Document:

Exhibit 10.4

 

Description of Nash Finch Company

2005 Executive Incentive Program

 

Objectives of the Program

 

The 2005 Executive
Incentive Program is a key component of Nash Finch executive compensation. The
main objectives of the program are to:

 

•                  Support the creation of shareholder
value and align executive interest with that of shareholders.

 

•                  Drive the achievement of short-term
business results needed to achieve long-term strategic objectives.

 

•                  Provide competitive total
compensation opportunities in order to attract and retain the leadership needed
for Nash Finch to be successful.

 

•                  Promote teamwork by encouraging the
leadership team to work together to achieve financial and operational goals.

 

Incentive Opportunities

 

Nash Finch intends to
provide executives with compensation opportunities competitive with those
available in companies with which it competes for associates and
customers.  In order to support a
high-performance culture, a substantial portion of compensation is at-risk and
tied to business results.

 

Bonus opportunities are
based on an executive’s level of responsibility and competitive practices.  The maximum bonus an executive may earn is
expressed as a percentage of base salary and is intended to give an executive
the chance to earn significant additional compensation tied to the achievement
of key objectives.  All calculations will
be based on an executive’s annualized salary as of the first day of the plan
year, which was January
2, 2005.  In the event of a
promotion, transfer, or other change, bonus opportunities will be pro-rated by
date for each position.  Bonus potential
is pro-rated from employment date for new hires. Prorating is effected on a
calendar year basis. A summary of an individual executive’s bonus potential is
outlined on a personal worksheet provided to the individual.

 

Performance Focus

 

The extent to which
bonuses are earned under the program depends on the extent to which key
performance objectives established at the start of the plan year are
achieved.  Performance is measured
against financial and operational results, with a primary focus on financial
results.

 

Part A of the
incentive program focuses on financial measures. For Corporate positions, the
financial portion of the bonus opportunity focuses exclusively on the Company’s
consolidated net earnings. 
Division/Region positions (and Corporate positions responsible for
Division/Region earnings) have part of their financial goals tied to
Division/Region earnings and part tied to Company consolidated net earnings.

 

Part B of the
incentive program focuses on operational measures. For Retail positions, the
measure is the “G.R.E.A.T. Score,” an independent assessment of retail store
performance, and for Food
Distribution positions it is the “MATRIX,” which is a combined measurement of
distribution center fill rate, on-time deliveries, and selector accuracy.  Bonuses for Corporate positions consider both
measures.

 

 

Part C of the
incentive program focuses on individual goals which include:

 

1.               Achievement
of individual performance goals that support and are aligned with departmental
and organizational goals for the year.

2.               Remaining
within authorized budget.

3.               Developing
a pipeline of successors to an executive’s position and/or within the executive’s
department by executing the succession planning process.

4.               Developing
and executing an individual development plan.

 

Weights within Part C may
vary based on individual circumstances.

 

The performance measures
and weighting between measures for the 2005 program are summarized in the table
below.

 

2005 Performance Measures and
Weightings

 

	
   

  	
   

  	
  Area

  	
   

  	
  Weighting

  	
   

  	
  Measurement

  
	
  PART A-

  	
   

  	
  Corporate

  	
   

  	
  60%

  	
   

  	
  Company net earnings

  
	
  Financial

  	
   

  	
  Retail/Food
  Distribution

  	
   

  	
  15%

  	
   

  	
  Company net earnings

  
	
   

  	
   

  	
   

  	
   

  	
  45%

  	
   

  	
  Division/Region
  earnings

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PART B-

  	
   

  	
  Corporate

  	
   

  	
  10%

  	
   

  	
  G.R.E.A.T. Score

  
	
  Operational

  	
   

  	
   

  	
   

  	
  10%

  	
   

  	
  MATRIX*

  
	
   

  	
   

  	
  Retail

  	
   

  	
  20%

  	
   

  	
  G.R.E.A.T. Score

  
	
   

  	
   

  	
  Food Distribution

  	
   

  	
  20%

  	
   

  	
  MATRIX*

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PART C-

  Individual

  	
   

  	
  All Areas

  	
   

  	
  20%

  	
   

  	
  Combination of:
  specific individual goals, operating budgets, succession planning, individual
  dev. plans and other items

  

 

*The MATRIX is a total of
the results for fill rate, on-time deliveries, and selector accuracy.

 

Performance Objectives

 

There are specific
objectives for each Part A and Part B measurement that are approved by the Compensation
Committee shortly after the beginning of the plan year.  The Compensation Committee reviews and
approves the payment of bonuses after the end of the plan year, based on the
degree to which Part A and B objectives and Part C individual goals have been
attained.

 

Part A of the
bonus program has minimum and maximum objectives, expressed in terms of Company
net earnings and, for certain individuals, Division/Region earnings.  If results are below the minimum objective,
no Part A bonus payment will be made.  If
results are at or above the maximum objective, 100% of the Part A bonus amount
will have been earned.  If results are
between the minimum and maximum objectives, a pro-rata portion of the Part A
bonus amount will have been earned.

 

Part B
operational objectives are “all-or-nothing”. 
The specified Retail G.R.E.A.T. score must be met or surpassed for that
portion of the Part B bonus amount to be
paid.  The specified Food Distribution
MATRIX value likewise must be met or surpassed for that portion of the Part B bonus amount to be paid.

 

Discretionary Adjustment of Award

 

The Compensation
Committee retains the right to amend or terminate the 2005 bonus program at any
time, and to adjust bonus payments in its discretion at any time prior to the
payment of any bonus.  The Compensation
Committee may specifically adjust a bonus payment downward for a particular
program participant if an Internal Audit report issued during 2005 and covering
a process for which that participant has substantial responsibility

 

 

concludes that there is a
deficiency in the system of internal controls for that process.  In addition, if the provisions of Section 304
of the Sarbanes-Oxley Act of 2002 are successfully invoked so as to require the
Chief Financial Officer and Chief Executive Officer of the Company not to
receive, or to reimburse the Company for, (1) any bonus or incentive based or
equity based compensation or (2) any profits realized from the sale of
securities of the Company with respect to 2005, then the Compensation Committee
may reduce, in whole or part, the 2005 bonuses payable to all executive
officers and corporate officers of the Company, or require the forfeiture of
some or all of the 2005 bonuses previously paid to such individuals.

 

Termination of Employment

 

If an executive’s
employment terminates for any reason – whether voluntary or involuntary –
before the last day of the 2005 fiscal year, that executive will be ineligible
to receive a bonus under this program.

 

Bonus Payments

 

Bonuses are expected to
be paid as soon as practicable after the close of the 2005 fiscal year. While
any approved bonus will ordinarily be paid in cash, a participant in this
program may elect, prior to the Compensation Committee’s approval of bonus
payout amounts, to receive all or part of any bonus payable in shares of Nash
Finch common stock.  To the extent that a
participant receives payment in stock, the participant will also receive
additional restricted shares of Nash Finch common stock equal to 15% of the
number of unrestricted shares received in lieu of cash. The restricted shares
will vest in full on the date two years after the date the Compensation
Committee approves the payment of the bonus, so long as the participant has
retained beneficial ownership of the unrestricted shares received in lieu of
cash, and his or her employment with Nash Finch has not ended under
circumstances described in the 2000 Stock Incentive Plan.Exhibit 10.1

 

COMMERCIAL PAPER DEALER AGREEMENT

[4(2) PROGRAM]

 

between

 

ENBRIDGE ENERGY PARTNERS, L.P., as Issuer

 

and

 

BANC OF AMERICA SECURITIES LLC, as Dealer

 

Concerning Notes to be issued
pursuant to an Issuing and Paying Agency Agreement dated as of April 21, 2005 between
the Issuer and Deutsche Bank Trust Company Americas, as Issuing and Paying
Agent

 

Dated as of

 

 

April 21, 2005

 

 

COMMERCIAL PAPER DEALER AGREEMENT

[4(2) Program]

 

This agreement (the “Agreement”) sets forth the
understandings between the Issuer and the Dealer in connection with the
issuance and sale by the Issuer of its short-term promissory notes (the “Notes”) through the Dealer, each
named in the cover page hereof.

 

Certain terms used in
this Agreement are defined in Section 6 hereof.

 

The Addendum to this
Agreement, and any Annexes or Exhibits described in this Agreement or such
Addendum, are hereby incorporated into this Agreement and made fully a part
hereof.

 

Section
1.               Offers,
Sales and Resales of Notes.

 

1.1           While
(i) the Issuer has and shall have no obligation to sell the Notes to the Dealer
or to permit the Dealer to arrange any sale of the Notes for the account of the
Issuer, and (ii) the Dealer has and shall have no obligation to purchase the
Notes from the Issuer or to arrange any sale of the Notes for the account of
the Issuer, the parties hereto agree that in any case where the Dealer
purchases Notes from the Issuer, or arranges for the sale of Notes by the
Issuer, such Notes will be purchased or sold by the Dealer in reliance on the
representations, warranties, covenants and agreements of the Issuer contained
herein or made pursuant hereto and on the terms and conditions and in the
manner provided herein.

 

1.2           So
long as this Agreement shall remain in effect, and in addition to the
limitations contained in Section 1.7 hereof, the Issuer shall not,
without the consent of the Dealer, offer, solicit or accept offers to purchase,
or sell, any Notes except (a) in transactions with one or more dealers which
may from time to time after the date hereof become dealers with respect to the
Notes by executing with the Issuer one or more agreements which contain
provisions substantially identical to those contained in Section 1 of
this Agreement, of which the Issuer hereby undertakes to provide the Dealer
prompt notice or (b) in transactions with the other dealers listed on the
Addendum hereto, which are executing agreements with the Issuer which contain
provisions substantially identical to Section 1 of this Agreement
contemporaneously herewith.  In no event
shall the Issuer offer, solicit or accept offers to purchase, or sell, any
Notes directly on its own behalf in transactions with persons other than broker-dealers
as specifically permitted in this Section 1.2.

 

1.3           The
Notes shall be in a minimum denomination of $250,000 or integral multiples of
$1,000 in excess thereof, will bear such interest rates, if interest bearing,
or will be sold at such discount from their face amounts, as shall be agreed
upon by the Dealer and the Issuer, shall have a maturity not exceeding 397 days
from the date of issuance (exclusive of days of grace) and may have such terms
as are specified in Exhibit C hereto or the Private Placement Memorandum.  The Note shall not contain any provision for
extension, renewal or automatic “rollover.”

 

 

1.4           The
authentication and issuance of, and payment for, the Notes shall be effected in
accordance with the Issuing and Paying Agency Agreement, and the Notes shall be
either individual physical certificates or book-entry notes evidenced by
one or more master notes (each a “Master Note”)
registered in the name of DTC or its nominee, in the form or forms annexed to
the Issuing and Paying Agency Agreement.

 

1.5           If
the Issuer and the Dealer shall agree on the terms of the purchase of any Note
by the Dealer or the sale of any Note arranged by the Dealer (including, but
not limited to, agreement with respect to the date of issue, purchase price,
principal amount, maturity and interest rate or interest rate index and margin
(in the case of interest-bearing Notes) or discount thereof (in the case
of Notes issued on a discount basis), and appropriate compensation for the
Dealer’s services hereunder) pursuant to this Agreement, the Issuer shall cause
such Note to be issued and delivered in accordance with the terms of the
Issuing and Paying Agency Agreement and payment for such Note shall be made by
the purchaser thereof, either directly or through the Dealer, to the Issuing
and Paying Agent, for the account of the Issuer.  Except as otherwise agreed, in the event that
the Dealer is acting as an agent and a purchaser shall either fail to accept
delivery of or make payment for a Note on the date fixed for settlement, the
Dealer shall promptly notify the Issuer, and if the Dealer has theretofore paid
the Issuer for the Note, the Issuer will promptly return such funds to the
Dealer against its return of the Note to the Issuer, in the case of a
certificated Note, and upon notice of such failure in the case of a book-entry
Note.  If such failure occurred for any
reason other than default by the Dealer, the Issuer shall reimburse the Dealer
on an equitable basis for the Dealer’s loss of the use of such funds for the
period such funds were credited to the Issuer’s account.

 

1.6           All
offers and sales of the Notes by the Issuer shall be effected
pursuant to the exemption from the registration requirements of the Securities
Act provided by Section 4(2) thereof, which exempts transactions by an issuer
not involving any public offering.  The
Dealer and the Issuer hereby establish and agree to observe the following
procedures in connection with offers, sales and subsequent resales or other
transfers of the Notes:

 

(a)           Offers and
sales of the Notes shall be made only to: (i) investors reasonably believed by
the Dealer to be Qualified Institutional Buyers, Institutional Accredited
Investors or Sophisticated Individual Accredited Investors, and (ii) non-bank
fiduciaries or agents that will be purchasing Notes for one or more accounts,
each of which is reasonably believed by the Dealer to be an Institutional
Accredited Investor or Sophisticated Individual Accredited Investor.

 

(b)           Resales
and other transfers of the Notes by the holders thereof shall be made only in
accordance with the restrictions in the legend described in clause (e) below.

 

(c)           No
general solicitation or general advertising shall be used in connection with
the offering of the Notes.  Without
limiting the generality of the foregoing, without the prior written approval of
the Dealer, the Issuer shall not issue any press release or place or publish
any “tombstone” or other advertisement relating to the Notes.

 

2

 

(d)           No
sale of Notes to any one purchaser shall be for less than $250,000 principal or
face amount, and no Note shall be issued in a smaller principal or face
amount.  If the purchaser is a non-bank
fiduciary acting on behalf of others, each person for whom such purchaser is
acting must purchase at least $250,000 principal or face amount of Notes.

 

(e)           Offers
and sales of the Notes by the Issuer through the Dealer acting as agent for the
Issuer shall be made in accordance with Rule 506 under the Securities Act, and
shall be subject to the restrictions described in the legend appearing on Exhibit
A hereto.  A legend substantially to
the effect of such Exhibit A shall appear as part of the Private
Placement Memorandum used in connection with offers and sales of Notes
hereunder, as well as on each individual certificate representing a Note and
each Master Note representing book-entry Notes offered and sold pursuant to
this Agreement.

 

(f)            The
Dealer shall furnish or shall have furnished to each purchaser of Notes for
which it has acted as the Dealer a copy of the then-current Private Placement
Memorandum unless such purchaser has previously received a copy of the Private
Placement Memorandum as then in effect. 
The Private Placement Memorandum shall expressly state that any person
to whom Notes are offered shall have an opportunity to ask questions of, and
receive information from, the Issuer and the Dealer and shall provide the
names, addresses and telephone numbers of the persons from whom information
regarding the Issuer may be obtained.

 

(g)           The
Issuer agrees, for the benefit of the Dealer and each of the holders and
prospective purchasers from time to time of the Notes that, if at any time the
Issuer shall not be subject to Section 13 or 15(d) of the Exchange Act, the
Issuer will furnish, upon request and at its expense, to the Dealer and to
holders and prospective purchasers of Notes information required by Rule
144A(d)(4)(i) in compliance with Rule 144A(d).

 

(h)           In
the event that any Note offered or to be offered by the Dealer would be
ineligible for resale under Rule 144A, the Issuer shall immediately notify the
Dealer (by telephone, confirmed in writing) of such fact and shall promptly
prepare and deliver to the Dealer an amendment or supplement to the Private
Placement Memorandum describing the Notes that are ineligible, the reason for such
ineligibility and any other relevant information relating thereto.

 

(i)            In
the event that the Issuer issues commercial paper in the United States market
in reliance upon, and in compliance with, the exemption provided by Section
3(a)(3) of the Securities Act, the Issuer agrees that (a) the proceeds from the
sale of the Notes will be segregated from the proceeds of the sale of any such
commercial paper by being placed in a separate account; (b) the Issuer will
institute appropriate corporate procedures to ensure that the offers and sales
of notes issued by the Issuer pursuant to the Section 3(a)(3) exemption are not
integrated with offerings and sales of Notes hereunder; and (c) the Issuer will
comply with each of the requirements of Section 3(a)(3) of the Securities Act
in selling commercial paper or other short-term debt securities other
than the Notes in the United States.

 

3

 

1.7           The
Issuer hereby represents and warrants to the Dealer, in connection with offers,
sales and resales of Notes, as follows:

 

(a)           The
Issuer hereby confirms to the Dealer that (except as permitted by Section
1.6(i)) within the preceding six months neither the Issuer nor any person other
than the Dealer or the other dealers referred to in Section 1.2
hereof acting on behalf of the Issuer has offered or sold any Notes, or any
substantially similar security of the Issuer (including, without limitation,
medium-term notes issued by the Issuer), to, or solicited offers to buy
any such security from, any person other than the Dealer or the other dealers referred
to in Section 1.2 hereof. 
The Issuer also agrees that (except as permitted by Section 1.6(i)),
as long as the Notes are being offered for sale by the Dealer and the other
dealers referred to in Section 1.2 hereof as contemplated hereby
and until at least six months after the offer of Notes hereunder has been
terminated, neither the Issuer nor any person other than the Dealer or the
other dealers referred to in Section 1.2 hereof (except as
contemplated by Section 1.2 hereof) will offer the Notes or any
substantially similar security of the Issuer for sale to, or solicit offers to
buy any such security from, any person other than the Dealer, it being
understood that such agreement is made with a view to bringing the offer and
sale of the Notes within the exemption provided by Section 4(2) of the
Securities Act and Rule 506 thereunder and shall survive any termination of
this Agreement.  The Issuer hereby
represents and warrants that it has not taken or omitted to take, and will not
take or omit to take, any action that would cause the offering and sale of
Notes hereunder to be integrated with any other offering of securities, whether
such offering is made by the Issuer or some other party or parties.

 

(b)           The
Issuer represents and agrees that the proceeds of the sale of the Notes are not
currently contemplated to be used for the purpose of buying, carrying or
trading securities within the meaning of Regulation T and the interpretations thereunder
by the Board of Governors of the Federal Reserve System.  In the event that the Issuer determines to
use such proceeds for the purpose of buying, carrying or trading securities,
whether in connection with an acquisition of another company or otherwise, the
Issuer shall give the Dealer at least five business days’ prior written notice
to that effect.  The Issuer shall also
give the Dealer prompt notice of the actual date that it commences to purchase
securities with the proceeds of the Notes. 
Thereafter, in the event that the Dealer purchases Notes as principal
and does not resell such Notes on the day of such purchase, to the extent
necessary to comply with Regulation T and the interpretations thereunder, the
Dealer will sell such Notes either (i) only to offerees it reasonably believes
to be Qualified Institutional Buyers or to Qualified Institutional Buyers it
reasonably believes are acting for other Qualified Institutional Buyers, in
each case in accordance with Rule 144A or (ii) in a manner which would not
cause a violation of Regulation T and the interpretations thereunder.

 

Section
2.               Representations
and Warranties of the Issuer.

 

The Issuer represents and
warrants that:

 

2.1           The
Issuer is a limited partnership duly formed and validly existing in good
standing under the laws of the jurisdiction of its formation and has all the
requisite limited

 

4

 

partnership
power and authority to execute, deliver and perform its obligations under the
Notes, this Agreement and the Issuing and Paying Agency Agreement.

 

2.2           This
Agreement and the Issuing and Paying Agency Agreement have been duly
authorized, executed and delivered by the Issuer and constitute legal, valid
and binding obligations of the Issuer enforceable against the Issuer in
accordance with their terms subject to applicable bankruptcy, insolvency and
similar laws affecting creditors’ rights generally, and subject, as to
enforceability, to general principles of equity (regardless of whether enforcement
is sought in a proceeding in equity or at law).

 

2.3           The
Notes have been duly authorized by the Issuer, and when issued and delivered as
provided in the Issuing and Paying Agency Agreement, will be duly and validly
issued and delivered by the Issuer and will constitute legal, valid and binding
obligations of the Issuer enforceable against the Issuer in accordance with
their terms subject to applicable bankruptcy, insolvency and similar laws
affecting creditors’ rights generally, and subject, as to enforceability, to
general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).

 

2.4           The
offer and sale of the Notes in the manner contemplated hereby do not require
registration of the Notes under the Securities Act, pursuant to the exemption
from registration contained in Section 4(2) thereof, and no indenture in
respect of the Notes is required to be qualified under the Trust Indenture Act
of 1939, as amended.

 

2.5           The
Notes will rank at least pari passu with all other unsecured and
unsubordinated indebtedness of the Issuer.

 

2.6           Assuming
the offer and sale of the Notes in the manner contemplated hereby, no consent
or action of, or filing or registration with, any governmental or public
regulatory body or authority, including the SEC, is required to be obtained or
made by the Issuer under any statute or regulation applicable to it to
authorize its execution, delivery or performance of, this Agreement, the Notes
or the Issuing and Paying Agency Agreement, except as may be required by the
securities or Blue Sky laws of the various states in connection with the offer
and sale of the Notes, and except where the failure to obtain such consent or
action or make such filing or registration could not reasonably be expected to
have a material adverse effect on the financial condition or operations of the
Issuer and its consolidated subsidiaries taken as a whole or the ability of the
Issuer to perform its payments and other obligations under this Agreement, the
Notes and the Issuing and Paying Agency Agreement.

 

2.7           Neither
the execution and delivery of this Agreement and the Issuing and Paying Agency
Agreement, nor the issuance of the Notes in accordance with the Issuing and
Paying Agency Agreement, nor the fulfillment of or compliance with the terms
and provisions hereof or thereof by the Issuer, will (i) result, pursuant to
the express provisions of any agreement to which it is a party, in the creation
or imposition of any mortgage, lien, charge or similar encumbrance upon any of
the properties or assets of the Issuer, or (ii) violate or result in a breach
or default under, as the case may be, any of the terms of the Issuer’s certificate
of limited partnership or agreement of limited partnership, any contract or
instrument to which the Issuer is a party or by which it or its property is
bound, or any statutory law or regulation applicable to it, or any order,

 

5

 

writ, injunction or decree of any court or government
instrumentality, to which the Issuer is subject or by which it or its property
is bound, which violation, breach or default could reasonably be expected to
have a material adverse effect on the financial condition or operations of the
Issuer and its consolidated subsidiaries taken as a whole or the ability of the
Issuer to perform its payment and other material obligations under this
Agreement, the Notes or the Issuing and Paying Agency Agreement.

 

2.8           There
is no litigation or governmental proceeding pending, or to the knowledge of the
Issuer threatened, against or affecting the Issuer or any of its subsidiaries
which could reasonably be expected to result in a material adverse change in
the financial condition or operations of the Issuer and its consolidated subsidiaries
taken as a whole or the ability of the Issuer to perform its payment or other
material obligations under this Agreement, the Notes or the Issuing and Paying
Agency Agreement.

 

2.9           The
Issuer is not an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

 

2.10         Neither
the Private Placement Memorandum nor the Company Information contains any
untrue statement of a material fact or omits to state a material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, provided that the
Issuer makes no representation or warranty as to Dealer Information.

 

2.11         Each
(a) issuance of Notes by the Issuer hereunder and (b) amendment or supplement
of the Private Placement Memorandum shall be deemed a representation and
warranty by the Issuer to the Dealer, as of the date thereof, that, both before
and after giving effect to such issuance and after giving effect to such
amendment or supplement, (i) the representations and warranties given by the
Issuer set forth above in this Section 2 remain true and correct on and
as of such date as if made on and as of such date, (ii) in the case of an
issuance of Notes, the Notes being issued on such date have been duly and
validly issued and constitute legal, valid and binding obligations of the
Issuer, enforceable against the Issuer in accordance with their terms, subject
to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights
generally and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law) and (iii) in the case of an issuance of Notes, since the date of the most
recent Private Placement Memorandum, there has been no material adverse change
in the  financial condition or operations
of the Issuer and its consolidated subsidiaries taken as a whole which has not
been disclosed to the Dealer in writing.

 

Section
3.                Covenants
and Agreements of the Issuer.

 

The Issuer covenants and
agrees that:

 

3.1           The
Issuer will give the Dealer prompt notice (but in any event prior to any
subsequent issuance of Notes hereunder) of any amendment to, modification of,
or waiver with respect to, the Notes or the Issuing and Paying Agency
Agreement, including a complete copy of any such amendment, modification or
waiver.

 

6

 

3.2           The
Issuer shall, whenever there shall occur any change in the Issuer’s condition
(financial or otherwise), operations or business prospects or any development
or occurrence in relation to the Issuer that would be material to holders of
the Notes or potential holder of the Notes (including any downgrading or
receipt of any notice of intended or potential downgrading or any review for
potential change in the rating accorded any of the Issuer’s securities by any
nationally recognized statistical rating organization which has published a
rating of the Notes), promptly, and in any event prior to any subsequent
issuance of Notes hereunder, notify the Dealer (by telephone, confirmed in
writing) of such change, development, or occurrence.

 

3.3           The
Issuer shall from time to time furnish to the Dealer such information as the
Dealer may reasonably request, including, without limitation, any press
releases or material provided by the Issuer to any national securities exchange
or rating agency, regarding (i) the Issuer’s operations and financial
condition, (ii) the due authorization and execution of the Notes, and (iii) the
Issuer’s ability to pay the Notes as they mature.

 

3.4           The
Issuer will take all such action as the Dealer may reasonably request to ensure
that each offer and each sale of the Notes will comply with any applicable
state Blue Sky laws; provided, that the Issuer shall not be obligated to
file any general consent to service of process or to qualify as a foreign
corporation in any jurisdiction in which it is not so qualified or subject
itself to taxation in respect of doing business in any jurisdiction in which it
is not otherwise so subject.

 

3.5           The
Issuer will not be in default of any of its obligations hereunder, under the
Notes or under the Issuing and Paying Agency Agreement, at any time that any of
the Notes are outstanding.

 

3.6           The
Issuer shall not issue Notes hereunder until the Dealer shall have received (a)
an opinion of counsel to the Issuer, addressed to the Dealer, reasonably satisfactory
in form and substance to the Dealer, (b) a copy of the executed Issuing and
Paying Agency Agreement as then in effect, (c) a copy of resolutions adopted by
the Board of Directors of the Issuer, reasonably satisfactory in form and
substance to the Dealer and certified by the Secretary or similar officer of
the Issuer, authorizing execution and delivery by the Issuer of this Agreement,
the Issuing and Paying Agency Agreement and the Notes and consummation by the
Issuer of the transactions contemplated hereby and thereby, (d) prior to the
issuance of any book-entry Notes represented by a master note registered in the
name of DTC or its nominee, a copy of the executed Letter of Representations
among the Issuer, the Issuing and Paying Agent and DTC and (e) such other
certificates, opinions, letters and documents as the Dealer shall have
reasonably requested.

 

3.7           The
Issuer shall reimburse the Dealer for all of the Dealer’s reasonable out-of-pocket
expenses related to this Agreement, including expenses incurred in connection
with its preparation and negotiation, and the transactions contemplated hereby
(including, but not limited to, the printing and distribution of the Private
Placement Memorandum), and, if applicable, for the reasonable fees and out-of-pocket
expenses of the Dealer’s counsel.

 

7

 

Section
4.               Disclosure.

 

4.1           The
Private Placement Memorandum and its contents (other than the Dealer
Information) shall be the sole responsibility of the Issuer.  The Private Placement Memorandum shall
contain a statement expressly offering an opportunity for each prospective
purchaser to ask questions of, and receive answers from, the Issuer concerning
the offering of Notes and to obtain relevant additional information which the
Issuer possesses or can acquire without unreasonable effort or expense.

 

4.2           The
Issuer agrees promptly to furnish the Dealer the Company Information as it
becomes available.

 

4.3           (a)
The Issuer further agrees to notify the Dealer promptly upon the occurrence of
any event relating to or affecting the Issuer that would cause the Company Information
then in existence to include an untrue statement of material fact or to omit to
state a material fact necessary in order to make the statements contained
therein, in light of the circumstances under which they are made, not
misleading.

 

(b) In the event the
Issuer gives the Dealer notice pursuant to Section 4.3(a) and the Dealer
notifies the Issuer that it then has Notes it is holding in inventory, the
Issuer agrees promptly to supplement or amend the Private Placement Memorandum
so that the Private Placement Memorandum, as amended or supplemented, shall not
contain an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, and the Issuer shall
make such supplement or amendment available to the Dealer.

 

(c) In the event that (i)
the Issuer gives the Dealer notice pursuant to Section 4.3(a), (ii)
the Dealer does not notify the Issuer that it is then holding Notes in
inventory and (iii) the Issuer chooses not to promptly amend or supplement the
Private Placement Memorandum in the manner described in clause (b) above, then
all solicitations and sales of Notes shall be suspended until such time as the
Issuer has so amended or supplemented the Private Placement Memorandum, and
made such amendment or supplement available to the Dealer.

 

Section
5.               Indemnification
and Contribution.

 

5.1           The
Issuer will indemnify and hold harmless the Dealer, each individual,
corporation, partnership, trust, association or other entity controlling the
Dealer, any affiliate of the Dealer or any such controlling entity and their
respective directors, officers, employees, partners, incorporators,
shareholders, servants, trustees and agents (hereinafter the “Indemnitees”) against any and all
liabilities, penalties, suits, causes of action, losses, damages, claims, costs
and expenses (including, without limitation, fees and disbursements of counsel)
or judgments of whatever kind or nature (each a “Claim”),
imposed upon, incurred by or asserted against the Indemnitees arising out of or
based upon (i) any allegation that the Private Placement Memorandum, the
Company Information or any information provided by the Issuer to the Dealer
included (as of any relevant time) or includes an untrue statement of a
material fact or omitted (as of any relevant time) or omits to state any
material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading or (ii) arising out of
or based upon the breach by the Issuer of any agreement, covenant or
representation made in or

 

8

 

pursuant
to this Agreement.  This indemnification
shall not apply to the extent that the Claim arises out of or is based upon
Dealer Information.

 

5.2           Provisions
relating to claims made for indemnification under this Section 5
are set forth on Exhibit B to this Agreement.

 

5.3           In
order to provide for just and equitable contribution in circumstances in which
the indemnification provided for in this Section 5 is held to be
unavailable or insufficient to hold harmless the Indemnitees, although
applicable in accordance with the terms of this Section 5, the
Issuer shall contribute to the aggregate costs incurred by the Dealer in
connection with any Claim in the proportion of the respective economic
interests of the Issuer and the Dealer; provided, however, that such contribution by the Issuer shall be in an
amount such that the aggregate costs incurred by the Dealer do not exceed the
aggregate of the commissions and fees earned by the Dealer hereunder with
respect to the issue or issues of Notes to which such Claim relates.  The respective economic interests shall be
calculated by reference to the aggregate proceeds to the Issuer of the Notes
issued hereunder and the aggregate commissions and fees earned by the Dealer
hereunder.

 

Section
6.               Definitions.

 

6.1           “Claim” shall have the meaning set
forth in Section 5.1.

 

6.2           “Company Information” at any given
time shall mean the Private Placement Memorandum together with, to the extent
applicable, (i) the Issuer’s most recent report on Form 10-K filed with
the SEC and each report on Form 10-Q or 8-K filed by the Issuer
with the SEC since the most recent Form 10-K, (ii) the Issuer’s most
recent annual audited financial statements and each interim financial statement
or report prepared subsequent thereto, if not included in item (i) above, (iii)
the Issuer’s and its affiliates’ other publicly available recent reports,
including, but not limited to, any publicly available filings or reports
provided to their respective shareholders, (iv) any other information or
disclosure prepared pursuant to Section 4.3 hereof and (v) any
information prepared or approved by the Issuer for dissemination to investors
or potential investors in the Notes.

 

6.3           “Dealer Information” shall mean
material concerning the Dealer and provided by the Dealer in writing expressly
for inclusion in the Private Placement Memorandum.

 

6.4           “DTC” shall mean The Depository Trust
Company.

 

6.5           “Exchange Act” shall mean the U.S.
Securities Exchange Act of 1934, as amended.

 

6.6           “Indemnitee” shall have the meaning
set forth in Section 5.1.

 

6.7           “Institutional Accredited Investor”
shall mean an institutional investor that is an accredited investor within the
meaning of Rule 501 under the Securities Act and that has such knowledge and
experience in financial and business matters that it is capable of evaluating
and bearing the economic risk of an investment in the Notes, including, but not
limited to, a bank, as

 

9

 

defined in Section 3(a)(2) of the Securities Act, or a
savings and loan association or other institution, as defined in Section
3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary
capacity.

 

6.8           “Issuing and Paying Agency Agreement”
shall mean the issuing and paying agency agreement described on the cover page
of this Agreement, as such agreement may be amended or supplemented from time
to time.

 

6.9           “Issuing and Paying Agent” shall mean
the party designated as such on the cover page of this Agreement, as issuing
and paying agent under the Issuing and Paying Agency Agreement, or any
successor thereto in accordance with the Issuing and Paying Agency Agreement.

 

6.10         “Non-bank fiduciary or agent”
shall mean a fiduciary or agent other than (a) a bank, as defined in Section
3(a)(2) of the Securities Act, or (b) a savings and loan association, as
defined in Section 3(a)(5)(A) of the Securities Act.

 

6.11         “Private Placement Memorandum” shall
mean offering materials prepared in accordance with Section 4 (including
materials referred to therein or incorporated by reference therein) provided to
purchasers and prospective purchasers of the Notes, and shall include
amendments and supplements thereto which may be prepared from time to time in
accordance with this Agreement (other than any amendment or supplement that has
been completely superseded by a later amendment or supplement).

 

6.12         “Qualified Institutional Buyer” shall
have the meaning assigned to that term in Rule 144A under the Securities Act.

 

6.13         “Rule 144A” shall mean Rule 144A
under the Securities Act.

 

6.14         “SEC” shall mean the U.S. Securities
and Exchange Commission.

 

6.15         “Securities Act” shall mean the U.S.
Securities Act of 1933, as amended.

 

6.16         “Sophisticated Individual Accredited Investor”
shall mean an individual who (a) is an accredited investor within the meaning
of Regulation D under the Securities Act and (b) based on his or her pre-existing
relationship with the Dealer, is reasonably believed by the Dealer to be a
sophisticated investor (i) possessing such knowledge and experience (or
represented by a fiduciary or agent possessing such knowledge and experience)
in financial and business matters that he or she is capable of evaluating and
bearing the economic risk of an investment in the Notes and (ii) having a net
worth of at least $5 million.

 

Section
7.               General.

 

7.1           Unless
otherwise expressly provided herein, all notices under this Agreement to
parties hereto shall be in writing and shall be effective when received at the
address of the respective party set forth in the Addendum to this Agreement.

 

10

 

7.2           This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to its conflict of laws provisions.

 

7.3           The
Issuer agrees that any suit, action or proceeding brought by the Issuer against
the Dealer in connection with or arising out of this Agreement or the Notes or
the offer and sale of the Notes shall be brought solely in the United States
federal courts located in the Borough of Manhattan or the courts of the State
of New York located in the Borough of Manhattan.  EACH OF THE DEALER AND THE ISSUER WAIVES ITS
RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

7.4           This
Agreement may be terminated, at any time, by the Issuer, upon one business day’s
prior notice to such effect to the Dealer, or by the Dealer upon one business
day’s prior notice to such effect to the Issuer.  Any such termination, however, shall not
affect the obligations of the Issuer under Sections 3.7, 5 and 7.3
hereof or the respective representations, warranties, agreements, covenants,
rights or responsibilities of the parties made or arising prior to the
termination of this Agreement.

 

7.5           This
Agreement is not assignable by either party hereto without the written consent
of the other party; provided, however,
that the Dealer may assign its rights and obligations under this Agreement to
any wholly-owned subsidiary of the ultimate parent company of the Dealer.

 

7.6           This
Agreement may be signed in any number of counterparts, each of which shall be
an original, with the same effect as if the signatures thereto and hereto were
upon the same instrument.

 

7.7           This
Agreement is for the exclusive benefit of the parties hereto, and their
respective permitted successors and assigns hereunder, and shall not be deemed
to give any legal or equitable right, remedy or claim to any other person
whatsoever.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed as of the date and
year first above written.

 

 

	
   

  	
  ENBRIDGE ENERGY PARTNERS, L.P.,
  as Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Enbridge Energy Management, L.L.C.,

  
	
   

  	
   

  	
  as delegate of Enbridge Energy Company, Inc.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

11

 

	
   

  	
  BANC OF AMERICA SECURITIES LLC,

  
	
   

  	
  as
  Dealer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

12

 

ADDENDUM

 

 

The following additional
clauses shall apply to the Agreement and be deemed a part thereof when the
respective parties have placed their initials in the left margin beside the
respective paragraph number.

 

1.             The
other dealers referred to in clause (b) of Section 1.2 of the Agreement
are as follows:  (i) Deutsche Bank
Securities Inc.; (ii) Goldman, Sachs & Co.; (iii) Merrill Lynch,
Pierce, Fenner & Smith Incorporated; and (iv) Merrill Lynch Money
Markets Inc.

 

2.             The
following Section 3.8 is hereby added to the Agreement:

 

3.8           Without
limiting any obligation of the Issuer pursuant to this Agreement to provide the
Dealer with credit and financial information, the Issuer hereby acknowledges
and agrees that the Dealer may share the Company Information and any other
information or matters relating to the Issuer or the transactions contemplated
hereby with affiliates of the Dealer for use by them in connection with
transactions between any of them and the Issuer, and the administration
thereof, including, but not limited to, Bank of America, N.A., and that such
affiliates may likewise share among themselves information relating to the
Issuer or such transactions with the Dealer for such purposes.

 

3.             The
addresses of the respective parties for purposes of notices under Section
7.1 are as follows:

 

	
  For the Issuer:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
  #3000, 425 – 1st
  St. SW

  
	
   

  	
   

  	
   

  	
   

  	
  Calgary, Alberta

  
	
   

  	
   

  	
   

  	
   

  	
  Canada T2P 3L8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  	
  Dave Wudrick

  
	
   

  	
   

  	
   

  	
   

  	
  Manager, Cash
  Management and Banking

  
	
   

  	
   

  	
  Telephone number:

  	
   

  	
  (403) 231-5917

  
	
   

  	
   

  	
  Fax number:

  	
   

  	
  (403) 231-4848

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  For the Dealer:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
  600 Montgomery Street

  
	
   

  	
   

  	
   

  	
   

  	
  CA5-801-15-31

  
	
   

  	
   

  	
   

  	
   

  	
  San Francisco, CA 94111

  
	
   

  	
   

  	
  Attention:

  	
   

  	
  Money Market
  Origination

  
	
   

  	
   

  	
  Telephone number:

  	
   

  	
  (415) 913-3689

  
	
   

  	
   

  	
  Fax number:

  	
   

  	
  (415) 913-6288

  

 

13

 

EXHIBIT A

 

 

FORM OF LEGEND FOR

PRIVATE PLACEMENT MEMORANDUM AND NOTES

 

THE NOTES HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY
OTHER APPLICABLE SECURITIES LAW, AND OFFERS AND SALES THEREOF MAY BE MADE ONLY
IN COMPLIANCE WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.  BY ITS ACCEPTANCE OF A NOTE, THE PURCHASER
WILL BE DEEMED TO REPRESENT THAT (I) IT HAS BEEN AFFORDED AN OPPORTUNITY
TO INVESTIGATE MATTERS RELATING TO THE ISSUER AND THE NOTES, (II) IT IS
NOT ACQUIRING SUCH NOTE WITH A VIEW TO ANY DISTRIBUTION THEREOF AND
(III) IT IS EITHER (A) (1) AN INSTITUTIONAL INVESTOR OR SOPHISTICATED
INDIVIDUAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE
501(a) UNDER THE ACT AND WHICH, IN THE CASE OF AN INDIVIDUAL, (i) POSSESSES
SUCH KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS THAT HE OR SHE
IS CAPABLE OF EVALUATING AND BEARING THE ECONOMIC RISK OF AN INVESTMENT IN THE
NOTES AND (ii) HAS A NET WORTH OF AT LEAST $5 MILLION (AN “INSTITUTIONAL
ACCREDITED INVESTOR” OR “SOPHISTICATED INDIVIDUAL ACCREDITED INVESTOR”,
RESPECTIVELY) AND (2) (i) PURCHASING NOTES FOR ITS OWN ACCOUNT,
(ii) A U.S. BANK (AS DEFINED IN SECTION 3(a)(2) OF THE ACT) OR A SAVINGS
AND LOAN ASSOCIATION OR OTHER INSTITUTION (AS DEFINED IN SECTION 3(a)(5)(A) OF
THE ACT) ACTING IN ITS INDIVIDUAL OR FIDUCIARY CAPACITY OR (iii) A
FIDUCIARY OR AGENT (OTHER THAN A U.S. BANK OR SAVINGS AND LOAN ASSOCIATION)
PURCHASING NOTES FOR ONE OR MORE ACCOUNTS EACH OF WHICH ACCOUNTS IS SUCH AN
INSTITUTIONAL ACCREDITED INVESTOR OR SOPHISTICATED INDIVIDUAL ACCREDITED
INVESTOR; OR (B) A QUALIFIED INSTITUTIONAL BUYER (“QIB”) WITHIN THE MEANING OF
RULE 144A UNDER THE ACT THAT IS ACQUIRING NOTES FOR ITS OWN ACCOUNT OR FOR
ONE OR MORE ACCOUNTS, EACH OF WHICH ACCOUNTS IS A QIB; AND THE PURCHASER
ACKNOWLEDGES THAT IT IS AWARE THAT THE SELLER MAY RELY UPON THE EXEMPTION FROM
THE REGISTRATION PROVISIONS OF SECTION 5 OF THE ACT PROVIDED BY RULE 144A.  BY ITS ACCEPTANCE OF A NOTE, THE PURCHASER
THEREOF SHALL ALSO BE DEEMED TO AGREE THAT ANY RESALE OR OTHER TRANSFER THEREOF
WILL BE MADE ONLY (A) IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE ACT,
EITHER (1) TO THE ISSUER OR TO A PLACEMENT AGENT DESIGNATED BY THE ISSUER AS A
PLACEMENT AGENT FOR THE NOTES (COLLECTIVELY, THE “PLACEMENT AGENTS”), NONE OF
WHICH SHALL HAVE ANY OBLIGATION TO ACQUIRE SUCH NOTE, (2) THROUGH A PLACEMENT
AGENT TO AN INSTITUTIONAL ACCREDITED INVESTOR, SOPHISTICATED INDIVIDUAL
ACCREDITED INVESTOR OR A QIB, OR (3) TO A QIB IN A TRANSACTION THAT MEETS THE
REQUIREMENTS OF RULE 144A AND (B) IN MINIMUM AMOUNTS OF $250,000.

 

14

 

EXHIBIT B

 

 

FURTHER PROVISIONS RELATING

TO INDEMNIFICATION

 

(a)           The
Issuer agrees to reimburse each Indemnitee for all expenses (including
reasonable fees and disbursements of internal and external counsel) as they are
incurred by it in connection with investigating or defending any loss, claim,
damage, liability or action in respect of which indemnification may be sought
under Section 5 of the Agreement (whether or not it is a party to any such
proceedings).

 

(b)           Promptly
after receipt by an Indemnitee of notice of the existence of a Claim, such
Indemnitee will, if a claim in respect thereof is to be made against the
Issuer, notify the Issuer in writing of the existence thereof; provided that
(i) the omission so to notify the Issuer will not relieve the Issuer from any
liability which it may have hereunder unless and except to the extent it did
not otherwise learn of such Claim and such failure results in the forfeiture by
the Issuer of substantial rights and defenses, and (ii) the omission so to
notify the Issuer will not relieve it from liability which it may have to an
Indemnitee otherwise than on account of this indemnity agreement.  In case any such Claim is made against any
Indemnitee and it notifies the Issuer of the existence thereof, the Issuer will
be entitled to participate therein, and to the extent that it may elect by
written notice delivered to the Indemnitee, to assume the defense thereof, with
counsel reasonably satisfactory to such Indemnitee; provided that if the
defendants in any such Claim include both the Indemnitee and the Issuer and the
Indemnitee shall have concluded that there may be legal defenses available to it
which are different from or additional to those available to the Issuer, the
Issuer shall not have the right to direct the defense of such Claim on behalf
of such Indemnitee, and the Indemnitee shall have the right to select separate
counsel to assert such legal defenses on behalf of such Indemnitee.  Upon receipt of notice from the Issuer to
such Indemnitee of the Issuer’s election so to assume the defense of such Claim
and approval by the Indemnitee of counsel, the Issuer will not be liable to
such Indemnitee for expenses incurred thereafter by the Indemnitee in
connection with the defense thereof (other than reasonable costs of
investigation) unless (i) the Indemnitee shall have employed separate counsel
in connection with the assertion of legal defenses in accordance with the
proviso to the next preceding sentence (it being understood, however, that the
Issuer shall not be liable for the expenses of more than one separate counsel
(in addition to any local counsel in the jurisdiction in which any Claim is
brought), approved by the Dealer, representing the Indemnitee who is party to
such Claim), (ii) the Issuer shall not have employed counsel reasonably
satisfactory to the Indemnitee to represent the Indemnitee within a reasonable
time after notice of existence of the Claim or (iii) the Issuer has authorized
in writing the employment of counsel for the Indemnitee.  The indemnity, reimbursement and contribution
obligations of the Issuer hereunder shall be in addition to any other liability
the Issuer may otherwise have to an Indemnitee and shall be binding upon and
inure to the benefit of any successors, assigns, heirs and personal
representatives of the Issuer and any Indemnitee.  The Issuer agrees that without the Dealer’s
prior written consent, it will not settle, compromise
or consent to the entry of any judgment in any Claim in respect of which

 

15

 

indemnification
may be sought under the indemnification provision of the Agreement (whether or
not the Dealer or any other Indemnitee is an actual or potential party to such
Claim), unless such settlement, compromise or consent includes an unconditional
release of each Indemnitee from all liability arising out of such Claim.

 

16

 

EXHIBIT C

Statement of Terms for Interest – Bearing
Commercial Paper Notes of Enbridge Energy Partners, L.P.

 

THE PROVISIONS SET FORTH BELOW ARE QUALIFIED TO
THE EXTENT APPLICABLE BY THE TRANSACTION SPECIFIC [PRICING] [PRIVATE PLACEMENT
MEMORANDUM] SUPPLEMENT (THE “SUPPLEMENT”) (IF ANY) SENT TO EACH PURCHASER AT
THE TIME OF THE TRANSACTION.

 

1. General.              (a)  The obligations of the Issuer to which these
terms apply (each a “Note”) are
represented by one or more Master Notes (each, a “Master
Note”) issued in the name of (or of a nominee for) The
Depository Trust Company (“DTC”),
which Master Note includes the terms and provisions for the Issuer’s
Interest-Bearing Commercial Paper Notes that are set forth in this Statement of
Terms, since this Statement of Terms constitutes an integral part of the
Underlying Records as defined and referred to in the Master Note.

 

(b)           “Business Day” means any day other
than a Saturday or Sunday that is neither a legal holiday nor a day on which
banking institutions are authorized or required by law, executive order or
regulation to be closed in New York City and, with respect to LIBOR Notes (as
defined below) is also a London Business Day. “London Business Day” means, a day,
other than a Saturday or Sunday, on which dealings in deposits in U.S. dollars
are transacted in the London interbank market.

 

2. Interest.             (a)  Each Note will bear interest at a fixed rate
(a “Fixed Rate Note”) or at a floating
rate (a “Floating Rate Note”).

 

(b)           The
Supplement sent to each holder of such Note will describe the following terms:
(i) whether such Note is a Fixed Rate Note or a Floating Rate Note and whether
such Note is an Original Issue Discount Note (as defined below); (ii) the date
on which such Note will be issued (the “Issue Date”);
(iii) the Stated Maturity Date (as defined below); (iv) if such Note is a Fixed
Rate Note, the rate per annum at which such Note will bear interest, if any,
and the Interest Payment Dates; (v) if such Note is a Floating Rate Note, the
Base Rate, the Index Maturity, the Interest Reset Dates, the Interest Payment
Dates and the Spread and/or Spread Multiplier, if any (all as defined below),
and any other terms relating to the particular method of calculating the
interest rate for such Note; and (vi) any other terms applicable specifically
to such Note. “Original Issue Discount Note”
means a Note which has a stated redemption price at the Stated Maturity Date
that exceeds its Issue Price by more than a specified de minimis
amount and which the Supplement indicates will be an “Original
Issue Discount Note”.

 

(c)           Each Fixed
Rate Note will bear interest from its Issue Date at the rate per annum
specified in the Supplement until the principal amount thereof is paid or made
available for payment. Interest on each Fixed Rate Note will be payable on the
dates specified in the Supplement (each an “Interest
Payment Date” for a Fixed Rate Note) and on the Maturity Date
(as defined below). Interest on Fixed Rate Notes will be computed on the basis
of a 360-day year of twelve 30-day months.

 

If any Interest Payment Date or the Maturity Date of a Fixed Rate Note
falls on a day that is not a

 

17

 

Business Day, the required payment of principal, premium, if any,
and/or interest will be payable on the next succeeding Business Day, and no
additional interest will accrue in respect of the payment made on that next
succeeding Business Day.

 

(d)           The
interest rate on each Floating Rate Note for each Interest Reset Period (as
defined below) will be determined by reference to an interest rate basis (a “Base Rate”) plus or minus a number
of basis points (one basis point equals one-hundredth of a percentage point)
(the “Spread”), if any, and/or
multiplied by a certain percentage (the “Spread Multiplier”),
if any, until the principal thereof is paid or made available for payment. The
Supplement will designate which of the following Base Rates is applicable to
the related Floating Rate Note: (a) the CD Rate (a “CD
Rate Note”), (b) the Commercial Paper Rate (a “Commercial Paper Rate Note”), (c)
the Federal Funds Rate (a “Federal Funds Rate Note”),
(d) LIBOR (a “LIBOR Note”), (e) the Prime
Rate (a “Prime Rate Note”), (f) the
Treasury Rate (a “Treasury Rate Note”) or (g)
such other Base Rate as may be specified in such Supplement.

 

The rate of interest on each Floating Rate Note will
be reset daily, weekly, monthly, quarterly or semi-annually (the “Interest Reset Period”). The date or
dates on which interest will be reset (each an “Interest
Reset Date”) will be, unless otherwise specified in the
Supplement, in the case of Floating Rate Notes which reset daily, each Business
Day, in the case of Floating Rate Notes (other than Treasury Rate Notes) that
reset weekly, the Wednesday of each week; in the case of Treasury Rate Notes
that reset weekly, the Tuesday of each week; in the case of Floating Rate Notes
that reset monthly, the third Wednesday of each month; in the case of Floating
Rate Notes that reset quarterly, the third Wednesday of March, June, September
and December; and in the case of Floating Rate Notes that reset semiannually,
the third Wednesday of the two months specified in the Supplement. If any
Interest Reset Date for any Floating Rate Note is not a Business Day, such
Interest Reset Date will be postponed to the next day that is a Business Day,
except that in the case of a LIBOR Note, if such Business Day is in the next
succeeding calendar month, such Interest Reset Date shall be the immediately
preceding Business Day. Interest on each Floating Rate Note will be payable
monthly, quarterly or semiannually (the “Interest Payment Period”)
and on the Maturity Date. Unless otherwise specified in the Supplement, and
except as provided below, the date or dates on which interest will be payable (each
an “Interest Payment Date” for a
Floating Rate Note) will be, in the case of Floating Rate Notes with a monthly
Interest Payment Period, on the third Wednesday of each month; in the case of
Floating Rate Notes with a quarterly Interest Payment Period, on the third
Wednesday of March, June, September and December; and in the case of Floating
Rate Notes with a semiannual Interest Payment Period, on the third Wednesday of
the two months specified in the Supplement. In addition, the Maturity Date will
also be an Interest Payment Date.

 

If any Interest Payment Date for any Floating Rate
Note (other than an Interest Payment Date occurring on the Maturity Date) would
otherwise be a day that is not a Business Day, such Interest Payment Date shall
be postponed to the next day that is a Business Day, except that in the case of
a LIBOR Note, if such Business Day is in the next succeeding calendar month,
such Interest Payment Date shall be the immediately preceding Business Day. If
the Maturity Date of a Floating Rate Note falls on a day that is not a Business
Day, the payment of principal and interest will be made on the next succeeding
Business Day, and no interest on such payment shall accrue for the period from
and after such maturity.

 

18

 

Interest payments on each Interest Payment Date for
Floating Rate Notes will include accrued interest from and including the Issue
Date or from and including the last date in respect of which interest has been
paid, as the case may be, to, but excluding, such Interest Payment Date. On the
Maturity Date, the interest payable on a Floating Rate Note will include
interest accrued to, but excluding, the Maturity Date. Accrued interest will be
calculated by multiplying the principal amount of a Floating Rate Note by an
accrued interest factor. This accrued interest factor will be computed by
adding the interest factors calculated for each day in the period for which
accrued interest is being calculated. 
The interest factor (expressed as a decimal) for each such day will be
computed by dividing the interest rate applicable to such day by 360, in the
cases where the Base Rate is the CD Rate, Commercial Paper Rate, Federal Funds
Rate, LIBOR or Prime Rate, or by the actual number of days in the year, in the
case where the Base Rate is the Treasury Rate. The interest rate in effect on
each day will be (i) if such day is an Interest Reset Date, the interest rate
with respect to the Interest Determination Date (as defined below) pertaining
to such Interest Reset Date, or (ii) if such day is not an Interest Reset Date,
the interest rate with respect to the Interest Determination Date pertaining to
the next preceding Interest Reset Date, subject in either case to any
adjustment by a Spread and/or a Spread Multiplier.

 

The “Interest Determination
Date” where the Base Rate is the CD Rate or the Commercial Paper
Rate will be the second Business Day next preceding an Interest Reset Date. The
Interest Determination Date where the Base Rate is the Federal Funds Rate or
the Prime Rate will be the Business Day next preceding an Interest Reset Date.
The Interest Determination Date where the Base Rate is LIBOR will be the second
London Business Day next preceding an Interest Reset Date. The Interest
Determination Date where the Base Rate is the Treasury Rate will be the day of
the week in which such Interest Reset Date falls when Treasury Bills are
normally auctioned. Treasury Bills are normally sold at auction on Monday of
each week, unless that day is a legal holiday, in which case the auction is
held on the following Tuesday or the preceding Friday. If an auction is so held
on the preceding Friday, such Friday will be the Interest Determination Date
pertaining to the Interest Reset Date occurring in the next succeeding week.

 

The “Index Maturity”
is the period to maturity of the instrument or obligation from which the
applicable Base Rate is calculated.

 

The “Calculation Date,”
where applicable, shall be the earlier of (i) the
tenth calendar day following the applicable Interest Determination Date or (ii)
the Business Day preceding the applicable Interest Payment Date or Maturity
Date.

 

All times referred to
herein reflect New York City time, unless otherwise specified.

 

The Issuer shall specify in writing to the Issuing and
Paying Agent which party will be the calculation agent (the “Calculation Agent”) with respect to
the Floating Rate Notes. The Calculation Agent will provide the interest rate
then in effect and, if determined, the interest rate which will become
effective on the next Interest Reset Date with respect to such Floating Rate
Note to the Issuing and Paying Agent as soon as the interest rate with respect
to such Floating Rate Note has been determined and as soon as practicable after
any change in such interest rate.

 

All percentages resulting from any calculation on
Floating Rate Notes will be rounded to the nearest one hundred-thousandth of a
percentage point, with five-one millionths of a percentage point rounded
upwards. For example, 9.876545% (or .09876545) would be rounded

 

19

 

to
9.87655% (or .0987655).  All dollar
amounts used in or resulting from any calculation on Floating Rate Notes will
be rounded, in the case of U.S. dollars, to the nearest cent or, in the case of
a foreign currency, to the nearest unit (with one-half cent or unit being
rounded upwards).

 

CD Rate Notes

 

“CD Rate”
means the rate on any Interest Determination Date for negotiable certificates
of deposit having the Index Maturity as published by the Board of Governors of
the Federal Reserve System (the “FRB”) in “Statistical
Release H.15(519), Selected Interest Rates” or any successor publication of the
FRB (“H.15(519)”) under the heading
“CDs (Secondary Market)”.

 

If the above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date, the CD Rate
will be the rate on such Interest Determination Date set forth in the daily
update of H.15(519), available through the world wide website of the FRB at
http://www.federalreserve.gov/releases/h15/Update, or any successor site or
publication or other recognized electronic source used for the purpose of
displaying the applicable rate (“H.15 Daily Update”)
under the caption “CDs (Secondary Market)”.

 

If such rate is not published in either H.15(519) or
H.15 Daily Update by 3:00 p.m. on the Calculation Date, the Calculation Agent
will determine the CD Rate to be the arithmetic mean of the secondary market
offered rates as of 10:00 a.m. on such Interest Determination Date of three leading
nonbank dealers(1) in negotiable U.S. dollar certificates of deposit in New
York City selected by the Calculation Agent for negotiable U.S. dollar
certificates of deposit of major United States money center banks of the
highest credit standing in the market for negotiable certificates of deposit
with a remaining maturity closest to the Index Maturity in the denomination of
$5,000,000.

 

If the dealers selected by the Calculation Agent are
not quoting as set forth above, the CD Rate will remain the CD Rate then in
effect on such Interest Determination Date.

 

Commercial Paper Rate Notes

 

“Commercial Paper Rate”
means the Money Market Yield (calculated as described below) of the rate on any
Interest Determination Date for commercial paper having the Index Maturity, as
published in H.15(519) under the heading “Commercial Paper-Nonfinancial”.

 

If the above rate is not published in H.15(519) by
3:00 p.m. on the Calculation Date, then the Commercial Paper Rate will be the
Money Market Yield of the rate on such Interest Determination Date for
commercial paper of the Index Maturity as published in H.15 Daily Update under
the heading “Commercial Paper-Nonfinancial”.

 

If by 3:00 p.m. on such Calculation Date such rate is
not published in either H.15(519) or H.15 Daily
Update, then the Calculation Agent will determine the Commercial Paper Rate to
be the Money Market Yield of the arithmetic mean of the offered rates as of
11:00 a.m. on such Interest Determination Date of three leading dealers of U.S.
dollar commercial paper in New York City selected by the Calculation Agent for
commercial paper of the Index Maturity placed for an

 

(1)           Such nonbank dealers referred to in this Statement of
Terms may include affiliates of the Dealer.

 

20

 

industrial
issuer whose bond rating is “AA,” or the equivalent, from a nationally
recognized statistical rating organization.

 

If the dealers selected
by the Calculation Agent are not quoting as mentioned above, the Commercial
Paper Rate with respect to such Interest Determination Date will remain the
Commercial Paper Rate then in effect on such Interest Determination Date.

 

“Money Market Yield”
will be a yield calculated in accordance with the following formula:

 

	
  Money Market 

  	
  D x 360

  	
   x 100

  
	
  Yield=

  	
  360 - (D x M)

  

 

where “D” refers to the applicable per annum rate for commercial paper
quoted on a bank discount basis and expressed as a decimal and “M” refers to
the actual number of days in the interest period for which interest is being
calculated.

 

Federal Funds Rate Notes

 

“Federal Funds Rate”
means the rate on any Interest Determination Date for federal funds as
published in H.15(519) under the heading “Federal Funds (Effective)” and
displayed on Moneyline Telerate (or any successor service) on page 120 (or any
other page as may replace the specified page on that service) (“Telerate Page 120”).

 

If the above rate does not appear on Telerate Page 120
or is not so published by 3:00 p.m. on the Calculation Date, the Federal Funds
Rate will be the rate on such Interest Determination Date as published in H.15
Daily Update under the heading “Federal Funds/(Effective)”.

 

If such rate is not published as described above by
3:00 p.m. on the Calculation Date, the Calculation Agent will determine the Federal
Funds Rate to be the arithmetic mean of the rates for the last transaction in
overnight U.S. dollar federal funds arranged by each of three leading brokers
of Federal Funds transactions in New York City selected by the Calculation
Agent prior to 9:00 a.m. on such Interest Determination Date.

 

If the brokers selected by the Calculation Agent are
not quoting as mentioned above, the Federal Funds Rate will remain the Federal
Funds Rate then in effect on such Interest Determination Date.

 

LIBOR Notes

 

The London Interbank offered rate (“LIBOR”) means, with respect to any
Interest Determination Date, the rate for deposits in U.S. dollars having the
Index Maturity that appears on the Designated LIBOR Page as of 11:00 a.m.,
London time, on such Interest Determination Date.

 

If no rate appears, LIBOR will be determined on the
basis of the rates at approximately 11:00 a.m., London time, on such Interest
Determination Date at which deposits in U.S. dollars are offered to prime banks
in the London interbank market by four major banks in such market selected by
the Calculation Agent for a term equal to the Index Maturity and in principal
amount

 

21

 

equal
to an amount that in the Calculation Agent’s judgment is representative for a
single transaction in U.S. dollars in such market at such time (a “Representative Amount”). The
Calculation Agent will request the principal London office of each of such
banks to provide a quotation of its rate. If at least two such quotations are
provided, LIBOR will be the arithmetic mean of such quotations. If fewer than
two quotations are provided, LIBOR for such interest period will be the
arithmetic mean of the rates quoted at approximately 11:00 a.m., in New York
City, on such Interest Determination Date by three major banks in New York
City, selected by the Calculation Agent, for loans in U.S. dollars to leading
European banks, for a term equal to the Index Maturity and in a Representative
Amount; provided, however,
that if fewer than three banks so selected by the Calculation Agent are
providing such quotations, the then existing LIBOR rate will remain in effect
for such Interest Payment Period.

 

“Designated LIBOR Page”
means the display designated as page “3750” on Moneyline Telerate (or such
other page as may replace the 3750 page on that service or such other service
or services as may be nominated by the British Bankers’ Association for the
purposes of displaying London interbank offered rates for U.S. dollar
deposits).

 

Prime Rate Notes

 

“Prime Rate”
means the rate on any Interest Determination Date as published in H.15(519) under the heading “Bank Prime Loan”.

 

If the above rate is not published in H.15(519) prior to 3:00 p.m. on the Calculation Date, then
the Prime Rate will be the rate on such Interest Determination Date as
published in H.15 Daily Update opposite the caption “Bank Prime Loan”.

 

If the rate is not published prior to 3:00 p.m. on the
Calculation Date in either H.15(519) or H.15 Daily
Update, then the Calculation Agent will determine the Prime Rate to be the
arithmetic mean of the rates of interest publicly announced by each bank that
appears on the Reuters Screen US PRIME1 Page (as defined below) as such bank’s
prime rate or base lending rate as of 11:00 a.m., on that Interest
Determination Date.

 

If fewer than four such rates referred to above are so
published by 3:00 p.m. on the Calculation Date, the Calculation Agent will
determine the Prime Rate to be the arithmetic mean of the prime rates or base
lending rates quoted on the basis of the actual number of days in the year
divided by 360 as of the close of business on such Interest Determination Date
by three major banks in New York City selected by the Calculation Agent.

 

If the banks selected are not quoting as mentioned
above, the Prime Rate will remain the Prime Rate in effect on such Interest
Determination Date.

 

“Reuters Screen US PRIME1
Page” means the display designated as page “US PRIME1” on the
Reuters Monitor Money Rates Service (or such other page as may replace the US
PRIME1 page on that service for the purpose of displaying prime rates or base
lending rates of major United States banks).

 

22

 

Treasury Rate Notes

 

“Treasury Rate”
means:

 

(1)           the rate
from the auction held on the Interest Determination Date (the “Auction”) of direct obligations of
the United States (“Treasury Bills”) having the
Index Maturity specified in the Supplement under the caption “INVESTMENT RATE”
on the display on Moneyline Telerate (or any successor service) on page 56 (or
any other page as may replace that page on that service) (“Telerate
Page 56”) or page 57 (or any other page as may replace that page
on that service) (“Telerate Page 57”), or

 

(2)           if the
rate referred to in clause (1) is not so published by 3:00 p.m. on the related
Calculation Date, the Bond Equivalent Yield (as defined below) of the rate for
the applicable Treasury Bills as published in H.15 Daily Update, under the
caption “U.S. Government Securities/Treasury Bills/Auction High”, or

 

(3)           if the
rate referred to in clause (2) is not so published by 3:00 p.m. on the related
Calculation Date, the Bond Equivalent Yield of the auction rate of the
applicable Treasury Bills as announced by the United States Department of the
Treasury, or

 

(4)           if the
rate referred to in clause (3) is not so announced by the United States
Department of the Treasury, or if the Auction is not held, the Bond Equivalent
Yield of the rate on the particular Interest Determination Date of the applicable
Treasury Bills as published in H.15(519) under the
caption “U.S. Government Securities/Treasury Bills/Secondary Market”, or

 

(5)           if the
rate referred to in clause (4) not so published by 3:00 p.m. on the related
Calculation Date, the rate on the particular Interest Determination Date of the
applicable Treasury Bills as published in H.15 Daily Update, under the caption “U.S.
Government Securities/Treasury Bills/Secondary Market”, or

 

(6)           if the
rate referred to in clause (5) is not so published by 3:00 p.m. on the related
Calculation Date, the rate on the particular Interest Determination Date
calculated by the Calculation Agent as the Bond Equivalent Yield of the
arithmetic mean of the secondary market bid rates, as of approximately 3:30
p.m. on that Interest Determination Date, of three primary United States
government securities dealers selected by the Calculation Agent, for the issue
of Treasury Bills with a remaining maturity closest to the Index Maturity
specified in the Supplement, or

 

(7)           if the dealers so selected by the Calculation Agent are not
quoting as mentioned in clause (6), the Treasury Rate in effect on the
particular Interest Determination Date.

 

“Bond Equivalent Yield”
means a yield (expressed as a percentage) calculated in accordance with the
following formula:

 

	
  Bond Equivalent 

  	
  D x N

  	
   x 100

  
	
  Yield=

  	
  360 - (D x M)

  

 

where “D” refers to the applicable per annum rate for Treasury Bills
quoted on a bank discount basis and expressed as a decimal, “N” refers to 365
or 366, as the case may be, and “M” refers to

 

23

 

the
actual number of days in the applicable Interest Reset Period.

 

3. Final Maturity. The Stated Maturity Date for
any Note will be the date so specified in the Supplement, which shall be no
later than 397 days from the date of issuance. On its Stated Maturity Date, or
any date prior to the Stated Maturity Date on which the particular Note becomes
due and payable by the declaration of acceleration, each such date being
referred to as a Maturity Date, the principal amount of each Note, together
with accrued and unpaid interest thereon, will be immediately due and payable.

 

4. Events of Default. The occurrence of any of
the following shall constitute an “Event of Default” with respect to a Note:
(i) default in any payment of principal of or interest on such Note (including
on a redemption thereof); (ii) the Issuer makes any compromise arrangement with
its creditors generally including the entering into any form of moratorium with
its creditors generally; (iii) a court having jurisdiction shall enter a decree
or order for relief in respect of the Issuer in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or there shall be appointed a receiver, administrator, liquidator,
custodian, trustee or sequestrator (or similar officer) with respect to the
whole or substantially the whole of the assets of the Issuer and any such
decree, order or appointment is not removed, discharged or withdrawn within 60
days thereafter; or (iv) the Issuer shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or consent to the entry of an order for relief in an involuntary case
under any such law, or consent to the appointment of or taking possession by a
receiver, administrator, liquidator, assignee, custodian, trustee or
sequestrator (or similar official), with respect to the whole or substantially
the whole of the assets of the Issuer or make any general assignment for the
benefit of creditors. Upon the occurrence of an Event of Default, the principal
of each obligation evidenced by such Note (together with interest accrued and
unpaid thereon) shall become, without any notice or demand, immediately due and
payable. (2)

 

5. Obligation Absolute. No provision of the
Issuing and Paying Agency Agreement under which the Notes are issued shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and interest on each Note at the times,
place and rate, and in the coin or currency, herein prescribed.

 

6. Supplement. Any term contained in the
Supplement shall supercede any conflicting term contained herein.

 

(2)           Unlike single payment notes, where a
default arises only at the stated maturity, interest -bearing notes with
multiple payment dates should contain a default provision permitting
acceleration of the maturity if the Issuer defaults on an interest payment.

 

24

 

 OPINION OF
COUNSEL TO ISSUER

 

 

[Date]

 

[Name of Dealers]

 

 

Ladies and Gentlemen:

 

We have acted as counsel
to Enbridge Energy Partners, L.P., a Delaware limited partnership (the “Company”), in connection with the
proposed offering and sale by the Company in the United States of commercial
paper in the form of short-term promissory notes (the “Notes”).

 

In our capacity as such
counsel, we have examined a specimen form of Note, an executed copy of the
Commercial Paper Dealer Agreement dated April 21, 2005 (the “Agreement”), between the Company
and Banc of America Securities LLC (the “Dealer”),
and the Issuing and Paying Agency Agreement dated April 21, 2005 (the “Issuing and Paying Agency Agreement”)
between the Company and Deutsche Bank Trust Company Americas, as issuing and
paying agent (the “Issuing and Paying Agent”),
as well as originals, or copies certified or otherwise identified to our
satisfaction, of such other records, certificates and documents as we have
deemed necessary as a basis for the opinions expressed below.  In such examination, we have assumed the
genuineness and completeness of all documents submitted to us as originals, the
conformity to the originals of all documents submitted to us as copies, the
legal capacity of natural persons and the genuineness of all signatures.  As to the questions of fact material to the
opinions expressed herein, and as to factual matters arising in connection with
our examination of the aforesaid materials, we have relied, to the extent we
deemed appropriate, upon the factual representations and warranties contained
in the Agreement, the Issuing and Paying Agency Agreement and the related
documents and in such records, certificates and documents.

 

Capitalized terms used
herein without definition are used as defined in the Agreement.

 

Based upon the foregoing,
and subject to and qualified by the assumptions, qualifications, limitations
and exceptions set forth herein, and having due regard for such legal
considerations as we deem relevant, we are of the opinion that:

 

1.             The
Company has been duly formed and is validly existing in good standing under the
Delaware Revised Uniform Limited Partnership Act (6 Del.C. §§17-101 et seq.)
(the  “LP Act”)
and has all requisite limited partnership power and authority to execute,
deliver and perform its obligations under the Notes, the Agreement and the
Issuing and Paying Agency Agreement.

 

25

 

2.             Each
of the Agreement and the Issuing and Paying Agency Agreement has been duly
authorized, executed and delivered by the Company and constitutes a legal,
valid and binding obligation of the Company enforceable against the Company in
accordance with its terms subject to applicable bankruptcy, insolvency and
similar laws affecting creditors’ rights generally, and subject, as to
enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law), and except as
rights under each of the Agreement and the Issuing and Paying Agency Agreement to
indemnity and contribution may be limited by federal or state laws.

 

3.             The
Notes have been duly authorized by the Company, and when issued and delivered
as provided in the Issuing and Paying Agency Agreement, will be duly and
validly issued and delivered by the Company and will constitute legal, valid
and binding obligations of the Company enforceable against the Company in
accordance with their terms, subject to applicable bankruptcy, insolvency and
similar laws affecting creditors’ rights generally, and subject, as to
enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law).

 

4.             The
offer and sale of the Notes in the manner contemplated by the Agreement do not
require registration of the Notes under the Securities Act, pursuant to the
exemption from registration contained in Section 4(2) thereof, and no indenture
in respect of the Notes is required to be qualified under the Trust Indenture
Act of 1939, as amended.

 

5.             Assuming
the offer and sale of the Notes in the manner contemplated by the Agreement, no
consent or action of, or filing or registration with, any governmental or
public regulatory body or authority, including the SEC, is required to be obtained
or made by the Company under any statute or regulation applicable to it to
authorize its execution, delivery or performance of the Agreement, the Notes,
or the Issuing and Paying Agency Agreement, except as may be required by the
securities or Blue Sky laws of the various states in connection with the offer
and sale of the Notes.

 

6.             Neither
the execution and delivery of the Agreement and the Issuing and Paying Agency
Agreement, nor the issuance and delivery of the Notes in accordance with the
Issuing and Paying Agency Agreement, nor the fulfillment of or compliance with
the terms and provisions of either thereof by the Company, will (i) result,
pursuant to the express provisions of any Material Agreements (as herein
defined), in the creation or imposition of any mortgage, lien, charge or similar
encumbrance upon any of the properties or assets of the Company, or (ii)
violate or result in an event of default under, as the case may be, any of the
terms of the Company’s certificate of limited partnership or agreement of
limited partnership, any agreement or instrument binding on the Company which
is filed as an exhibit to the Company’s Annual Report on Form 10-K for the
year ended December 31, 2004 (the “Material Agreements”),
or any statutory law or regulation applicable to it, or any order, writ,
injunction or decree of any court or government instrumentality, which is known
by us to be expressly applicable to the Company.

 

7.             The
Company is not an “investment company” within the meaning of the Investment Company
Act of 1940, as amended.

 

26

 

There is no litigation or
governmental proceeding pending, or to the knowledge of the Company threatened,
against or affecting the Company or any of its subsidiaries which could
reasonably be expected to result in a material adverse change in the financial
condition or operations of the company and its consolidated subsidiaries taken
as a whole or the ability of the Company to perform its payment or other
material obligations under the Agreement, the Notes or the Issuing and Paying
Agency Agreement.  [Note:  The preceding opinion will
be rendered by Company’s Associate General Counsel]

 

The opinions expressed
herein are limited exclusively to the laws of the State of New York, the LP Act
and applicable federal statutory laws and regulations of the United States of
America, and reference to the foregoing laws, in addition to other limitations
set forth herein, is limited to laws that are normally applicable to the
transactions provided for in the Agreement and the Issuing and Paying Agency
Agreement.

 

As used herein, the
phrase “to our knowledge” or words of similar import means the conscious
awareness of facts or other information by the lawyers in our Firm who, based
on our records as of                      ,
2005, have devoted substantive attention to the transaction to which this
opinion letter relates.  We have not
performed, in connection with this opinion letter, any examination of any
records of any courts, governmental agencies, arbitrators, boards, other
tribunals or any other similar entities.

 

This opinion may be
delivered to, and is, solely for the benefit of, (i) the Issuing and Paying
Agent and each holder from time to time of Notes, in each case in connection with
the transactions contemplated by the Agreement and the Issuing and Paying
Agency Agreement and (ii) any nationally recognized rating agency, in
connection with the rating of the Notes, each of which may, as of the date of
this opinion, rely on this opinion to the same extent as if such opinion was addressed
to it.  Neither this opinion letter nor
any excerpt hereof (nor any reproduction of any of the foregoing) may be
furnished to (except in connection with a legal or arbitral proceeding or as
may be required by law, and in any such events, as shall be directed and
required incident thereto pursuant to duly issued subpoena, writ, order or
other legal process), or relied upon by, any other person or entity without the
prior written consent of this Firm.  The
opinions expressed herein are as of the date hereof (and not as of any other
date) or, to the extent a reference to a certificate or other document is made
herein, to such date, and we make no undertaking to amend or supplement such
opinions as facts and circumstances come to our attention or changes in the law
occur which could affect such opinions.

 

 

	
   

  	
  Very truly
  yours,

  

 

27

 

Certificate as to Resolutions

 

ENBRIDGE ENERGY PARTNERS, L.P.

 

[TO BE ATTACHED]

 

28

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