Document:

Exhibit 10.4

 

COMMERCIAL PAPER DEALER AGREEMENT

[4(2) PROGRAM]

 

between

 

ENBRIDGE ENERGY PARTNERS, L.P., as Issuer

 

and

 

MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED

and

MERRILL LYNCH MONEY MARKETS INC.,

as Dealers

 

 

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.”

 

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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.

 

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(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

 

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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 payment 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 consensual mortgage, lien 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,

 

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or any order, 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 subsidiaries taken
as a whole or the ability of the Issuer to perform its 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 subsidiaries taken
as a whole or the ability of the Issuer to perform its 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 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.

 

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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,

 

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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 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

 

9

 

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 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.

 

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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.

 

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.

 

11

 

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:

  
	
   

  	
   

  
	
   

  	
  MERRILL
  LYNCH, PIERCE, FENNER & SMITH

  
	
   

  	
  INCORPORATED,

  
	
   

  	
   

  	
  as
  Dealer

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  MERRILL
  LYNCH MONEY MARKETS INC.,

  
	
   

  	
   

  	
  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) Banc
of America Securities LLC; (ii) Deutsche Bank Securities Inc.; and (iii) Goldman,
Sachs & Co.

 

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,
  Cash Management and Banking

  
	
   

  	
  Telephone
  number:

  	
   

  	
  (403) 231-5917

  
	
   

  	
  Fax number:

  	
   

  	
  (403) 231-4848

  
	
   

  	
   

  	
   

  	
   

  
	
  For
  the Dealer:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
  600 Montgomery
  Street

  
	
   

  	
   

  	
   

  	
  CA5-801-08-47

  
	
   

  	
   

  	
   

  	
  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

  Yield= 

  	
   

  	
  D x 360

  	
   

  	
  x 100

  
	
   

  	
  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

  Yield=

  	
   

  	
  D x N

  	
   

  	
   x 100

  
	
   

  	
  360 - (D x M)

  	
   

  

 

23

 

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 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]

 

[Names 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 consensual mortgage, lien 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]

 

28Exhibit 10.5

 

COMMERCIAL PAPER

ISSUING AND PAYING AGENT AGREEMENT

(Book-Entry and Obligations

Using DTC Facilities

and Physical
Notes)

 

THIS AGREEMENT (“Agreement”)
dated as of April 21, 2005 (“Effective Date”),
is entered into by and between ENBRIDGE ENERGY PARTNERS,
L.P., a Delaware limited partnership (the “Issuer”)
with offices at 1100 Louisiana, Suite 3300, Houston, Texas, 77002 and
DEUTSCHE BANK TRUST COMPANY AMERICAS
(the “Bank”) with offices at 60
Wall St, 27th Floor, New York, New York 10005.

 

Section 1.              Appointment

 

The Issuer requests and
authorizes the Bank to act as agent for the Issuer in connection with the
issuance and payment of unsecured (a) book-entry obligations (each an “Obligation” and collectively the “Obligations”) as evidenced by Master
Note Certificate(s) (the “Note Certificate(s)”)
and (b) bearer short term promissory notes of the Issuer (each a “Note” and collectively the “Notes”), both (a) and (b) in
the forms appended hereto in Exhibit A.  The Bank agrees to act as such agent for the
Issuer subject to the provisions of this Agreement commencing on the Effective
Date shown above.

 

Insofar as the context
requires, all references herein to an Issuer’s “Obligation”
shall be deemed to include the Issuer’s Note, and all references herein to an
Issuer’s “Obligations” or “Book-entry Obligations” shall be
deemed to include the Issuer’s Notes.

 

Section 2.              Certificate Agreement

 

The Issuer acknowledges
that the Bank has previously entered into a commercial paper certificate
agreement (as amended or otherwise modified and currently in effect, the “Certificate Agreement”) which copy
is appended hereto as Exhibit C, with the Depository Trust Company
(“DTC”), and the Issuer also
acknowledges that the continuation in effect of the Certificate Agreement is a
necessary prerequisite to the Bank’s providing services related to issuance of
the Obligations.  The Issuer understands
and agrees that the Certificate Agreement shall supplement the provisions of
this Agreement and that the Issuer and the provisions of this Agreement are
subject to the provisions of the Certificate Agreement.

 

Section 3.              Letter of Representations;
Resolutions; Authorized Officers

 

The Issuer will, prior to
the Effective Date, deliver to the Bank an executed Letter of Representations
(the “Representations”), a copy of
which is appended hereto as Exhibit D. Further, the Issuer
understands and agrees that such Representations when executed by the Issuer,
the Bank and DTC shall supplement the provisions of this Agreement and that the
Issuer, the Bank, and DTC shall be bound by the provisions of the
Representations.  The Bank and the Issuer
agree to comply with the relevant portions of DTC’s Commercial Paper Issuing
and Paying Agent Manual, and the DTC Same Day Settlement System Rules (collectively
the “DTC Rules”).

 

 

The Issuer has delivered
to the Bank (a) a certified copy of the resolutions adopted by the Board
of Directors of the Issuer concerning the issuance of Obligations by the Issuer
(the “Resolutions”), which copy is
appended to Exhibit B, and (b) a certification (the “Certificate of Incumbency”)
containing the name, title, and true signature of those officers of the Issuer
authorized by the Resolutions to take action with respect to the Obligations
(the “Authorized Officers”), which
certification is set forth in Exhibit B.  The Issuer agrees to provide the Bank with
revised certified Resolutions and/or Certificates of Incumbency when and as
required by changes in authorization of personnel.

 

Section 4.              Authorized Persons

 

The Issuer authorizes the
Bank to accept and to execute Instructions, as defined in and  given pursuant to Section 6
hereof by any one of the employees, representatives and/or “Agents” (defined as sales agents or
dealers authorized by a separate agreement between the Issuer and its sales
agents or dealers) of the Issuer who are designated in a writing that is signed
by the requisite number of Authorized Officers. 
Such designated employees or Agents shall be hereinafter collectively
referred to as “Authorized Persons”. The
initial written designation of Authorized Person(s) is set forth in Exhibit B.  The Issuer agrees to provide the Bank with
revised written designations in the form of Exhibit B when and as
required by changes in authorization or personnel.

 

Section 5.              Note Certificates

 

(X)          Book entry Obligations:

 

The
Issuer will, prior to the Effective Date, deliver to the Bank a Note
Certificate evidencing Obligations issued, such Note Certificate bearing the
manual or facsimile signatures of the requisite number of Authorized Officers
and specifying the date of issuance, the full legal name of the Issuer, the
name of the state in which the Issuer is incorporated or formed (as applicable),
and the name of the Bank, acting as paying agent for the Issuer, in each case
the Note Certificate being registered in the name of Cede & Co., a
nominee of DTC.

 

(Y)           Physical Notes and Signature Stamps:

 

For
use as described in Section 7 hereof, the Issuer will, at its
election, (a) deliver to the Bank a supply of the Issuer’s sequentially
numbered, blank Notes bearing the manual or facsimile signatures of the
requisite number of Authorized Officers and having spaces to show the face or
principal amount, payee, date of issue, maturity date and amount of interest
(if an interest bearing Note), and/or (b) authorize the Bank to use the
Bank’s commercial paper universal note stock, which has spaces to show the face
or principal amount, payee, date of issue, maturity date, amount of interest
(if an interest bearing Note) and signature(s) of the Authorized Officers.  If the Issuer elects (b), or if the Notes
described in (a) do not bear such signature(s) when delivered to the Bank,
then the Issuer will, at its election, deliver to the Bank for each signature
required to be placed on the Notes either an electronic image of the requisite
signature or a stamp bearing the facsimile signature of an Authorized Officer.

 

2

 

(Z)           Book Entry Obligations, Physical Notes
and Signature Stamps:

 

Any
Obligation (as evidenced by the Note Certificate or Note bearing the manual or authorized
facsimile signature of an Authorized Officer) shall, upon the Bank’s issuance
of such Obligation on behalf of the Issuer, bind the Issuer notwithstanding
that such Authorized Officer shall have died or shall have otherwise ceased to
hold office on the date such Obligation is issued by the Bank.  Furthermore, the Issuer agrees that the Bank
shall have no duty or responsibility to determine the genuineness of the facsimile
and/or manual signatures appearing on the Note Certificate(s), Notes or stamps
but the foregoing shall not excuse the Bank from examining, and the Bank shall
examine, its signature cards to determine that signers are authorized and their
signatures do not appear on their face to be incorrect or incomplete.

 

Section 6.              Instructions

 

The term “Instructions” shall mean a
communication, purporting to be from an Authorized Officer or Authorized
Person, in the form of either (a) a written notice including those
transmitted through facsimile transmittal equipment; (b) a telephone call;
and/or (c) a transmission through an instruction and reporting
communication service (“Noteline Direct”)
offered by the Bank pursuant to Section 10 hereof, and the term “Timely Instructions” means
Instructions that are received by the Bank at the address specified in Section 15
prior to 1:00 p.m. New York time on the day on which such
Instructions are to be operative, which shall be a day the Bank is open for
business.

 

If the Bank, at its
option, acts upon Instructions transmitted after 1:00 p.m. New York time
on the day on which the Instructions are to be operative, the Issuer
understands and agrees that (a) such Instructions shall be acted upon, on
a best efforts basis, by the Bank pursuant to the custom and practice of the
commercial paper market, and (b) the Bank makes no representations or
warranties that the issuance and delivery of any Note or Obligation pursuant to
Section 7 hereof shall be completed prior to the close of business
on the issue date specified in the Instructions.

 

Any Timely Instructions
given by telephone shall be confirmed to the Bank in a writing purporting to be
from an Authorized Officer or Authorized Person prior to 1:00 p.m. New York time on the day on which such Instructions are to be
operative.  In the absence of the
Bank’s timely receipt of such written confirmation or in the event the Bank
acts upon Instructions received after 1:00 p.m. New York time on the day
on which the Instructions are to be operative, the Issuer understands and
agrees that such Instructions given by telephone or received after the
aforementioned 1:00 p.m. New York time, as understood by the Bank, shall
be the true and controlling Instructions for all purposes of this Agreement.

 

Notwithstanding anything
to the contrary in this Section 6, the Issuer acknowledges that the
Bank may act upon the Instructions without any duty to make any inquiry
regarding the genuineness of such Instructions.

 

Section 7.              Issuance

 

(X)          Book Entry Obligations:

 

3

 

The
Bank’s sole duties in connection with the issuance of the Obligations when the
Issuer delivers the Note Certificate(s) to the Bank in the form described in Section 5(X)
herein, shall be as follows:

 

(a)           to hold Note
Certificates in safekeeping;

 

(b)           to assign to each applicable Instruction received from the
Issuer a CUSIP number as specified in and in accordance with the CUSIP number
assignment received by the Bank from the Issuer;

 

(c)           to cause to deliver an Obligation on behalf of the Issuer
upon receipt of the related Instructions from the Issuer, or its designated
agent(s), as to the face or principal amount, net dollar amount, date of issue,
maturity date, interest rate (if any), and amount of interest due at maturity
(if an interest bearing Obligation), by way of data entry or data transfer to
the DTC Same Day Funds Settlement System (“SDFS”), and
to receive from SDFS a confirmation receipt that such delivery was effected;
and

 

(d)           to credit the net
proceeds of all deliveries of the Obligations to the Issuer’s account with the
Bank (Account No. 00-445-659) under advice to the Issuer at the address
specified in Section 15 hereof.

 

Y.            Physical Notes:

 

The
Bank’s sole duties in connection with the issuance of the Notes if the Issuer
delivers a supply of the Issuer’s blank Notes to the Bank or uses the Bank’s
commercial paper universal note stock pursuant to Section 5(Y) hereof
shall be as follows:

 

(a)           to hold the blank Notes
in safekeeping, pending receipt of the Issuer’s Instructions;

 

(b)           to complete each Note pursuant to the applicable Instructions
as to the face or principal amount, net dollar amount, payee (which shall be “BEARER”
unless otherwise specified in the Instructions), date of issue, maturity date,
interest rate (if any) and amount of interest due at maturity (if an interest
bearing Note);

 

(c)           to cause a duly
authorized officer or duly authorized employee of the Bank to countersign each
Note for purposes of authentication of the Note only;

 

(d)           to deliver the Notes in accordance with the related Instructions
(i) by hand, against receipt for payment or (ii) as otherwise
provided in the related Instructions; and

 

(e)           to credit the net
proceeds of all deliveries of Notes to the Issuer’s account with the Bank
(Account No. 00-445-659) under advice to the Issuer at the address
specified in Section 15 hereof.

 

The
Bank’s additional duties in connection with the issuance of the Notes when the
Issuer delivers facsimile signature stamps to the Bank pursuant to Section 5(Y)
hereof shall be as follows:

 

4

 

(f)            to hold the facsimile signature stamps delivered pursuant
to Section 5(Y) hereof in safekeeping pending receipt of the Issuer’s
Instructions; and

 

(g)           to apply the facsimile
signature stamp(s) to the Notes pursuant to the Instructions.

 

Z.            Book Entry Obligations and Physical Notes:

 

The
Issuer acknowledges that pursuant to the custom and practice of the commercial
paper market, the delivery or mailing of an Obligation against payment of the
net amount of the Obligation (i.e., the principal amount of the Obligation less
the discount specified in the Instructions or the principal amount of an
interest bearing Obligation) and the actual receipt of payment thereof are not
simultaneous transactions.

 

Therefore,
whenever the Instructions direct the Bank to deliver any Obligation against
payment, the Bank is authorized to and will deliver such Obligation to the
party specified in the Instructions and hold as receipt a confirmation copy
generated by SDFS (in the case of Book Entry transactions), or (a) the
receipt of the party specified in the Instructions or (b) the United
States Post Office’s registered mail (both (a) and (b) in the case of
physical Notes) in lieu of immediate payment by the purchaser of the Obligation
(the “Purchaser”).  The Issuer also acknowledges that pursuant to
the custom and practice of the commercial paper market, the Purchaser is
obligated to settle in immediately available funds at or before the close of
business on the Issue Date specified on the Obligation.  The Issuer understands and agrees that
whenever the Bank delivers an Obligation against receipt of funds as set forth
above, the Issuer and not the Bank shall bear the risk of the Purchaser’s
failure to remit the net amount of the Obligation purchased, and of the loss or
theft of Notes after such Notes are placed in the United States mail.

 

The
Bank shall have no duty or responsibility to make any transfer of the proceeds
of the sale of the Issuer’s Obligations, or to advance any monies or effect any
credit with respect to such proceeds or transfers unless and until the Bank has
actually received the proceeds of the sale of the Obligations.  Upon such receipt, the Bank shall immediately
credit the Issuer’s account with the Bank (Account No. 00-445-659) with
such proceeds unless at the time of such crediting, the Issuer has advised the
Bank, in writing, that the receipt of such proceeds is subject to reversal or
cancellation.  If the Bank, at its sole
option, effects any such transfer that results in an overdraft in any account
of the Issuer, the amount of such overdraft shall be considered as a loan to
the Issuer, and the Issuer agrees to pay the Bank on demand the amount of such
loan together with interest thereon at the rate customarily charged by the Bank
on similar loans.

 

Section 8.              Payment

 

Bank’s sole duties in
connection with payment of the Obligations shall be, upon presentment at
maturity of an issued Obligation, to pay the principal amount of a discounted
Obligation or principal plus interest of an interest-at-maturity Obligation  to the
party appearing to be entitled thereto, and to debit the Issuer’s account with
the Bank (Account No. 00-445-659) for such amount under advice to the
Issuer at the address specified in Section 15 hereof.

 

5

 

The Bank shall have no
obligation to pay, at maturity, the amount referred to in this Section 8
unless sufficient funds have been received by the Bank in collected funds.  If the Bank, at its sole option, makes any
such payment that results in an overdraft in any account of the Issuer, the
amount of such overdraft shall be considered a loan to the Issuer, and the
Issuer agrees to pay the Bank on demand the amount of such loan together with
interest thereon at the rate customarily charged by the Bank on similar loans.

 

Section 9.              United States Dollars

 

The Issuer agrees that
the Obligations issued or presented hereunder shall be denominated in United
States dollars.  The Issuer further
agrees that payment of any and all amounts due pursuant to the provisions of
this Agreement shall be made solely in United States dollars.

 

Section 10.            Noteline Direct

 

The Issuer is granted a
personal, non-transferable and non-exclusive right to use the instruction and
reporting communication service Noteline Direct to transmit through the
Noteline Direct system Instructions made pursuant to Section 6
hereof. The Issuer may, by separate agreement between the Issuer and one or
more of its Agents, authorize the Agent (in each case other than the Bank) to
directly access Noteline Direct for the purposes of transmitting Instructions
to the Bank or obtaining reports with respect to the Obligations.

 

The Issuer acknowledges
that (a) some or all of the services utilized in connection with Noteline
Direct are furnished by Financial Sciences Corporation (“FSC”),
(b) Noteline Direct is provided to the Issuer “AS IS”
without warranties or representations of any kind whatsoever by FSC or the
Bank, and (c) Noteline Direct is proprietary and confidential property
disclosed to the Issuer in confidence and only on the terms and conditions and
for purposes set forth in this Agreement.

 

By this Agreement, the
Issuer acquires no title, ownership or sublicensing rights whatsoever in
Noteline Direct or in any trade secret, trademark, copyright or patent of the
Bank or FSC now or to become applicable to Noteline Direct.  The Issuer may not transfer, sublicense,
assign, rent, lease, convey, modify, translate, convert to a programming
language, decompile, disassemble, recirculate, republish or redistribute
Noteline Direct for any purpose without the prior written consent of the Bank
and, where necessary FSC.

 

In the event (a) any
action is taken or threatened which may result in a disclosure or transfer of
Noteline Direct or any part thereof, other than as authorized by this
Agreement, or (b) the use of any trademark, trade name, service mark,
service name, copyright or patent of the Bank or FSC by the Issuer amounts to
unfair competition, or otherwise constitutes a possible violation of any kind,
then the Bank and/or FSC shall have the right to take any and all action deemed
necessary to protect their  rights in
Noteline Direct, and to avoid the substantial and irreparable damage which
would result from such disclosure, transfer or use, including the immediate
termination of the Issuer’s right to use Noteline Direct.

 

To permit the use of
Noteline Direct to issue Instructions and/or obtain reports with respect to the
Obligations, the Bank will supply the Issuer with an identification number and
initial passwords.  From time to time
thereafter, the Issuer may change its passwords directly through Noteline.  Direct. 
The Issuer will keep all information relating to its identification
number and passwords

 

6

 

strictly confidential and will be responsible for
the maintenance of adequate security over its customer identification number
and passwords. For security purposes, the Issuer should change its passwords
frequently (at least once a year).

 

Instructions transmitted
over Noteline Direct and received by the Bank pursuant to Section 6
hereof accompanied by the Issuer’s identification number and the passwords,
shall be deemed conclusive evidence that such Instructions are correct and
complete and that the issuance or redemption of the Obligation(s) directed
thereby has been duly authorized by the Issuer.

 

Section 11.            Representations and
Warranties of the Issuer

 

The Issuer represents and
warrants as follows:

 

(a)           This Agreement and the Obligations have been duly
authorized,  and this Agreement when
executed and delivered and the Obligations when issued in accordance with the
applicable Instructions, will be valid and binding obligations of the Issuer,
enforceable against the Issuer in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
other laws of general applicability relating to or affecting creditors’ rights
and to general equity principles;

 

(b)           This Agreement and the consummation of the transactions
herein contemplated will not (i) result in a breach of any of the terms or
provisions of, or constitute a default under, any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument for money borrowed to
which the Issuer is a party or by which the Issuer is bound or to which any of
the property or assets of the Issuer is subject, or (ii) result in any
violation of (x) the provisions of the Certificate of Limited Partnership or
the Limited Partnership Agreement of the Issuer or (y) to the best knowledge of
the Issuer, any statute applicable to it or any order, rule or regulation
of any court or government agency or body having jurisdiction over the Issuer
or any of its properties, in any manner which, in the case of clauses (i) and
(ii) (y), would have a material adverse effect on the business of the
Issuer and its subsidiaries taken as a whole;

 

(c)           No consent, approval, authorization or order of, or registration
or qualification with, any court or governmental agency or body having
jurisdiction over the Issuer or any of its properties is required to be
obtained or made by the Issuer by any material applicable statutory law or
regulation for it to issue and sale of the Obligations, except such as have
been, or will have been obtained prior to the issue and sale of the
Obligations, and such consents, approvals, authorizations, registrations or
qualifications as may be required under “blue sky” or state securities laws or
insurance laws in connection with the issue and sale of the Obligations by the
Issuer; and

 

(d)           Each Obligation issued under this Agreement will be exempt
from registration under the Securities Act of 1933, as amended. Each
Instruction by the Issuer to issue Obligations under this Agreement shall be
deemed a representation and warranty by the Issuer as of the date thereof that
the representations and warranties herein are true and correct as if made on
and as of such date, except to the extent that such representations and
warranties specifically refer to a different date, in which case they shall be
true and correct as of such date.

 

7

 

Section 12.            Compensation

 

The Issuer agrees to pay
such compensation for the Bank’s issuing and paying agent services pursuant to
this Agreement in accordance with the Bank’s schedule of fees, as amended
from time to time, that has been accepted and agreed to by the Issuer.

 

Section 13.            Indemnification

 

The Issuer agrees that
the Bank shall not be liable for any losses, damages, liabilities or costs
suffered or incurred by the Issuer as a result of (a) the Bank’s having
executed Instructions, (b) the Bank’s improperly executing or failing to
execute any Instructions because of unclear Instructions, failure of
communications media or any other circumstances beyond the Bank’s control, (c) the
actions or inactions of DTC, any Agent or any broker, dealer, consignee or
agent not selected by the Bank, or (d) any other acts or omissions of the
Bank (or of any of its agents or correspondents) relating to this Agreement or
the transactions or activities contemplated hereby except to the extent, if
any, that such other acts or omissions constitute gross negligence, willful
misconduct, any breach of this Agreement or violation of law by the Bank.  The Issuer, in the absence of gross negligence,
willful misconduct, any breach of this Agreement or violation of law by the
Bank, agrees to indemnify the Bank and hold it harmless from and against (a) any
and all actions, claims (groundless or otherwise), suits, losses, fines and
penalties arising out of the Bank’s having executed any Instructions or
otherwise having performed any of its obligations hereunder and (b) any
damages, costs, expenses (including reasonable legal fees and disbursements),
losses or liabilities relating to any such actions, claims, suits, losses fines
or penalties or to any breach of this Agreement by the Issuer.  In no event shall the Bank be liable for
special, indirect or consequential damages. 
This Section 13, Indemnification, shall survive any
termination of this Agreement and the issuance and payment of any Note(s).

 

14.          Termination

 

Either the Bank or the
Issuer may terminate this Agreement at any time by not less than ten (10) days’
prior written notice to the other.  No
such termination shall affect the rights and obligations of the Issuer and the
Bank which have accrued under this Agreement prior to termination.

 

15.          Addresses

 

Instructions hereunder,
as herein provided, shall be (a) mailed, (b) telephoned, (c) transmitted
by facsimile device, and/or (d) transmitted via Noteline Direct to the
Bank at the address, telephone number, and/or facsimile number specified below
and shall be deemed delivered upon actual receipt by the Bank’s Commercial
Paper Issuance Operations at the address, telephone number, and/or facsimile
number specified below.

 

Deutsche Bank Trust Company Americas

Trust & Securities Services

60 Wall St – 27th Floor

New York, NY 10005

Attention: Money Market Instruments Operations

Telephone:    (212) 250-7539 /
2972

Facsimile:       (212) 797-8616

 

8

 

All notices, requests,
demands and other communications hereunder (excluding Instructions) shall be in
writing and shall be deemed to have been duly given (a) upon delivery by
hand (against receipt), or (b) by United States Post Office registered  mail
(against receipt) or by regular mail (upon receipt) to the party and at the
address set forth below or at such other address as either party may designate
by written notice:

 

(a)           Enbridge Energy
Partners, L.P.

1100
Louisiana, Suite 3300

Houston,
Texas  77002

Attention:  Dave Wudrick, Manager, Cash Management and
Banking

 

with
contemporaneous copy to:

 

(b)           Enbridge
Energy Partners, L.P.

#3000,
425  - 1st
St. SW

Calgary,
Alberta

Canada
T2P 3L8

Attention:  Dave Wudrick, Manager, Cash Management and
Banking

Telephone:  (403) 231-5917

Facsimile:  (403) 231-4848

 

(c)           Deutsche Bank Trust Company Americas

Trust & Securities
Services

60 Wall St. – 27th Floor

New York, NY 10005

Attention: Money Market
Instruments Operations

Telephone:            (212) 250-7539 / 2972

Facsimile:               (212) 797-8616

 

16.          Miscellaneous

 

(a)           This Agreement shall be governed by and interpreted in
accordance with the laws of the State of New York and as applicable, operating
circulars of the Federal Reserve Bank, federal laws and regulations as amended,
New York Clearing House rules, the DTC Rules, and general commercial bank
practices applicable to commercial paper issuance and payment, funds transfer
and related activities.

 

(b)           This Agreement may not be assigned by the Issuer and may
not be modified, or amended or supplemented except by a writing or writings
duly executed by the duly authorized representatives of the Issuer and the
Bank.

 

(c)           This Agreement contains the entire understanding and
agreement between the parties with respect to the subject matter hereof.  All prior agreements, understandings,
representations, statements, promises, inducements, negotiations, and
undertakings and all existing contracts previously executed between said
parties with respect to said subject matter are superseded hereby.

 

9

 

(d)           With respect to all references herein to nouns, insofar as
the context requires, the singular form shall be deemed to include the plural,
and the plural form shall be deemed to include the singular.

 

(e)           In no event shall the Bank be liable
for any failure or delay in the performance of its obligations hereunder
because circumstances beyond the Bank control, including, but not limited to,
acts of God, flood, war (whether declared or undeclared), terrorism, fire,
riot, embargo, government action, including any laws, ordinances, regulations
or the like which restrict or prohibit the providing of the services
contemplated by this Agreement.

 

(f)            The Bank shall incur no liability in acting upon
telephonic, facsimile or other electronic instructions which the Bank believes
in good faith to have been given by an authorized person, including but not
limited to Instructions received in connection with the issuance of
Obligations.  In addition, in the event
that the Issuer or an Agent currently or in the future utilizes a trading
system that produces issuance instructions that do not include signatures or
initials, the Bank may conclusively rely upon such instructions absent such
signatures or initials.

 

	
  Agreed to and
  Accepted by:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Deutsche Bank
  Trust Company Americas

  	
  Enbridge Energy
  Partners, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Enbridge Energy
  Management, L.L.C., as

  
	
   

  	
   

  	
  delegate of
  Enbridge Energy Company, Inc., its

  General Partner 

  
	
  Authorized
  Officer’s Signature 

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Officer’s Signature 

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Officer’s Signature 

  
	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
																				

 

10

 

List of Exhibits

 

	
  Exhibit A:

  	
   

  	
  DTC Master Note &
  Universal Note

  
	
  Exhibit B:

  	
   

  	
  Omnibus
  Certificate of the Issuer as to Board Resolutions, Incumbency and Signature
  Specimen, Authorized Officers and Authorized Persons

  
	
  Exhibit C:

  	
   

  	
  DTC Certificate
  Agreement

  
	
  Exhibit D:

  	
   

  	
  DTC Letter of
  Representations

  

 

11

 

Exhibit A

 

DTC MASTER NOTE AND UNIVERSAL NOTE

 

 

Exhibit B

 

OMNIBUS CERTIFICATE

 

ENBRIDGE ENERGY PARTNERS, L.P.

 

 

Exhibit C

 

DTC CERTIFICATE AGREEMENT

 

 

Exhibit D

 

DTC LETTER OF REPRESENTATIONS

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