                 The
amounts payable by the Corporation to the Executive pursuant to Section 2.6
shall not be reduced by any amounts earned by the Executive after the
termination of the employment of the Executive.

 

(h)                                 All
amounts paid by the Corporation to the Executive pursuant to Section 2.6 shall
satisfy and forever discharge all liabilities, claims or actions that the
Executive may or shall have against the Corporation arising from the
termination of employment of the Executive whether at common law or under
statute or otherwise.

 

8

 

(i)                                     Subject
to the provisions of Sections 2.6(c) and 2.6(e), the Corporation shall, at the
option of the Executive, pay the amounts provided under this Section 2.6 to the
Executive on the date that the employment of the Executive is terminated, or as
soon thereafter as reasonably practical, less all applicable statutory
deductions; or arrange a schedule of instalment payments of such amounts as
determined by the Executive. Upon payment to the Executive of the amounts
provided for under this Section 2.6 or mutual agreement of payment terms, the
Executive and the Corporation shall execute and deliver to the other the
releases in the forms of Schedules A and B, respectively.

 

2.7                                                                                 Other
Termination by Executive

 

Notwithstanding anything to the contrary
herein, in addition to the right of the Executive to terminate his employment
under the circumstances described in Section 2.6, the Executive shall be
entitled to terminate this Agreement and his employment with the Corporation at
his pleasure upon 30 days’ prior written notice to such effect. In such event,
the Executive shall not be entitled to any further compensation from the date
of termination of employment. The Corporation acknowledges and agrees that the
Corporation shall have no remedy against the Executive, in law or otherwise,
upon the termination of this Agreement and the Executive’s employment with the
Corporation in accordance with this Section 2.7.

 

2.8                                                                                 Supplemental
Benefit Pension Plan

 

(a)                                  The Corporation undertakes and agrees with the Executive (herein,
the “supplementary undertakings”) to pay or cause to be paid the amounts
provided for in the supplemental benefit pension plan as modified by this
Section 2.8. In particular, the Executive (or the Executive’s spouse or
beneficiary as defined in the supplemental benefit pension plan) is entitled to
receive:

 

(i)                                     benefits
determined in accordance with the supplemental benefit pension plan, being
certain amounts that would be payable from the defined benefit pension plan but
for limitations imposed by the Income Tax Act, all as specified in the
supplemental benefit pension plan;

 

(ii)                                  benefits
determined in accordance with the supplemental benefit pension plan as if his
credited service prior to January 1, 2000 in the lifetime retirement income
formula in the defined benefit pension plan were increased by six (6) years;
and

 

(iii)                               if
Section 2.6(d) applies, benefits determined in accordance with the supplemental
benefit pension plan pursuant to (i) as if:

 

9

 

A.                                   two
additional years of credited service were applied in the lifetime retirement
income formula in the defined benefit pension plan, and two additional years of
continuous service were granted for other purposes of the defined benefit
pension plan; and

 

B.                                     for
each of the two additional years of credited service earnings are deemed to be
received equal to Annual Compensation for the purposes of determining final or
best average earnings.

 

(b)                                 The
Executive acknowledges and accepts that prior to January 1, 2001 the
Corporation had not funded the supplementary undertaking. The Executive further
acknowledges and accepts, and the Corporation undertakes to the Executive, that
effective January 1, 2001 the supplementary undertaking will be funded by the
Corporation over a period of seven years in a separately maintained retirement
compensation arrangement (as referred to in the Income Tax Act (Canada)) to be
separately maintained and established by the Corporation (the “RCA”). The
supplementary undertaking will be paid from amounts in the RCA with any amount
that cannot be paid from the RCA being paid by the Corporation.

 

2.9                                                                                 Continuing
Provisions

 

Notwithstanding the termination of this Agreement under Article 2, the
provisions of Section 2.6, Section 2.8 and Article 3 and all other provisions
hereof which by their terms are to be performed following the termination
hereof shall survive such termination and be continuing obligations.

 

ARTICLE 3

NON-COMPETITION AND CONFIDENTIALITY

 

3.1                                                                                 Non-Competition

 

The Executive recognizes and understands that in performing the duties
and responsibilities of his employment as outlined in this Agreement, he will
occupy a position of high fiduciary trust and confidence, pursuant to which he
has developed and will develop and acquire wide experience and knowledge with
respect to the businesses carried on by the Corporation and its affiliates and
the manner in which such businesses are conducted. It is the expressed intent
and agreement of the Executive and of the Corporation that such knowledge and
experience shall be used solely and exclusively in the furtherance of the
business interests of the Corporation and its affiliates and not in any manner
detrimental to them. The Executive therefore agrees that so long as he is
employed by the Corporation pursuant to this Agreement he shall not engage in
any practice or business in competition with the business of the Corporation or
any of its affiliates.

 

10

 

3.2                                                                                 Confidentiality

 

The Executive further recognizes and understands that in the
performance of his employment duties and responsibilities outlined in this
Agreement, he will become knowledgeable, aware and possessed of Confidential
Information concerning the business of the Corporation and its affiliates. The
Executive agrees that, except with the consent of the board of directors, he
will not disclose such Confidential Information to any unauthorized persons so
long as he is employed by the Corporation pursuant to this Agreement and for a
period of 2 years thereafter; provided that the foregoing shall not apply to
any Confidential Information which is or becomes known to the public or to the
competitors of the Corporation and/or its affiliates other than by a breach of
this Agreement by the Executive.

 

ARTICLE 4

GENERAL

 

4.1                                                                                 Notices

 

Any notice required or permitted to be given to a party hereunder shall
be in writing and may be given by mailing the same, postage prepaid, or
delivering the same, addressed to such party at the following address:

 

To the Corporation:

 

Enbridge Inc.

3000, 425 – 1st
Street S.W.

Calgary,
Alberta  T2P 3L8

 

Attention:      President
& Chief Executive Officer

 

To the Executive:

 

Mr. Stephen J.
J. Letwin

64 Hodgkinson
Crescent

Aurora,
Ontario L4G 6K7

 

Any notice aforesaid if delivered shall be
deemed to have been delivered on the first business day following the date on
which it was delivered or if mailed shall be deemed to have been received on
the third day following the date on which it was mailed. Any party may change
its address for service from time to time by a notice given in accordance with
the foregoing.

 

4.2                                                                                 Time

 

Time shall be of the essence of this Agreement.

 

11

 

4.3                                                                                 Legal
Fees and Expenses

 

The Corporation shall pay all reasonable costs incurred by the
Executive, as determined in the sole discretion of the President & Chief
Executive Officer, in respect of legal, consulting and accounting expenses in
connection with the negotiation, execution and interpretation of this Agreement.
The Corporation shall pay all costs, charges and expenses incurred in respect
of legal, consulting and accounting expenses (including legal expenses on a
solicitor and his or his own client basis) incurred by the Executive or his
estate in taking any action or enforcing any right or benefit provided to the
Executive by this Agreement; provided only that the Executive is substantially
successful in any such action or in enforcing any such right or benefit, and
providing further that payments pursuant to this Section 4.3 shall not exceed a
maximum amount of $10,000.

 

4.4                                                                                 Integration

 

The provisions of this Agreement are in addition to and not in
substitution for the other terms, conditions and provisions concerning the
employment of the Executive by the Corporation and where there is any conflict
between this Agreement and such other terms, conditions and provisions this Agreement
shall govern. This Agreement together with such other terms, conditions and
provisions constitute the entire agreement between the parties hereto
pertaining to the subject matter. This Agreement may not be amended or modified
in any respect except by written instrument signed by the parties hereto.

 

4.5                                                                                 Waivers

 

No waiver by either party hereto of any breach of any of the provisions
of this Agreement shall take effect or be binding upon the party unless in
writing and signed by such party. Unless otherwise provided therein, such
waiver shall not limit or affect the rights of such party with respect to any
other breach.

 

4.6                                                                                 Further
Assurances

 

The parties hereto agree to execute and deliver such further and other
documents and perform and cause to be performed such further and other acts and
things as may be necessary or desirable in order to give full effect to this
Agreement and every part thereof.

 

4.7                                                                                 Severability

 

If any provision of this Agreement shall be held to be invalid, illegal
or unenforceable, the validity, legality or enforceability of the remaining
provisions of this Agreement shall not in any way be affected or impaired
thereby.

 

12

 

•                                                                                          Enurement

 

This Agreement shall enure to the benefit of and be binding upon the
parties hereto and their respective heirs, legal personal representatives,
successors and permitted assigns.

 

IN WITNESS WHEREOF the Corporation has hereunto affixed its corporate
seal attested to by its duly authorized officers in that behalf and the
Executive has hereunto set his hand and seal as of the day and year first above
written.

 

	
   

  	
   

  	
  ENBRIDGE INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Patrick D. Daniel

  	
   

  
	
   

  	
   

  	
   

  	
  Patrick D. Daniel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
  SIGNED, SEALED AND

  	
  )

  	
   

  	
   

  
	
  DELIVERED in the presence of:

  	
  )

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
  /s/ Stephen J. J. Letwin

  	
   

  
	
  WITNESS as to the signature of

  	
  )

  	
  Stephen J. J. Letwin

  
	
  Stephen J. J. Letwin

  	
  )

  	
   

  	
   

  
							

 

13

 

SCHEDULE A

 

Release

 

KNOW ALL MEN BY THESE PRESENTS that I, Stephen J. J. Letwin, of the
City of Toronto, in the Province of Ontario, in consideration of the amounts
provided in Sections 2.6 and 2.8 of the Executive Employment Agreement (the “Contract”)
dated as of April 14, 2003 between me and Enbridge Inc. (the “Corporation”) and
for other good and valuable consideration, inclusive of any statutory severance
or benefits in accordance with the Employment Standards Code (Alberta), the
receipt and sufficiency of which is hereby acknowledged, do for myself, my
executors and assigns hereby remise, release and forever discharge the
Corporation, its respective predecessors, successors and assigns, from all
manner of actions, causes of action, claims or demands, past, present or
future, which against the Corporation, their respective predecessors,
successors and assigns, I ever had, now have, or can, shall or may hereafter
have, by reason of or arising out of any cause, matter or thing whatsoever done
or admitted to be done, occurring or existing up to and inclusive of the day of
these presents and in particular, without in any way restricting the generality
of the foregoing, in respect of all claims, past, present or future, directly
or indirectly related to or arising out of or in connection with my
relationship with the Corporation, its respective predecessors, successors and
assigns, as an employee, officer or director, and the termination of my
employment from the Corporation, on                                             ,
200•.

 

AND FOR THE SAID CONSIDERATION I, Stephen J. J. Letwin, represent and
warrant that I have not assigned to any person, firm or corporation any of the
actions, causes of action, claims, suits, executions or demands which I release
by this Release, or with respect to which I agree not to make any claim or take
any proceeding herein.

 

Notwithstanding anything contained herein, this Release shall not
extend to or affect, or constitute a release of, my right to sue, claim against
or recover from the Corporation and shall not constitute an agreement to
refrain from bringing, taking or maintaining any action against the Corporation
in respect of:

 

(a)                                  any
corporate indemnity existing by statute, contract or pursuant to any of the
constating documents of the Corporation provided in my favour in respect of my
having acted at any time as a director, officer or both of the Corporation;

 

(b)                                 my
entitlement to any insurance maintained for the benefit or protection of the
directors and/or officers of the Corporation, including without limitation,
directors’ and officers’ liability insurance; or

 

(c)                                  my
entitlement to any amounts that may arise under the Sections and Articles of
the Contract referred to in Section 2.9 of the Contract.

 

1

 

IT IS HEREBY AGREED that, except as provided herein, the terms of the
Contract and of this Release will be kept confidential. Subject to the
following, no party hereto shall communicate any such terms to any third party
under any circumstances whatsoever, although either party shall be at liberty
to disclose to third parties that a mutually acceptable Release was agreed upon.
In addition, Stephen J. J. Letwin shall be permitted to disclose the terms of
the Contract and this Release to his spouse, his tax and financial advisors,
his legal advisors and to make any disclosures of the terms of this Contract
and this Release as may be required to allow him to comply with any applicable
provision of the law. In such event, Stephen J. J. Letwin shall require that
his spouse, his tax and financial advisors and his legal advisors shall execute
the undertaking provided as Schedule “C” hereof prior to the disclosure of the
terms of this Contract and this Release and shall advise the Corporation of
such disclosure and provide the Corporation with a copy of such undertaking. In
the event of any disclosure required by law, Stephen J. J. Letwin shall
promptly advise the Corporation of the required disclosure. The invalidity and
unenforceability of any provision of this Release shall not affect the validity
or enforceability of any other provision of this Release, which shall remain in
full force and effect.

 

I HEREBY DECLARE that I have read all of this Release, fully understand
the terms of this Release and voluntarily accept the consideration stated
herein as the sole consideration for this Release for the purpose of making a
full and final settlement with the Corporation. I further acknowledge and
confirm that I have been given an adequate period of time to obtain independent
legal counsel upon the meaning and the significance of the terms herein and the
covenants mutually exchanged.

 

IN WITNESS WHEREOF, I have hereunto set my hand and seal this                 
day of                                                             
A.D. 200•.

 

 

	
   

  	
   

  	
   

  	
   

  
	
  Witness

  	
  Stephen J. J. Letwin

  

 

2

 

SCHEDULE B

 

Release

 

KNOW ALL MEN BY THESE PRESENTS that ENBRIDGE INC. (the “Corporation”),
a corporation incorporated under the laws of the Province of Alberta, in
consideration of the delivery by Stephen J. J. Letwin (the “Executive”), of a
Release dated the date hereof and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, for itself and its
respective successors and assigns, hereby remises, releases and forever
discharges the Executive, his executors and assigns from all manner of actions,
causes of action, claims or demands, past, present or future, which against the
Executive, his executors and assigns, the Corporation, its respective successors
and assigns ever had, now have, or can, shall or may hereafter have, by reason
of or arising out of any cause, matter or thing whatsoever done or admitted to
be done, occurring or existing up to and inclusive of the day of these presents
and in particular, without in any way restricting the generality of the
foregoing, in respect of all claims, past, present or future, directly or
indirectly related to or arising out of or in connection with the Corporation’s
relationship with the Executive, as an employee, director or officer of the
Corporation.

 

AND FOR THE SAID CONSIDERATION the Corporation represents and warrants
that it has not assigned to any person, firm or corporation any of the actions,
causes of action, claims, suits, executions or demands which it releases by
this Release, or with respect to which it agrees not to make any claim or take
any proceeding herein. The invalidity and unenforceability of any provision of
this Release shall not affect the validity or enforceability of any other
provision of this Release, which shall remain in full force and effect.

 

IT IS HEREBY AGREED that, except as provided for in Schedule “A”
hereof, the terms of the Executive Employment Agreement dated as of April 14,
2003 between the Corporation and the Executive and of this Release will be kept
confidential. No party hereto shall communicate any such terms to any third
party under any circumstances whatsoever, although either party shall be at
liberty to disclose to third parties that a mutually acceptable Release was
agreed upon.

 

IN WITNESS WHEREOF, the Corporation has duly executed and delivered
this Release this                 
day of                                                                 
A.D. 200•.

 

 

	
   

  	
  ENBRIDGE INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Per:

  	
   

  	
   

  

 

1

 

SCHEDULE C

 

Undertaking

 

I,                             ,
of                           ,
in the City of                 ,
in the Province of         

[name]                                                                      [address]

being the                                                                                                                                          ,

[describe relationship to Stephen J. J.
Letwin, e.g. spouse, tax, financial or legal advisor]

 

for good and valuable consideration, the
receipt of which I acknowledge, agree to keep strictly confidential the terms
and conditions of the Executive Employment Agreement dated as of April 14, 2003
made between Enbridge Inc. and Stephen J. J. Letwin, and any Release thereof,
all as may be disclosed to me by Stephen J. J. Letwin.

 

I further acknowledge that I
will make no use whatsoever of the information comprising the terms and
conditions of the Executive Employment Agreement, except as may be required for
the purposes of my providing advice and direction to Stephen J. J. Letwin in my
aforesaid capacity.

 

IN WITNESS WHEREOF, I have hereunto set my hand and seal this                 
day of                                                                 
A.D. 200•.

 

 

	
   

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  

 

4

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