Document:

EX-10.42

 Exhibit 10.42 

ENBRIDGE INC. 
 PERFORMANCE STOCK UNIT PLAN (2007), as amended (2012) 
  

	1.	PURPOSE 

 The
purpose of the Performance Stock Unit Plan (2007) (the “Plan”) is to: 
  

	 	(a)	align the senior management team of the Corporation with the enhancement of shareholder value by focusing on shareholder value; 

 

	 	(b)	assist in attracting, retaining, engaging, and rewarding senior executives of the Corporation; and 

 

	 	(c)	provide an opportunity for Participants to earn competitive total compensation based upon achieving the performance goals set out in this Plan.

  

	2.	DEFINED TERMS 

 In
this Plan (including any schedules to this Plan): 
  

	 	(a)	“affiliate” has the meaning ascribed to that term in the Securities Act (Alberta); 

 

	 	(b)	“Board” means the Board of Directors of the Corporation; 

  

	 	(c)	“CEO” means the Chief Executive Officer of the Corporation; 

 

	 	(d)	“Change of Control” means: 

  

	 	(i)	the sale to a person or acquisition by a person not affiliated with the Corporation or its Subsidiaries of assets of the Corporation or its Subsidiaries having a value
greater than 50% of the fair market value of the 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), 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 Plan, 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 50% 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, in its discretion, deems to be a Change of Control; or 

 

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

 provided that: 
  

	 	(vii)	any transaction whereby shares held by shareholders of the Corporation are transferred or exchanged for units or securities of a trust, partnership or other entity
which trust, partnership or other entity continues to own directly or indirectly all of the shares of the Corporation previously owned by the shareholders of the Corporation and the former shareholders of the Corporation continue to be beneficial
holders of such units or securities in the same proportions following the transaction as they were beneficial holders of shares of the Corporation prior to the transaction will be deemed not to constitute a change of control; and

  

	 	(viii)	any change of control initiated or commenced by the Board (and whether or not such transaction was initiated or commenced by the Board shall be conclusively determined
by the Board) will not constitute a change of control for purposes of this Plan; 

  

	 	(e)	“Code” means the United States Internal Revenue Code of 1986, as amended; 

 

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

  

	 	(i)	where the Participant ceases to be an officer of the Corporation, unless the Participant 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 Participant; 

 

	 	(iii)	a reduction in the base salary (excluding any annual incentive bonus) of the Participant; or 

 

	 	(iv)	any material reduction in the value of the Participant’s employee benefits, plans and programs (other than any annual incentive bonus); 

 

	 	(g)	“Corporation” means Enbridge Inc., and includes any successor entity thereto; 

 

	 	(h)	“Director” means a director of the Corporation; 

  

	 	(i)	“Dividend Reinvestment Plan” means the Dividend Reinvestment and Share Purchase Plan of the Corporation, as described in the Dividend Reinvestment and
Share Purchase Plan Offering Circular of the Corporation dated [January 14, 2000] as amended from time to time, or any successor plan; 

  

	 	(j)	“Fair Market Value” means, as of a particular day, the weighted average of the board lot trading prices per Share on the Toronto Stock Exchange, or the
New York Stock Exchange, for the last twenty trading days immediately prior to such day; 

  

	 	(k)	“For Cause” includes “just cause” as defined in the common law and also includes any circumstance in which the Participant shall have been
convicted of a criminal act of dishonesty resulting or intending to result directly or indirectly in gain or personal enrichment of the Participant; 

  

	 	(l)	“HRC Committee” means the Human Resources and Compensation Committee of the Board, established and duly authorized to act in accordance with the
By-Laws of the Corporation; 

  

	 	(m)	“Incumbent Director” means any member of the Board who was a member of the Board 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 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; 

  

	 	(n)	 “Maturity Date” has the meaning given to it in Section 5;

  
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	 	(o)	“Maximum Number” means the maximum number of Performance Stock Units that may mature with respect to each grant, which maximum number shall not exceed
twice the sum of the initial grant plus the dividend equivalent units that are granted during the Term; 

  

	 	(p)	“Maximum Performance Level” means the level of achievement of the performance measures established pursuant to Section 6(a) which would result in
the Maximum Number of Performance Stock Units granted to a Participant to mature; 

  

	 	(q)	“Notice Period” means the notice period for termination of employment agreed to between the Corporation (or its Subsidiary) and the Participant, or, in
the absence of any such agreement, the notice period required under applicable law. 

  

	 	(r)	“Participant” means an individual who becomes a participant of the Plan in accordance with Section 4; 

 

	 	(s)	“Performance Multipliers” has the meaning set forth in Schedule A; 

 

	 	(t)	“Performance Stock Unit” means a conditional right to payment which has been granted to a Participant to receive an amount of money determined in
accordance with the provisions of this Plan; 

  

	 	(u)	“Plan” means the Performance Stock Unit Plan (2007) of the Corporation described in this document, and as the same may be duly amended or varied
from time to time in accordance with the provisions of this Plan; 

  

	 	(v)	“Retirement Plan” means a pension plan of the Corporation established or in effect from time to time which applies when an employee retires from the
employment of the Corporation or a Subsidiary; 

  

	 	(w)	“Share” means a common share in the capital of the Corporation; 

 

	 	(x)	“Subsidiary” means: 

  

	 	(i)	any corporation that is a subsidiary (as such term is defined in the Canada Business Corporations Act) of the Corporation, as such provision is from time to time
amended, varied or re-enacted; 

  

	 	(ii)	any partnership or limited partnership that is controlled by the Corporation (the Corporation will be deemed to control a partnership or limited partnership if the
Corporation possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such partnership or limited partnership, whether through the ownership of voting securities, by contract or otherwise); and

  

	 	(iii)	subject to regulatory approval, any corporation, partnership, limited partnership, trust, limited liability company or other form of business entity that the HRC
Committee determines ought to be treated as a subsidiary for purposes of the Plan, provided that the HRC Committee shall have the sole discretion to determine that any such entity has ceased to be a subsidiary for purposes of the Plan;

  

	 	(y)	“Target Performance Level” means, in respect of a Term, that level of achievement of the performance measures established pursuant to Section 6(a)
which would result in exactly 100% of the Performance Stock Units granted to a Participant to mature; 

  

	 	(z)	“Term” has the meaning given to it in Section 5; 

  

	 	(aa)	“Threshold Performance Level” means in respect of a Term the level of achievement of the performance measures established pursuant to Section 6(a)
which would result in the minimum number of Performance Stock Units granted to a Participant to mature; and 

  

	 	(bb)	“Trading Day” means any day on which the Toronto Stock Exchange is open for trading. 

 

	3.	GOVERNANCE 

  

	 	(a)	 Subject to any determinations or approvals required to be made by the Board, the HRC Committee will administer the Plan in its sole discretion. The HRC
Committee shall have the full power and sole 

  
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responsibility to interpret the provisions of the Plan and to make regulations and formulate administrative provisions for its implementation, and to make such changes in the regulations and
administrative procedures as, from time to time, the HRC Committee deems proper and in the best interests of the Corporation. Such regulations and provisions may include the delegation to any Director or Directors or any officer or officers of the
Corporation or its Subsidiaries of such administrative duties and powers of the HRC Committee as it may, in its sole discretion, deem fit. The HRC Committee may amend the Plan to correct, remedy or reconcile any errors, inconsistencies or
ambiguities in this Plan. The determinations of the HRC Committee in the administration of the Plan shall be final and conclusive. 

  

	 	(b)	Prior to the CEO requesting any grants under the Plan, the CEO will recommend to the HRC Committee for its approval the performance measures and the levels of
achievement required for Threshold Performance Level, Target Performance Level and Maximum Performance Level. The HRC Committee shall also have the authority to approve any amendments to such performance measures, the expected levels of performance
and the Term; provided that no amendment to the Term of any Performance Stock Unit shall be made which would cause the Participant to be subject to adverse tax treatment under Code Section 409A. 

 

	 	(c)	Upon the HRC Committee determining that the achievement of applicable performance measures has been met following the Maturity Date, the HRC Committee shall approve
payments under the Plan. 

  

	 	(d)	The HRC Committee shall also have the authority to waive any restrictions with respect to participation in the Plan or the maturity of grants under the Plan for any
specific Participants where, in the opinion of the HRC Committee, it is reasonable to do so and does not prejudice the rights of the Participant under the Plan and it does not cause the Participant to be subject to adverse tax treatment under Code
Section 409A. 

  

	 	(e)	Grants to Participants will be considered each year, unless otherwise determined at the sole discretion of the HRC Committee. 

 

	4.	PARTICIPATION AND GRANT OF UNITS 

  

	 	(a)	The CEO may recommend to the HRC Committee employees of the Corporation or any of its Subsidiaries for participation in the Plan. The HRC Committee shall consider such
recommendation and may, in its sole discretion, approve such recommended employees for participation in the Plan (each such person shall be referred to as a “Participant”). 

 

	 	(b)	The CEO shall recommend to the HRC Committee for its approval the number of Performance Stock Units to be granted to each Participant who reports directly to the CEO
and the aggregate number of Performance Stock Units to be granted to all other Participants, other than the CEO. 

  

	 	(c)	The HRC Committee will determine and recommend to the Board for its approval the number of Performance Stock Units to be granted to the CEO. 

 

	 	(d)	All grants made to a Participant shall be made on or before September 30 of the first year of the applicable Term, unless otherwise recommended by the CEO to, and
approved by, the HRC Committee. 

  

	 	(e)	Directors who are not full-time employees of the Corporation or a Subsidiary shall not be eligible to become Participants. 

 

	 	(f)	 A designated employee shall have the right not to participate in the Plan, and any decision not to participate shall not affect his or her employment
with the Corporation or a Subsidiary. Participation in the Plan does not confer upon the Participant any right to continued employment with the Corporation or a Subsidiary. 

  
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	5.	TERM 

 Except as
otherwise provided herein or unless otherwise determined by the HRC Committee, each Performance Stock Unit granted pursuant to the Plan shall have a fixed term (a “Term”) of not more than three years, commencing on January 1 of
the first year of the Term and ending on December 31 of the final year of the Term (the “Maturity Date”). 
  

	6.	MATURITY 

  

	 	(a)	The number of Performance Stock Units that mature under this Plan shall be dependent upon the achievement of the performance measures applicable thereto established by
the CEO and approved by the HRC Committee, a copy of which is attached hereto as Schedule A. Following the completion of a Term, the HRC Committee will review and determine the extent to which the performance measures have been achieved and
will approve the number of Performance Stock Units which have matured. 

  

	 	(b)	Notwithstanding the foregoing, in no event shall the number of Performance Stock Units that mature in respect of a particular grant exceed the Maximum Number in respect
of such grant. 

  

	7.	PAYMENT 

  

	 	(a)	Amount Payable 

 The
amount payable to each Participant shall in respect of a particular grant of Performance Stock Units be the amount determined by multiplying the sum of: 
  

	 	(i)	the number of Performance Stock Units held by such Participant on the Maturity Date of such Performance Stock Units, and 

 

	 	(ii)	the number of Performance Stock Units that would be credited to such Participant upon the payment of dividends by the Corporation on the Shares, based on the number of
additional Shares that a Participant would have received had the matured Performance Stock Units been treated as Shares under the Dividend Reinvestment Plan during the Term, 

by 
  

	 	(iii)	the Performance Multiplier; and by 

  

	 	(iv)	the Fair Market Value of the Shares as at the Maturity Date. 

  

	 	(b)	Timing of Payment 

 Unless
otherwise provided in this Plan, the amount payable to each Participant pursuant to section 7(a) shall be paid after the approval of the HRC Committee and after the audited financial statements of the Corporation for the year ended on the applicable
Maturity Date have been approved by the Board, but, in any event, not later than two and one-half months after the Maturity Date. 
  

	 	(c)	Form of Payment 

 The
amount payable to each Participant pursuant to section 7(a), unless otherwise provided in this Plan, shall be paid in cash in the currency of Canada or the United States of America and shall be subject to applicable withholding taxes as required by
applicable legislation. 
  

	8.	SHARE OWNERSHIP GUIDELINES 

 If the number of Shares held by the Participant is less than the number of Shares to be held by him or her pursuant to any share ownership guidelines of the Corporation in effect from time to time and
applicable to such Participant, then the Participant shall be required to utilize any payments made with respect to any Performance Stock Units (net of any amounts deducted pursuant to Section 11) to acquire additional Shares to increase the
number of Shares held by the Participant to meet the requirements of such share ownership guidelines. 

  
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	9.	TERMINATION 

  

	 	(a)	Voluntary Termination 

 If
a Participant voluntarily terminates his or her employment with the Corporation or a Subsidiary, all unpaid and matured Performance Stock Units held by such Participant as at the date of the Participant’s termination shall be payable in
accordance with Section 7. 
 All unmatured Performance Stock Units held by such Participant as at the date of the
Participant’s termination shall be cancelled as of the last day of such Participant’s employment with the Corporation (or its Subsidiary). 
  

	 	(b)	Involuntary Termination Other than For Cause 

 If the employment of a Participant with the Corporation or a Subsidiary is terminated by the Corporation (or its Subsidiary) for any reason other than For Cause, all unpaid and matured Performance Stock
Units held by such Participant as at the last day of the Participant’s employment with the Corporation (or its Subsidiary) shall be payable in accordance with Section 7. 

A number of unmatured Performance Stock Units held by such Participant on the last day of employment shall continue to mature in
accordance with the Plan. The number of unmatured Performance Stock Units that shall continue to mature shall be prorated based upon the number of full calendar months of active employment of the Participant during the Term to the number of months
in the Term (and for this purpose the Notice Period shall be counted as active employment). Such number of Performance Stock Units shall be paid in accordance with Section 7. 

All other unmatured Performance Stock Units held by such Participant shall be cancelled as at the last day of the Notice Period.

 For the purposes of this subsection 9(b), if a Participant’s employment terminates due to the constructive dismissal of
the Participant, such termination shall be treated as an involuntary termination by the Corporation or a Subsidiary other than For Cause. 
  

	 	(c)	Involuntary Termination For Cause 

 If the employment of a Participant is terminated by the Corporation or a Subsidiary For Cause, all unpaid Performance Stock Units held by such Participant as at the date of termination, whether matured or
unmatured, shall be cancelled as of the Participant’s last day of employment with the Corporation (or its Subsidiary). 
  

	 	(d)	Death 

 If the employment
of a Participant with the Corporation or a Subsidiary is terminated as a result of the death of such Participant, all unpaid and unmatured Performance Stock Units held by the Participant as at the date of death shall be payable in accordance with
Section 7. 
 For the purposes of this subsection 9(d), the Vesting Date for a number of unmatured Performance Stock Units
shall be the date of death of the Participant. The number of unmatured Performance Stock Units held by such Participant as at the date of such Participant’s death that mature shall be prorated based on the number of full calendar months of
active employment of the Participant during the applicable Term to the total number of months in the Term. Such Performance Stock Units shall be paid in accordance with Section 7 within two and a half months, or as soon as reasonably possible
thereafter, following the Participant’s death on the assumption that the Target Performance Level is met. 
 All other
unmatured Performance Stock Units held by such Participant shall be cancelled as at the date of death. 
  

	 	(e)	Retirement 

 If a
Participant has attained the age of 55 and retires from his or her employment with the Corporation or a Subsidiary pursuant to a Retirement Plan and he or she is eligible for benefits under a Retirement

  
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Plan, all unpaid and matured Performance Stock Units held by such Participant as at the date of retirement shall be payable in accordance with Section 7. 

A number of unmatured Performance Stock Units held by the Participant as at the date of retirement prorated based on the number of full
calendar months of active employment of the Participant during the applicable Term to the total number of months in the Term, shall continue to vest following retirement in accordance with the Plan. 

All other unmatured Performance Stock Units held by such Participant shall be cancelled as at the date of retirement. 

 

	 	(f)	Disability 

 If the
employment of a Participant with the Corporation or a Subsidiary is terminated as a result of the “disability” of such Participant, all Performance Stock Units held by such Participant as at the date of disability, whether matured or
unmatured, as of the last day of such Participant’s active employment with the Corporation (or its Subsidiary) prior to such disability shall continue to be treated as if the Participant were actively employed by the Corporation (or its
Subsidiary). 
 For purposes of this subsection, a Participant shall be considered to be suffering from a “disability”
if he or she is eligible for benefits under a Corporation-sponsored long term disability benefits plan. 
  

	 	(g)	Leaves of Absence 

 If a
Participant commences a parental or another leave approved by the Corporation or a Subsidiary for a period longer than three months, all unpaid and matured Performance Stock Units held by the Participant as at the last day of such Participant’s
active employment with the Corporation (or its Subsidiary) shall be payable in accordance with Section 7. 
 A number of
unmatured Performance Stock Units held by such Participant as at the commencement of such Participant’s leave prorated based on the number of full calendar months of active employment of the Participant during the Term to the total number of
months in the Term, shall continue to mature in accordance with the Plan during such Participant’s Leave. Such number of Performance Stock Units shall be paid in accordance with Section 7. 

All other unmatured Performance Stock Units held by the Participant shall be cancelled. 

Grants of Performance Stock Units may be made to a Participant while such Participant is on a leave of absence for short term disability
or maternity, paternity, parental or adoption leave, but no grants of Performance Stock Units may be made to a Participant while such Participant is on any other leave of absence. 

 

	 	(h)	Secondments 

 If a
Participant is seconded to an entity other than a Subsidiary, the HRC Committee (in the case of Participants that report directly to the CEO) and the CEO (in the case of all other Participants) shall determine the manner in which all Performance
Stock Units held by the Participant as at the date of the secondment shall be treated under the Plan; provided that no such Performance Stock Units shall be treated in a manner that would cause the Participant to be subject to adverse tax treatment
under Code Section 409A. 
  

	 	(i)	Change of Control 

 In the
event of a Change of Control, all unpaid and matured Performance Stock Units held by a Participant as at the date of the Change of Control, where the Maturity Date is December 31 of the year prior to the Change of Control, shall continue to be
payable in accordance with their terms, but in any event prior to the date of the Change of Control. 
 All unmatured Performance
Stock Units held by the Participant as at the date of the Change of Control shall mature on the date that is 30 days prior to the date of the Change of Control and based on applicable performance measures achieved from the start of the Term to that
date. Each Participant 

  
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shall have paid to him or her immediately upon the Change of Control occurring, in full satisfaction for any amounts payable pursuant to Performance Stock Units under the Plan, an amount
calculated pursuant to Section 7 in respect of all matured Performance Stock Units held by such Participant. Monies to make such payment shall be placed in an irrevocable trust prior to the Change of Control. 

Notwithstanding the above, with respect to Participants who are US citizens or resident in the U.S. for US tax purposes, no payment shall
be made and no Performance Stock Unit shall mature under this subsection 8(i) unless such Change of Control also qualifies as a change in the ownership or effective control of the Corporation, or in the ownership of a substantial portion of the
assets of the Corporation, within the meaning of Code Section 409A(2)(A)(v). In the case of a Change of Control that does not so qualify, payments to any such Participant shall be made in accordance with Section 7. The payment monies owing
to these Participants will be placed in an irrevocable trust which is located in the United States of America and subject to the claims of the general creditors of the Corporation prior to the Change of Control. 

 

	 	(j)	No Future Grants 

 Upon
the occurrence of any of the foregoing events listed under subsections 9(a) to (f) in respect of a Participant, such Participant shall not be entitled to receive any further Performance Stock Unit grants and, except as set forth herein, shall
not be entitled to receive cash payment for the value of any unpaid Performance Stock Units, matured or unmatured, held by the Participant as at the date of occurrence of such event. 

 

	10.	FUNDING 

 Except as
contemplated in subsection 9(i), for certainty, the Corporation has no obligation during the Term to pay or deposit any money into an account for the benefit of a Participant or to issue from treasury or purchase any Shares or other securities, to
or for a Participant. 
  

	11.	TAXES AND REPORTING 

Notwithstanding anything else contained herein, each Participant shall be responsible for the payment of all applicable taxes, including,
but not limited to, income taxes payable in connection with the payment of the value of the Performance Stock Units and the Corporation, its employees and agents shall bear no liability in connection with the payment of such taxes. The Corporation
shall have the right to deduct from all cash payments made to a Participant any taxes required by law to be withheld with respect to such payments. 
  

	12.	NO GUARANTEE OF EMPLOYMENT 

 The existence of the Plan is in no way to be construed as a guarantee of continued employment for any Participant, or of entitlement to any future Plan awards, benefits, or payments. 

 

	13.	ADJUSTMENTS 

  

	 	(a)	In the event that the number of outstanding Shares of the Corporation shall be increased or decreased, or changed into, or exchanged for a different number or kind of
shares or other securities of the Corporation or another corporation, whether through a stock dividend, stock split, consolidation, recapitalization, amalgamation, reorganization, arrangement or other transaction, and such transaction or event is
not a Change in Control, the HRC Committee or the Board may make appropriate adjustment to the number or kind of shares or securities upon which Performance Stock Units are based under the Plan, and as regards to Performance Stock Units previously
granted or to be granted pursuant to the Plan, in the number and kind of shares or securities upon which the Performance Stock Units are based. 

  

	 	(b)	 The appropriate adjustments in the number of Performance Stock Units may be made by the Board in its discretion in order to give effect to the
adjustments in the number of Shares of the Corporation 

  
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resulting from the implementation and operation of the Shareholder Rights Plan Agreement dated as of November 9, 1995 between the Corporation and CIBC Mellon Trust Company, as the same may
be amended, replaced or substituted from time to time. 

  

	14.	EFFECT OF REORGANIZATION 

 In the event of any take-over bid or any proposal, offer or agreement for a merger, consolidation, amalgamation, arrangement, recapitalization, liquidation, dissolution or similar transaction or other
business combination that is not a Change of Control in which the Corporation is not the surviving or continuing corporation (a “Reorganization”), all Performance Stock Units granted hereunder and outstanding on the date of such
Reorganization shall be assumed by the surviving or continuing corporation, provided that the HRC Committee or the Board may make appropriate adjustment in the manner in which vesting of or payment on such Performance Stock Units will occur prior to
such assumption. If, in the event of any such Reorganization, provision for such assumption satisfactory to the HRC Committee or the Board is not made by the surviving or continuing corporation, all unmatured Performance Stock Units held by a
Participant as at the date of the Reorganization shall vest, based on applicable performance measures achieved from the start of the Term to the date (the “Revised Maturity Date”), as determined by the HRCC, that is not less than seven
days and not more than 30 days prior to the date of the Reorganization, and each Participant shall have paid to him or her, in full satisfaction for any amounts payable pursuant to Performance Stock Units under the Plan, an amount calculated
pursuant to Section 7 in respect of all matured Performance Stock Units held by such Participant, such payment to be made within 30 days after the Revised Maturity Date determined by the HRCC. 

Notwithstanding the above, with respect to Participants who are US citizens or resident in the U.S. for US tax purposes, no payment shall
be made and no Performance Stock Unit shall mature under this Section 14 unless such Reorganization also qualifies as a change in the ownership or effective control of the Corporation, or in the ownership of a substantial portion of the assets
of the Corporation, within the meaning of Code Section 409A(2)(A)(v). In the case of a Reorganization that does not so qualify, payments to any such Participant shall be made in accordance with Section 7. The payment monies owing to these
Participants will be placed in an irrevocable trust which is located in the United States of America and subject to the claims of the general creditors of the Corporation prior to the Reorganization. 

 

	15.	AMENDMENTS, ETC. 

The HRC Committee may at any time recommend to the Board for its approval the revision, suspension or discontinuance of the Plan in whole
or in part. No such revision, suspension, or discontinuance shall alter or impair the rights of a Participant in respect of Performance Stock Units previously granted to such Participant, without the consent of that Participant. In addition, no
revision, suspension or discontinuance shall result in adverse taxation under Code Section 409A, unless otherwise determined by the HRC Committee with the consent of the Participant. 

 

	16.	TRANSFERABILITY 

Performance Stock Units are not transferable other than by will or according to the laws of descent and distribution. 

 

	17.	CONFLICT WITH WRITTEN EMPLOYMENT AGREEMENT 

 In the event of a conflict between the terms of this Plan and the terms of any written employment agreement between a Participant and the Corporation, the terms of the written employment agreement shall
prevail. 
  

	18.	EFFECTIVE DATE 

The Plan shall take effect on January 1, 2007. 

  
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 SCHEDULE A 
 PERFORMANCE MEASURES – 2012 GRANT 
 DEFINITIONS: 

The “Performance Multiplier” is calculated in accordance with the following equation: 

Performance Multiplier = (50% Weight x Earnings Per Share Performance Multiplier 0-2) + (50% Weight x Price/Earnings Ratio Multiplier 0-2)

 Earnings Per Share (EPS) is defined as earnings of Enbridge Inc. divided by the number of common shares outstanding as of
December 31, 2014. Earnings will be normalized for weather, mark-to-market gains and losses, dilution gains, tax rate changes, and allowance for equity during construction (AEDC) if a change in accounting rules occurs. 

Earnings Per Share Multiplier ranges from 0—2.0 based on EPS performance as follows: 

 

			                		                		                		                		                		                		                		                		                
	Multiplier	  	0	  	0.25	  	0.5	  	0.75	  	1	  	1.25	  	1.5	  	1.75	  	2
	 EPS
	  	$1.62	  	$1.66	  	$1.69	  	$1.73	  	$1.76	  	$1.81	  	$1.86	  	$1.91	  	$1.97

 Performance multipliers for EPS performance between the thresholds described will be calculated on a linear basis.

 “Price/Earnings Ratio” or “PE Ratio” means: 
 The share price defined as the average of the closing share price for the 20 trading days prior to December 31, 2014 divided by, earnings (per share) based on trailing earnings (Q1 – Q3 2014)
and plus consensus forecast (Q4 2014). These amounts will be normalized if required. 
 The PE Ratio performance is a relative metric, measured
against a comparator group which is comprised of issuers as set forth in Schedule B. 
 In the event of a re-organization, merger or
acquisition or other change that materially impacts the suitability of a peer, the HRC Committee may make any adjustments it deems necessary or advisable to the calculation of the price/earnings ratio and the peer ranking to reflect the economic
impact of such change. 
 The PE Ratio is based on performance relative to the peer group as follows: 

a 2.0 multiplier will be achieved if the Enbridge PE Ratio is at the 75th percentile or above, 
 a 1.0 multiplier will be achieved if the Enbridge PE Ratio is between median and the 75th percentile, or 
 a 0 multiplier will be utilized if the Enbridge PE Ratio is below median. 
 SCHEDULE B

 PRICE/EARNINGS PEER GROUP 
  

			
	 •   Oneok Inc.
	 	 •   TransCanada Corp.

		
	 •   Sempra Energy
	 	 •   Spectra Energy Corp.

		
	 •   PG&E Corp.
	 	 •   TransAlta Corp.

		
	 •   Centerpoint Energy Inc.
	 	 •   National Fuel Gas Co.

		
	 •   Nisource Inc.
	 	 •   Canadian Utilities

		
	 •   Ameren Corp.
	 	 •   Fortis Inc.

		
	 •   OGE Energy Corp.
	 	 •   Emera Inc.

  
 10EX-10.70

 Exhibit 10.70 
 ALLOCATION AGREEMENT 
 THIS AGREEMENT is dated December 31, 2012. 

 

			
	BETWEEN:	  	
		
		  	ENBRIDGE INC., a corporation incorporated under the laws of Canada (the “Parent”);
		
	AND:	  	
		
		  	ENBRIDGE ENERGY PARTNERS, L.P., a limited partnership formed under the laws of the State of Delaware (“EEP”);
		
	AND:	  	
		
		  	ENBRIDGE INCOME FUND HOLDINGS INC., a corporation incorporated under the laws of the Province of Alberta (“EIFH”);
		
		  	(the Parent, EEP, and EIFH are referred to herein collectively as the “Enbridge Entities” or the “parties” and individually as an
“Enbridge Entity” or “party”).
		
	WHEREAS:	  	

  

	A.	the Enbridge Entities, along with their respective Related Entities, participate in various consolidated insurance programs; 

 

	B.	the Enbridge Entities wish to provide for a method of equitable allocation, as between each of the Enbridge Entities, of any insurance proceeds resulting from claims
which exceed the total coverage limit of any insurance program within a coverage year based on the amount of premiums an Enbridge Entity contributes towards an insurance program; and 

 

	C.	each party has agreed that it is in the best interest of such party to enter into this agreement as a condition to ongoing participation in the insurance programs;

 NOW THEREFORE THIS AGREEMENT WITNESSES THAT, for good and valuable consideration, the receipt and sufficiency of which is
acknowledged by each of the parties to this Agreement, the parties hereto agree as follows: 
 ARTICLE 1 

INTERPRETATION 
  

	1.1	Definitions. 

 The following terms will
have the following meanings: 
  

	 	(a)	“Agreement” means this agreement, including its recitals and schedules, as amended from time to time; 

 

	 	(b)	“Allocated Recovery” has the meaning defined in Schedule “A” hereto; 

 

	 	(c)	“Business Day” means any day that is not a Saturday, Sunday or statutory holiday in the Province of Alberta or the State of Texas;

  

	 	(d)	“Claim” means any remediation, repair, loss, restoration, replacement, or similar matter with respect to an Eligible Event and/or a proceeding,
investigation, suit, action, hearing, inquiry, arbitration, alternative dispute resolution mechanism or procedure initiated against an Enbridge Entity or its Related Entity, the substance of which is covered by applicable policies under the relevant
Insurance Coverage Program, during a Coverage Year; 

  

	 	(e)	“Claims Examiner” has the meaning defined in Section 4.1(1); 

	 	(f)	“Coverage Year” means, in respect of any Insurance Coverage Program, the effective term of such Insurance Coverage Program; 

 

	 	(g)	“Eligible Event” means any event, occurrence or other incident suffered by or in connection with an Enbridge Entity or its Related Entity, the
substance of which is covered by an Insurance Coverage Program during a Coverage Year; 

  

	 	(h)	“Insurance Cost Allocation Percentage” means in respect of the Enbridge Entities, the percentage of the cost of an Insurance Coverage Program being
paid by an Enbridge Entity and its Related Entities during a Coverage Year; 

  

	 	(i)	“Insurance Coverage Program” means a policy or group of policies providing a particular type of insurance coverage under the Insurance Programs,
including, for example, general liability, onshore property and business interruption, onshore terrorism, U.S. workers compensation and employers liability, U.S. automobile liability, directors’ and officers’ liability, Canadian automobile
liability, aviation liability, fiduciary liability and crime insurance and any other type of insurance coverage program which the Parent may procure on a consolidated basis from time to time; 

 

	 	(j)	“Insurance Programs” means the consolidated insurance programs composed of various Insurance Coverage Programs procured by the Parent for the Enbridge
Entities and their respective Related Entities; 

  

	 	(k)	“Insurance Risk Management” means the insurance risk management group of the Parent; 

 

	 	(l)	“Loss Amount” means the aggregate costs and expenses which an Enbridge Entity or its Related Entity has paid out with respect to a Claim and/or is
reasonably expected to incur to resolve a Claim or Claims under an Insurance Coverage Program in a particular Coverage Year; 

  

	 	(m)	“Net Change” has the meaning defined in Schedule “A”; 

 

	 	(n)	“New Methodology” has the meaning defined in Section 9.6(3); 

 

	 	(o)	“Notice of Dispute” has the meaning defined in Section 8.1; 

 

	 	(p)	“Qualified Allocated Coverage” has the meaning defined in Schedule “A” hereto; 

 

	 	(q)	“Related Entity” means any entity over which an Enbridge Entity exercises control, direction or management, directly or indirectly, through one or more
intermediaries and that participates in the Insurance Programs, provided that in the case of the Parent, Related Entity will exclude EEP, and EIFH and their respective Related Entities; 

 

	 	(r)	“Senior Management” means the Vice-President of the Parent with responsibility for management of the Insurance Programs and who reports to the Chief
Financial Officer, or such other officer as is designated by the Chief Financial Officer; 

  

	 	(s)	“Total Coverage Limit” means the aggregate limit of coverage under an Insurance Coverage Program during a Coverage Year; 

 

	 	(t)	“True-Up Loss Amount” has the meaning defined in Section 3.1; 

 

	 	(u)	“Updated Allocated Recovery” has the meaning defined in Schedule “A” hereto; 

 

	 	(v)	“Verified Loss Amount” has the meaning defined in Section 2.1(6); and 

 

	 	(w)	“Verified True-Up Loss Amount” has the meaning defined in Section 3.1. 

 

	1.2	References 

 Any reference in this
Agreement to a designated “Article”, “section”, “paragraph” or other subdivision is a reference to the designated Article, section, paragraph or other subdivision of this Agreement; the words “herein”,
“hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, section, paragraph or other subdivision of this Agreement. 

  
 - 2 -

	1.3	Headings 

 The headings used in and the
organization of this Agreement are solely for convenience of reference and will not in any way affect, limit, amplify or modify the terms hereof and will not be construed in any way in the interpretation hereof to be part of this Agreement.

  

	1.4	Non-limiting 

 The word
“including”, when following any general statement, will be construed to refer to all other things that could reasonably fall within the scope of such general statement, whether or not non-limiting language (such as “without
limitation”) is used with reference thereto. 
  

	1.5	Gender and Number 

 Words importing the
masculine gender include the feminine and neuter genders and words in the singular include the plural, and vice versa. 
  

	1.6	Schedules 

 The following are the
Schedules to the Agreement: 
  

	Schedule	“A” —     Procedures for Determining Recovery (Part I and Part II) 

	Schedule	“B” —      Illustration (Part I and Part II), 

 Part I of each Schedule applies to Allocated Recoveries and Part II of each Schedule applies to Updated 
 Allocated Recoveries. 
 ARTICLE 2 

LOSS AMOUNTS 
  

	2.1	Application of the Agreement 

  

	 	(1)	Insurance Risk Management will determine, in its sole discretion, whether the Total Coverage Limit is likely to be exceeded as a result of Claims by two or more
Enbridge Entities (themselves or on behalf of respective Related Entities, as applicable). 

  

	 	(2)	Upon making the determination in Section 2.1(1), Insurance Risk Management will seek the approval of Senior Management with respect to such determination and the
application of this Agreement. 

  

	 	(3)	Upon receiving written approval by Senior Management confirming application of this Agreement, Insurance Risk Management will immediately notify the Enbridge Entities
(who will be responsible for notifying their respective Related Entities, if applicable). Such notification will: (i) specify which Claim or Claims have the potential to result in the Total Coverage Limit being exceeded; (ii) include the particulars
of one or more Claims Examiners including the designation of which Claims Examiner will act as the main contact in the event there are more than one; and (iii) contain a request for confirmation of a Loss Amount and preparation and delivery by the
relevant Enbridge Entity of a report in connection with such Loss Amount. 

  

	 	(4)	Upon receiving such notification, each Enbridge Entity will prepare a report in connection with its Loss Amount (including a list of materials and information used in
confirming its Loss Amount). Such Enbridge Entity will consult with its Related Entities, as applicable, in connection with the review of information and preparation of the materials required to provide a report in connection with its Loss Amount.

  

	 	(5)	The Enbridge Entities will promptly deliver confirmation of Loss Amounts, together with the report used to prepare such Loss Amounts, to Insurance Risk Management and
to the relevant Claims Examiner. 

  
 - 3 -

	 	(6)	Each Loss Amount will contain adequate detail in order to allow the Claims Examiner(s) to evaluate the quantum and reasonableness of the Loss Amount. All Loss Amounts
are subject to final verification by such Claims Examiner(s) (each a “Verified Loss Amount”). 

  

	 	(7)	The Enbridge Entities and their Related Entities, as applicable, will cooperate in providing any additional documentation requested by Insurance Risk Management and/or
any Claims Examiner(s). 

  

	 	(8)	In the event of application of this Agreement, this Agreement will have effect from the date hereof regardless of whether the Coverage Year in respect of any Insurance
Coverage Program precedes the date of this Agreement. 

 ARTICLE 3 

TRUE-UP LOSS AMOUNTS 
  

	3.1	Preparation and Delivery of True-Up Loss Amounts 

 Each Enbridge Entity will be responsible for updating any Loss Amount to ensure it remains accurate. Unless Insurance Risk Management has notified the Enbridge Entities that this Agreement no longer has
application for a particular Coverage Year (in the event the Total Coverage Limit is no longer exhausted), the relevant Enbridge Entity will prepare and deliver confirmation of a true-up Loss Amount (each, an “True-Up Loss Amount”)
reflecting such fluctuations, and a report in connection therewith, to Insurance Risk Management and the Claims Examiner quarterly, on a calendar basis. Such Enbridge Entity will consult with their Related Entities, if applicable, in connection with
preparation of such True-Up Loss Amount. In the event the Parent determines, acting reasonably, that a True-Up Loss Amount and/or Verified True-Up Loss Amount is not materially different than the Loss Amount and/or Verified Loss Amount, as
applicable, it may elect to not have the methodology set forth in Article 5.2 apply to such True-Up Loss Amount and will notify the Claims Examiner and relevant Enbridge Entity accordingly. All True-Up Loss Amounts are subject to final verification
by the Claims Examiner(s) (each a “Verified True-Up Loss Amount”). 
 ARTICLE 4 

CLAIMS EXAMINERS 
  

	4.1	Appointment 

  

	 	(1)	Insurance Risk Management will appoint one or more properly qualified independent third parties to act as claims examiners with respect to Insurance Coverage Programs
(each a “Claims Examiner”) to carry out the duties described in this Agreement. In appointing a Claims Examiner, Insurance Risk Management may use any selection process it deems appropriate from time to time. Insurance Risk
Management will have the right to replace, suspend and/or terminate any Claims Examiner in its sole discretion. 

  

	 	(2)	Each Claims Examiner will execute a consulting agreement with the Parent with respect to its appointment and acknowledging the terms and conditions of this Agreement.
In the event two or more Claims Examiners are appointed with respect to a particular Coverage 

	 	Year for an Insurance Coverage Program, such Claims Examiners will execute a joint consulting agreement. A consulting agreement may contain additional duties and
responsibilities of the Claims Examiner(s), along with procedures with respect to engaging experts and other professional advisors in discharging such duties and responsibilities. In addition, each consulting agreement will specify the fee
arrangements with the Claims Examiner(s). Each Enbridge Entity (itself or on behalf of its Related Entities, as applicable) will be responsible for reimbursing the Parent for its respective portion of Claims Examiners’ fee based on its
Allocated Recovery and/or Updated Allocated Recovery. 

  
 - 4 -

	4.2	Basic Responsibilities 

 Claims Examiners
will be responsible for the following duties in addition to any other duties Insurance Risk Management may deem appropriate from time to time: 
  

	 	(a)	reviewing all available material and information with respect to a Claim (including results from any investigations or reports conducted to date with respect to a
Claim) and establishing the applicable policy or policies providing insurance coverage under an Insurance Coverage Program for a Claim; 

  

	 	(b)	periodically update the Loss Amount, Verified Loss Amount, True-Up Loss Amount and/or Verified True-Up Loss Amount to reflect payments made by an Enbridge Entity with
respect to a Claim; 

  

	 	(c)	assisting an Enbridge Entity or Related Entity in preparing confirmation of its Loss Amount and True-Up Loss Amount, and the reports delivered in connection therewith;

  

	 	(d)	reviewing all necessary documentation to establish the eligibility and accuracy of Loss Amounts and/or True-Up Loss Amounts and preparing Verified Loss Amounts and/or
Verified True-Up Loss Amounts in connection therewith; 

  

	 	(e)	validating the accuracy of existing insurable claim amounts under Policies that are under review by the insurer, including amounts which have been partially paid for by
insurers the balance of which remain outstanding; 

  

	 	(f)	recording details of proceeds remitted by an Enbridge Entity (on behalf of itself or a Related Entity, as applicable) under Section 7.1 and providing such records
to Insurance Risk Management on a quarterly basis; 

  

	 	(g)	calculating the Allocated Recovery and/or Updated Allocated Recovery with respect to a Verified Loss Amount and/or Verified True-Up Loss Amount in accordance with
Schedule “A”; 

  

	 	(h)	preparing summary reports outlining recovery eligibility for Claims under an Insurance Coverage Program for a Coverage Year. Insurance proceeds received by an Enbridge
Entity or its Related Entities, as applicable, prior to the application of this Agreement being triggered under Section 2.1 with respect to Claims that have been resolved for a Coverage Year will be taken into account by the Claims Examiner(s)
in determining eligible amounts for recovery; and 

  

	 	(i)	reconciling and updating summary reports with final dispositions of Claims by Enbridge Entities or their respective Related Entities and/or insurer or insurers under
the relevant Insurance Coverage Program. 

  

	4.3	Reporting to Insurance Risk Management 

  

	 	(1)	Each Claims Examiner will deliver any findings, including calculations with respect to Allocated Recoveries, Updated Allocated Recoveries and Net Changes, and/or
reports prepared in connection with its duties herein to Insurance Risk Management, within a reasonable amount of time given the nature of the Claim, amount of Loss Amount and/or True-Up Loss Amount (and reports delivered by the Enbridge Entities in
connection therewith) and taking into account all events that have transpired since initiation of a Claim and/or receipt of a Loss Amount or True-Up Loss Amount. 

 

	 	(2)	Each Enbridge Entity is responsible (on its own behalf and on behalf of its Related Entities, as applicable) for notifying Insurance Risk Management and the relevant
Claims Examiner(s) of any payments made on account of a Claim. 

  
 - 5 -

 ARTICLE 5 
 METHODOLOGY FOR DETERMINING RECOVERY 
  

	5.1	Methodology for Determining Allocated Recovery 

  

	 	(1)	On a quarterly basis, the Claims Examiner(s) will calculate the Allocated Recovery for an Enbridge Entity’s Verified Loss Amount or Verified True-Up Loss Amount by
using each Enbridge Entity’s Qualified Allocated Coverage and the Total Coverage Limit to reallocate any unutilized amount of coverage in accordance with the specific processes set forth in Schedule “A”. 

 

	 	(2)	The maximum amount of proceeds each Enbridge Entity is entitled to recover (itself or on behalf of its Related Entities, as applicable) with respect to Claims under an
Insurance Coverage Program will be equal to the sum of the Qualified Allocated Coverage plus any applicable re-allocated coverage. In no event will the Allocated Recovery for an Enbridge Entity exceed the sum of its Verified Loss Amounts.

  

	 	(3)	The Allocated Recovery is subject to change as a result of Verified True-Up Loss Amounts and Updated Allocated Recoveries. 

 

	5.2	Methodology for Determining Updated Allocated Recovery 

  

	 	(1)	On a quarterly basis, a relevant Claims Examiner(s) will be responsible for calculating the Updated Allocated Recovery based on the Verified True-Up Loss Amount in
accordance with the specific processes set forth in Schedule “A” which will reflect any Net Change. In no event will the Updated Allocated Recovery for an Enbridge Entity exceed the sum of its Verified True-Up Loss Amounts.

  

	 	(2)	In the event an Enbridge Entity has incurred a Net Change in a negative amount, such Net Change will be dealt with in accordance with Section 7.1(3).

  

	5.3	Illustration 

 By way of illustration,
Schedule “B” sets forth an example of the specific processes set forth in Schedule “A” to determine Allocated Recovery and Updated Allocated Recovery using the Enbridge Entities and a illustrative Insurance Coverage Program.

  

	5.4	Deductions and Non-Insurable Loss 

 Each
Enbridge Entity or Related Entity, as applicable, is solely responsible for satisfying any deductibles or other like amounts in accordance with the terms of the applicable Insurance Coverage Program and such amounts will not form part of the
Allocated Recovery or Updated Allocated Recovery. Furthermore, in no event will Loss Amounts, Verified Loss Amounts, True-Up Loss Amounts or Verified True-Up Loss Amounts include costs or expenses incurred or reasonably expected to be incurred in
connection with non-insurable losses. 
  

	5.5	Reporting to Enbridge Entities 

 On a
quarterly basis Insurance Risk Management will be responsible for delivering the reports and/or findings of Claims Examiners, along with calculations of the Allocated Recovery and/or Updated Allocated Recovery, to the applicable Enbridge Entity.
Each Enbridge Entity will be solely responsible for delivering a copy of the foregoing materials to the affected Related Entities, if applicable. 
  

	5.6	Periodic Review 

 From time to time,
Senior Management will review the terms and conditions of this Agreement in order to determine if any changes need to be made to better reflect the intent of the Agreement. 

  
 - 6 -

 ARTICLE 6 
 COVENANTS 
  

	6.1	Covenants 

 Each Enbridge Entity covenants
and agrees that it will: 
  

	 	(1)	keep adequate records with respect to any Claims, Loss Amounts and/or True-Up Loss Amounts (including reports prepared in connection with Loss Amounts and/or True-Up
Loss Amounts) for a period of 6 years following the resolution of a Claim to which such materials relate; 

  

	 	(2)	notify Insurance Risk Management with particulars of a Claim as soon as reasonably practicable; 

 

	 	(3)	prepare and deliver Loss Amounts and/or True-Up Loss Amounts, including reports in connection therewith, in accordance with this Agreement as soon as reasonably
practicable; 

  

	 	(4)	apply the principles of this Agreement amongst its Related Entities including taking all necessary steps to cause its Related Entities to follow the principles of this
Agreement; 

  

	 	(5)	cooperate with the Parent, including Senior Management and Insurance Risk Management, and the Claims Examiner(s) after submitting a Claim, Loss Amount and/or True-Up
Loss Amount, including providing books, records and other information related 

	 	to such Claims, Loss Amount and/or True-Up Loss Amount (including materials used in preparing reports delivered in connection with a Loss Amount or True-Up Loss Amount)
and providing reasonable assistance to the relevant Claims Examiner(s) in the calculation of Verified Loss Amounts, Verified True-Up Loss Amounts, Allocated Recoveries and/or Updated Allocated Recoveries, if so requested. 

ARTICLE 7 

RECOVERY OF INSURANCE PROCEEDS 
  

	7.1	Distribution 

  

	 	(1)	To the extent an Enbridge Entity or any of its Related Entities receives insurance proceeds directly from an insurer under an Insurance Coverage Program, the affected
Enbridge Entity will notify Insurance Risk Management and the relevant Claims Examiner immediately. 

  

	 	(2)	On a quarterly basis, the relevant Claims Examiner will direct the affected Enbridge Entity, if applicable, to remit all or a portion of the proceeds it (or its Related
Entity) has received pursuant to Section 7.1(1) to other Enbridge Entities in accordance with their Allocated Recoveries and/or Updated Allocated Recoveries and the applicable entity will comply with such direction within 10 Business Days.

  

	 	(3)	In the event the Claims Examiner(s) determines (in accordance with the specific processes set forth in Schedule “A”) that an Enbridge Entity has an Updated
Allocated Recovery resulting in a negative Net Change, such Enbridge Entity will forthwith and in any event, within 10 Business Days, distribute any amounts received (by it or its Related Entities, as applicable) in excess of the Updated Allocated
Recovery to other Enbridge Entities as directed by the Claims Examiner. 

  

	 	(4)	The Claims Examiners and Insurance Risk Management will use reasonable commercial efforts to ensure the distribution and re-distribution of insurance proceeds in
connection with partial or full resolutions of Claims is completed accurately based on Allocated Recoveries and/or Updated Allocated Recoveries. Furthermore, the Claims Examiners and Insurance Risk Management will keep internal records reflecting
outstanding amounts under Allocated Recoveries and/or Updated Allocated Recoveries for each Enbridge Entity, as applicable. 

  
 - 7 -

 ARTICLE 8 
 DISPUTE RESOLUTION 
  

	8.1	Arbitration 

 An Enbridge Entity will have
up to 30 Business Days following the final determination of all Claims under an Insurance Coverage Program in a Coverage Year and distribution of insurance proceeds pursuant to Allocated Recoveries and/or Updated Allocated Recoveries in connection
therewith to provide a notice disputing any matter arising under this Agreement, including the determination of Verified Loss Amounts and/or Verified True-Up Loss Amounts and/or calculations of Allocated Recoveries and/or Updated Allocated
Recoveries (each a “Notice of Dispute”). A Notice of Dispute will set forth in reasonable detail the particulars of the dispute, and each Enbridge Entity will have the right to consult with Senior Management and the relevant Claims
Examiner(s) to discuss such Notice of Dispute. If the parties are unable to reach an agreement with respect to the disputes set forth in the Notice of Dispute, such dispute may be submitted to binding arbitration by the Enbridge Entity and settled
by arbitration in accordance with the provisions of this Section 8.1. Such arbitration will be carried out by a single arbitrator. In the event the parties are unable to agree upon an arbitrator within 20 Business Days after delivery of the
Notice of Dispute, any of them may make application to the Alberta Queen’s Bench for an arbitrator to be appointed pursuant to the Arbitration Act (Alberta). An arbitrator appointed pursuant to this Section 8.1 will review the
Notice of Dispute, and may review verification procedures with respect to Verified Loss Amounts and/or Verified True-Up Loss Amounts and calculations with respect to Allocated Recoveries and Updated Allocated Recoveries. To the extent matters under
review by the arbitrator involve decisions of the Claims Examiner(s), the arbitrator will conduct a de novo review without deference to the findings of such Claims Examiner(s) and will apply a standard of correctness. Any decision of the
arbitrator made with respect to, a dispute set forth in the Notice of Dispute or with respect to any aspect of, or any matter related to, an arbitration hereunder (including the location of the arbitration) will be made solely by the arbitrator. The
arbitrator will conduct the arbitration proceedings in relation to the dispute set forth in the Notice of Dispute before such arbitrator as set out herein and otherwise in accordance with the applicable rules of the Arbitration Act (Alberta).
All decisions of the arbitrator with respect to a dispute, other than procedural decisions will: (i) be rendered in writing if an award is made and will state the reasons on which any award is based; and (ii) promptly be provided to each
party. The decision of an arbitrator appointed under this Section 8.1 will be final and binding upon the parties and not subject to appeal. The parties agree that this Section 8.1 will be valid, enforceable and irrevocable 

  
 - 8 -

 ARTICLE 9 
 MISCELLANEOUS 
  

	9.1	Notice 

 Any demand,
notice or other communication to be given in connection with the Agreement must be given in writing and will be given by personal delivery or by electronic means of communication addressed to the recipient as follows: 

To the Parent: 

Insurance Risk Management 
 425–1 Street S.W. 
 Calgary, AB T2P 3L8 

 

					
		  	Attention:	  	Jody Balko, VP, Enterprise Risk and Investor Relations
		  	Facsimile No.:	  	(403) 231-5780
		  	Email:	  	jody.balko@enbridge.com
			
		  	To EEP:	  	
			
		  	1100 Louisiana Street	  	
		  	Suite 3300	  	
		  	Houston, TX 77002	  	
			
		  	Attention:	  	Chris Kaitson, VP, U.S. Law & Deputy General Counsel
		  	Facsimile No.:	  	(713) 821-2229
		  	Email:	  	chris.kaitson@enbridge.com
			
		  	To EIFH:	  	
			
		  	3000, 425 –1st Street SW	  	
		  	Calgary, AB T2P 3L8	  	
			
		  	Attention:	  	Debra Poon, Corporate Secretary
		  	Facsimile:	  	(403) 231-7380
		  	Email:	  	debra.poon@enbridge.com

 or to such other street address, individual or electronic communication number or address as may be designated by notice
given by either party to the other. Any demand, notice or other communication given by personal delivery will be conclusively deemed to have been given on the day of actual delivery thereof and, if given by electronic communication, on the day of
transmittal thereof if given during the normal business hours of the recipient and on the Business Day during which such normal business hours next occur if not given during such hours on any day. 

 

	9.2	Waiver 

 Nothing in this Agreement shall
constitute a waiver of privilege by any Enbridge Entity or its Related Entities. In fulfilling their obligations under this Agreement, each party will take appropriate steps necessary to preserve privilege and any actions or discussions taken in
connection with this Agreement shall not vitiate privilege. Each Enbridge Entity, its Related Entities, Insurance Risk Management and the Claims Examiners will hold information provided in connection with the application of this Agreement in the
strictest of confidence and will not disclose to anyone or use for any purpose any confidential information concerning this Agreement, other than for the purpose of fulfilling the terms of this Agreement. 

 

	9.3	Time 

 Time will be of the essence of this
Agreement and will remain of the essence notwithstanding the extension of any of the dates hereunder. 

  
 - 9 -

	9.4	Governing Law 

 This Agreement and all
matters arising hereunder will be governed by and construed in accordance with the laws of the Province of Alberta and the laws of Canada applicable therein. 
  

	9.5	Entire Agreement 

 This Agreement, the
Insurance Programs and the agreements, instruments and other documents entered into pursuant to this Agreement (including consulting agreements entered into between the Parent and each Claims Examiner) set forth the entire agreement and
understanding of the parties with respect to the matters set forth herein and supersede all prior agreements and understandings among the parties with respect to the matters herein and there are no oral or written agreements, promises, warranties,
terms, conditions, representations or collateral agreements whatsoever, express or implied, other than those contained in this Agreement. Notwithstanding the foregoing, nothing contained in this Agreement will limit, narrow or otherwise affect any
stand-alone insurance policy an Enbridge Entity currently has or may obtain and/or maintain in the future. 
  

	9.6	Amendment 

  

	 	(1)	Subject to Section 9.6(2) and Section 9.6(3), this Agreement may be altered or amended only by an agreement in writing signed by the Enbridge Entities.

  

	 	(2)	The Parent may, acting reasonably, amend this Agreement without the consent of the other Enbridge Entities to: 

 

	 	(a)	remove any conflicts or other inconsistencies which may exist between any terms of this Agreement and any provisions of any applicable law or regulation;

  

	 	(b)	make any change or correction in this Agreement which is of a typographical nature or is required to cure or correct any ambiguity or defective or inconsistent
provision, clerical omission, mistake or manifest error contained therein; and 

  

	 	(c)	bring this Agreement into conformity with applicable laws, rules and policies of governmental authorities. 

 

	 	(3)	Upon providing at least 60 days written notice prior to the end of a Coverage Year, the Parent may amend, acting reasonably, the methodology and specific processes set
forth in Article 5 and Schedule A hereto (the “New Methodology”) in connection with a new Coverage Year to better reflect the intent of this Agreement. Each Enbridge Entity is responsible for communicating any changes contemplated
in this Section 9.6(3) to its Related Entities, as applicable. Upon receiving notice of any such amendment by the Parent, each Enbridge Entity may remain bound by this Agreement or may elect, upon providing written notice to the Parent prior to the
commencement of such new Coverage Year, to terminate this Agreement with respect to an Insurance Coverage Program that will use the New Methodology. 

  

	9.7	Termination 

 In the event that an
Enbridge Entity provides notice to terminate this Agreement pursuant to Section 9.6(3), such Enbridge Entity will no longer participate in the Insurance Programs effective on the earlier of: (i) 90 days following the date the Enbridge Entity
provides such notice; or (ii) the date on which the Enbridge Entity establishes an independent insurance program. 
  

	9.8	Further Assurances 

 The principles in
this Agreement are meant to apply to each Related Entity and any company in which a Related Entity has an insurable interest, including, where a Related Entity acts in a joint venture capacity and has any responsibilities with respect to obtaining
and/or maintaining insurance. Accordingly, each of the Enbridge 

  
 - 10 -

 
Entities will, and will cause its Related Entities to, upon reasonable request by Insurance Risk Management, do, execute and deliver all further assurances, acts and documents for the purpose of
evidencing and giving full force and effect to the covenants, agreements and provisions in this Agreement. 
  

	9.9	Binding Effect 

 This Agreement will enure
to the benefit of and be binding upon the successors and permitted assigns of the parties, as applicable. 
  

	9.10	Independent Legal Advice 

 Each of the
Enbridge Entities acknowledges that it has read and understands the terms and conditions of this Agreement and acknowledges and agrees that it has had the opportunity to seek independent legal advice before execution of this Agreement and that , if
it did avail itself of such opportunity prior to entering into this Agreement, it did so voluntarily. Each of the Enbridge Entities further agrees that any failure to obtain independent legal advice will not be used by it as a defence to the
enforcement of its obligations under this Agreement. 
  

	9.11	Counterparts 

 This Agreement may be
executed in any number of counterparts, each of which will be deemed to be an original and all of which taken together will be deemed to constitute one and the same instrument. 

 

	9.12	Electronic Execution 

 Delivery of an
executed signature page to this Agreement by any party by electronic transmission will be as effective as delivery of a manually executed copy of this Agreement by such party. 
 [signature page follows] 

  
 - 11 -

 IN WITNESS WHEREOF the Enbridge Entities have executed this Agreement on the date first above written.

  

			
	ENBRIDGE INC.
		
	Per:	 	/s/ JODY BALKO
		 	Authorized Signatory

  

			
		
	Per:	 	/s/ J. RICHARD BIRD
		 	Authorized Signatory

 ENBRIDGE ENERGY PARTNERS, L.P., ENBRIDGE ENERGY MANAGEMENT L.L.C., as delegate of its general partner, ENBRIDGE ENERGY
COMPANY, INC., 
  

			
	Per:	 	/s/ TERRANCE MCGILL
		 	Authorized Signatory

  

			
	ENBRIDGE INCOME FUND HOLDINGS INC.
		
	Per:	 	/s/ COLIN GRUENDING
		 	Authorized Signatory

  
 - 12 -

 SCHEDULE “A” 

PROCEDURES FOR DETERMINING RECOVERY 
 Part I – Allocated Recovery 
 The following is the procedure for calculating the
Allocated Recovery for affected Enbridge Entities. For ease of reference, Schedule “B” contains an example using numerical figures with respect to such procedures. 

 

	1.	Determine the qualified allocated coverage (the “Qualified Allocated Coverage”) for each Enbridge Entity, as applicable, with respect to a Claim by
multiplying such Enbridge Entity’s Insurance Cost Allocation Percentage by the Total Coverage Limit. Notwithstanding the foregoing, in no event will the maximum amount of coverage attributed to an Enbridge Entity exceed the aggregate Verified
Loss Amounts in respect of such Enbridge Entity. 

  

	2.	Determine the aggregate unutilized allocated coverage (the “Unutilized Allocated Coverage”) by subtracting the aggregate Qualified Allocated Coverage
from the Total Coverage Limit. 

  

	3.	If the Unutilized Allocated Coverage is greater than 0, proceed to determine the re-allocated unutilized coverage (the “Re-Allocated Unutilized
Coverage”) for each Enbridge Entity if such Enbridge Entity’s Qualified Allocated Coverage is less than its aggregate Verified Loss Amounts by multiplying the Enbridge Entity’s Insurance Cost Allocation Percentage (as adjusted
after excluding any Enbridge Entity whose Qualified Allocated Coverage is more than its aggregate Verified Loss Amounts) by the Unutilized Allocated Coverage. Notwithstanding the foregoing, in no event will sum of the Qualified Allocated Coverage
and the Re-Allocated Unutilized Coverage for any Enbridge Entity be in an amount greater than the aggregate Verified Loss Amounts in respect of such Enbridge Entity. 

 

	4.	Determine the remaining unutilized coverage (the “Remaining Unutilized Coverage”) by subtracting the aggregate Qualified Allocated Coverage and the
aggregate Re-Allocated Unutilized Coverage from the Total Coverage Limit. 

  

	5.	If the Remaining Unutilized Coverage is greater than 0, proceed to determine the first additional re-allocated unutilized coverage (the “First Additional
Re-Allocated Unutilized Coverage”) for each Enbridge Entity if such Enbridge Entity’s Qualified Allocated Coverage and Re-Allocated Unutilized Coverage are less, in aggregate, than its aggregate Verified Loss Amounts by multiplying
such Enbridge Entity’s Insurance Cost Allocation Percentage (as adjusted after excluding any Enbridge Entity whose Qualified Allocated Coverage taken together with its Re-Allocated Unutilized Coverage is more than its aggregate Verified Loss
Amounts) by the Unutilized Allocated Coverage. Notwithstanding the foregoing, in no event will the sum of the Qualified Allocated Coverage, the Re-Allocated Unutilized Coverage and the First Additional Re-Allocated Unutilized Coverage for any
Enbridge Entity be in an amount greater than the aggregate Verified Loss Amounts in respect of such Enbridge Entity. 

  

	6.	Confirm the Remaining Unutilized Coverage is Zero by subtracting the aggregate Qualified Allocated Coverage and the aggregate Re-Allocated Unutilized Coverage and the
aggregate First Additional Re-Allocated Unutilized Coverage from the Total Coverage Limit. 

  

	7.	Determine the allocated recovery (the “Allocated Recovery”) for each Enbridge Entity with respect to its aggregate Verified Loss Amounts by totalling
the sum of such Enbridge Entity’s 

 Qualified Allocated Coverage, Re-Allocated Unutilized Coverage and First Additional
Re-Allocated Unutilized Coverage. 

 Part II – Updated Allocated Recovery 

In the event Verified True-Up Loss Amounts are prepared, the specific processes described in Part I of this Schedule “A” shall be used to
determine Qualified Allocated Coverage, Unutilized Allocated Coverage and Remaining Unutilized Coverage using Verified True-Up Loss Amounts in place of Verified Loss Amounts. 

 

	1.	Determine the qualified allocated coverage (the “Qualified Allocated Coverage”) for each Enbridge Entity, as applicable, with respect to a Claim by
multiplying such Enbridge Entity’s Insurance Cost Allocation Percentage by the Total Coverage Limit. Notwithstanding the foregoing, in no event will the maximum amount of coverage attributed to an Enbridge Entity exceed the aggregate Verified
True-Up Loss Amounts in respect of such Enbridge Entity. 

  

	2.	Determine the aggregate unutilized allocated coverage (the “Unutilized Allocated Coverage”) by subtracting the aggregate Qualified Allocated Coverage
from the Total Coverage Limit. 

  

	3.	If the Unutilized Allocated Coverage is greater than 0, proceed to determine the re-allocated unutilized coverage (the “Re-Allocated Unutilized
Coverage”) for each Enbridge Entity if such Enbridge Entity’s Qualified Allocated Coverage is less than its aggregate Verified True-Up Loss Amounts by multiplying the Enbridge Entity’s Insurance Cost Allocation Percentage (as
adjusted after excluding any Enbridge Entity whose Qualified Allocated Coverage is more than its aggregate Verified True-Up Loss Amounts) by the Unutilized Allocated Coverage. Notwithstanding the foregoing, in no event will sum of the Qualified
Allocated Coverage and the Re-Allocated Unutilized Coverage for any Enbridge Entity be in an amount greater than the aggregate Verified True-Up Loss Amounts in respect of such Enbridge Entity. 

 

	4.	Determine the remaining unutilized coverage (the “Remaining Unutilized Coverage”) by subtracting the aggregate Qualified Allocated Coverage and the
aggregate Re-Allocated Unutilized Coverage from the Total Coverage Limit. 

  

	5.	If the Remaining Unutilized Coverage is greater than 0, proceed to determine the first additional re-allocated unutilized coverage (the “First Additional
Re-Allocated Unutilized Coverage”) for each Enbridge Entity if such Enbridge Entity’s Qualified Allocated Coverage and Re-Allocated Unutilized Coverage are less, in aggregate, than its aggregate Verified True-Up Loss Amounts by
multiplying such Enbridge Entity’s Insurance Cost Allocation Percentage (as adjusted after excluding any Enbridge Entity whose Qualified Allocated Coverage taken together with its Re—Allocated Unutilized Coverage is more than its aggregate
Verified True-Up Loss Amounts) by the Unutilized Allocated Coverage. Notwithstanding the foregoing, in no event will the sum of the Qualified Allocated Coverage, the Re-Allocated Unutilized Coverage and the First Additional Re-Allocated Unutilized
Coverage for any Enbridge Entity be in an amount greater than the aggregate Verified True-Up Loss Amounts in respect of such Enbridge Entity. 

  

	6.	Confirm the Remaining Unutilized Coverage is Zero by subtracting the aggregate Qualified Allocated Coverage and the aggregate Re-Allocated Unutilized Coverage and the
aggregate First Additional Re-Allocated Unutilized Coverage from the Total Coverage Limit. 

  

	7.	Determine the updated allocated recovery (the “Updated Allocated Recovery”) for each Enbridge Entity with respect to its aggregate Verified True-Up
Loss Amounts by totalling the sum of such Enbridge Entity’s Qualified Allocated Coverage, Re-Allocated Unutilized Coverage and First Additional Re-Allocated Unutilized Coverage. 

 

	8.	Determine the net change in each Enbridge Entity’s Allocated Recovery by subtracting the Allocated Recovery from the Updated Allocated Recovery (the “Net
Change”). 

  
 A-2

 SCHEDULE “B” 

ILLUSTRATION 
 Part
I – Allocated Recovery 
  

									
	Insurance Coverage Program 	  	—	  	Liability	  		  	
	Total Coverage Limit	  	—	  	$660 million	  		  	
	Coverage Year	  	—	  	May 2012 – April 2013	  		  	

  

			
	 Business
	  	 Verified Loss Amounts

	 EEP
	  	$300 million
	 EIFH
	  	$150 million
	 Parent
	  	$250 million
	 Total
	  	 $700 million ($40million
 over Total Coverage
 Limit)

  

	1.	Determine Qualified Allocated Coverage. 

  

											
	 Enbridge Entity
	  	Insurance Cost
Allocation Percentage	 	 	  	 Total Coverage Limit
	  	 	  	 Qualified Allocated

Coverage

	 EEP
	  	30%	 		  	$660 million	  		  	$198 million
	 EIFH
	  	5%	 	X	  	  	=	  	$33 million
	 Parent
	  	65%	 		  	  		  	 $429 million but
 capped at $250 million

	  	 		  	  		  

  

	2.	Determine Unutilized Allocated Coverage by subtracting the aggregate Qualified Allocated Coverage from the Total Coverage Limit. 

$660 million – ($198 million + $33 million + $250 million) = $179 million 

 

	3.	Determine the Re-Allocated Unutilized Coverage. 

  

															
	 Enbridge Entity
	  	Insurance Cost
Allocation Percentage	 	 	 	  	 Unutilized Allocated
Coverage
	 	 	 	  	 Re-Allocated Unutilized
Coverage

	 EEP
	  	 	86	% 	 	X	  	$179 million	 	 	=	  	  	$154 million but capped at $102 million
	 EIFH
	  	 	14	% 	 		  	 				  	$25 million

  

	4.	Determine the Remaining Unutilized Coverage, if any. 

 $660 million – ($198 million + $33 million + $250 million) – ($102 million + $25 million) = $52 million 
  

	5.	Determine the First Additional Re-Allocated Unutilized Coverage, if any. 

  

															
	 Enbridge Entity
	  	Insurance Cost
Allocation Percentage	 	 	 	 	  	 Unutilized

Allocated Coverage
	  	First Additional Re-
Allocated Unutilized
Coverage	 
	 EIFH
	  	 	100	% 	 	 	X	  	  	$52 million	  	$	52 million	  

  

	6.	Determine the Remaining Unutilized Coverage, if any. 

 $660 million – ($198 million + $33 million + $250 million) – ($102 million + $25million) – ($52) = 0 

	7.	Determine the Allocated Recovery. 

  

																					
	 Enbridge Entity
	  	 Qualified Allocated
Coverage
	 	 	 	  	Re-allocated
Unutilized
Coverage	 	 	 	  	First
Additional Re-
Allocated
Unutilized
Coverage	 	 	 	  	Allocated Recovery
	 EEP
	  	$198 million	 				  	$102 million	 				  	Nil	 				  	$300 million
	 EIFH
	  	$33 million	 	 	+	  	  	$25 million	 	 	+	  	  	$52 million	 	 	=	  	  	$110 million
	 Parent
	  	$250 million	 				  	Nil	 				  	Nil	 				  	$250 million

 Part II – Updated Allocated Recovery 
 The following builds on the example in the first illustration with respect to the specific processes set forth in Schedule “A” with respect to calculating the Updated Allocated Recovery.

  

					
	 Enbridge

Entity
	  	 Verified Loss

Amounts
	  	Verified True-Up 
Loss
Amounts
	 EEP
	  	$300 million	  	$350 million
	 EIFH
	  	$150 million	  	$100 million
	 Parent
	  	$250million	  	$220 million
	 Total
	  	$700 million	  	$670 million ($10 million over
 Total Coverage Limit)

  

	1.	Determine the Qualified Allocated Coverage. 

  

											
	 Enbridge Entity
	  	Insurance Cost
Allocation Percentage	 	 	  	 Total

Coverage

Limit
	  	 	  	 Qualified Allocated Coverage

	 EEP
	  	30%	 		  		  		  	$198 million
	 EIFH
	  	5%	 	X	  		  	=	  	$33 million
	 Parent
	  	65%	 		  	$660 million	  		  	$429 million but capped at $220 million

  

	2.	Determine the Unutilized Allocated Coverage. 

 $660 million – ($198 million + $33 million + $220 million) = $209 million 
  

	3.	Determine Re-Allocated Unutilized Coverage, if any. 

  

											
	 Enbridge Entity
	  	Insurance Cost
Allocation
Percentage	 	 	  	 Unutilized Allocated

Coverage
	  	 	  	 Re-Allocated Unutilized
Coverage

	 EEP
	  	86%	 	X	  	$209 million	  	=	  	 $180 million but
 capped at $152
 million

	 EIFH
	  	14%	 		  		  		  	$29 million

  

	4.	Determine Remaining Unutilized Coverage, if any. 

 $660 million – ($198 million + $33 million + $220 million) – ($152 million + $29 million) = 
 $28 million 

	5.	Determine the First Additional Re-Allocated Unutilized Coverage, if any. 

  

									
	 Enbridge Entity
	  	Insurance Cost
Allocation
Percentage	 	 	  	 Unutilized Allocated

Coverage
	  	Additional
Re-Allocated 
Unutilized
Coverage
	 EIFH
	  	100%	 	X	  	$28 million	  	$28 million

  

	6.	Determine Remaining Unutilized Coverage if any 

 $660 million – ($198 + $33 million + $220 million) – ($152 million + $29 million ) – $28 
 million = 0 
  

	7.	Determine the Updated Allocated Recovery. 

  

																					
	 Enbridge

Entity
	  	 Qualified Allocated
Coverage
	 	 	 	  	Re-allocated
Unutilized
Coverage	 	 	 	  	First
Additional
Re-Allocated
Unutilized
	 	 	 	  	Updated
Allocated
Recovery
	 EEP
	  	$198 million	 				  	$152 million	 				  	Nil	 				  	$350 million
	 EIFH
	  	$33 million	 	 	+	  	  	$29 million	 	 	+	  	  	$28 million	 	 	=	  	  	$90 million
	 Parent
	  	$220 million	 				  	Nil	 				  	Nil	 				  	$220 million

  

	8.	Determine the Net Change. 

  

											
	 Enbridge

Entity
	  	Allocated
Recovery	 	  	 Updated

Allocated
 Recovery
	 	  	Net Change
	 EEP
	  	$	300 million	  	  	$	350 million	  	  	$50 million
	 EIFH
	  	$	110 million	  	  	$	90 million	  	  	(-$20 million)
	 Parent
	  	$	250 million	  	  	$	220 million	  	  	(-$30 million)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]