Document:

Contribution Agreement

 Exhibit 10.8 
 Execution Version 
  
  

CONTRIBUTION AGREEMENT 
 by and
among 
 SPECTRA ENERGY TRANSMISSION, LLC, 
 SPECTRA ENERGY PARTNERS (DE) GP, LP, 
 and 
 SPECTRA ENERGY PARTNERS, LP, 
 dated
as of 
 December 13, 2007 
  
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
		  	ARTICLE I	  	
		  	DEFINITIONS AND RULES OF CONSTRUCTION	  	
			
	Section 1.1	  	Definitions	  	2
			
	Section 1.2	  	Rules of Construction	  	11
			
		  	ARTICLE II	  	
		  	CONTRIBUTION; CLOSING	  	
			
	Section 2.1	  	Contribution of Contributed Interests	  	11
			
	Section 2.2	  	Consideration	  	12
			
	Section 2.3	  	The Closing	  	12
			
	Section 2.4	  	Post-Closing Working Capital Adjustment	  	13
			
		  	ARTICLE III	  	
		  	 REPRESENTATIONS AND WARRANTIES RELATING TO
 SE TRANSMISSION AND MLP GP
	  	
			
	Section 3.1	  	Organization	  	14
			
	Section 3.2	  	Authorization; Enforceability	  	14
			
	Section 3.3	  	No Conflict	  	15
			
	Section 3.4	  	Litigation	  	15
			
	Section 3.5	  	Brokers’ Fees	  	15
			
	Section 3.6	  	Ownership of Contributed Interests	  	15
			
	Section 3.7	  	Investment Representation	  	16
			
		  	ARTICLE IV	  	
		  	 REPRESENTATIONS AND WARRANTIES RELATING TO THE
 SALTVILLE COMPANIES
	  	
			
	Section 4.1	  	Organization of the Saltville Companies	  	16
			
	Section 4.2	  	Enforceability of Merger Agreement	  	16
			
	Section 4.3	  	No Conflict	  	17

  

 i 

					
	Section 4.4	  	Subsidiaries	  	17
			
	Section 4.5	  	Financial Statements; Records; Undisclosed Liabilities	  	17
			
	Section 4.6	  	Absence of Certain Changes	  	17
			
	Section 4.7	  	Contracts	  	18
			
	Section 4.8	  	Intellectual Property	  	19
			
	Section 4.9	  	Litigation	  	19
			
	Section 4.10	  	Taxes	  	19
			
	Section 4.11	  	Environmental Matters	  	20
			
	Section 4.12	  	Legal Compliance	  	21
			
	Section 4.13	  	Permits	  	21
			
	Section 4.14	  	Insurance	  	21
			
	Section 4.15	  	Labor Relations; Employees	  	21
			
	Section 4.16	  	Title to Properties and Related Matters.	  	21
			
	Section 4.17	  	Brokers’ Fees	  	22
			
	Section 4.18	  	Regulatory Matters	  	22
			
		  	ARTICLE V	  	
		  	REPRESENTATIONS AND WARRANTIES RELATING TO SPECTRA MLP	  	
			
	Section 5.1	  	Organization of Spectra MLP	  	22
			
	Section 5.2	  	Authorization; Enforceability	  	22
			
	Section 5.3	  	No Conflict	  	23
			
	Section 5.4	  	Litigation	  	23
			
	Section 5.5	  	Brokers’ Fees	  	23
			
	Section 5.6	  	Investment Representation	  	23
			
	Section 5.7	  	Spectra MLP SEC Documents	  	23

  

 ii 

					
	 	  	ARTICLE VI	  	 
		  	COVENANTS	  	
			
	Section 6.1	  	Conduct of Business	  	24
			
	Section 6.2	  	Access	  	25
			
	Section 6.3	  	Third Party Approvals	  	26
			
	Section 6.4	  	Saltville Restructuring	  	26
			
	Section 6.5	  	Company Guarantees	  	26
			
	Section 6.6	  	Indebtedness for Borrowed Money	  	26
			
	Section 6.7	  	Update Information	  	27
			
	Section 6.8	  	Books and Records	  	27
			
	Section 6.9	  	Permits	  	27
			
	Section 6.10	  	Excluded Assets	  	27
			
	Section 6.11	  	Noncompetition Agreement	  	28
			
		  	ARTICLE VII	  	
		  	TAX MATTERS	  	
			
	Section 7.1	  	Tax Returns	  	28
			
	Section 7.2	  	Transfer Taxes	  	30
			
	Section 7.3	  	Tax Indemnity	  	30
			
	Section 7.4	  	Scope	  	31
			
	Section 7.5	  	Tax Refunds	  	31
		  	ARTICLE VIII	  	
		  	CONDITIONS TO OBLIGATIONS	  	
			
	Section 8.1	  	Conditions to Obligations of Spectra MLP	  	32
			
	Section 8.2	  	Conditions to the Obligations of SE Transmission and MLP GP	  	33
			
		  	ARTICLE IX	  	
		  	INDEMNIFICATION	  	
			
	Section 9.1	  	Survival	  	33

  

 iii 

					
	Section 9.2	  	Indemnification	  	34
			
	Section 9.3	  	Indemnification Procedures	  	35
			
	Section 9.4	  	Additional Agreements Regarding Indemnification	  	36
			
	Section 9.5	  	Waiver of Other Representations	  	37
			
	Section 9.6	  	Total Consideration Adjustment	  	38
			
	Section 9.7	  	Exclusive Remedy	  	38
			
		  	ARTICLE X	  	
		  	TERMINATION	  	
			
	Section 10.1	  	Termination	  	38
			
	Section 10.2	  	Effect of Termination	  	39
			
		  	ARTICLE XI	  	
		  	MISCELLANEOUS	  	
			
	Section 11.1	  	Notices	  	39
			
	Section 11.2	  	Assignment	  	40
			
	Section 11.3	  	Rights of Third Parties	  	41
			
	Section 11.4	  	Expense	  	41
			
	Section 11.5	  	Counterparts	  	41
			
	Section 11.6	  	Entire Agreement	  	41
			
	Section 11.7	  	Disclosure Schedule	  	41
			
	Section 11.8	  	Amendments	  	41
			
	Section 11.9	  	Publicity	  	41
			
	Section 11.10	  	Severability	  	42
			
	Section 11.11	  	Governing Law; Jurisdiction	  	42
			
	Section 11.12	  	Action by Spectra MLP	  	42

  

 iv 

 Disclosure Schedule 
  

					
	Schedule A	 	 –
	    	P-25 Assets
	Schedule 1.1(i)	 	–	    	Spectra MLP Knowledge
	Schedule 1.1(ii)	 	–	    	SE Transmission and MLP GP Knowledge
	Schedule 1.1(iii)	 	–	    	Permitted Liens
	Schedule 3.3	 	–	    	Transmission Approvals
	Schedule 3.5	 	–	    	SE Transmission and MLP GP Brokers’ Fees
	Schedule 3.6(b)	 	–	    	Voting Agreements
	Schedule 4.5	 	–	    	Financial Statements
	Schedule 4.6	 	–	    	Absence of Certain Changes
	Schedule 4.7(a)	 	–	    	Material Contracts
	Schedule 4.7(c)	 	–	    	Enforceability of Material Contracts; No Defaults
	Schedule 4.7(d)	 	–	    	Purchase and Sale Agreements
	Schedule 4.8(b)	 	–	    	Intellectual Property
	Schedule 4.9	 	–	    	Litigation
	Schedule 4.10	 	–	    	Taxes
	Schedule 4.11	 	–	    	Environmental Matters
	Schedule 4.13	 	–	    	Permits
	Schedule 4.14	 	–	    	Insurance
	Schedule 4.16(a)	 	–	    	Material Real Estate Leases
	Schedule 5.3	 	–	    	Spectra MLP Approvals
	Schedule 5.5	 	–	    	Spectra MLP Brokers’ Fees
	Schedule 6.1	 	–	    	Conduct of Business
	Schedule 6.1(v)	 	–	    	Capital Expenditures
	Schedule 6.5	 	–	    	Guarantees
	Schedule 6.10	 	–	    	Excluded Assets

 Exhibits 
  

					
	 Exhibit A
	  	–	  	Omnibus Amendment

  

 v 

 CONTRIBUTION AGREEMENT 
 THIS CONTRIBUTION AGREEMENT, dated as of December 13, 2007 (this “Agreement”), is entered into by and among Spectra Energy
Transmission, LLC, a limited liability company organized under the Laws of the State of Delaware (“SE Transmission”), Spectra Energy Partners (DE) GP, LP, a limited partnership organized under the Laws of the State of
Delaware (“MLP GP”), and Spectra Energy Partners, LP, a limited partnership organized under the Laws of the State of Delaware (“Spectra MLP”). 
 RECITALS 
 WHEREAS, as of the date of this Agreement, SE Transmission
owns (i) 100% of the limited liability company interests in Saltville Gas Storage Company L.L.C., a limited liability company organized under the Laws of the Commonwealth of Virginia (“Saltville LLC”), (ii) 100% of
the capital stock of Spectra Energy Early Grove Company, a corporation organized under the Laws of the Commonwealth of Virginia (“SE Early Grove”), and (iii) 100% of the capital stock of Spectra Energy Virginia Pipeline
Company, a corporation organized under the Laws of the Commonwealth of Virginia (“SE Virginia Pipeline”); 
 WHEREAS,
prior to the Closing (as defined below): 
 (i) Certification of the storage facilities of SE Early Grove and SE Virginia Pipeline by the
Federal Energy Regulatory Commission, and relinquishment of jurisdiction over such storage facilities by the Virginia State Corporation Commission shall have been granted or shall have been deemed granted; 
 (ii) Saltville LLC intends to negotiate replacement Contracts with customers of SE Early Grove and SE Virginia Pipeline related to their storage assets;

 (iii) SE Early Grove and SE Virginia Pipeline intend to convert from corporations into limited liability companies; 
 (iv) SE Virginia Pipeline, after such conversion, intends to transfer to East Tennessee Natural Gas, LLC, a limited liability company organized under the
Laws of the State of Tennessee, pursuant to that certain asset purchase agreement between such parties and dated the date hereof (the “Asset Purchase Agreement”), all of its right, title and interest in approximately 72 miles
of 8” natural gas transmission pipeline commencing at SE Virginia Pipeline’s meter station located at Chilhowie, VA, and continuing eastward to SE Virginia Pipeline’s meter station located at Radford, VA, together with 0.5 miles of
the 4” Marion lateral, and certain other assets, liabilities and obligations associated with such pipeline facilities and described on Schedule A attached hereto (collectively, the “P-25 Assets”), in exchange for Common
Units (as defined below) and a cash reimbursement of prior capital expenditures, which Common Units and cash reimbursement would then be transferred to SE Transmission or one of its Affiliates (as defined below), other than the Saltville Companies,
prior to the Closing; 

 (v) SE Early Grove and SE Virginia Pipeline, after conversion into limited liability companies, would
then merge with and into Saltville LLC, pursuant to a merger agreement (the “Merger Agreement”), with Saltville LLC being the surviving entity; 
 (vi) SE Transmission would then contribute to Spectra MLP, and Spectra MLP would then accept from SE Transmission, 97.6% of the limited liability company interests in Saltville LLC (the “SET Contributed
Interests”), and, in exchange, Spectra MLP would distribute, as contemplated in this Agreement, to SE Transmission (a) a certain number of Common Units and (b) a certain amount in cash as a reimbursement for capital
expenditures incurred by SE Transmission with respect to certain assets of Saltville LLC; 
 (vii) SE Transmission would then
contribute 2.376% of the limited liability company interests in Saltville LLC to Spectra Energy Southeast Pipeline Corporation, a corporation organized under the Laws of the State of Delaware (“SE Southeast
Pipeline”) and 0.024% of its limited liability company interests in Saltville LLC to Spectra Energy Partners GP, LLC, a limited liability company organized under the Laws of the State of Delaware (“MLP GP
LLC”), and SE Southeast Pipeline and MLP GP LLC would contribute all their respective limited liability company interests in Saltville LLC received from SE Transmission to MLP GP (the actions to be taken in sections
(i) through (v) and section (vii) hereof, collectively, the “Saltville Restructuring”);  
 WHEREAS, MLP GP would then contribute to Spectra MLP, and Spectra MLP would then accept from MLP GP, all of MLP GP’s limited liability company interests in Saltville LLC (the “MLP GP Contributed
Interests”), and, in exchange, Spectra MLP would distribute to MLP GP a certain number of General Partner Units; 
 NOW,
THEREFORE, in consideration of the premises and mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties (as defined below) agree as follows: 

ARTICLE I 
 DEFINITIONS AND RULES
OF CONSTRUCTION 
 Section 1.1 Definitions. As used herein, the following capitalized terms shall have
the following meanings: 
 “Accounting Referee” has the meaning provided such term in Section 2.4(c). 

“Adjustment Amount” has the meaning provided such term in Section 2.4(e). 
 “Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, controls, is controlled by or is
under common control with, such specified Person through one or more intermediaries or otherwise. For the purposes of this definition, “control” means, where used with respect to any Person, the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by Contract or otherwise. 
  

 2 

 “AGL Agreement” means that Purchase and Sale Agreement, dated as of
April 27, 2005, among NUI Saltville Storage, Inc., a Delaware corporation, Virginia Gas Company, a Delaware corporation, Duke Energy Gas Transmission, LLC, a Delaware limited liability company, Duke Energy Saltville Gas Storage, L.L.C., a
Delaware limited liability company, and NUI Corporation, a New Jersey corporation. 
 “Agreement” has the meaning
provided such term in the preamble to this Agreement. 
 “Asset Purchase Agreement” has the meaning provided such
term in the recitals of this Agreement. 
 “Balance Sheet Date” means October 31, 2007. 
 “Billed Party” has the meaning provided such term in Section 7.1(d). 
 “Business” means the operations and business conducted by the Saltville Companies. 
 “Business Day” means any day that is not a Saturday, Sunday or legal holiday in the State of Texas or a federal holiday in the
United States. 
 “Claim Notice” has the meaning provided such term in Section 9.3(a). 
 “Closing” has the meaning provided such term in Section 2.3(a). 
 “Closing Date” has the meaning provided such term in Section 2.3(a). 
 “Code” means the Internal Revenue Code of 1986. 
 “Commission” means the United States Securities and Exchange Commission. 
 “Common Units” has the meaning provided such term in the Spectra MLP Partnership Agreement. 
 “Company Guarantees” means all guaranties, letters of credit, bonds, sureties, cash collateral accounts, and other credit support or assurances provided by SE Transmission or any of its Affiliates (other than the
Saltville Companies) in support of any obligations of any of the Saltville Companies or the Business, including those obligations listed on Schedule 6.5. 
 “Conflicts Committee” has the meaning provided such term in the Spectra MLP Partnership Agreement. 
 “Contract” means any legally binding agreement, commitment, lease, license or contract. 
 “Contributed Interests” means the SET Contributed Interests and/or the MLP GP Contributed Interests, as applicable. 
 “Cross Receipt” means a cross receipt acknowledging the receipt of the items in Section 2.3(b)(i) and (v) by Spectra MLP and the items in Section 2.3(c)(i), (ii) and
(v) by SE Transmission and MLP GP. 
  

 3 

 “Disclosure Schedule” means the schedules attached hereto. 
 “Dollars” and “$” mean the lawful currency of the United States. 
 “Effective Time” has the meaning provided such term in Section 2.3(a). 
 “Environment” means (a) the navigable waters, the waters of the contiguous zone, and the ocean waters
of which the natural resources are under the exclusive management authority of the United States under the Magnuson-Stevens Fishery Conservation and Management Act, 16 U.S.C. 1801 et seq., and (b) any other surface water, ground
water, drinking water supply, land surface or subsurface strata, or ambient air within the United States or under the jurisdiction of the United States. 
 “Environmental Law” means any Law relating to the environment, natural resources, or the protection thereof, including any applicable provisions of the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. § 9601 et seq., the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 et seq., the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et
seq., the Clean Water Act, 33 U.S.C. § 1251 et seq., the Clean Air Act, 42 U.S.C. § 7401 et seq., the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., the Federal Insecticide,
Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq., the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq., the Safe Drinking Water Act, 42 U.S.C. § 300f et seq., and any Law relating to
health, safety, the Environment, natural resources or the protection thereof, and all analogous state or local statutes, and the regulations promulgated pursuant thereto. 
 “ERISA” means the Employee Retirement Income Security Act of 1974. 
 “Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations of the Commission promulgated thereunder. 
 “Excluded Assets” has the meaning provided such term in Section 6.10. 
 “Final Net Working Capital” means the difference of (x) total current assets less (y) total current liabilities, each as shown on the balance sheet of Saltville LLC as of the Closing Date (which sheet shall
be prepared in the same manner, under the same basis, with the same methodology and principles, and utilizing the same line items as the Financial Statements) except that the amount of total current liabilities shall be reduced to exclude any ad
valorem Taxes and federal and state income Taxes. 
 “Financial Statements” has the meaning provided such term in
Section 4.5(a). 
 “Fundamental Representations and Warranties” means the representations
and warranties contained in Sections 3.1, 3.2, 3.6, 4.1 and 4.4. 
 “GAAP” means generally accepted accounting
principles of the United States, consistently applied. 
 “General Partner Units” has the meaning provided such term
in the Spectra MLP Partnership Agreement. 
  

 4 

 “Governmental Authority” means any federal, state, municipal, local or similar
governmental authority, regulatory or administrative agency, court or arbitral body. 
 “Hazardous Substance(s)”
means each substance defined, designated or classified as a hazardous waste, hazardous substance, hazardous material, pollutant, containment or toxic substance under any Environmental Law and any petroleum or petroleum products that have
been Released into the environment. 
 “Indebtedness for Borrowed Money” means with respect to any Person, at any
date, without duplication, (a) all obligations of such Person for borrowed money (including intercompany obligations), including all principal, interest, premiums, fees, expenses, overdrafts and penalties with respect thereto, (b) all
obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of such Person to pay the deferred purchase price of property, except trade payables incurred in the ordinary course of business,
(d) all obligations of such Person to reimburse any bank or other Person in respect of amounts paid under a letter of credit or similar instrument, (e) all capitalized lease obligations of such Person, and (f) all indebtedness of any
other Person of the type referred to in clauses (a) to (e) above directly or indirectly guaranteed by such Person or secured by any assets of such Person, whether or not such indebtedness has been assumed by such Person. 
 “Indemnified Party” has the meaning provided such term in Section 9.3(a). 
 “Indemnifying Party” has the meaning provided such term in Section 9.3(a). 
 “Indemnified Tax Claim” has the meaning provided such term in Section 7.3(b). 
 “Intellectual Property” means intellectual property rights, statutory or common law, worldwide, including (a) trademarks,
service marks, trade dress, slogans, logos and all goodwill associated therewith, and any applications or registrations for any of the foregoing, (b) copyrights and any applications or registrations for any of the foregoing, and
(c) patents, all confidential know-how, trade secrets and similar proprietary rights in confidential inventions, discoveries, improvements, processes, techniques, devices, methods, patterns, formulae and specifications. 
 “Knowledge” as to Spectra MLP means the actual knowledge of those Persons listed on Schedule 1.1(i), and; as to SE
Transmission and MLP GP means the actual knowledge of those Persons listed on Schedule 1.1(ii); provided, however, that those Persons noted in such Schedule 1.1(ii) as not having knowledge as to the Saltville Companies
shall be disregarded with respect to any representation relating to the Saltville Companies qualified by “Knowledge”. 
 “Law” means any applicable law, rule, regulation, ordinance, order, judgment or decree of a Governmental Authority. 
 “Lien(s)” means, with respect to any property or asset, any mortgage, pledge, charge, security interest or other encumbrance of any kind in respect of such property or asset. 
 “Losses” means all actual liabilities, losses, damages, fines, penalties, judgments, settlements, awards, costs and expenses
(including reasonable fees and expenses of counsel); 

  

 5 

 
provided, however, that Losses shall not include any special, punitive, exemplary, incidental, consequential or indirect damages nor shall Losses
include lost profits, lost opportunities or other speculative damages; provided, further, however, that the preceding proviso shall not apply to the extent a Party is required to pay such damages to a third party in connection with a matter
for which such Party is entitled to indemnification under Article IX. 
 “Material Adverse Effect” means, with
respect to any Person, any circumstance, change or effect that (a) is or would reasonably be expected to be materially adverse to the business, operations or financial condition of such Person (and in the case of any Saltville Company, of the
Saltville Companies and the Business taken as a whole), or (b) materially impedes or would reasonably be expected to impede the ability of such Person to complete the transactions contemplated herein, but shall exclude any circumstance, change
or effect resulting or arising from: 
 (i) any change in general economic conditions in the industries or markets in which any of the
Saltville Companies operates; 
 (ii) seasonal reductions in revenues or earnings of the Saltville Companies substantially consistent with
the historical results of such businesses; 
 (iii) national or international political conditions, including any engagement in hostilities,
whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack; 
 (iv)
changes in Law or GAAP; or 
 (v) the entry into or announcement of this Agreement, actions contemplated by this Agreement or the
consummation of the transactions contemplated hereby. 
 Notwithstanding the foregoing, clauses (i), (iii) and (iv) shall not apply
in the event of a disproportionate effect on the Saltville Companies as compared to other entities in the industry or markets in which the Saltville Companies operate. 
 “Material Contracts” has the meaning provided such term in Section 4.7(a). 
 “Material Real Estate Leases” has the meaning provided such term in Section 4.16(a). 
 “Merger Agreement” has the meaning provided such term in the recitals of this Agreement. 
 “MLP
GP” has the meaning provided such term in the preamble to this Agreement. 
 “MLP GP Consideration”
means an amount equal to the product of the Per Unit Value times the MLP GP General Partner Units. 
 “MLP GP Contributed
Interests” has the meaning provided such term in the recitals of this Agreement. 
  

 6 

 “MLP GP General Partner Units” means the number of General Partner Units that is
computed by (i) adding the Saltville Total Value and the P-25 Total Value (as defined in the Asset Purchase Agreement), (ii) subtracting both the Saltville CapEx Reimbursement and the P-25 CapEx Reimbursement (as defined in the Asset
Purchase Agreement) from that sum, (iii) dividing that difference by the Per Unit Value, and (iv) multiplying that quotient by 2%. 
 “MLP GP Indemnified Parties” has the meaning provided such term in Section 9.2(b). 
 “MLP
GP LLC” has the meaning provided such term in the recitals of this Agreement. 
 “Omnibus Agreement”
means the Omnibus Agreement effective as of July 2, 2007, among Spectra MLP, MLP GP, Spectra Energy Partners, GP, LLC, a limited liability company organized under the Laws of the State of Delaware, and Spectra Energy Corp, a corporation
organized under the Laws of the State of Delaware. 
 “Omnibus Amendment” means the Amendment to Omnibus Agreement
attached as Exhibit A. 
 “Organizational Documents” means any charter, certificate of incorporation,
certificate of formation, articles of association, bylaws, partnership agreement, operating agreement or similar formation or governing documents and instruments. 
 “P-25 Assets” has the meaning provided such term in the recitals of this Agreement. 
 “P-25 Indemnity Obligations” has the meaning provided such term in Section 9.2(a). 
 “P-25
Pipeline” means approximately 72 miles of 8” transmission pipeline operated by Seller. 
 “Parties”
means SE Transmission, MLP GP and Spectra MLP. 
 “Per Unit Valuation Date” means the date that is three days prior
to the Closing Date. 
 “Per Unit Value” means the volume-weighted average price of the Common Units on the New York
Stock Exchange during the 20 trading days immediately preceding the Per Unit Valuation Date, calculated using the Bloomberg SEP Equity AQR function. 
 “Permits” means authorizations, licenses, permits or certificates issued by Governmental Authorities; provided, however, right-of-way agreements and similar rights and approvals are not
included in the definition of Permits. 
 “Permitted Liens” means (a) Liens for Taxes not yet delinquent or
being contested in good faith by appropriate proceedings, (b) statutory Liens (including materialmen’s, warehousemen’s, mechanic’s, repairmen’s, landlord’s, and other similar Liens) arising in the ordinary course of
business securing payments not yet delinquent or being contested in good faith by appropriate proceedings, (c) the rights of lessors and lessees under leases, and the rights of third parties under any agreement, in each case executed in the
ordinary course of business and that do not materially and adversely affect the ability of the Saltville Companies to conduct 

  

 7 

 
their Business as currently conducted, (d) the rights of licensors and licensees under licenses executed in the ordinary course of business and that do
not materially and adversely affect the ability of the Saltville Companies to conduct their Business as currently conducted, (e) restrictive covenants, easements and defects, imperfections or irregularities of title or Liens, if any, of a
nature that do not materially and adversely affect the assets or properties subject thereto, (f) preferential purchase rights and other similar arrangements with respect to which consents or waivers are obtained for this transaction or as to
which the time for asserting such rights has expired at the Closing Date without an exercise of such rights, (g) restrictions on transfer with respect to which consents or waivers are obtained for this transaction, (h) Liens granted in the
ordinary course of business which do not secure the payment of Indebtedness for Borrowed Money and which do not materially and adversely affect the ability of the Saltville Companies to conduct their Business as currently conducted, (i) Liens
listed in Schedule 1.1(iii), and (j) Liens created by Spectra MLP or its successors and assigns. 
 “Person” means any individual, firm, corporation, partnership, limited liability company, incorporated or unincorporated association, joint venture, joint stock company, Governmental Authority or other entity of any
kind. 
 “Pre-Closing Tax” has the meaning provided such term in Section 7.1(c). 
 “Pre-Closing Taxable Period” means any taxable period ending on or before the Effective Time and that portion of any taxable
period beginning before and ending after the Effective Time that ends on the Effective Time. 
 “Reasonable Efforts”
means efforts in accordance with reasonable commercial practice and without the incurrence of unreasonable expense. 
 “Reference
Net Working Capital” means $1,122,527. 
 “Refund Amount” has the meaning provided such term in
Section 2.4(e). 
 “Release” means any depositing, spilling, leaking, pumping, pouring,
placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping, or disposing of, without limitation, Hazardous Substances, into the Environment.  
 “Representatives” means, as to any Person, its officers, directors, employees, counsel, accountants, financial advisers and
consultants. 
 “Saltville CapEx Reimbursement” means 97.6% of the sum of the capital
expenditures incurred by the Saltville Companies with respect to their assets other than the P-25 Assets during the 24 month period prior to the Closing Date; provided, however, that such amount shall not exceed $10,000,000.

 “Saltville Companies” means, prior to Saltville Restructuring, Saltville LLC, SE Early Grove and SE Virginia
Pipeline, and “Saltville Company” means any one of the foregoing. After the Saltville Restructuring, “Saltville Company” shall mean Saltville LLC. 
 “Saltville LLC” has the meaning provided such term in the recitals of this Agreement. 
  

 8 

 “Saltville Restructuring” has the meaning provided such term in the recitals of
this Agreement. 
 “Saltville Total Value” means $81,700,000. 
 “SE Early Grove” has the meaning provided such term in the recitals of this Agreement. 
 “SE Southeast Pipeline” has the meaning provided such term in the recitals of this Agreement. 
 “SE Transmission” has the meaning provided such term in the preamble to this Agreement. 
 “SE Transmission Indemnified Parties” has the meaning provided such term in Section 9.2(b). 
 “SE Virginia Pipeline” has the meaning provided such term in the recitals of this Agreement. 
 “Securities Act” means the Securities Act of 1933 and the rules and regulations of the Commission promulgated thereunder.

 “SET Common Units” means the number of Common Units that is computed by (i) subtracting the Saltville CapEx
Reimbursement from the Saltville Total Value, (ii) dividing that difference by the Per Unit Value, and (iii) subtracting the number of MLP GP General Partner Units from that quotient. 
 “SET Consideration” means an amount equal to the product of the Per Unit Value times the SET Common Units. 
 “SET Contributed Interests” has the meaning provided such term in the recitals of this Agreement. 
 “Spectra Energy Corp” means Spectra Energy Corp, a Delaware corporation. 
 “Spectra MLP” has the meaning provided such term in the preamble to this Agreement. 
 “Spectra MLP Approvals” has the meaning provided such term in Section 5.3. 
 “Spectra MLP Financial Statements” has the meaning provided such term in Section 5.8. 
 “Spectra MLP Indemnified Parties” has the meaning provided such term in Section 9.2(a). 
 “Spectra MLP Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of Spectra Energy
Partners, LP dated as of July 2, 2007. 
 “Spectra MLP SEC Documents” has the meaning provided such term in
Section 5.8. 
  

 9 

 “Tax” means (a) all taxes, assessments, duties, levies, imposts or other
similar charges imposed by a Governmental Authority, including all income, franchise, profits, capital gains, capital stock, transfer, gross receipts, sales, use, transfer, service, occupation, ad valorem, property, excise, severance, windfall
profits, premium, stamp, license, payroll, employment, social security, unemployment, disability, environmental (including taxes under Code Section 59A), alternative minimum, add-on, value-added, withholding (including backup withholding) and
other taxes, assessments, duties, levies, imposts or other similar charges of any kind whatsoever (whether payable directly or by withholding and whether or not requiring the filing of a Tax Return), and all estimated taxes, deficiency assessments,
additions to tax, additional amounts imposed by any Governmental Authority, penalties and interest, (b) any liability of any Saltville Company for the payment of any amounts of any of the foregoing types as a result of being a member of an
affiliated, consolidated, combined or unitary group, or being a party to any agreement or arrangement whereby liability of such Saltville Company for payment of such amounts was determined or taken into account with reference to the liability of any
other Person and (c) any liability of any Saltville Company for the payment of any amounts as a result of being a party to any Tax-Sharing Agreement or with respect to the payment of any amounts of any of the foregoing types as a result of any
express or implied obligation to indemnify any other Person. 
 “Tax Authority” means any Governmental Authority
having jurisdiction over the assessment, determination, collection or imposition of any Tax. 
 “Tax Benefit” means,
with respect to a Loss, an amount by which the Tax liability of a Person (or group of corporations filing a Tax Return that includes the Person), with respect to a taxable period, is reduced as a result of such Loss or the amount of any Tax refund
or Tax credit that is generated (including, by deduction, loss, credit or otherwise) as a result of such Loss, and any related interest received from any relevant Tax Authority; provided, however, in each case, only the reasonable present
value of any Tax Benefit shall be considered with respect to a Loss. 
 “Tax Indemnified Party” has the meaning
provided such term in Section 7.3(b). 
 “Tax Indemnifying Party” has the meaning provided such term in
Section 7.3(b). 
 “Tax Proceeding” has the meaning provided such term in Section 7.1(f). 
 “Tax Returns” means any report, return, election, document, estimated Tax filing, declaration or other filing provided to any Tax
Authority, including any amendments thereto. 
 “Tax-Sharing Agreement” means any existing agreement or arrangement
(whether or not written) that is binding on any Saltville Company and regarding the sharing, allocation or payment of Taxes or amounts in lieu of Taxes. 
 “Third Party Claim” has the meaning provided such term in Section 9.3(a). 
 “Transmission Approvals” has the meaning provided such term in Section 3.3. 
 “United
States” or “U.S.” means United States of America. 
  

 10 

 Section 1.2 Rules of Construction. 
 (a) All article, section, schedule and exhibit references used in this Agreement are to articles, sections, schedules and exhibits to this Agreement
unless otherwise specified. The schedules and exhibits attached to this Agreement constitute a part of this Agreement and are incorporated herein for all purposes. 
 (b) If a term is defined as one part of speech (such as a noun), it shall have a corresponding meaning when used as another part of speech (such as a verb). Terms defined in the singular have the corresponding
meanings in the plural, and vice versa. Unless the context of this Agreement clearly requires otherwise, words importing the masculine gender shall include the feminine and neutral genders and vice versa. The term “includes” or
“including” shall mean “including without limitation.” The words “hereof,” “hereto,” “hereby,” “herein,” “hereunder” and words of similar import, when used in this Agreement,
shall refer to this Agreement as a whole and not to any particular section or article in which such words appear. 
 (c) The Parties
acknowledge that each Party and its attorney have reviewed this Agreement and that any rule of construction to the effect that any ambiguities are to be resolved against the drafting Party, or any similar rule operating against the drafter of an
agreement, shall not be applicable to the construction or interpretation of this Agreement. 
 (d) The captions in this Agreement are for
convenience only and shall not be considered a part of or affect the construction or interpretation of any provision of this Agreement. 
 (e) All references to currency herein shall be to, and all payments required hereunder shall be paid in, Dollars. 
 (f) All
accounting terms used herein and not expressly defined herein shall have the meanings given to them under GAAP. 
 (g) Any event hereunder
requiring the payment of cash or cash equivalents on a day that is not a Business Day shall be deferred until the next Business Day. 
 (h)
References to any Law are references to such Law as it may be amended from time to time, and references to particular provisions of a Law include a reference to the corresponding provisions of any succeeding Law. 
 ARTICLE II 
 CONTRIBUTION; CLOSING

 Section 2.1 Contribution of Contributed Interests. 
 (a) At the Closing, upon the terms and subject to the conditions set forth in this Agreement, SE Transmission shall contribute to Spectra MLP, and
Spectra MLP shall accept from SE Transmission, the SET Contributed Interests, free and clear of any Liens other than transfer restrictions imposed thereon by securities Laws. 
  

 11 

 (b) At the Closing, upon the terms and subject to the conditions set forth in this Agreement, MLP GP
shall contribute to Spectra MLP, and Spectra MLP shall accept from MLP GP, the MLP GP Contributed Interests, free and clear of any Liens other than transfer restrictions imposed thereon by securities Laws. 
 Section 2.2 Consideration. 
 (a) At the Closing, upon the terms and subject to the conditions set forth in this Agreement, in exchange for the SET Contributed Interests, Spectra MLP shall (i) distribute to SE Transmission the SET Common
Units and (ii) pay to SE Transmission the Saltville CapEx Reimbursement, which amount shall be payable in cash. For purposes of determining the Saltville CapEx Reimbursement, SE Transmission shall provide a binding good faith estimate of such
amount at least ten days prior to the Closing Date. 
 (b) At the Closing, upon the terms and subject to the conditions set forth in this
Agreement, in exchange for the MLP GP Contributed Interests, Spectra MLP shall distribute to MLP GP the MLP GP General Partner Units. 
 (c)
The Parties acknowledge that the transactions described in this Article II are properly characterized as transactions described in Section 721(a) of the Code. 
 Section 2.3 The Closing. 
 (a) The closing of the transactions contemplated
by this Agreement (the “Closing”) shall take place at the offices of Vinson & Elkins L.L.P., 1001 Fannin, Houston, Texas 77002, commencing at 10:00 a.m. local time on the later of April 1, 2008 and the first day
of the month following the date on which all conditions to the obligations of the Parties to consummate the transactions contemplated hereby have been satisfied or waived (other than conditions with respect to actions the Parties shall take at the
Closing itself) or such other date as the Parties may mutually determine (the “Closing Date”); provided, however, the Closing shall be deemed to have been consummated at 12:30 a.m. Houston, Texas time on the
Closing Date (the “Effective Time”). 
 (b) At the Closing, each of SE Transmission and MLP GP will deliver the
following documents and deliverables to Spectra MLP: 
 (i) an assignment or assignments effecting the transfer to Spectra MLP of ownership
of all of the Contributed Interests together with certificates, if any, representing the Contributed Interests and such other documentation as is required to admit Spectra MLP as a member of Saltville LLC; 
 (ii) a certification in the form prescribed by Treasury Regulation Section 1.1445-2(b)(2) to the effect that neither MLP GP’s owner nor SE
Transmission is a foreign person; 
 (iii) the Omnibus Amendment executed by MLP GP LLC and MLP GP; 
  

 12 

 (iv) the Cross Receipt executed by each of SE Transmission and MLP GP; and 
 (v) such other certificates, instruments of conveyance and documents as may be reasonably requested by Spectra MLP and agreed to by SE Transmission or
MLP GP prior to the Closing Date to carry out the intent and purposes of this Agreement. 
 (c) At the Closing, Spectra MLP will deliver the
following documents and deliverables to SE Transmission or MLP GP, as applicable, or take the following actions: 
 (i) the Saltville CapEx
Reimbursement to SE Transmission by wire transfer of immediately available U.S. federal funds to an account or accounts specified by SE Transmission; 
 (ii) issue, in certificated or book entry form, to SE Transmission the SET Common Units, and to MLP the MLP GP General Partner Units; 
 (iii) the Omnibus Amendment executed by Spectra MLP; 
 (iv) the Cross Receipt executed by Spectra MLP; and

 (v) such other certificates, instruments of conveyance and documents as may be reasonably requested by SE Transmission or MLP GP and
agreed to by Spectra MLP prior to the Closing Date to carry out the intent and purposes of this Agreement. 
 Section 2.4
Post-Closing Working Capital Adjustment. 
 (a) Within 45 days following the Closing Date, SE Transmission shall
deliver to Spectra MLP its estimate of Final Net Working Capital. 
 (b) If Spectra MLP objects to SE Transmission’s estimate, then it
must provide a written objection notice, together with its estimate of Final Net Working Capital, to SE Transmission within 30 days after receipt of SE Transmission’s estimate. If no objection is delivered within such 30 days, then SE
Transmission’s estimate shall be final and binding. 
 (c) If Spectra MLP objects in a timely manner and Spectra MLP and SE Transmission
are unable to agree upon Final Net Working Capital within 30 days after SE Transmission’s receipt of Spectra MLP’s objection, then such dispute shall be resolved by referring the disputed items relating to such calculation to an
independent accounting firm of recognized national standing (the “Accounting Referee”) to be selected in the following manner: (i) the Parties shall have seven additional days following the aforementioned 30 day dispute
resolution period to mutually agree on the identity of the Accounting Referee or, (ii) if the Parties are unable to agree on an Accounting Referee pursuant to the preceding clause (i), SE Transmission will select three candidates and deliver a
written notice containing the names of such candidates to Spectra MLP (in care of the Conflicts Committee) within five days of the expiration of the seven day period referred to in the preceding clause (i) and within five days of receiving such
notice, Spectra MLP will select one of such three candidates to serve as the Accounting Referee. The Accounting Referee may not be otherwise engaged by any of SE 

  

 13 

 
Transmission or Spectra MLP, or their respective Affiliates, in connection with the transactions contemplated under this Agreement and may not have performed
any material services on behalf of any of MLP GP, SE Transmission or Spectra MLP, or their respective Affiliates, during the two years immediately preceding the date of this Agreement. 
 (d) The Accounting Referee shall be instructed upon appointment to determine the disputed amounts in the manner provided in this Section 2.4 within
30 days; provided, however, the amount of the Adjustment Amount or Refund Amount, as applicable, determined by the Accounting Referee shall be no greater than the higher amount submitted and no lower than the lower amount submitted. The
authority of the Accounting Referee shall be limited to determining the items disputed by Spectra MLP in its original objection that have not since been resolved by the Parties. The Accounting Referee shall have no right or authority to award
interest or penalties or to grant or award damages of any kind (including indirect, consequential, punitive or exemplary damages). The determination of the Adjustment Amount or the Refund Amount, as applicable, by the Accounting Referee shall be
final and binding on the Parties. The fees and expenses of the Accounting Referee shall be borne equally by Spectra MLP, on one hand, and SE Transmission, on the other hand. 
 (e) Spectra MLP shall pay to SE Transmission and MLP GP, in proportion to such Party’s ownership of the Saltville Companies prior to this Agreement,
an amount in cash equal to the excess, if any, of Final Net Working Capital minus Reference Net Working Capital (the “Refund Amount”), or SE Transmission and MLP GP shall pay, in proportion to such Party’s ownership of
the Saltville Companies prior to this Agreement, to Spectra MLP an amount in cash equal to the excess, if any, of Reference Net Working Capital minus Final Net Working Capital (the “Adjustment Amount”). The Refund Amount or
Adjustment Amount, as the case may be, shall be paid by wire or interbank transfer of immediately available funds within 10 days following the agreement by the Parties or the determination by the Accounting Referee of the Final Net Working Capital.
To the extent that Spectra MLP makes payment to SE Transmission and MLP GP under this Section 2.4, the Parties agree to characterize such payments for all purposes as a reduction or refund of the net working capital contributed and not as
consideration for the transfer of the Contributed Interests. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 RELATING TO SE TRANSMISSION AND MLP GP

 Except as disclosed in the Disclosure Schedule, each of SE Transmission and MLP GP, as applicable, hereby jointly and severally
represents and warrants to Spectra MLP as follows: 
 Section 3.1 Organization. It is a limited liability
company or limited partnership, as applicable, duly organized, validly existing and in good standing under the Laws of the State of Delaware. 
 Section 3.2 Authorization; Enforceability. It has all requisite limited liability company or limited partnership power and authority, as applicable, to execute and deliver this Agreement and to perform all
obligations to be performed by it hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have 

  

 14 

 
been duly and validly authorized and approved by all requisite limited liability company or limited partnership action, as applicable, on its part, and no
other limited liability company or limited partnership proceeding, as applicable, on its part is necessary to authorize this Agreement. This Agreement has been duly and validly executed and delivered by it, and this Agreement constitutes a valid and
binding obligation of it, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting creditors’ rights generally and subject,
as to enforceability, to general principles of equity. 
 Section 3.3 No Conflict. The execution and
delivery of this Agreement by it and the consummation of the transactions contemplated hereby by it (assuming all required filings, consents, approvals, authorizations and notices set forth in Schedule 3.3 (collectively, the
“Transmission Approvals”) have been made, given or obtained) do not and shall not: 
 (a) violate in any material
respect any Law applicable to it or Spectra Energy Corp or require of it or Spectra Energy Corp any filing with, consent, approval or authorization of, or notice to, any Governmental Authority; 
 (b) violate any of its or Spectra Energy Corp’s Organizational Documents; or 
 (c)(i) breach any material Contract to which it or Spectra Energy Corp is a party or by which it or Spectra Energy Corp may be bound, (ii) result in
the termination of any such material Contract, (iii) result in the creation of any Lien upon any of its Contributed Interests or (iv) constitute an event which, after notice or lapse of time or both, would result in any such breach,
termination or creation of a Lien upon any of its Contributed Interests. 
 Section 3.4 Litigation.
There are no legal actions before any Governmental Authority or lawsuits pending or, to the Knowledge of Spectra Transmission and MLP GP, as applicable, threatened against it that would adversely affect its ability to perform its obligations under
this Agreement, and there are no orders or unsatisfied judgments from any Governmental Authority binding upon it that would adversely affect its ability to perform its obligations under this Agreement. 
 Section 3.5 Brokers’ Fees. Except as set forth on Schedule 3.5, no broker, finder, investment banker or other
Person is entitled to any brokerage fee, finders’ fee or other commission in connection with the transactions contemplated by this Agreement based upon arrangements made by it or any of its Affiliates. 
 Section 3.6 Ownership of Contributed Interests. 
 (a) It has good and valid title to, holds of record and owns its Contributed Interests free and clear of any Liens other than transfer restrictions imposed thereon by securities Laws. 
 (b) SE Transmission, as of the date of this Agreement, owns 100% of the equity interests of the Saltville Companies. The Contributed Interests represent
100% of the limited liability company interests in Saltville LLC. With respect to each Saltville Company, there are no outstanding options, warrants, rights or other securities convertible into or 

  

 15 

 
exchangeable or exercisable for equity securities, any other commitments or agreements providing for the issuance of additional equity interests or the
repurchase or redemption of equity interests, and there are no agreements of any kind which may obligate any of the Saltville Companies to issue, purchase, redeem or otherwise acquire any of their respective equity interests. Except as set forth in
Schedule 3.6(b), there are no voting agreements, proxies or other similar agreements or understandings with respect to the equity interests of any Saltville Company. All of its Contributed Interests are duly authorized, validly issued and
outstanding and fully paid, and were issued free of preemptive rights in compliance with Laws. Upon consummation of the transactions contemplated by this Agreement, Spectra MLP will acquire good and valid title to all of its Contributed Interests,
free and clear of any Liens other than transfer restrictions imposed thereon by securities Laws or Liens created by Spectra MLP. 
 Section 3.7 Investment Representation. It is purchasing the Common Units or General Partner Units, as applicable, for its own account with the present intention of holding such units for investment purposes and not
with a view to or for sale in connection with any public distribution of such units in violation of any federal or state securities Laws. It acknowledges that such Common Units or General Partner Units, as applicable, have not been registered under
federal and state securities Laws and that such Common Units or General Partner Units, as applicable, may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of unless such transfer, sale, assignment, pledge,
hypothecation or other disposition is registered under federal and state securities Laws or pursuant to an exemption from registration under any federal or state securities Laws. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 
 RELATING TO THE SALTVILLE COMPANIES 
 Except as disclosed in the Disclosure Schedule, each of SE Transmission and MLP GP hereby jointly and severally represents and warrants to Spectra MLP as follows: 
 Section 4.1 Organization of the Saltville Companies. Each of the Saltville Companies is a limited liability company or corporation, as applicable, duly organized, validly existing and in good
standing under the Laws of the Commonwealth of Virginia, and has all requisite limited liability company or corporate power and authority, as applicable, to own, operate or lease its properties assets and to conduct the Business as it is now being
conducted. Each of the Saltville Companies is duly licensed or qualified in each jurisdiction in which the ownership or operation of its assets or the character of its activities is such as to require it to be so licensed or qualified, except where
the failure to be so licensed or qualified would not reasonably be expected to have a Material Adverse Effect on the Saltville Companies. SE Transmission and MLP GP has made available to Spectra MLP true copies of all existing Organizational
Documents of the Saltville Companies. 
 Section 4.2 Enforceability of Merger Agreement. When executed, the Merger
Agreement will be duly and validly executed and delivered by the Saltville Companies, and the Merger Agreement will, upon execution, constitute a valid and binding obligation of the Saltville Companies, enforceable against them in accordance with
its terms, subject to bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity. 
  

 16 

 Section 4.3 No Conflict. The execution and delivery of this Agreement by each
of SE Transmission and MLP GP and the consummation of the transactions contemplated hereby by SE Transmission and MLP GP (assuming all of the Transmission Approvals have been made, given or obtained) do not and shall not: 
 (a) violate, in any material respect, any Law applicable to the Saltville Companies or require of the Saltville Companies any filing with, consent,
approval or authorization of, or notice to, any Governmental Authority; 
 (b) violate any Organizational Document of the Saltville
Companies; or 
 (c)(i) breach any Material Contract, (ii) result in the termination of any such Material Contract, (iii) result in
the creation of any Lien under any Material Contract or (iv) constitute an event which, after notice or lapse of time or both, would result in any such breach, termination or creation of a Lien. 
 Section 4.4 Subsidiaries. The Saltville Companies do not own any equity interests in any Person. 
 Section 4.5 Financial Statements; Records; Undisclosed Liabilities. 
 (a) Schedule 4.5 sets forth true and complete copies of the standalone unaudited pro forma balance sheets of each Saltville Company and the
consolidated unaudited pro forma balance sheet of the Saltville Companies with the adjustments set forth on Schedule 4.5, in each case as of the Balance Sheet Date (such sheets being the “Financial Statements”).
The Financial Statements have been prepared in accordance with GAAP, in each case except as otherwise stated in the footnotes and except for normal year-end adjustments and the absence of footnote disclosure, and present fairly in accordance with
GAAP, in all material respects, the financial position of the Saltville Companies as of such date. 
 (b) All liabilities of the Saltville
Companies that are required by GAAP to be reflected or reserved against in the Financial Statements have been so reflected or reserved against in the Financial Statements. 
 Section 4.6 Absence of Certain Changes. Except as disclosed on Schedule 4.6, from the Balance Sheet Date, (a) there
has not been any Material Adverse Effect on the Saltville Companies, (b) the Business of the Saltville Companies has been conducted, in all material respects, only in the ordinary course consistent with past practices, and (c) there has
been no damage, destruction or loss to the assets or properties of the Saltville Companies which could reasonably be expected to have a Material Adverse Effect on the Saltville Companies. 
  

 17 

 Section 4.7 Contracts. 
 (a) Schedule 4.7(a) contains a true and complete listing of the following Contracts to which any of the Saltville Companies is a party (such
Contracts that are required to be listed on Schedule 4.7(a) being “Material Contracts”): 
 (i) each Contract
for the transportation or storage of gas; 
 (ii) each Contract for Indebtedness for Borrowed Money except for any that will be cancelled
prior to Closing; 
 (iii) each Contract involving a remaining commitment by a Saltville Company to pay capital expenditures in excess of
$50,000; 
 (iv) each Contract for lease of personal property involving payments in excess of $50,000 in any calendar year; 
 (v) each Contract between SE Transmission, MLP GP or an Affiliate of either (other than any of the Saltville Companies) on the one hand, and any of the
Saltville Companies, on the other hand, which will survive the Closing; 
 (vi) each Contract that provides for a limit on the ability of a
Saltville Company to compete in any line of business or with any Person or in any geographic area during any period of time after the Closing; 
 (vii) except for Contracts of the nature described in clauses (ii) through (vi) above, any Contract for the purchase of materials, supplies, goods, services, equipment or other assets that provides for aggregate payments by a
Saltville Company of $50,000 or more in any 12 month period; 
 (viii) any partnership or joint venture agreement (other than the
Organizational Documents of the Saltville Companies); 
 (ix) any Contract pursuant to which any third party has rights to own or use any
material asset of a Saltville Company, including any Intellectual Property right of a Saltville Company, other than pursuant to Contracts entered into by the Saltville Companies with such third parties in the ordinary course of business; and

 (x) any Contract relating to the acquisition or disposition following the Closing of any business (whether by merger, sale of stock, sale
of assets or otherwise) or granting to any Person a right of first refusal, first offer or right to purchase any of the assets of a Saltville Company which right survives the Closing other than Permitted Liens. 
 (b) True and complete copies of all Material Contracts have been made available to Spectra MLP. 
 (c) Except as set forth in Schedule 4.7(c), each Material Contract (other than such Material Contracts with respect to which all performance and
payment obligations have 

  

 18 

 
been fully performed or otherwise discharged by all parties thereto prior to the Closing) (i) is in full force and effect and (ii) represents the
legal, valid and binding obligation of the Saltville Company that is a party thereto and, to the Knowledge of SE Transmission and MLP GP, represents the legal, valid and binding obligation of the other parties thereto, in each case enforceable in
accordance with its terms subject to bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity. Except as
set forth in Schedule 4.7(c), none of the Saltville Companies, or, to the Knowledge of SE Transmission and MLP GP, any other party is in breach of any Material Contract, and none of SE Transmission, MLP GP or any Saltville Company has
received any written notice of termination or breach of any Material Contract. 
 (d) Schedule 4.7(d) lists all of the purchase and
sale agreements pursuant to which the Saltville Companies have acquired or disposed of any assets or entities during the prior 24 months other than purchases and disposals of assets in the ordinary course of business. True and correct copies of the
documents listed on Schedule 4.7(d) have been made available to Spectra MLP. 
 Section 4.8 Intellectual
Property. 
 (a) The Saltville Companies own or have the right to use pursuant to license, sublicense, agreement or otherwise all
items of Intellectual Property required in the operation of the Business as presently conducted. No third party has asserted against any of the Saltville Companies any written claim that such Saltville Company is infringing the Intellectual Property
of such third party, and, to the Knowledge of SE Transmission and MLP GP, no third party is infringing the Intellectual Property owned by any of the Saltville Companies. 
 (b) All of the Saltville Companies’ Intellectual Property which is required to conduct the Business (as currently being conducted) is listed on Schedule 4.8(b). 
 Section 4.9 Litigation. Except as set forth in Schedule 4.9, (a) there are no legal actions before any Governmental
Authority or lawsuits pending or, to the Knowledge of SE Transmission and MLP GP, threatened against any of the Saltville Companies other than lawsuits or actions which could not reasonably be expected to have a Material Adverse Effect and
(b) no Saltville Companies is subject to any injunction, order or unsatisfied judgment from any Governmental Authority. 
 Section 4.10 Taxes. Except as set forth on Schedule 4.10, with respect to each Saltville Company (a) all Tax Returns required to be filed have been duly and timely filed with the appropriate Tax
Authority, and were, when filed, true, correct and complete in all material respects, (b) all Taxes due and owing (whether or not shown as due on any Tax Returns) have been timely paid in full, (c) there are no Liens (other than Permitted
Liens) on any of the assets of the Saltville Companies that arose in connection with any failure (or alleged failure) to pay any Tax, (d) there is no claim, action or proceeding pending by any applicable Tax Authority in connection with any Tax
(provided, however, that the foregoing representation is limited to the Knowledge of SE Transmission and MLP GP for periods prior to August 10, 2005), (e) no Tax Returns are now under audit or examination by any Tax Authority
(provided, however, that the 

  

 19 

 
foregoing representation is limited to the Knowledge of SE Transmission and MLP GP for periods prior to August 10, 2005), (f) there are no
agreements or waivers providing for an extension of time with respect to the filing of any Tax Returns or the assessment or collection of any such Tax, (g) no written claim has been made by any Tax Authority in a jurisdiction where a Saltville
Company does not file a Tax Return that it is or may be subject to taxation in that jurisdiction, (h) no Saltville Company is a party to any Tax-Sharing Agreement, and is not otherwise liable for the Taxes of any other Person (including as a
transferee or successor), (i) since its inception, Saltville LLC has been treated either as a partnership or has been disregarded as an entity separate from its owner for federal income tax purposes pursuant to Treasury Regulation
Section 301.7701-3(b)(1), (j) no power of attorney that is currently in force has been granted with respect to any matter relating to Taxes that could affect any Saltville Company, (k) no Saltville Company has, during any period for
which the statute of limitations for any relevant Tax has not expired, participated in any listed transaction required to be disclosed under Treasury Regulation Section 1.6011-4, and (l) the Saltville Companies have no liability for Taxes
of any Person under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign Law), as a transferee or successor, by Contract, or otherwise. 
 Section 4.11 Environmental Matters. Except as set forth on Schedule 4.11 or as would not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect: 
 (a) the operations of the Saltville Companies are in compliance in all
material respects with all Environmental Laws, which compliance includes the possession and maintenance of, and compliance with, all material Permits required under all Environmental Laws; 
 (b) no Saltville Company is the subject of any outstanding administrative or judicial order or judgment, agreement or arbitration award from any
Governmental Authority under any Environmental Laws requiring remediation or the payment of a fine or penalty; 
 (c) no Saltville Company is
subject to any action pending or threatened in writing, whether judicial or administrative, alleging noncompliance with or potential liability under any Environmental Law; 
 (d) there has been no Release of any Hazardous Substance into the Environment by the Saltville Companies or their assets, operations and the Business
except in compliance with applicable Environmental Law (provided, however, that the foregoing representation is limited to the Knowledge of SE Transmission and MLP GP for periods prior to August 10, 2005); and 
 (e) there has been no exposure of any Person or property to any Hazardous Substances in connection with the operation of the assets of the Saltville
Companies (provided, however, that the foregoing representation is limited to the Knowledge of SE Transmission and MLP GP for periods prior to August 10, 2005). 
 Spectra MLP acknowledges that this Section 4.11 shall be deemed to be the only representation and warranty in this Agreement with respect to
environmental matters. 
  

 20 

 Section 4.12 Legal Compliance. Except with respect to (a) matters set
forth in Schedule 4.9 (b) compliance with Laws concerning Taxes (as to which representations and warranties are made only pursuant to Section 4.10), (c) compliance with Environmental Laws (as to which representations and
warranties are made only pursuant to Section 4.11) and (d) compliance with Permits (as to which representations and warranties are made only pursuant to Section 4.13), the Saltville Companies are in compliance in all material respects
with all Laws and, no Saltville Company has received written notice of any violation of any Law relating to the operation of the Business or to any of its assets or operations which could reasonably be expected to have a Material Adverse Effect.

 Section 4.13 Permits. Except as set forth in Schedule 4.13, the Saltville Companies possess all material
Permits necessary for them to own their assets and operate the Business as currently conducted. All such Permits are in full force and effect. There are no lawsuits or other proceedings pending or, to the Knowledge of SE Transmission and MLP GP,
threatened in writing before any Governmental Authority that seek the revocation, cancellation, suspension or adverse modification thereof. Except as would not reasonably be expected, individually or in the aggregate to have a Material Adverse
Effect, such Permits will not be subject to suspension, modification, revocation or non-renewal as a result of the execution, delivery and consummation of the transactions contemplated hereby. 
 Section 4.14 Insurance. Schedule 4.14 contains a summary description of all material policies of property, fire and
casualty, product liability, workers’ compensation and other insurance held by or for the benefit of any of the Saltville Companies as of the date of this Agreement. Except as reflected on Schedule 4.14, there is no material claim by any
Saltville Company pending under any of such policies as to which coverage has been denied or disputed by the underwriters of such policies. All premiums due and payable under such policies have been paid, and the Saltville Companies have complied
with the terms and conditions of such written policies. All such insurance policies are in full force and effect. No notice of cancellation of, or indication of an intention not to renew, any such insurance policy has been received by SE
Transmission or MLP GP other than in the ordinary course of business. 
 Section 4.15 Labor Relations; Employees.
No Saltville Company (a) is a party to any collective bargaining agreement or other labor union Contract applicable to persons employed by SE Transmission’s or MLP GP’s Affiliates who provide services to a Saltville Company, and, to
the Knowledge of SE Transmission and MLP GP, there are no organizational campaigns, petitions or other unionization activities focusing on persons employed by SE Transmission’s or MLP GP’s Affiliates who provide services to a Saltville
Company which seeks recognition of a collective bargaining unit, or (b) is subject to any strikes, material slowdowns or material work stoppages pending or, to the Knowledge of SE Transmission and MLP GP, threatened in writing between a
Saltville Company and any group of the foregoing employees. No Saltville Company (i) has any employees and (ii) maintains, contributes or is subject to any liability in respect of employee benefit or welfare plan of any nature, including
plans subject to ERISA. 
 Section 4.16 Title to Properties and Related Matters. 
 (a) The Saltville Companies have (i) good and defensible fee simple title to or valid leasehold interests in all of their real property and
(ii) good and valid title to all of their 

  

 21 

 
personal property used in the ordinary conduct of the Business, except (x) for such defects in title as could not, individually or in the aggregate,
reasonably be expected to materially and adversely impact the ability of the Companies to conduct the Business and (y) for easements, rights of way and similar property use rights which are addressed in Section 4.16(b), in each case free
and clear of Liens other than Permitted Liens. Schedule 4.16(a) includes a list of all real estate leases which involve the payment by any Saltville Company of in excess of $50,000 in any calendar year or which if lost would have a Material
Adverse Effect on the Saltville Companies (“Material Real Estate Leases”). The Material Real Estate Leases are (i) in full force and effect, (ii) represent the legal, valid and binding obligations of the Saltville
Company that is a party thereto and, to the Knowledge of SE Transmission and MLP GP, represent the legal, valid and binding obligation of the other parties thereto, in each case enforceable in accordance with its terms. No Saltville Company nor, to
the Knowledge of SE Transmission and MLP GP, any other party is in breach in any material respect of any Material Real Estate Lease. 
 (b)
The Saltville Companies have such easements, rights of way and other similar property use rights which are sufficient, in the aggregate, for the Saltville Companies to conduct the Business as currently conducted except for such defects that could
not reasonably be expected to have a Material Adverse Effect on the Saltville Companies. Spectra MLP acknowledges that this Section 4.16(b) shall be deemed to be the only representation and warranty in the Agreement with respect to easements,
rights of way and other similar property use rights held or used by the Saltville Companies. 
 Section 4.17 Brokers’
Fees. No broker, finder, investment banker or other Person is entitled to any brokerage fee, finders’ fee or other commission in connection with the transactions contemplated in this Agreement based upon arrangements made by any
Saltville Company or any of its Affiliates. 
 Section 4.18 Regulatory Matters. Saltville LLC has made a filing
with the Federal Energy Regulatory Commission to request the issuance of an order to establish a certificated working gas capacity of the storage facility owned by Saltville LLC at 3.0 Bcf. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES RELATING TO SPECTRA MLP

 Spectra MLP hereby represents and warrants as follows: 
 Section 5.1 Organization of Spectra MLP. Spectra MLP is a limited partnership duly organized, validly existing and in good standing under the Laws of the State of Delaware. 
 Section 5.2 Authorization; Enforceability. Spectra MLP has all requisite partnership power and authority to execute and deliver
this Agreement and to perform all obligations to be performed by it hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized and approved by all
requisite limited partnership action on the part of Spectra MLP, and no other partnership proceeding on the part of Spectra MLP is necessary to authorize this Agreement. This Agreement has been duly and validly executed and delivered by Spectra MLP,
and this Agreement constitutes a valid and binding obligation of Spectra MLP, enforceable against 

  

 22 

 
Spectra MLP in accordance with its terms, subject to bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting
creditors’ rights generally and subject, as to enforceability, to general principles of equity. 
 Section 5.3 No
Conflict. The execution and delivery of this Agreement by Spectra MLP and the consummation of the transactions contemplated hereby by Spectra MLP (assuming all required filings, consents, approvals authorizations and notices set forth in
Schedule 5.3 (collectively, the “Spectra MLP Approvals”) have been made, given or obtained) do not and shall not: 
 (a) violate in any material respect, any Law applicable to Spectra MLP or require of Spectra MLP any filing with, consent, approval or authorization of, or, notice to, any Governmental Authority; 
 (b) violate any Organizational Document of Spectra MLP; or 
 (c)(i) breach any material Contract, to which Spectra MLP is a party or by which Spectra MLP may be bound, (ii) result in the termination of any such material Contract, (iii) result in the creation of any
Lien upon any of the properties or assets of Spectra MLP or (iv) constitute an event which, after notice or lapse of time or both, would result in any such breach, termination or creation of a Lien. 
 Section 5.4 Litigation. There are no legal actions before any Governmental Authority or lawsuits pending or, to the Knowledge
of Spectra MLP, threatened against Spectra MLP that would adversely affect the ability of Spectra MLP to perform its obligations under this Agreement, and there are no orders or unsatisfied judgments from any Governmental Authority binding upon
Spectra MLP that would adversely affect the ability of Spectra MLP to perform its obligations under this Agreement. 
 Section 5.5 Brokers’ Fees. Except as set forth on Schedule 5.5, no broker, finder, investment banker or other Person is entitled to any brokerage fee, finders’ fee or other commission in connection
with the transactions contemplated by this Agreement based upon arrangements made by Spectra MLP or any of its Affiliates. 
 Section 5.6 Issuance of SET Common Units and MLP GP General Partner Units. Upon issuance, all of the SET Common Units and MLP GP General Partner Units will be duly authorized; validly issued and outstanding; with
respect to the SET Common Units, fully paid (to the extent required by the Spectra MLP Partnership Agreement); and, with respect to the SET Common Units, nonassessable (subject to Del. Code Ann. Tit. 6, §§ 17-303, 17-607 and 17-804
(2007)), and will have been issued free of preemptive rights in compliance with Laws. Upon consummation of the transactions contemplated by this Agreement, SE Transmission and MLP GP will acquire good and valid title to all of the SET Common Units
and MLP GP General Partner Units, free and clear of any Liens other than transfer restrictions imposed thereon by securities Laws or arising under the Spectra MLP Partnership Agreement. 
 Section 5.7 Investment Representation. Spectra MLP is purchasing the Contributed Interests for its own account with the present
intention of holding the Contributed Interests for investment purposes and not with a view to or for sale in connection with any public distribution 

  

 23 

 
of the Contributed Interests in violation of any federal or state securities Laws. Spectra MLP acknowledges that the Contributed Interests have not been
registered under federal and state securities Laws and that the Contributed Interests may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of unless such transfer, sale, assignment, pledge, hypothecation or
other disposition is registered under federal and state securities Laws or pursuant to an exemption from registration under any federal or state securities Laws. 
 Section 5.8 Spectra MLP SEC Documents. Spectra MLP has timely filed with the Commission all forms, registration statements, reports, schedules and statements required to be filed by it under
the Exchange Act or the Securities Act (all such documents filed on or prior to the date of this Agreement, collectively, the “Spectra MLP SEC Documents”). The Spectra MLP SEC Documents, including any audited or
unaudited financial statements and any notes thereto or schedules included therein (the “Spectra MLP Financial Statements”), at the time filed (in the case of registration statements, solely on the dates of
effectiveness) (except to the extent corrected by a subsequently filed Spectra MLP SEC Document filed prior to the date of this Agreement) (i) did not contain any untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading and (ii) complied in all material respects with the applicable requirements of the Exchange Act and
the Securities Act, as the case may be. The Spectra MLP Financial Statements were prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the case of
unaudited statements, as permitted by Form 10-Q of the Commission) and fairly present (subject in the case of unaudited statements to normal, recurring and year-end audit adjustments) in all material respects the consolidated financial position and
status of the business of Spectra MLP as of the dates thereof and the consolidated results of its operations and cash flows for the periods then ended. Deloitte & Touche LLP is an independent registered public accounting firm with respect
to Spectra MLP and has not resigned or been dismissed as independent registered public accountants of Spectra MLP as a result of or in connection with any disagreement with Spectra MLP on any matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedures. 
 ARTICLE VI 
 COVENANTS 
 Section 6.1 Conduct of Business. From the
date of this Agreement through the Closing, except: (1) as set forth on Schedule 6.1, (2) for the Saltville Restructuring, (3) for the filing of a rate case by the Saltville Companies with the Federal Energy Regulatory
Commission with respect to rates regarding gas storage assets and the pursuit, renegotiation and settlement of customer Contracts related to such assets, (4) as contemplated by this Agreement, or (5) as consented to by Spectra MLP in
writing (which consent shall not be unreasonably withheld, conditioned or delayed): 
 (a) each of SE Transmission and MLP GP shall cause each
of the Saltville Companies to (i) operate the Business in the ordinary course and (ii) use Reasonable Efforts to preserve intact the Business and its relationship with customers, suppliers and others having business relationships with any
of the Saltville Companies, and 
  

 24 

 (b) each of SE Transmission and MLP GP shall not permit the Saltville Companies to: 
 (i) amend its Organizational Documents; 
 (ii) liquidate, dissolve, recapitalize or otherwise wind up the Business; 
 (iii) change its accounting methods, policies or
practices, except as required by GAAP or Law; 
 (iv) sell, assign, transfer, lease or otherwise dispose of any assets except in the
ordinary course of business or pursuant to the terms of a Material Contract; 
 (v) make any capital expenditure in excess of $1,000,000
other than capital expenditures reflected on Schedule 6.1 and other than reasonable capital expenditures in connection with any emergency or force majeure events affecting any Saltville Company; 
 (vi) merge or consolidate with, or purchase substantially all of the assets or business of, or equity interests in, or make an investment in any Person
(other than extensions of credit to customers in the ordinary course of business); 
 (vii) incur any Indebtedness for Borrowed Money or
issue or sell any equity interests, notes, bonds or other securities of any Saltville Company (except for intercompany loans from or to SE Transmission or its Affiliates or MLP GP or its Affiliates), or any option, warrant or right to acquire same;

 (viii) adopt any profit sharing, compensation, savings, insurance, pension, retirement or other benefit plan or hire any employees;

 (ix) enter into any Contract, except for Contracts entered into by any Saltville Company in the ordinary course of business; 

(x) create or assume any Lien, other than a Permitted Lien; 
 (xi) terminate or close any facility, business or operation of any Saltville Company except in the ordinary course of business; or 
 (xii) agree, whether in writing or otherwise, to do any of the foregoing. 
 Section 6.2
Access. From the date hereof through the Closing, each of SE Transmission and MLP GP shall afford to Spectra MLP and its authorized Representatives reasonable access, during normal business hours and in such manner as not unreasonably
to interfere with normal operation of the Business, to the properties, books, Contracts, records and appropriate officers and employees of each of SE Transmission’s and MLP GP’s Affiliates who provide services to any Saltville Company, and
shall furnish such authorized Representatives with all financial and operating data and other information concerning the affairs of any Saltville Company as Spectra MLP and such Representatives may reasonably request. Each of SE Transmission and MLP
GP shall have the right to have a Representative present at all times during any such inspections, interviews, and examinations. Notwithstanding the foregoing, 

  

 25 

 
Spectra MLP shall have no right of access to, and none of SE Transmission and MLP GP shall have any obligation to provide to Spectra MLP, information
relating to (a) any information the disclosure of which would jeopardize any privilege available to any Saltville Company, SE Transmission, any SE Transmission Affiliate, MLP GP or any MLP GP Affiliate relating to such information or
(b) any information the disclosure of which would result in a violation of Law. 
 Section 6.3 Third Party
Approvals. Spectra MLP, MLP GP and SE Transmission shall (and shall each cause their respective Affiliates to) use Reasonable Efforts to obtain all material consents and approvals of third parties that any of Spectra MLP, MLP GP, SE
Transmission or their respective Affiliates are required to obtain in order to consummate the transactions contemplated hereby. 
 Section 6.4 Saltville Restructuring. From the date of this Agreement until the Closing, SE Transmission and MLP GP shall, and shall cause their respective Affiliates to, use Reasonable Efforts to cause the
Saltville Restructuring to be consummated as soon as possible on or after April 1, 2008, including making all filings with respect thereto and seeking all approvals required in connection therewith; provided, however, that SE
Transmission and MLP GP shall not be obligated to effect or consent to any action that would have a Material Adverse Effect on Spectra Energy Corp or any of its Affiliates; provided further, however, that in no event shall the Saltville
Companies enter into a Contract in replacement of any Contract listed on Schedule 4.7(a)(i) with a particular customer at a rate lower than the rate charged to such customer or with a shorter term than the term then remaining under its existing
Contract without the prior written consent of Spectra MLP, which consent shall not unreasonably be withheld. 
 Section 6.5
Company Guarantees. 
 (a) A list of Company Guarantees as of the date of this Agreement is set forth on Schedule 6.5.

 (b) Notwithstanding anything to the contrary herein, the Parties acknowledge and agree that at any time following the Closing Date, each
of SE Transmission and MLP GP and their respective Affiliates may, in their sole discretion, take any action to terminate, obtain release of or otherwise limit its liability under any and all outstanding Company Guarantees; provided, however,
that any such party shall give Spectra MLP 90 days advance written notice prior to taking any such action. 
 Section 6.6
Indebtedness for Borrowed Money. Immediately prior to the Closing, (i) each of SE Transmission and MLP GP shall cause the Saltville Companies to distribute to SE Transmission or MLP GP, as applicable, any Indebtedness for Borrowed
Money due to the Saltville Companies from SE Transmission or its Affiliates and MLP GP or its Affiliates, as applicable, and (ii) SE Transmission and MLP GP shall cancel and contribute to the capital of the Saltville Companies (or, as
applicable, cause its Affiliates to cancel) any Indebtedness for Borrowed Money due from the Saltville Companies to SE Transmission or its Affiliates and MLP GP or its Affiliates, as applicable, in each case including interest and other amounts
accrued thereon or due in respect thereof. 
  

 26 

 Section 6.7 Update Information. At any time up to 10 days before the Closing,
SE Transmission and MLP GP shall supplement in writing any information furnished on the Disclosure Schedule to reflect post-signing developments and matters that have come to the Knowledge of SE Transmission and MLP GP (which if not included on a
Schedule would constitute a breach of this Agreement by SE Transmission or MLP GP, as applicable) by furnishing such supplemented information to Spectra MLP pursuant to the notice provisions hereof. If (a) SE Transmission or MLP GP so furnishes
supplemental information, (b) the absence of such information would have resulted in a breach of any representation or warranty under this Agreement and (c) the Closing occurs, then such information shall be deemed to amend this Agreement
and the Disclosure Schedule for all purposes hereunder; provided, however, that if such supplemental disclosure would or would reasonably be expected to result in Losses to the Saltville Companies in excess of $2,500,000 in the aggregate,
then Spectra MLP may elect, by written notice delivered to SE Transmission and MLP GP to terminate this Agreement no later than two Business Days before Closing. 
 Section 6.8 Books and Records. From and after the Closing, Spectra MLP shall preserve and keep a copy of all books and records (other than Tax records which are addressed in Article VII)
relating to the Business or operations of the Saltville Companies on or before the Closing Date in Spectra MLP’s possession for a period of at least seven years after the Closing Date. After such seven year period, before Spectra MLP shall
dispose of any such books and records, Spectra MLP shall give each of SE Transmission and MLP GP at least 90 days prior notice to such effect, and each of SE Transmission and MLP GP shall be given an opportunity, at their cost and expense, to remove
and retain all or any part of such books and records as each of SE Transmission and MLP GP may select. Spectra MLP shall provide to each of SE Transmission and MLP GP, at no cost or expense to such Party, reasonable access during business hours to
such books and records as remain in Spectra MLP’s possession and reasonable access during business hours to the properties and employees of Spectra MLP and any of the Saltville Companies in connection with matters relating to the Business or
operations of the Saltville Companies on or before the Closing Date and any disputes relating to this Agreement. 
 Section 6.9
Permits. SE Transmission, MLP GP and Spectra MLP shall cooperate to provide all notices and otherwise take all reasonable actions required to transfer or reissue any Permits, including those required under Environmental Laws, as a
result of or in furtherance of the transactions contemplated by this Agreement. 
 Section 6.10 Excluded Assets.

 (a) Spectra MLP acknowledges that the Saltville Companies will, prior to the Closing, convey, assign and transfer to SE Transmission or
one of its Affiliates (other than the Saltville Companies), all right, title and interest in and to the consideration received pursuant to the Asset Purchase Agreement and the other assets, properties and rights (and associated liabilities and
obligations) and the liabilities and obligations (and associated assets, properties and rights) described or referenced in Schedule 6.10 and neither Spectra MLP nor the Saltville Companies shall have any claims or rights with respect to
such consideration, assets, properties, rights, liabilities and obligations (such assets, properties, rights, liabilities and obligations, the “Excluded Assets”) under this Agreement. 
  

 27 

 (b) Notwithstanding anything herein to the contrary, (i) all references herein to any revenues,
expenses, assets, or liabilities of the Saltville Companies shall expressly exclude the Excluded Assets, (ii) all references herein to the Business, whether with respect to financial, accounting, legal, Tax or other position or operation, shall
expressly exclude the businesses or the position or operation of the businesses included in the Excluded Assets and (iii) none of SE Transmission and MLP GP and their respective Affiliates makes any representations, warranties or covenants with
respect to the Excluded Assets. 
 Section 6.11 Noncompetition Agreement. From and after the Closing Date, Spectra
MLP shall cause Saltville LLC to comply with the terms of the Noncompetition Agreement, dated as of October 11, 2001, by and between Virginia Gas Company and Heritage Holdings, Inc. 
 Section 6.12 Asset Purchase Agreement. Spectra MLP shall (i) cause East Tennessee Natural Gas, LLC and, from and after the
Closing, Saltville LLC (as successor-in-interest by merger to SE Virginia Pipeline under the Asset Purchase Agreement) to refrain from amending, supplementing, or otherwise modifying the Asset Purchase Agreement without the prior written consent of
SE Transmission (which consent SE Transmission may withhold in its sole discretion) and (ii) promptly forward to SE Transmission any notices given by East Tennessee Natural Gas, LLC to Saltville LLC in connection with the Asset Purchase
Agreement. 
 ARTICLE VII 
 TAX MATTERS 
 Section 7.1 Tax Returns. 
 (a) Through the Closing, each of SE Transmission and MLP GP shall cause Saltville LLC to continue either to be treated as a partnership or disregarded as
an entity separate from its owner for federal income tax purposes pursuant to Treasury Regulation Section 301.7701-3(b)(1), and the operations of each of the Saltville Companies through the Effective Time shall be reflected on the consolidated
federal income Tax Return of Spectra Energy Corp. The income of the Saltville Companies will be apportioned to the period up to and including the Effective Time, and the period after the Effective Time, by closing the books of the Saltville
Companies as of the Effective Time. 
 (b) Except as provided in Section 7.1(d) for ad valorem Taxes, with respect to any Tax Return of
any Saltville Company covering a taxable period ending on or before the Effective Time that is required to be filed after the Effective Time, SE Transmission shall cause such Tax Return to be prepared and shall cause to be included in such Tax
Return all Tax items required to be included therein. Not later than 15 days prior to the due date of each such Tax Return, SE Transmission shall deliver a copy of such Tax Return to Spectra MLP together with a statement of the difference, if any,
of the amount of Tax shown due on such Tax Return over the amount set up as a liability for such Tax (for the period through the Effective Time) in the Final Net Working Capital. If the Tax shown on the Tax Return exceeds the amount set up as a
liability for the Tax (for the period through the Effective Time) in the Final Net Working Capital, not later than the due date of such Tax Return, each of SE Transmission and MLP GP shall pay to Spectra MLP its share of such amount of such excess.
If the amount set up as a liability for 

  

 28 

 
the Tax (for the period through the Effective Time) in the Final Net Working Capital exceeds the Tax shown on the Tax Return, not later than the due date of
such Tax Return, Spectra MLP shall pay to SE Transmission and MLP GP in proportion to such Party’s ownership of the Saltville Companies prior to this Agreement the amount of such excess. Spectra MLP shall cause such Saltville Company to file
the Tax Return and timely pay the Taxes shown due on such Tax Return. 
 (c) With respect to any Tax Return of a Saltville Company covering a
taxable period beginning on or before the Effective Time and ending after the Effective Time that is required to be filed after the Effective Time, Spectra MLP shall cause such Tax Return to be prepared and shall cause to be included in such Tax
Return all Tax items required to be included therein. Spectra MLP shall determine (by an interim closing of the books as of the Effective Time except for franchise Taxes based solely on capital and ad valorem Taxes which shall be prorated on a daily
basis) the Tax which would have been due with respect to the period covered by such Tax Return if such taxable period ended on the Effective Time (the “Pre-Closing Tax”). For this purpose, any franchise Tax paid or payable
with respect to any Saltville Company shall be allocated to the taxable period for which payment of the Tax provides the right to engage in business, regardless of the taxable period during which the income, operations, assets or capital comprising
the base of such Tax is measured. Not later than 15 days prior to the due date of each such Tax Return, Spectra MLP shall deliver a copy of such Tax Return to each SE Transmission and MLP GP for their review. Spectra MLP shall make all reasonable
changes to such Tax Return as requested by each of SE Transmission and MLP GP not later than ten days prior to the due date of such Tax Return. Not later than the due date of the Tax Return, either (i) each of SE Transmission and MLP GP shall
pay to Spectra MLP their share of the excess, if any, of the Pre-Closing Tax over the amount set up as a liability for the Pre-Closing Tax in the Final Net Working Capital, or (ii) Spectra MLP shall pay to SE Transmission or MLP GP in
proportion to such Party’s ownership of Saltville LLC prior to this Agreement the excess, if any, of the amount set up as a liability for the Pre-Closing Tax in the Final Net Working Capital over the Pre-Closing Tax. Spectra MLP shall cause
such Saltville Company to file the Tax Return and timely pay the Taxes shown due on such Tax Return. 
 (d) Ad valorem Taxes relating to the
Saltville Companies for any tax year that includes periods prior to the Closing Date shall be prorated on a daily basis between Spectra MLP on the one hand and SE Transmission on the other hand, with SE Transmission responsible for the prorated
portion of such Taxes for the period up to and including the Closing Date and Spectra MLP responsible for the prorated portion of such Taxes after the Closing Date. The Party that receives the ad valorem Tax billing (the “Billed
Party”) shall provide a copy of such billing to the other Party together with a calculation of the prorated ad valorem Taxes owed by each Party. The Party that did not receive the ad valorem Tax billing shall pay its prorated portion of
the ad valorem Taxes to the Billed Party prior to the due date of such Taxes and the Billed Party shall be responsible for the timely payment of the ad valorem Taxes to the taxing authorities. 
 (e) Any Tax Return prepared pursuant to the provisions of this Section 7.1 shall be prepared in a manner consistent with practices followed in prior
years with respect to similar Tax Returns, except as otherwise required by Law or fact. Any dispute arising pursuant to the provisions of Section 7.1(b) or Section 7.1(c) shall be resolved pursuant to procedures comparable to the
procedures applicable under Sections 2.4. 
  

 29 

 (f) Spectra MLP, MLP GP and SE Transmission shall cooperate fully, and Spectra MLP shall cause each of
the Saltville Companies to cooperate fully, as and to the extent reasonably requested by the other Party, in connection with the preparation and filing of Tax Returns pursuant to this Section 7.1 (and Section 7.5), requests for the
provision of any information or documentation within the knowledge or possession of the other Party as reasonably necessary to facilitate compliance with financial reporting obligations arising under FASB Statement No. 109 (including without
limitation, compliance with Financial Accounting Standards Board Interpretation No. 48), and any audit, litigation or other proceeding (each a “Tax Proceeding”) with respect to Taxes. Such cooperation shall include
access to, the retention and (upon the other Party’s request) the provision of records and information which are reasonably relevant to any such Tax Return or Tax Proceeding, and making employees available on a mutually convenient basis to
provide additional information and explanation of any material provided hereunder. SE Transmission will, MLP GP will and Spectra MLP will and will cause the Saltville Companies to, (i) retain all books and records with respect to Tax matters
pertinent to the Saltville Companies relating to any taxable period beginning before the Effective Time until the later of six years after the Effective Time or the expiration of the applicable statute of limitations of the respective taxable
periods (including any extensions thereof), and to abide by all record retention agreements entered into with any Tax Authority, and (ii) give the other party reasonable written notice prior to transferring, destroying or discarding any such
books and records and, if the other party so requests, Spectra MLP, MLP GP or SE Transmission, as the case may be, shall allow the other parties to take possession of such books and records. Spectra MLP, MLP GP and SE Transmission each agree, upon
request, to use Reasonable Efforts to obtain any certificate or other document from any Tax Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed with respect to the transactions
contemplated by this Agreement. 
 Section 7.2 Transfer Taxes. Responsibility for the payment of all state and
local transfer, sales, use, stamp, registration or other similar Taxes resulting from the transactions contemplated by this Agreement shall be borne 50% by Spectra MLP and 50% by SE Transmission and MLP GP in proportion to their ownership of the
Saltville Companies prior to this Agreement. 
 Section 7.3 Tax Indemnity. 
 (a) SE Transmission and MLP GP shall be jointly and severally liable for, shall pay and shall protect, defend, indemnify and hold harmless Spectra MLP
and the Saltville Companies from (i) any breach of the representations and warranties contained in Section 4.10, (ii) any and all Taxes in excess of any liability for Taxes (for the period through the Effective Time) reflected in the
Final Net Working Capital which relate to or result from the income, Business, property or operations of the Saltville Companies prior to the Effective Time, (iii) any Taxes arising as a result of the Saltville Restructuring and (iv) with
respect to any tax liabilities of the Saltville Companies as a result of the provisions of Treasury Regulation Section 1.1502-6 or any similar provision of foreign, state or local law. Spectra MLP shall be solely liable for, shall pay and shall
protect, defend, indemnify and hold harmless each of SE Transmission and MLP GP from any and all Taxes which relate to or result from the income, Business, property or operations of the Saltville Companies after the Effective Time. 
  

 30 

 (b) If any claim (an “Indemnified Tax Claim”) is made by any Tax Authority that,
if successful, would result in indemnification of any Party (the “Tax Indemnified Party”) by another Party (the “Tax Indemnifying Party”) under this Section 7.3, the Tax Indemnified Party shall
promptly, but in no event later than the earlier of (i) 45 days after receipt of notice from the Tax Authority of such claim or (ii) 15 days prior to the date required for the filing of any protest of such claim, notify the Tax
Indemnifying Party in writing of such fact. 
 (c) The Tax Indemnifying Party shall control all decisions with respect to any Tax Proceeding
involving an Indemnified Tax Claim and the Tax Indemnified Party shall take such action (including settlement with respect to such Tax Proceeding or the prosecution of such Tax Proceeding to a determination in a court or other tribunal of initial or
appellate jurisdiction) in connection with a Tax Proceeding involving an Indemnified Tax Claim as the Tax Indemnifying Party shall reasonably request in writing from time to time, including the selection of counsel and experts and the execution of
powers of attorney; provided, however, that (i) within 30 days after the notice required by Section 7.3(b) has been delivered (or such earlier date that any payment of Taxes with respect to such claim is due but in no event sooner
than five days after the Tax Indemnifying Party’s receipt of such notice), the Tax Indemnifying Party requests that such claim be contested, and (ii) if the Tax Indemnified Party is requested by the Tax Indemnifying Party to pay the Tax
claimed and sue for a refund, the Tax Indemnifying Party shall have advanced to the Tax Indemnified Party, on an interest-free basis, the amount of such claim. The Tax Indemnified Party shall not make any payment of an Indemnified Tax Claim for at
least 30 days (or such shorter period as may be required by Law) after the giving of the notice required by Section 7.3(b) with respect to such claim, shall give to the Tax Indemnifying Party any information requested related to such claim, and
otherwise shall cooperate with the Tax Indemnifying Party in order to contest effectively any such claim. 
 Section 7.4
Scope. Notwithstanding anything to the contrary herein, this Article VII shall be the exclusive remedy for any claims relating to Taxes (including any claims relating to representations respecting Tax matters including
Section 4.10). The rights under this Article VII shall survive the Closing until 30 days after the expiration of the statute of limitations (including extensions) applicable to such Tax matter. No claim may be made or brought by any Party
hereto after the expiration of the applicable survival period unless such claim has been asserted by written notice specifying the details supporting the claim on or prior to the expiration of the applicable survival period. 
 Section 7.5 Tax Refunds. In the event that Spectra MLP receives any refund of Taxes from a taxing jurisdiction or
a reimbursement of Taxes from a third party with respect to any Pre-Closing Taxable Period (which refund is not reflected in “Accrued Taxes” on the balance sheet of Saltville LLC dated as of the Closing Date prepared in connection with the
determination of Final Net Working Capital), such amounts shall belong to SE Transmission and MLP GP and shall be forwarded by Spectra MLP to SE Transmission and MLP GP in proportion to such Party’s ownership of Saltville LLC prior to this
Agreement within 10 days of receipt. 
  

 31 

 ARTICLE VIII 
 CONDITIONS TO OBLIGATIONS 
 Section 8.1 Conditions to Obligations of Spectra
MLP. The obligation of Spectra MLP to consummate the transactions contemplated by this Agreement is subject to the satisfaction of the following conditions, any one or more of which may be waived in writing by Spectra MLP: 
 (a) All necessary filings with and consents, approvals, licenses, Permits, and orders of any Governmental Authority required by Law for the consummation
of the transactions contemplated in this Agreement shall have been made and obtained, other than those that do not or would not reasonably be expected to result in Losses to the Saltville Companies in excess of $2,500,000 in the aggregate. All
necessary consents of any third party, other than any Governmental Authority, required for the consummation of the transactions contemplated in this Agreement shall have been made and obtained, including the Transmission Approvals and Spectra MLP
Approvals, other than those that do not or would not reasonably be expected to result in Losses to the Saltville Companies in excess of $2,500,000 in the aggregate; 
 (b) each of the representations and warranties of SE Transmission and MLP GP contained in this Agreement shall be true as of the date of this Agreement and as of the Closing, as if made at and as of that time (other
than such representations and warranties that expressly address matters only as of a certain date, which need only be true as of such certain date); 
 (c) each of SE Transmission and MLP GP shall have performed or complied in all material respects with all of the covenants and agreements required by this Agreement to be performed or complied with by it at or before
the Closing; 
 (d) each of SE Transmission and MLP GP shall have delivered to Spectra MLP a certificate dated the Closing Date, certifying
that the conditions specified in Sections 8.1(b) and 8.1(c) have been fulfilled; 
 (e) no statute, rule, regulation, executive order,
decree, temporary restraining order, preliminary or permanent injunction, judgment or other order shall have been enacted, entered, promulgated, enforced or issued by any Governmental Authority, or other legal restraint or prohibition preventing the
consummation of the transactions contemplated hereby shall be in effect, and no investigation, action or proceeding before a Governmental Authority shall have been instituted or threatened challenging or seeking to restrain or prohibit the
transactions contemplated hereby or to recover damages in connection therewith; 
 (f) the closing under the Asset Purchase Agreement has
occurred; and 
 (g) the Saltville Restructuring has been consummated without the occurrence of a Material Adverse Effect on Spectra MLP or
the Saltville Companies. 
  

 32 

 Section 8.2 Conditions to the Obligations of SE Transmission and MLP GP. The
obligation of each of SE Transmission and MLP GP to consummate the transactions contemplated by this Agreement is subject to the satisfaction of the following conditions, any one or more of which may be waived in writing by SE Transmission:

 (a) All necessary filings with and consents, approvals, Permits, and orders of any Governmental Authority required by Law for the
consummation of the transactions contemplated in this Agreement shall have been made and obtained, other than those that would not reasonably be expected, in the aggregate, to have a Material Adverse Effect on SE Transmission or MLP GP. All
necessary consents of any third party, other than any Governmental Authority, required for the consummation of the transactions contemplated in this Agreement shall have been made and obtained, including the Transmission Approvals and Spectra MLP
Approvals, other than those that would not reasonably be expected, in the aggregate, to have a Material Adverse Effect on SE Transmission or MLP GP; 
 (b) each of the representations and warranties of Spectra MLP contained in this Agreement shall be true as of the date of this Agreement and as of the Closing, as if made anew at and as of that time (other than such
representations and warranties that expressly address matters only as of a certain date, which need only be true as of such certain date); 
 (c) Spectra MLP shall have performed or complied in all material respects with all of the covenants and agreements required by this Agreement to be performed or complied with by Spectra MLP on or before the Closing; 
 (d) Spectra MLP shall have delivered to each of SE Transmission and MLP GP a certificate, dated the Closing Date, certifying that the conditions
specified in Section 8.2(b) and (c) have been fulfilled; 
 (e) no statute, rule, regulation, executive order, decree, temporary
restraining order, preliminary or permanent injunction, judgment or other order shall have been enacted, entered, promulgated, enforced or issued by any Governmental Authority, or other legal restraint or prohibition preventing the consummation of
the transactions contemplated hereby shall be in effect, and no investigation, action or proceeding before a court or any other governmental agency or body shall have been instituted or threatened challenging or seeking to restrain or prohibit the
consummation of the transactions contemplated by this Agreement or to recover damages in connection therewith; 
 (f) the closing under the
Asset Purchase Agreement has occurred; and 
 (g) the Saltville Restructuring has been consummated without the occurrence of a Material
Adverse Effect on Spectra Energy Corp or any of its Affiliates. 
 ARTICLE IX 
 INDEMNIFICATION 
 Section 9.1 Survival. 
 (a) The representations and warranties of the Parties contained in this Agreement and all covenants contained in this Agreement that are to be performed
prior to the Closing will survive the closing for 18 months following the Closing; provided, however, that 

  

 33 

 
(i) the Fundamental Representations and Warranties shall survive for the applicable statute of limitations, (ii) the representations and warranties
set forth in Section 4.10 shall survive as set forth in Article VII and (iii) the representations and warranties in Section 4.11 shall survive for three years following the Closing. The P-25 Indemnity Obligations (as defined below)
shall survive as set forth in the Asset Purchase Agreement. No Party shall have any liability for indemnification claims made under this Article IX with respect to any such representation, warranty or pre-closing covenant unless a Claim Notice
is provided by the non-breaching Party to the other Party prior to the expiration of the applicable survival period for such representation, warranty or pre-closing covenant. If a Claim Notice has been timely given in accordance with this Agreement
prior to the expiration of the applicable survival period for such representation, warranty or pre-closing covenant or claim, then the applicable representation, warranty or pre-closing covenant shall survive as to such claim, until such claim has
been finally resolved. 
 (b) All covenants and agreements of the Parties contained in this Agreement to be performed after the Closing will
survive the Closing in accordance with their terms. 
 Section 9.2 Indemnification. 
 (a) Subject to Article VII relating to Taxes, the provisions of this Article IX and, as to the P-25 Indemnity Obligations, all rights,
counterclaims, defenses and limitations available under the Asset Purchase Agreement to SE Virginia Pipeline (except for defenses arising from the involuntary bankruptcy, insolvency, dissolution or liquidation of SE Virginia Pipeline), from and
after the Closing, each of SE Transmission and MLP GP shall indemnify and hold harmless Spectra MLP, Spectra MLP’s Affiliates (other than SE Transmission and MLP GP) and their respective Representatives (the “Spectra MLP Indemnified
Parties”) from and against all Losses that Spectra MLP Indemnified Parties incur arising from (i) any breach of any representation, warranty or covenant of SE Transmission or MLP GP, as applicable, in this Agreement or in the
certificates to be delivered at Closing or (ii) any breach of any representation, warranty or covenant of SE Virginia Pipeline at or prior to closing under the Asset Purchase Agreement or in the certificates delivered at the closing thereunder
or any indemnity obligation thereunder relating to periods on or prior to the closing thereunder (collectively, the “P-25 Indemnity Obligations”). 
 (b) Subject to Article VII relating to Taxes and the provisions of this Article IX, from and after the Closing, Spectra MLP shall indemnify and hold harmless SE Transmission and its Affiliates and their
respective Representatives (the “SE Transmission Indemnified Parties”) and MLP GP and its Affiliates and their respective Representatives (the “MLP GP Indemnified Parties”) from and against all Losses
that each of the SE Transmission Indemnified Parties and MLP GP Indemnified Parties incur arising from or out of (i) any breach of any representation, warranty or covenant of Spectra MLP in this Agreement or in the certificate to be delivered
at Closing or (ii) relating to any Company Guarantees. 
 (c) Notwithstanding anything to the contrary herein, the Parties shall have a
duty to use Reasonable Efforts to mitigate any Loss arising out of or relating to this Agreement or the transactions contemplated hereby. 
  

 34 

 (d) Notwithstanding anything to the contrary herein, to the extent that any Spectra MLP Indemnified Party
incurs Losses arising from any breach of any representation, warranty or covenant of SE Transmission or MLP GP, as applicable, in this Agreement, and recourse is available to it for all or a portion of such Losses under the AGL Agreement, then such
Spectra MLP Indemnified Party shall give SE Transmission and MLP GP a Claim Notice therefor and first use its Reasonable Efforts for a period of one year to seek indemnification under the AGL Agreement and shall have recourse hereunder for such
Losses only to the extent not recovered pursuant to the AGL Agreement. The delivery of a Claim Notice in respect of such Losses shall toll the applicable survival period under Section 9.1 for the duration of such year. Notwithstanding the
foregoing, Spectra MLP agrees not to initiate litigation pursuant to the AGL Agreement and, at such time as it determines efforts at recovery pursuant to the AGL Agreement short of litigation are unlikely to be successful, Spectra MLP shall notify
SE Transmission thereof and SE Transmission may then freely pursue such litigation. If SE Transmission decides to initiate such litigation prior to the end of the above-referenced one year period, or otherwise as of the expiration of such one year
period, Spectra MLP shall no longer be obligated to seek recourse under the AGL Agreement with respect to the applicable matters. 
 (e)
Notwithstanding anything in this Article IX to the contrary, all Losses relating to Taxes which are the subject of Article VII shall only be subject to indemnification under Section 7.3. 
 Section 9.3 Indemnification Procedures. Claims for indemnification under this Agreement (other than claims involving a Tax
Proceeding, the procedures for which are set forth in Article VII) shall be asserted and resolved as follows: 
 (a) Any Spectra MLP
Indemnified Party, MLP GP Indemnified Party or SE Transmission Indemnified Party claiming indemnification under this Agreement (an “Indemnified Party”) with respect to any claim asserted against the Indemnified Party by a
third party (“Third Party Claim”) in respect of any matter that is subject to indemnification under Section 9.2 shall promptly (i) notify the appropriate Party (the “Indemnifying Party”) of
the Third Party Claim and (ii) transmit to the Indemnifying Party a written notice (“Claim Notice”) describing in reasonable detail the nature of the Third Party Claim, a copy of all papers served with respect to such
claim (if any), the Indemnified Party’s best estimate of the amount of Losses attributable to the Third Party Claim and the basis of the Indemnified Party’s request for indemnification under this Agreement. Failure to timely provide such
Claim Notice shall not affect the right of the Indemnified Party’s indemnification hereunder, except to the extent the Indemnifying Party is prejudiced by such delay or omission. 
 (b) The Indemnifying Party shall have the right to defend the Indemnified Party against such Third Party Claim. If the Indemnifying Party notifies the
Indemnified Party that the Indemnifying Party elects to assume the defense of the Third Party Claim, then the Indemnifying Party shall have the right to defend such Third Party Claim with counsel selected by the Indemnifying Party (who shall be
reasonably satisfactory to the Indemnified Party), by all appropriate proceedings, to a final conclusion or settlement at the discretion of the Indemnifying Party in accordance with this Section 9.3(b). The Indemnifying Party shall have full
control of such defense and proceedings, including any compromise or settlement thereof; provided, however, that the Indemnifying Party shall not enter into any settlement agreement without the 

  

 35 

 
written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed); provided, further, that such
consent shall not be required if (i) the settlement agreement contains a complete and unconditional general release by the third party asserting the claim to all Indemnified Parties affected by the claim and (ii) the settlement agreement
does not contain any sanction or restriction upon the conduct of any business by the Indemnified Party or its Affiliates. If requested by the Indemnifying Party, the Indemnified Party agrees, at the sole cost and expense of the Indemnifying Party,
to cooperate with the Indemnifying Party and its counsel in contesting any Third Party Claim which the Indemnifying Party elects to contest, including the making of any related counterclaim against the Person asserting the Third Party Claim or any
cross complaint against any Person. The Indemnified Party may participate in, but not control, any defense or settlement of any Third Party Claim controlled by the Indemnifying Party pursuant to this Section 9.3(b), and the Indemnified Party
shall bear its own costs and expenses with respect to such participation. 
 (c) If the Indemnifying Party does not notify the Indemnified
Party that the Indemnifying Party elects to defend the Indemnified Party pursuant to Section 9.3(b), then the Indemnified Party shall have the right to defend, and be reimbursed for its reasonable cost and expense (but only if the Indemnified
Party is actually entitled to indemnification hereunder) in regard to the Third Party Claim with counsel selected by the Indemnified Party (who shall be reasonably satisfactory to the Indemnifying Party), by all appropriate proceedings, which
proceedings shall be prosecuted diligently by the Indemnified Party. In such circumstances, the Indemnified Party shall defend any such Third Party Claim in good faith and have full control of such defense and proceedings; provided, however,
that the Indemnified Party may not enter into any compromise or settlement of such Third Party Claim if indemnification is to be sought hereunder, without the Indemnifying Party’s consent (which consent shall not be unreasonably withheld,
conditioned or delayed). The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified Party pursuant to this Section 9.3(c), and the Indemnifying Party shall bear its own costs and expenses
with respect to such participation. 
 (d) Subject to the other provisions of this Article IX, a claim for indemnification for any matter not
involving a Third Party Claim may be asserted by notice to the Party from whom indemnification is sought. 
 (e) Notwithstanding anything to
the contrary in this Section 9.3, the indemnification procedures set forth in Article VII shall control any indemnities relating to Taxes. 
 Section 9.4 Additional Agreements Regarding Indemnification. Notwithstanding anything to the contrary herein: 
 (a) a breach of any representation or warranty (other than with respect to a breach of the Fundamental Representations and Warranties) of SE Transmission or MLP GP in this Agreement in connection with any single item or group of related
items that results in Losses of less than $10,000 shall be deemed, for all purposes of this Article IX not to be a breach of such representation, warranty or pre-closing covenant; 
  

 36 

 (b) neither SE Transmission nor MLP GP shall have any liability arising out of or relating to
Section 9.2(a) for breaches of representations or warranties (other than with respect to a breach of the Fundamental Representations and Warranties) or the P-25 Indemnity Obligations except if the aggregate Losses actually incurred by Spectra
MLP Indemnified Parties thereunder exceed $1,070,000 (and then, subject to Section 9.4(c), only to the extent such aggregate Losses exceed such amount); 
 (c) in no event shall the aggregate liability of SE Transmission or MLP GP arising out of or relating to Section 9.2(a) for breaches of representations or warranties (other than with respect to a breach of the
Fundamental Representations and Warranties) or the P-25 Indemnity Obligations exceed $21,400,000; 
 (d) the amount of any Loss for which a
Spectra MLP Indemnified Party claims indemnification under this Agreement shall be reduced by: (i) any insurance proceeds actually recovered with respect to such Loss; (ii) any Tax Benefits with respect to such Loss and
(iii) indemnification or reimbursement payments actually recovered from third parties with respect to such Loss; 
 (e) for purposes of
determining whether there has been a breach or inaccuracy of a representation or warranty by a party in connection with the assertion of a claim for indemnification under Article IX, or determining the amount of a Loss, with respect to any asserted
breach or inaccuracy, such determination shall be made without regard to any qualifier as to “material,” “materiality” or Material Adverse Effect expressly contained in Article III or IV; 
 (f) as contemplated by Section 6.10(b), none of SE Transmission and MLP GP and their respective Affiliates shall have any liability hereunder that
arises out of or relating to the Excluded Assets; 
 (g) the provisions of Section 8.4(b) and Section 8.4(c) of the Asset Purchase
Agreement do not apply as to any claim for a P-25 Indemnity Obligation brought hereunder; and 
 (h) for the avoidance of doubt, nothing in
this Section 9.4 shall affect the provisions of Article VII. 
 Section 9.5 Waiver of Other Representations.

 (a) NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, IT IS THE EXPLICIT INTENT OF EACH PARTY HERETO, AND THE PARTIES HEREBY AGREE, THAT
NONE OF SE TRANSMISSION, MLP GP OR ANY OF THEIR RESPECTIVE AFFILIATES OR REPRESENTATIVES HAS MADE OR IS MAKING ANY REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, WRITTEN OR ORAL, INCLUDING ANY IMPLIED REPRESENTATION OR WARRANTY AS TO THE
CONDITION, MERCHANTABILITY, USAGE, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO THE CONTRIBUTED INTERESTS, THE SALTVILLE COMPANIES, THEIR ASSETS OR ANY PART THEREOF, EXCEPT THOSE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS
AGREEMENT, AND WITHOUT IN ANY WAY LIMITING THE FOREGOING, NEITHER 

  

 37 

 
SE TRANSMISSION NOR MLP GP MAKES ANY REPRESENTATION OR WARRANTY TO SPECTRA MLP WITH RESPECT TO ANY FINANCIAL PROJECTIONS OR FORECASTS RELATING TO THE
SALTVILLE COMPANIES. 
 (b) The representations and warranties contained in Section 4.11 shall be the exclusive representations and
warranties with regard to Environmental Laws and related matters. 
 Section 9.6 Total Consideration Adjustment.
The Parties agree to treat all payments made pursuant to this Article IX as adjustments to the SET Consideration and MLP GP Consideration, as applicable, for Tax purposes. 
 Section 9.7 Exclusive Remedy. 
 (a) Notwithstanding anything to the contrary herein except as provided in Sections 7.2, 7.3, 9.2 or 10.2, no Party shall have any liability, and no Party shall make any claim, for any Loss or other matter (and Spectra
MLP, MLP GP and SE Transmission hereby waive any right of contribution against the other and their respective Affiliates), under, arising out of or relating to this Agreement, any other document, agreement, certificate or other matter delivered
pursuant hereto or the transactions contemplated hereby, whether based on contract, tort, strict liability, other Laws or otherwise. 
 (b)
NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, NO PARTY SHALL BE LIABLE FOR SPECIAL, PUNITIVE, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES, LOST PROFITS, LOST OPPORTUNITIES OR OTHER SPECULATIVE DAMAGES, WHETHER BASED ON CONTRACT,
TORT, STRICT LIABILITY, OTHER LAW OR OTHERWISE AND WHETHER OR NOT ARISING FROM ANY OTHER PARTY’S SOLE, JOINT OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT; PROVIDED, HOWEVER, THAT THIS SECTION 9.7(b) SHALL NOT LIMIT A PARTY’S
RIGHT TO RECOVERY UNDER ARTICLE IX FOR ANY SUCH DAMAGES TO THE EXTENT SUCH PARTY IS REQUIRED TO PAY SUCH DAMAGES TO A THIRD PARTY IN CONNECTION WITH A MATTER FOR WHICH SUCH PARTY IS OTHERWISE ENTITLED TO INDEMNIFICATION UNDER ARTICLE IX. 

ARTICLE X 
 TERMINATION

 Section 10.1 Termination. At any time prior to the Closing, this Agreement may be terminated and the
transactions contemplated hereby abandoned: 
 (a) pursuant to Section 6.7; 
 (b) by the mutual consent of Spectra MLP, MLP GP and SE Transmission as evidenced in writing signed by each of Spectra MLP, MLP GP and SE Transmission;

 (c) by any of Spectra MLP, MLP GP or SE Transmission if any Governmental Authority having competent jurisdiction has issued a final,
non-appealable order, decree, ruling or injunction (other than a temporary restraining order) or taken any other action permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement; or 
  

 38 

 (d) by any of Spectra MLP, MLP GP or SE Transmission, if the Closing has not occurred on or before
September 30, 2008 or such later date as the Parties may agree upon. 
 Section 10.2 Effect of Termination. In
the event of termination and abandonment of this Agreement pursuant to Section 10.1, this Agreement shall forthwith become void and have no effect without any liability on the part of any Party hereto other than for any prior breaches, as to
which the Parties will remain liable and/or to which the other Party shall be entitled to all rights and remedies available under Law or equity. The provisions of Sections 10.2 and 11.4 shall survive any termination of this Agreement. 
 ARTICLE XI 
 MISCELLANEOUS

 Section 11.1 Notices. Any notice, request, demand and other communication required or permitted to be given
hereunder shall be in writing, and may be served by personal delivery, facsimile or by depositing same in the mail, addressed to the Party to be notified, first class, postage prepaid, and registered or certified with a return receipt requested.
Notice deposited in the mail in the manner hereinabove described shall be deemed to have been given and received on the date of the delivery as shown on the return receipt. Notice served in any other manner shall be deemed to have been given and
received only if and when actually received by the addressee (except that notice given by facsimile shall be deemed given and received upon receipt only if received during normal business hours and, if received other than during normal business
hours, shall be deemed received as of the opening of business on the next Business Day). For purposes of notice, the addresses of the Parties shall be as follows: 
  

					
	(a)	  	If to Spectra MLP, to:
		  	  
 Spectra Energy Partners, LP
 5400 Westheimer Court
 Houston, TX 77056

		  	Attention:	  	Greg Harper, President and Chief Executive Officer
		  	Facsimile:	  	(713) 989-1818
		  	  
 With copies to:

		  	  
 Spectra Energy Partners, LP
 5400 Westheimer Court
 Houston, TX 77056

		  	Attention:	  	Chairman of the Conflicts Committee of the Board of Directors of Spectra Energy Partners GP, LLC
		  	Facsimile:	  	(713) 650-8105

  

 39 

					
	(b)	  	If to SE Transmission, to:
		  	  
 Spectra Energy Transmission, LLC

		  	c/o Spectra Energy Corp
		  	5400 Westheimer Court
		  	Houston, TX 77056
		  	Attention:	  	Alan N. Harris, Chief Development Officer
		  		  	Room Code: WO 8M56
		  	Facsimile:	  	(713) 627-4635
		  	  
 with copies to:

		  	  
 Spectra Energy Transmission, LLC

		  	c/o Spectra Energy Corp
		  	5400 Westheimer Court
		  	Houston, TX 77056
		  	Attention:	  	Anders K. Torning, Associate General Counsel – M & A
		  		  	Room Code: WMO 9D65
		  	Facsimile:	  	(713) 989-3190
		
	(c)	  	If to MLP GP, to:
		  	  
 Spectra Energy Partners (DE) GP, LP

		  	c/o Spectra Energy Corp
		  	5400 Westheimer Court
		  	Houston, TX 77056
		  	Attention:	  	Alan N. Harris, Chief Development Officer
		  		  	Room Code: WO 8M56
		  	Facsimile:	  	(713) 627-4635
		  	  
 with copies to:

		  	  
 Spectra Energy Partners (DE) GP, LP

		  	c/o Spectra Energy Corp
		  	5400 Westheimer Court
		  	Houston, TX 77056
		  	Attention:	  	Anders K. Torning, Associate General Counsel – M & A
		  		  	Room Code: WMO 9D65
		  	Facsimile:	  	(713) 989-3190

 or to such other address or addresses as the Parties may from time to time designate in writing. 
 Section 11.2 Assignment. No Party shall assign this Agreement or any part hereof without the prior written consent of all of
the other Parties. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties and their respective permitted successors and assigns. 
  

 40 

 Section 11.3 Rights of Third Parties. Except for the provisions of
Section 9.2 which are intended to be enforceable by the Persons respectively referred to therein, nothing expressed or implied in this Agreement is intended or shall be construed to confer upon or give any Person, other than the Parties, any
right or remedies under or by reason of this Agreement. 
 Section 11.4 Expense. Except as otherwise provided
herein, each Party shall bear its own expenses incurred in connection with this Agreement and the transactions herein contemplated hereby whether or not such transactions shall be consummated, including all fees of its legal counsel, financial
advisers and accountants. 
 Section 11.5 Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any facsimile copies hereof or signature hereon shall, for all purposes, be deemed originals. 
 Section 11.6 Entire Agreement. This Agreement (together with the Disclosure Schedule and exhibits to this Agreement)
constitutes the entire agreement among the Parties and supersedes any other agreements, whether written or oral, that may have been made or entered into by or among any of the Parties or any of their respective Affiliates relating to the
transactions contemplated hereby. 
 Section 11.7 Disclosure Schedule. Unless the context otherwise requires, all
capitalized terms used in the Disclosure Schedule shall have the respective meanings assigned in this Agreement. No reference to or disclosure of any item or other matter in the Disclosure Schedule shall be construed as an admission or indication
that such item or other matter is material or that such item or other matter is required to be referred to or disclosed in the Disclosure Schedule. No disclosure in the Disclosure Schedule relating to any possible breach or violation of any
agreement or Law shall be construed as an admission or indication that any such breach or violation exists or has actually occurred. The inclusion of any information in the Disclosure Schedule shall not be deemed to be an admission or acknowledgment
by SE Transmission or MLP GP, as applicable, in and of itself, that such information is material to or outside the ordinary course of the Business of the Saltville Companies or required to be disclosed on the Disclosure Schedule. 
 Section 11.8 Amendments. This Agreement may be amended or modified in whole or in part, and terms and conditions may be waived,
only by a duly authorized agreement in writing which makes reference to this Agreement executed by each Party. 
 Section 11.9
Publicity. All press releases or other public communications of any nature whatsoever relating to the transactions contemplated by this Agreement, and the method of the release for publication thereof, shall be subject to the prior
consent of Spectra MLP, MLP GP and SE Transmission, which consent shall not be unreasonably withheld, conditioned or delayed by any Party; provided, however, that nothing herein shall prevent a Party from publishing such press releases or other
public communications as such Party may consider necessary in order to satisfy such Party’s obligations at Law or under the rules of any stock or commodities exchange after consultation with the other Party as is reasonable under the
circumstances. 
  

 41 

 Section 11.10 Severability. If any provision of this Agreement is held invalid
or unenforceable by any court of competent jurisdiction, then the other provisions of this Agreement shall remain in full force and effect. The Parties further agree that if any provision contained herein is, to any extent, held invalid or
unenforceable in any respect under the Laws governing this Agreement, then they shall take any actions necessary to render the remaining provisions of this Agreement valid and enforceable to the fullest extent permitted by Law and, to the extent
necessary, shall amend or otherwise modify this Agreement to replace any provision contained herein that is held invalid or unenforceable with a valid and enforceable provision giving effect to the intent of the Parties to the greatest extent
legally permissible. 
 Section 11.11 Governing Law; Jurisdiction. 
 (a) This Agreement shall be governed and construed in accordance with the Laws of the State of Texas without regard to the Laws that might be applicable
under conflicts of laws principles. 
 (b) The Parties agree that the appropriate, exclusive and convenient forum for any disputes between
any of the Parties hereto arising out of this Agreement or the transactions contemplated hereby shall be in any state or federal court in Houston, Texas, and each of the Parties hereto irrevocably submits to the jurisdiction of such courts solely in
respect of any legal proceeding arising out of or related to this Agreement. The Parties further agree that the Parties shall not bring suit with respect to any disputes arising out of this Agreement or the transactions contemplated hereby in any
court or jurisdiction other than the above specified courts; provided, however, that the foregoing shall not limit the rights of the Parties to obtain execution of judgment in any other jurisdiction. The Parties further agree, to the extent
permitted by Law, that a final and unappealable judgment against a Party in any action or proceeding contemplated above shall be conclusive and may be enforced in any other jurisdiction within or outside the United States by suit on the judgment, a
certified or exemplified copy of which shall be conclusive evidence of the fact and amount of such judgment. Except to the extent that a different determination or finding is mandated due to the Law being that of a different jurisdiction, the
Parties agree that all judicial determinations or findings by a state or federal court in Houston, Texas with respect to any matter under this Agreement shall be binding. 
 (c) To the extent that any Party hereto has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment
in aid of execution, execution or otherwise) with respect to itself or its property, each such party hereby irrevocably (i) waives such immunity in respect of its obligations with respect to this Agreement and (ii) submits to the personal
jurisdiction of any court described in Section 11.11(b). 
 (d) THE PARTIES HERETO AGREE THAT THEY HEREBY IRREVOCABLY WAIVE THE RIGHT TO
TRIAL BY JURY IN ANY ACTION TO ENFORCE OR INTERPRET THE PROVISIONS OF THIS AGREEMENT. 
 Section 11.12 Action by Spectra
MLP. With respect to any action (including any case where the agreement of, or selection by, Spectra MLP is required), notice, consent, approval or waiver that is required to be taken or given or that may be taken or given by Spectra MLP
prior 

  

 42 

 
to or after the Closing Date with respect to, or in connection with, the subject matter hereof, such action, notice, consent, approval or waiver shall be
taken or given by the Conflicts Committee on behalf of Spectra MLP. 
  

 43 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by each Party as of the date
first above written. 
  

							
	SE TRANSMISSION:
	
	SPECTRA ENERGY TRANSMISSION, LLC
		
	By:	 	 /s/ Mark R. Fiedorek

	Name:	 	 Mark R. Fiedorek

	Title:	 	 Group Vice President, Southeast Transmission and Storage

	
	MLP GP:
	
	SPECTRA ENERGY PARTNERS (DE) GP, LP
		
	By:	 	 Spectra Energy Partners GP, LLC,
 its general
partner

			
		 	By:	 	 /s/ Paul K. Haralson

		 	Name:	 	 Paul K. Haralson

		 	Title:	 	 Assistant Treasurer

	
	SPECTRA MLP:
	
	SPECTRA ENERGY PARTNERS, LP
		
	By:	 	 Spectra Energy Partners (DE) GP, LP,
 its
general partner

			
		 	By:	 	 Spectra Energy Partners GP, LLC,
 its general
partner

				
		 		 	By:	 	 /s/ C. Gregory Harper

		 		 	Name:	 	 C. Gregory Harper

		 		 	Title:	 	 President and Chief Executive Officer

 [Signature Page to the Contribution Agreement] 

 Execution Version 
 Schedule A to Contribution Agreement – P-25 Assets 
  

	1.	Approximately 11.4 acres of fee property in Montgomery County, VA described in a deed dated March 1, 2001 from William R. Serber, Jr. et al for SE Virginia Pipeline’s
proposed storage yard associated with proposed P-25 Segment 5 (not yet constructed). 

  

	2.	Approximately 2.66 acres of fee property in Wythe County, VA described in a deed dated May 9, 1996 from Larry E. Tibbs and Betty B. Tibbs used for SE Virginia Pipeline’s
valve site. 

  

	3.	The real property leases listed on Schedule 3.14(a) of the Asset Purchase Agreement. 

  

	4.	The P-25 Pipeline and rights-of-way under 263 right-of-way agreements with various parties. 

  

	5.	Approximately 459 right-of-way agreements with various parties retained for possible future expansion of the P-25 Pipeline. 

  

	6.	All meter stations, valves, other equipment and other personal property and improvements (other than the Abingdon, VA office) used by SE Virginia Pipeline in connection with the
P-25 Pipeline. 

  

	7.	All Permits related the P-25 Pipeline, to the extent assignable. 

  

	8.	Firm Pipeline Service Agreement dated as of April 17, 1997 by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and United Cities Gas
Company (predecessor in interest to Atmos Energy Corporation). 

  

	9.	Firm Pipeline Service Agreement dated as of March 1, 2006, by and between Duke Energy Virginia Pipeline Company (predecessor in interest to SE Virginia Pipeline) and East
Tennessee Natural Gas, LLC, as amended by that First Amendment to the Firm Pipeline Service Agreement dated as of March 1, 2006. 

  

	10.	Professional/Technical Services Agreement dated as of January 20, 2003, between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Advantica
Technologies, Inc. 

  

	11.	All of SE Virginia Pipeline’s financial, operational and legal books and records exclusively related to the P-25 Pipeline. 

  

 - 1 – 
 Schedules to Contribution Agreement 

 Execution Version 
  

 Schedule 1.1(i) to Contribution Agreement – Spectra MLP Knowledge 
  

	1.	Greg Harper 

  

	2.	Lon Mitchell 

  

	3.	Ruth Ann Crenshaw 

  

	4.	Sean Blakley 

  

 - 2 – 
 Schedules to Contribution Agreement 

 Execution Version 
  

 Schedule 1.1(ii) to Contribution Agreement – SE Transmission and MLP GP Knowledge 

  

	1.	Pat Gibson 

  

	2.	Kent Denny 

  

	3.	Tim Ferguson 

  

	4.	Dwight Jeter 

  

	5.	Barry Buchanan 

  

	6.	Gregg McBride 

  

	7.	Melinda Reljac 

  

	8.	Mark Peters (shall be disregarded with respect to any representation relating to the Saltville Companies) 

  

 - 3 – 
 Schedules to Contribution Agreement 

 Execution Version 
  

 Schedule 1.1(iii) to Contribution Agreement – Permitted Liens 
 None. 
  

 - 4 – 
 Schedules to Contribution Agreement 

 Execution Version 
  

 Schedule 3.3 to Contribution Agreement – Transmission Approvals 
  

	1.	Saltville LLC Prior Notice Filing(s) with the Federal Energy Regulatory Commission for Saltville LLC to acquire by merger, operate, and maintain the assets of SE Virginia Pipeline
and SE Early Grove. 

  

	2.	SE Virginia Pipeline and SE Early Grove filing(s) with the Virginia State Corporation Commission to relinquish jurisdiction over their respective assets. 

 

 - 5 – 
 Schedules to Contribution Agreement 

 Execution Version 
  

 Schedule 3.5 to Contribution Agreement – SE Transmission and MLP GP Brokers’ Fees

 None. 
  

 - 6 – 
 Schedules to Contribution Agreement 

 Execution Version 
  

 Schedule 3.6(b) to Contribution Agreement – Voting Agreements 
 None. 
  

 - 7 – 
 Schedules to Contribution Agreement 

 Execution Version 
  

 Schedule 4.5 to Contribution Agreement – Financial Statements 
 [Attached behind this page.] 
  

 - 8 – 
 Schedules to Contribution Agreement 

 Execution Version 
  

 Schedule 4.6 to Contribution Agreement – Absence of Certain Changes 
 1. Prior to Closing, Saltville LLC will renegotiate or settle customer Contracts related to gas storage assets of Virginia Gas Pipeline Company and Duke Energy Virginia
Pipeline Company (predecessors in interest to SE Virginia Pipeline) and Virginia Gas Storage Company and Duke Energy Early Grove Company (predecessors in interest to SE Early Grove). 
 2. See item 2 on Schedule 4.7(d). 
 3. The Saltville Restructuring. 
  

 - 9 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
 Schedule 4.7(a) to Contribution
Agreement – Material Contracts 
 Contracts which meet the description under Section 4.7(a)(i) of the Contribution Agreement

  

	1.	Firm Storage Service Agreement dated as of June 30, 1997, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and ALCOA, as amended
by Letter Agreement dated as of August 10, 2007 between Virginia Gas Pipeline Company and ALCOA. 

  

	2.	Firm Storage Service Agreement dated as of June 1, 2004, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Athens Utility
Board, as amended by Letter Agreement dated August 14, 2007 between Athens Utility Board and Saltville LLC 

  

	3.	Firm Storage Service Agreement dated as of October 16, 2000, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Athens Utility
Board, as amended by Letter Agreement dated August 14, 2007 between Athens Utility Board and Saltville LLC 

  

	4.	Firm Storage Service Agreement dated as of August 20, 1996, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and United Cities Gas
Company (predecessor in interest to Atmos Energy Corporation), as amended by that Settlement Agreement and Amendment to Firm Storage Service Agreements dated as of October 2003, by and among Atmos Energy Corporation, Woodward Marketing, L.L.C. and
Virginia Gas Pipeline Company, as amended by Letter Agreement dated December 7, 2007, between Saltville LLC and Atmos Energy Corporation. 

  

	5.	Firm Storage Service Agreement dated as of November 7, 1996, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Citizens Gas
Utility District, as amended by Letter Agreement dated August 13, 2007 between Citizens Gas Utility District and Saltville LLC 

  

	6.	Firm Storage Service Agreement dated as of February 17, 1997, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and the City of
Etowah, as amended by Letter Agreement dated July 31, 2007 between Etowah Utilities and Saltville LLC 

  

	7.	Firm Storage Service Agreement dated as of October 1, 2004, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Eagle Energy
Partners L.L.P., as amended by Letter Agreement dated August 7, 2007 between Eagle Energy Partners and Saltville LLC 

  

	8.	Firm Storage Service Agreement dated as of October 31, 2001, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Elk River Public
Utility District, as amended by Letter Agreement dated August 6, 2007 between Elk River Public Utility District and Saltville LLC 

  

 - 10 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

	9.	Firm Storage Service Agreement dated as of October 1, 2004, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Marion Natural
Gas System, as amended by Letter Agreement dated August 10, 2007 between Marion Natural Gas System and Saltville LLC 

  

	10.	Firm Storage Service Agreement dated as of November 14, 2001, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Middle
Tennessee Natural Gas Utility District, as amended by Letter Agreement dated August 14, 2007 between Middle Tennessee Natural Gas Utility District and Saltville LLC 

  

	11.	Firm Storage Service Agreement dated as of June 3, 2003, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Middle Tennessee
Natural Gas Utility District, as amended by that certain Amendment to the Storage agreement between Virginia Gas Pipeline Company and Middle Tennessee Gas Utility District dated March 18, 2004, as amended by Letter Agreement dated
August 14, 2007 between Middle Tennessee natural Gas Utility District and Saltville LLC 

  

	12.	Firm Storage Service Agreement dated as of February 25, 1997, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Natural Gas
Utility District of Hawkins County, as amended by Letter Agreement dated August 10, 2007 between Natural Gas Utility District of Hawkins County and Saltville LLC 

  

	13.	Firm Storage Service Agreement dated as of June 1, 2001, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Roanoke Gas Company.
Contract assigned by Roanoke Gas Company to Duke Energy Trading and Marketing, LLC and amended by that First Amendment to Firm Storage Service Agreement dated as of February 28, 2006, by and between Duke Energy Virginia Pipeline Company
(successor in interest Virginia Gas Pipeline Company and predecessor in interest to SE Virginia Pipeline) and Roanoke Gas Company, as amended by Letter Agreement dated July 30, 2007 between Roanoke Gas Company and Saltville LLC

  

	14.	Firm Storage Service Agreement dated as of February 1, 1999, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Sevier County
Utility District, as amended by Letter Agreement dated August 14, 2007 between Sevier County Utility District and Saltville LLC 

  

	15.	Firm Storage Service Agreement dated as of November 1, 2004, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Utilities Board
City of Bridgeport Alabama, as amended by Letter Agreement dated August 10, 2007 between Utilities Board City of Bridgeport Alabama and Saltville LLC 

  

	16.	Firm Storage Service Agreement dated as of February 1, 2002, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Woodward
Marketing, LLC, as amended by that Settlement Agreement and Amendment to Firm Storage Service Agreement dated as of October 2003, by and among Atmos Energy Corporation (successor to United Cities Gas Company, Woodward Marketing, L.L.C. and Virginia
Gas Pipeline Company). 

  

 - 11 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

	17.	Interruptible Storage Service Agreement dated as of October 18, 2004, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) and Eagle
Energy Partners L.L.P. 

  

	18.	Firm Storage Service Agreement dated as of June 15, 1998, by and between Virginia Gas Storage Company (predecessor in interest to SE Early Grove) and Elk River Public Utility
District, a public utility district of the State of Tennessee, as amended by Letter Agreement dated August 6, 2007 between Elk River Public Utility District and Saltville Gas Storage Company, LLC 

  

	19.	Firm Storage Service Agreement dated as of July 7, 1995, by and between Virginia Gas Storage Company (predecessor in interest to SE Early Grove) and the Public Utility District
of Jefferson and Cocke Counties, Tennessee, as amended by Letter Agreement dated as of April 5, 2002 by and between Virginia Gas Storage Company and Jefferson-Cocke County Utility District, further amended by Letter Agreement regarding 2003
Amendments to Natural Gas Storage Agreement dated as of April 24, 2003 by and between Virginia Gas Storage Company and Jefferson-Cocke County Utility District, and further amended by Letter Agreement dated August 2, 2007 between The Public
Utility of Jefferson and Cocke Counties, TN and Saltville LLC 

  

	20.	Firm Storage Service Agreement dated as of May 1, 2006, by and between Duke Energy Early Grove Company and Middle Tennessee Natural Gas Utility District, as amended by Letter
Agreement dated August 14, 2007 between Middle Tennessee Natural Gas Utility District and Saltville LLC 

  

	21.	Firm Storage Service Agreement dated as of September 9, 1996, by and between Virginia Gas Storage Company (predecessor in interest to SE Early Grove) and Natural Gas Utility
District of Hawkins County, as amended by Letter Agreement dated August 10, 2007 between Natural Gas Utility District of Hawkins County and Saltville LLC 

  

	22.	Firm Storage Service Agreement dated as of April 1, 2006, by and between Duke Energy Early Grove Company (predecessor in interest to SE Early Grove) and Oak Ridge Utility
District, as amended by Letter Agreement dated August 6, 2007 between Oak Ridge Utility District and Saltville LLC 

  

	23.	Firm Storage Service Agreement dated as of July 11, 2003, by and between Virginia Gas Storage Company (predecessor in interest to SE Early Grove) and Powell-Clinch Utility
District, as amended by Letter Agreement dated August 6, 2007 between Powell-Clinch Utility District and Saltville LLC 

  

	24.	Firm Storage Service Agreement dated as of March 19, 1997, by and between Virginia Gas Storage Company (predecessor in interest to SE Early Grove) and Roanoke Gas Company, as
amended by Letter Agreements dated as of October 23, 2006 and as of July 30, 2007, between Roanoke Gas Company and Saltville LLC. 

  

 - 12 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

	25.	Firm Storage Service Agreement dated as of July 1, 1996, by and between Virginia Gas Storage Company (predecessor in interest to SE Early Grove) and Sevier County Utility
District, as amended by that Letter Amendment dated as of October 23, 2006 regarding Amendment to Firm Storage Agreement dated as of July 1, 1996, as amended by Letter Agreement dated August 14, 2007 between Sevier County Utility
District and Saltville LLC 

  

	26.	Form of Service Agreement for Rate Schedule FSS dated as of August 13, 2007 by and between Saltville LLC and Appalachian Natural Gas Distribution 

  

	27.	Negotiated Rate for Service Agreement and Statement of Negotiated Rates dated as of July 30, 2007 between Saltville LLC and Appalachian Natural Gas Distribution

  

	28.	Discount Agreement (Firm) Saltville LLC dated as of April 12, 2007 between Saltville LLC and Carolina Power & Light Company 

  

	29.	Firm Storage Service Agreement (For Use Under Rate Schedule FSS) dated as of January 27, 2005, by and between Saltville LLC and Carolina Power & Light Company d/b/a
Progress Energy Carolinas, Inc. 

  

	30.	Letter Agreement regarding Negotiated Rate for Service Agreement dated as of September 29, 2006 between Saltville LLC and Carolina Power & Light Company dba Progress
Energy Carolinas, Inc. 

  

	31.	Form of Service Agreement for Rate Schedule FSS dated as of September 25, 2006, by and between Saltville LLC and Carolina Power & Light Company d/b/a Progress Energy
Carolinas, Inc. 

  

	32.	Letter Agreement regarding Negotiated Rate for Service Agreement dated as of January 19, 2007 between Saltville LLC and Columbia Gas of Virginia, Inc. 

 

	33.	Form of Service Agreement for Rate Schedule FSS dated as of February 19, 2007, by and between Saltville LLC and Columbia Gas of Virginia, Inc. 

  

	34.	Consent to Assignment dated as of October 20, 2003, by and between Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline), Elk River Public Utility
District and Saltville LLC 

  

	35.	Firm Storage Service Agreement (For Use Under Rate Schedule FSS) dated as of April 11, 2005, by and between Saltville LLC and Elk River Public Utility District, a public
utility district of the State of Tennessee 

  

	36.	Firm Storage Service Agreement (For Use Under Rate Schedule FSS) dated as of April 11, 2005, by and between Saltville LLC and Elk River Public Utility District, a public
utility district of the State of Tennessee 

  

	37.	Letter Agreement regarding Negotiated Rate for Service Agreement dated as of December 21, 2006 between Saltville LLC and Hawkins County Utility District

  

	38.	Form of Service Agreement for Rate Schedule FSS dated as of December 21, 2006, by and between Saltville LLC and Hawkins County Utility District 

  

 - 13 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

	39.	Letter Agreement regarding Negotiated Rate for Service Agreement dated as of January 26, 2007 between Saltville LLC and Knoxville Utilities Board 

  

	40.	Form of Service Agreement for Rate Schedule FSS dated as of February 19, 2007, by and between Saltville LLC and Knoxville Utilities Board 

  

	41.	Letter Agreement regarding Negotiated Rate for Service Agreement dated as of January 26, 2007 between Saltville LLC and Knoxville Utilities Board 

  

	42.	Form of Service Agreement for Rate Schedule FSS dated as of February 19, 2007, by and between Saltville LLC and Knoxville Utilities Board 

  

	43.	Discount Agreement (Firm) Saltville LLC. dated as of March 21, 2007 between Saltville LLC and NJR Energy Services 

  

	44.	Form of Service Agreement for Rate Schedule FSS dated as of October 16, 2006, by and between Saltville LLC and NJR Energy Services Company 

  

	45.	Firm Storage Service Agreement (For Use Under Rate Schedule FSS) dated as of January 6, 2005, by and between Saltville LLC and Oak Ridge Utility District

  

	46.	Capacity Release Agreement dated as of April 30, 2003, by and between Saltville LLC, Public Service Company of North Carolina, Inc. and East Tennessee Natural Gas Company

  

	47.	Letter Amendment dated as of July 25, 2002 to the Precedent Agreement dated as of November 27, 2002 between Saltville LLC and Public Service Company of North Carolina,
Inc. 

  

	48.	Precedent Agreement dated as of November 27, 2002, by and between Saltville LLC and Public Service Company of North Carolina, Inc. 

  

	49.	Firm Storage Service Agreement (For Use Under Rate Schedule FSS) dated as of January 20, 2005, by and between Saltville LLC and Public Service Company of North Carolina, Inc.

  

	50.	Firm Storage Service Agreement (For Use Under Rate Schedule FSS) dated as of January 14, 2005, by and between Saltville LLC and Sequent Energy Management, L.P., a Georgia
limited partnership, as successor in interest to NUI Energy Brokers, Inc. 

  

	51.	Discount Agreement (Firm) Saltville LLC dated as of August 23, 2006 between Saltville LLC and Stand Energy Corporation 

  

	52.	Form of Discount Request dated as of July 10, 2006 between Saltville LLC and Stand Energy Corporation 

  

	53.	Form of Service Agreement for Rate Schedule FSS dated as of August 23, 2006, by and between Saltville LLC and Stand Energy Corporation 

  

	54.	Form of Service Agreement for Rate Schedule FSS dated as of June 18, 2007, by and between Saltville LLC and United Salt Corporation 

  

	55.	Discount Agreement (Firm) dated as of March 21, 2007 between Saltville LLC and Upper Cumberland Gas Utility District 

  

 - 14 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

	56.	Form of Service Agreement for Rate Schedule FSS dated as of January 27, 2007, by and between Saltville LLC and Upper Cumberland Gas Utility District 

 

	57.	Firm Storage Service Agreement (For use Under Rate Schedule FSS) dated as of June 1, 2006, by and between Saltville LLC and Washington Gas Light company, as amended by Letter
Agreement regarding rate schedule dated as of June 1, 2006, by and between Saltville LLC and Washington Gas Light Company. 

  

	58.	Discount Agreement (Firm) Saltville LLC dated as of March 8, 2007 between Saltville LLC and Wolf Hills Energy, LLC 

  

	59.	Form of Discount Request dated as of February 27, 2007 between Saltville LLC and Wolf Hills Energy, LLC 

  

	60.	Form of Service Agreement for Rate Schedule FSS dated as of March 8, 2007 by and between Saltville LLC and Wolf Hills Energy, LLC 

  

	61.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of January 24, 2006, by and between Saltville LLC and Virginia Gas Distribution
Company 

  

	62.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of August 15, 2005, by and between Saltville LLC and Atmos Energy Marketing

  

	63.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of August 15, 2005, by and between Saltville LLC and Atmos Energy Marketing

  

	64.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of November 1, 2005, by and between Saltville LLC and Constellation Energy
Commodities Groups, Inc. 

  

	65.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of November 1, 2005, by and between Saltville LLC and Constellation Energy
Commodities Groups, Inc. 

  

	66.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of January 10, 2006, by and between Saltville LLC and Eagle Energy Partners I,
L.P. 

  

	67.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of November 1, 2005, by and between Saltville LLC and East Tennessee Natural
Gas, LLC 

  

	68.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of May 19, 2006, by and between Saltville LLC and Equitable Production Co.

  

	69.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of August 1, 2005, by and between Saltville LLC and Infinite Energy, Inc.

  

	70.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of August 1, 2005, by and between Saltville LLC and Infinite Energy, Inc.

  

	71.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of August 1, 2005, by and between Saltville LLC and Infinite Energy, Inc.

  

 - 15 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

	72.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of October 17, 2005, by and between Saltville LLC and Middle Tennessee Natural
Gas Utility District 

  

	73.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of July 27, 2005, by and between Saltville LLC and NJR Energy Services

  

	74.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of November 16, 2005, by and between Saltville LLC and Oak Ridge Utility
District 

  

	75.	Interruptible Storage Service Agreement (For Use Under Rate Schedule ISS, ILS and IPS) dated as of May 26, 2006, by and between Saltville LLC and Rockwood Water,
Sewer & Natural Gas 

	76.	Discount Agreement (Firm) dated as of May 2, 2007 between Saltville LLC and Sequent Energy Management, L.P. 

  

	77.	Discount Agreement (Firm) dated as of September 29, 2006 between Saltville LLC and Sequent Energy Management, L.P. 

  

	78.	Form of Service Agreement for Capacity Release Umbrella Agreement Under Rate Schedule FSS dated as of May 22, 2006, by and between Sequent Energy Management, L.P. and Saltville
LLC 

  

	79.	Form of Service Agreement for Capacity Release Umbrella Agreement Under Rate Schedule FSS dated as of December 12, 2006, by and between Wolf Hills Energy, LLC and Saltville LLC

 Contracts which meet the description under Section 4.7(a)(vi) of the Contribution Agreement 
  

	80.	Non-Competition Agreement between Virginia Gas Company and Heritage Holdings, Inc. dated October 11, 2001. 

 Contracts which meet the description under Section 4.7(a)(vii) of the Contribution Agreement 
  

	81.	Contract dated as of August 24, 2007, by and between Appalachian Power Company and Saltville LLC, addendum to Contract for Electric Service dated as of August 24, 2007 by
and between Appalachian Power Company dba American Electric Power and Saltville LLC 

 Other 
  

	82.	See item 2 on Schedule 4.16(a) 

  

 - 16 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 4.7(c) to Contribution Agreement – Enforceability of Material Contracts; No
Defaults 
 None. 
  

 - 17 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 4.7(d) to Contribution Agreement – Purchase and Sale Agreements

 1. Asset Purchase Agreement dated as of June 20, 2007, by and between United Salt Corporation, a Texas corporation, and Saltville LLC.

 2. Second Amended and Restated Equipment Sale and Removal Agreement dated as of December 12, 2007, by and among Morris Asset Recovery Co. LLC, Marcus
H. Morris and Saltville LLC. 
  

 - 18 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 4.8(b) to Contribution Agreement – Intellectual Property 
 None. 
  

 - 19 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 4.9 to Contribution Agreement – Litigation 
  

	1.	Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) is subject to that certain Monitoring and Corrective Action Program described in Virginia State
Corporation Commission Order of Settlement dated October 7, 2002. 

  

	2.	One worker’s compensation claim initiated by John Torbett arising from a personal injury sustained during employment. The claim is dated January 30, 2007 and is covered by
workers’ compensation insurance. 

  

 - 20 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 4.10 to Contribution Agreement – Taxes 
  

	1.	Saltville LLC is a party to the Tax Matters Agreement by and among Duke Energy Corporation, Spectra Energy Corp, and The Other Spectra Parties, dated as of December 13, 2006.

  

	2.	Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) has received a Delinquent Debt Notice dated November 26, 2007 from the Virginia Department of
Taxation for the amount of $53.71. 

  

	3.	Each of Saltville LLC, SE Early Grove and SE Virginia Pipeline has liability for Taxes under Treasury Regulations section 1.1502-6 (or any similar provision of state, local or
foreign law) that directly results from being a member of the following affiliated group of corporations: 

  

	 	a.	SE Early Grove and SE Virginia Pipeline were members of the affiliated group of corporations of which NUI Corporation was the common parent, which joined in the filing of
consolidated federal income Tax Returns prior to AGL Resources, Inc.’s acquisition of NUI Corporation. 

  

	 	b.	SE Early Grove and SE Virginia Pipeline were members of the affiliated group of corporations of which AGL Resources, Inc. was the common parent, which joined in the filing of
consolidated federal income Tax Returns prior to the acquisition of SE Early Grove and SE Virginia Gas Pipeline by Duke Energy Corporation. 

  

	 	c.	Saltville LLC, SE Early Grove and SE Virginia Pipeline were members of the affiliated group of corporations of which Duke Energy Corporation was the common parent, which joined in
the filing of consolidated federal income Tax Returns prior to the spinoff by Duke Energy Corporation of Spectra Energy Corp. 

  

	 	d.	Saltville LLC, SE Early Grove and SE Virginia Pipeline are members of the affiliated group of corporations of which Spectra Energy Corp is the common parent, which join in the
filing of consolidated federal income Tax Returns. 

  

	4.	Duke Energy Corporation’s federal consolidated tax return for 2005 is currently under audit and such audit encompasses the Saltville Companies, as they were owned by Duke
Energy Corporation in 2005. 

  

 - 21 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 4.11 to Contribution Agreement – Environmental Matters 
  

	3.	See item 1 on Schedule 4.9. 

  

 - 22 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 4.13 to Contribution Agreement – Permits 
  

	1.	SE Virginia Pipeline has applied to the Virginia Department of Environmental Quality for an amendment to the August 22, 2006 air permit from the Commonwealth of Virginia
Department of Environmental Quality authorizing construction and operation of salt processing and handling equipment in order to remove the salt operations therefrom and to change the name thereon to SE Virginia Pipeline. However, this application
is still open because United Salt Corporation has not submitted the necessary application to the Department of Environmental Quality in order to obtain a permit in its name. 

  

	2.	See item 1 on Schedule 3.3. 

  

	3.	See item 2 on Schedule 3.3. 

  

 - 23 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 4.14 to Contribution Agreement – Insurance 
 Note: Policies listed herein are representative coverage provided by Spectra Energy Corp to its subsidiaries including the Saltville Companies. The Saltville Companies
do not maintain insurance policies specific to themselves at this time. 
  

									
	 Policy type
	  	 Description
	  	 Policy Period
	  	 Deductible/occurrence
	  	 Insurers

	All risk Onshore Property & Machinery Breakdown	  	Replacement value	  	Jan. 1, 2007 – May 1, 2008	  	$ 100,000	  	Quota share of various Insurers
					
	Business Interruption	  	Gross Earnings form	  	Jan. 1, 2007 – May 1, 2008	  	30 days	  	Included in property
					
	General Liability	  	Third Party Liability	  	Jan. 1, 2007 – May 1, 2008	  	$50,000	  	Zurich Primary and Various Insurers
					
	Auto Liability	  	Any Auto, Hired and Non owned	  	Jan. 1, 2007 – May 1, 2008	  	$25,000	  	Zurich Primary and Various Insurers
					
	Workers Compensation/ Employer’s Liability	  	Statutory limits for workers comp	  	Jan. 1, 2007 – May 1, 2008	  	Non-Indemnifiable Loss $0 for Worker’s Compensation / $50,000 for Employer’s Liability	  	Zurich Primary and Various Insurers
					
	Directors & Officers	  	Executive liability coverage	  	Jan. 1, 2007 – Mar 1, 2007	  	Non-Indemnifiable Loss $0 Non-Securities Related $2.5MM Securities $5MM	  	Aegis Primary and Various Insurers
					
	Crime	  	Coverage for crimes such as employee theft, fraud, etc.	  	Jan. 1, 2007 – Mar 1, 2007	  	$1MM	  	Chubb

  

 - 24 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

									
	Fiduciary	  	Coverage for Fiduciary wrongful acts	  	Jan. 1, 2007 – Mar 1, 2007	  	Non-Indemnifiable Loss $0 Non-Securities Related $1MM Securities $5MM	  	Aegis Primary and Various Insurers

  

 - 25 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 4.16(a) to Contribution Agreement – Material Real Estate Leases

  

	1.	Approximately 209 leases for 7,272 acres in Washington and Scott Counties, VA for Virginia Gas Storage Company’s (predecessor in interest to SE Early Grove) storage assets.
Such leases are identified on Appendix 1. 

  

	2.	Lease Agreement dated October 22, 2001 between Oakstone Properties, Inc. and VGC (predecessor in interest to Saltville LLC), assigned to Duke Energy Saltville Gas Storage,
L.L.C. (predecessor in interest to Saltville LLC). 

  

 - 26 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Appendix 1 
 Early Grove Real Property Leases 
  

							
	 Lease Number
	  	 Lessor
	  	Net Acres	  	 County

	ST-45-089 -1.00	  	Gilbert D. Baker	  	222.180	  	Scott
	ST-45-089-2.00	  	Judy A. Baker	  	111.090	  	Scott
	ST-45-090-1.00	  	Mansey A. & Vernie Gardner	  	240.000	  	Scott
	ST-45-091-1.00	  	Charles Quinton & Linda Sue Pullon	  	70.000	  	Scott
	ST-45-092-1.00	  	Charles Quinton & Linda Sue Pullon	  	11.000	  	Scott
	ST-45-093-1.00	  	S.W. Baker	  	31.000	  	Scott
	ST-45-093-2.00	  	Charlotte Hensley	  	62.000	  	Scott
	ST-45-094-1.00	  	Goldie Blanche Hensley Estate	  		  	Scott
	ST-45-094-1.10	  	Craig H. Hensley	  	179.020	  	Scott
	ST-45-094-2.00	  	Charlotte Hensley	  	106.980	  	Scott
	ST-45-094-3.00	  	Sula J. Inklebarger	  		  	Scott
	ST-45-094-4.00	  	Lynn H. Woodruff	  		  	Scott
	ST-45-095-1.10	  	Genelle McNamara	  	1.000	  	Scott
	ST-45-095-2.00	  	Jeffrey L. Carter	  	47.000	  	Scott
	ST-45-096-1.00	  	Reed and Ethel L. (dec.) Booher	  	50.000	  	Scott
	ST-45-096-1.10	  	Bobby Wayne Booher	  	12.50	  	Scott
	ST-45-096-1.20	  	Jerry Donald Booher	  	12.50	  	Scott
	ST-45-096-1.30	  	Tony Allen Booher	  	12.50	  	Scott
	ST-45-096-1.40	  	Reed Junior Booher	  	12.50	  	Scott
	ST-45-096-2.00	  	Bobby Wayne Booher	  	25.000	  	Scott
	ST-45-096-3.10	  	Salem W. Smith	  	8.333	  	Scott
	ST-45-096-3.20	  	Billy Smith	  	8.333	  	Scott
	ST-45-096-3.30	  	Dale L. Smith	  	8.333	  	Scott
	ST-45-097-02.00	  	Charles L. and Martha C. Shelley	  	7.400	  	Scott
	ST-45-098-1.00	  	Tommy Malone	  	7.758	  	Scott
	ST-45-098-2.00	  	Jack and Maxine Malone	  	15.516	  	Scott
	ST-45-099-1.00	  	Avanelle McMurray	  	70.610	  	Scott
	ST-45-100-1.00	  	David L. Meade	  	20.000	  	Scott
	ST-45-100-2.00	  	Ronald L. Meade	  	20.000	  	Scott
	ST-45-101-01.00	  	Carl William Miller - Trust Acct.	  	107.974	  	Scott
	ST-45-101-02.00	  	Tessie S. Barker (Acct#05-31338-4)	  	1.267	  	Scott
	ST-45-101-03.00	  	Hilda Aileen Pye(Acct.#33107300478)	  	0.317	  	Scott
	ST-45-101-04.00	  	Charmie D. Sams	  	1.267	  	Scott
	ST-45-101-05.00	  	James J. Jeralds	  	1.267	  	Scott
	ST-45-101-06.00	  	Virgie Dunn c/o Frank Blickensderfer	  	1.267	  	Scott
	ST-45-101-07.00	  	Woodsfield 1st Free Methodist Church	  	1.267	  	Scott
	ST-45-101-08.00	  	Richard and Gloria J. McKeehan	  		  	Scott
	ST-45-101-09.00	  	Jack Love	  	0.317	  	Scott
	ST-45-101-10.00	  	Sheila Renee Howe	  	0.110	  	Scott
	ST-45-101-11.00	  	Evelyn J. Wexler	  	0.630	  	Scott
	ST-45-101-12.00	  	Frances D. Hutchison	  	0.640	  	Scott

  

 - 27 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

							
	ST-45-101-13.00	  	Nina Gladys Large	  		  	Scott
	ST-45-101-14.00	  	Wilma P. Derting	  	0.630	  	Scott
	ST-45-101-15.00	  	Ernestine D. and Doyle B. Marsh	  	0.950	  	Scott
	ST-45-101-16.00	  	Ronald W. and Sandra Bonkosky	  	0.100	  	Scott
	ST-45-101-17.00	  	Fannie L. Barker Heirs	  	1.267	  	Scott
	ST-45-101-18.00	  	Shirley D. Grubbs	  	0.950	  	Scott
	ST-45-101-19.00	  	Woodrow and Ruby Mildred Barker	  		  	Scott
	ST-45-101-20.00	  	Donald E. and Sharon Bonkosky	  		  	Scott
	ST-45-101-21.00	  	Virginia L. Bauer (deceased)	  	2.534	  	Scott
	ST-45-101-21.10	  	Joy B. Rose	  	0.845	  	Scott
	ST-45-101-21.20	  	Joanne Lee Cohen	  	0.845	  	Scott
	ST-45-101-21.30	  	Linda T. Piekut	  	0.844	  	Scott
	ST-45-101-22.00	  	V. Stan Pierce	  	1.267	  	Scott
	ST-45-101-23.00	  	Max Pierce	  	1.267	  	Scott
	ST-45-101-25.00	  	Dorothy Hinnant	  	146.000	  	Scott
	ST-45-101-27.00	  	Ozella C. Wasser	  	1.267	  	Scott
	ST-45-102-1.00	  	Avanelle McMurray	  	36.000	  	Scott
	ST-45-103-2.00	  	Craig H. Hensley	  	23.74	  	Scott
	ST-45-103-2.10	  	Jeffrey L. Carter	  	36.159	  	Scott
	ST-45-103-3.00	  	Jeffrey L. Carter	  	91.33	  	Scott
	ST-45-104-2.00	  	William J. and Martha C. Whitt	  	53.150	  	Scott
	ST-45-105-1.00	  	Maxie Baker c/o Arlene Cru	  	291.000	  	Scott
	ST-45-105-1.10	  	Maxie A. (Arlene) Crusenberry	  	72.75	  	Scott
	ST-45-105-1.20	  	Barbara L. Barker	  	72.75	  	Scott
	ST-45-105-1.30	  	Linda Baker Turner	  	72.75	  	Scott
	ST-45-105-1.40	  	Glenda Kay Morrell	  	72.75	  	Scott
	ST-45-106-1.00	  	Miller’s Chapel	  	2.000	  	Scott
	ST-45-107-01.00	  	Arden and Edith Hunsucker	  	50.00	  	Scott
	ST-45-107-02.10	  	Fredna L. Taylor	  	1.220	  	Scott
	ST-45-107-02.20	  	Cecil K. Hunsucker	  	1.220	  	Scott
	ST-45-107-02.30	  	James E. Hunsucker (dec)-VOID CK	  	1.220	  	Scott
	ST-45-107-02.40	  	Mary P. Millhorn	  	1.220	  	Scott
	ST-45-107-02.50	  	Malinda H. Lucas	  	1.220	  	Scott
	ST-45-107-02.60	  	Sandra H. Monger	  	1.220	  	Scott
	ST-45-107-03.10	  	James K. Stamper	  	4.189	  	Scott
	ST-45-107-03.20	  	Estate of Bonnie Bright	  	4.189	  	Scott
	ST-45-107-03.30	  	Cledith Perrigan	  	4.189	  	Scott
	ST-45-107-04.00	  	Edith Morelli	  	4.189	  	Scott
	ST-45-107-05.00	  	Terry J. Hunsucker	  	3.665	  	Scott
	ST-45-107-05.20	  	Debra S. Strebig	  	3.665	  	Scott
	ST-45-107-06.00	  	Norma Jean H. Barth and Gene Barth	  	7.330	  	Scott
	ST-45-107-07.00	  	Arden Hunsucker	  	14.660	  	Scott
	ST-45-107-08.10	  	Genelle McNamara	  	2.443	  	Scott
	ST-45-107-08.21	  	Claude T. Barb	  	2.443	  	Scott
	ST-45-107-08.30	  	Graham G. Hunsucker	  	2.443	  	Scott

  

 - 28 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

							
	ST-45-107-09.00	  	Donald Hunsucker	  	2.443	  	Scott
	 ST-45-107-09.10
	  	Audrey H. Ketron	  	2.443	  	Scott
	 ST-45-107-09.20
	  	Cheryl H. LeSueur	  	2.443	  	Scott
	 ST-45-107-10.00
	  	Brittany Good	  	4.189	  	Scott
	 ST-45-107-11.00
	  	Delores Rutherford	  	0.838	  	Scott
	 ST-45-107-11.20
	  	William Rutherford	  	0.838	  	Scott
	 ST-45-107-11.30
	  	Mary Houser	  	0.838	  	Scott
	 ST-45-107-11.40
	  	Nancy Kay Ferriell	  	0.838	  	Scott
	 ST-45-107-11.50
	  	Anna Belle DeVilbiss	  	0.838	  	Scott
	 ST-45-107-12.10
	  	Hershel Lee Bright	  	1.047	  	Scott
	 ST-45-107-12.20
	  	Bobby Scott Bright	  	1.047	  	Scott
	 ST-45-107-12.30
	  	John Luther Bright	  	1.047	  	Scott
	 ST-45-107-12.40
	  	Linda Joan Allison	  	1.047	  	Scott
	 ST-45-108-2.00
	  	Michael S. Pullon	  	1.750	  	Scott
	 ST-45-108-3.00
	  	Michael S. Pullon	  	1.750	  	Scott
	 ST-45-108-4.00
	  	Michael S. Pullon	  	1.750	  	Scott
	 ST-45-108-5.00
	  	Michael S. Pullon	  	1.750	  	Scott
	 ST-45-108-6.00
	  	Michael S. Pullon	  	1.750	  	Scott
	 ST-45-109-1.00
	  	Robert L. and Lois Miller	  	5.000	  	Scott
	 ST-45-110-01.10
	  	Donna M. and Craig Hagy	  	9.000	  	Scott
	 ST-45-111-1.00
	  	Dora B. and T.E. Loudy	  	42.500	  	Scott
	 ST-45-112-1.00
	  	Nora Clark	  	75.000	  	Scott
	 ST-45-113-1.00
	  	Karen M. Bowman	  	23.000	  	Scott
	 ST-45-114-2.00
	  	Billy and Deborah Miller	  	0.416	  	Scott
	 ST-45-114-3.00
	  	Donald and Ruth Miller	  	0.416	  	Scott
	 ST-45-114-4.00
	  	Franklin and Shirley Fletcher	  	0.416	  	Scott
	 ST-45-114-5.00
	  	Karen M. Bowman	  	0.416	  	Scott
	 ST-45-114-6.00
	  	Marilyn M. Acree	  	0.416	  	Scott
	 ST-45-114-7.00
	  	John D. Miller	  	0.416	  	Scott
	 ST-45-115-1.00
	  	Eula Faye Murray	  	41.750	  	Washington
	 ST-45-115-2.00
	  	Avanelle McMurray	  	41.750	  	Scott
	 ST-45-115-3.00
	  	Bobby L. and Shelby J. Shelley	  	41.750	  	Washington
	 ST-45-116-1.00
	  	Mark R. Weatherly	  	308.000	  	Washington
	 ST-45-117-2.00
	  	Mark R. Weatherly	  	106.000	  	Washington
	 ST-45-118-2.00
	  	Shannon D. Cassell (WHITT owns)	  	9.000	  	Washington
	 ST-45-118-3.00
	  	William J. and Martha C. Whitt	  	9.000	  	Washington
	 ST-45-119-1.00
	  	Fred and Kathleen Flora	  	25.500	  	Washington
	 ST-45-119-2.00
	  	Jack S. and June C. Dennison	  	25.500	  	Washington
	 ST-45-120-1.10
	  	Charles W.(dec)Nell F. Dorton(dec)	  		  	Washington
	 ST-45-120-1.11
	  	Linda E. Dorton	  	71.659	  	Washington
	 ST-45-120-2.10
	  	Genelle McNamara	  	1.083	  	Scott
	 ST-45-120-2.11
	  	Claude T. Barb	  	1.083	  	Scott
	 ST-45-120-2.30
	  	Graham G. Hunsucker	  	1.083	  	Scott
	 ST-45-120-3.00
	  	Carolyn R. and Roy L. Johnson	  	1.630	  	Washington
	 ST-45-120-4.00
	  	Edna L. Newton	  	1.630	  	Washington

  

 - 29 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

							
	ST-45-121-1.00	  	Gary W. and Beverly K. Laughlin	  	50.000	  	Washington
	ST-45-122-1.10	  	Bruce and Toni Shaffer	  	61.0	  	Washington
	ST-45-123-3.00	  	Shannon D. Cassell (sold to WHITT)	  	205.400	  	Washington
	ST-45-123-4.00	  	William and Martha C. Whitt	  	205.400	  	Washington
	ST-45-124-1.00	  	Charles L. Martin	  	106.000	  	Washington
	ST-45-125-2.00	  	Arthur P. and Ruth H. Slaughter	  	44.500	  	Washington
	ST-45-126-1.00	  	Juanita C. Smith	  	40.000	  	Washington
	ST-45-127-1.00	  	Linda Z. Jones	  	39.000	  	Washington
	ST-45-127-2.10	  	Raymond L. Nicar, Jr.	  	13.000	  	Washington
	ST-45-127-2.20	  	Fredrick G. Nicar	  	13.000	  	Washington
	ST-45-127-2.30	  	Sara (Sally) Nicar Mistr	  	13.000	  	Washington
	ST-45-128-01.20	  	Shirley Trivett	  	34.375	  	Washington
	ST-45-128-2.00	  	Lakie Jennette Smith	  	68.750	  	Washington
	ST-45-128-2.10	  	David Lynn Smith	  	68.750	  	Washington
	ST-45-129-1.00	  	Grace Estella Rust	  	119.000	  	Washington
	ST-45-130-1.00	  	Eula Faye Murray	  	6.500	  	Washington
	ST-45-130-2.00	  	Avanelle McMurray	  	6.500	  	Scott
	ST-45-130-3.00	  	George S. and Shirley F. Peters	  	13.000	  	Washington
	ST-45-184-1.00	  	George Edward Harley, Sr.	  	Mtr.Stn.	  	Washington
	ST-45-189-2.00	  	James T. and Karen S. Phillips	  	105.500	  	Scott
	ST-45-193-1.00	  	Hiram Gardner	  	135.000	  	Scott
	ST-45-201-01.00	  	Ethel Lee Worley	  	77.500	  	Washington
	ST-45-201-02.00	  	Charles Michael Boudin	  	38.750	  	Washington
	ST-45-201-03.00	  	D. Keith and Kris M. Parker	  	38.750	  	Washington
	ST-45-202-01.00	  	Hershel and Louise Bright	  	12.000	  	Scott
	ST-45-205-1.00	  	Nina Lee Bright	  	161.840	  	Scott
	ST-45-206-2.00	  	Ross Norton	  	2.900	  	Washington
	ST-45-207-2.00	  	Ross Norton	  	16.600	  	Washington
	ST-45-208-1.00	  	William K. Shelley, Jr.	  	22.660	  	Scott
	ST-45-208-2.00	  	Cecil O. and Launa B. Ridgeway	  	22.660	  	Scott
	ST-45-208-3.00	  	Charles David and Connie S. Hensley	  	22.660	  	Scott
	ST-45-209-1.00	  	S.W. Baker	  	72.750	  	Scott/Wash
	ST-45-210-1.00	  	James L. and Dorothy Mae Goodson	  	62.250	  	Washington
	ST-45-211-1.10	  	Jennie L. Henderson (1/4 Interest)	  	11.500	  	Washington
	ST-45-211-1.20	  	Kenneth L. Henderson, Jr. (1/4 Int)	  	11.500	  	Washington
	ST-45-211-1.30	  	David A. Henderson (1/4 Interest)	  	11.500	  	Washington
	ST-45-211-1.40	  	Larry W. Henderson (1/4 Interest)	  	11.500	  	Washington
	ST-45-212-2.00	  	Reed and Ethel L. Booher (dec.)	  	103.100	  	Washington
	ST-45-212-2.10	  	Jerry Donald Booher	  	25.780	  	Washington
	ST-45-212-2.20	  	Bobby Wayne Booher	  	25.780	  	Washington
	ST-45-212-2.30	  	Tony Allen Booher	  	25.770	  	Washington
	ST-45-212-2.40	  	Reed Junior Booher	  	25.770	  	Washington
	ST-45-213-1.00	  	Bobby Wayne Booher	  	65.100	  	Washington
	ST-45-214-1.00	  	Avanelle McMurray	  	19.000	  	Scott
	ST-45-215-1.00	  	Margie P. Baker (GARY W. BAKER)	  		  	Scott

  

 - 30 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

							
	ST-45-215-1.10	  	Gary W. Baker	  	115.400	  	Scott
	ST-45-216-1.00	  	Hilary H. and Dorothy C. Arnold	  	61.000	  	Scott
	ST-45-217-1.00	  	Bobby L. & Shelby J. Shelley	  	34.00	  	Washington
	ST-45-218-1.00	  	Thomas L. Agnew	  	33.00	  	Scott
	ST-45-223-1.00	  	William L. & Sharon Eaton	  	141.00	  	Washington
	ST-45-224-1.00	  	Thelma S. Loudy (deceased)	  	10.500	  	Washington
	ST-45-224-1.10	  	Nancy L. Loudy	  	12.31	  	Scott
	ST-45-224-2.00	  	Jeffrey L. Carter	  	49.230	  	Scott
	ST-45-225-1.00	  	Christopher Todd Godsey	  	53.500	  	Washington
	ST-45-226-1.00	  	Hart Bros., Inc. etal	  		  	Washington
	ST-45-227-1.00	  	Shirley P. Arnold, etal	  	77.000	  	Scott
	ST-45-228-1.00	  	Bernice Conkin	  	94.00	  	Washington
	ST-45-229-1.00	  	Jean L. Smith	  		  	Washington
	ST-45-229-2.00	  	Carl F. and Janet S. Fleenor	  	35.00	  	Washington
	ST-45-230-1.00	  	Scott E. Slaughter	  	50.00	  	Washington
	ST-45-231-1.00	  	Jo Ann and Bobby F. Harlan	  	45.30	  	Scott
	ST-45-232-2.00	  	Martin Harold and Judy J. Lawson	  	66.00	  	Scott
	ST-45-233-1.00	  	Martha Ruth Blair	  	145.25	  	Scott
	ST-45-234-1.00	  	Coolidge and Lilliam Goodman	  	50.000	  	Washington
	ST-45-235-1.00	  	Arthur P. and Ruth H. Slaughter	  	144.000	  	Washington
	ST-45-241-1.00	  	Claude W. and Charlene Smith	  	502.00	  	Scott
	ST-45-242-1.00	  	Grady and Dorothy Shelley	  	97.00	  	Scott
	ST-45-243-1.00	  	Jennie Lynn McNamara	  	145.00	  	Scott
	ST-45-244-1.00	  	James E. and Sonya Rodefer	  	66.000	  	Scott
	ST-45-244-2.00	  	Della B. Rodefer (deceased)	  	45.330	  	Scott
	ST-45-244-3.00	  	Joe and Effie Louise Lemons	  	22.660	  	Scott
	ST-45-245-1.00	  	Frank N. and Teresa R. Osborne	  	15.920	  	Scott
	ST-45-245-2.00	  	Gerald and Jo Ann Porter	  	15.920	  	Scott
	ST-45-246-1.00	  	Jimmy and Patsy Canter	  	27.000	  	Scott
	ST-45-247-1.00	  	Maxie L. Baker	  	74.000	  	Washington
	ST-45-248-1.00	  	William E. and Laura Mae Barker	  	100.00	  	Washington
	ST-45-249-1.00	  	d/b/a Houser Bros.Farm	  	6.900	  	Scott
	ST-45-250-1.00	  	Charles Q. (Quinton) Pullon	  	10.00	  	Scott

  

 - 31 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 5.3 to Contribution Agreement – Spectra MLP Approvals 
 None. 
  

 - 32 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 5.5 to Contribution Agreement – Spectra MLP Brokers’ Fee 

Fees and expenses due to Simmons & Company International pursuant to Engagement Letter dated November 13, 2007, between Spectra MLP and
Simmons & Company International. 
  

 - 33 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 6.1 to Contribution Agreement – Conduct of Business 
 1. See item 2 on Schedule 4.7(d). 
 2. Saltville LLC’s potential
purchase of approximately 327,000 dekatherms of base gas. 
  

 - 34 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 6.5 to Contribution Agreement – Company Guarantees 
 Indemnity Agreement between Travelers Casualty and Surety Company of America and Spectra Energy Capital, LLC relating to the bond issued by Travelers Casualty and Surety
Company of America to Commonwealth of Virginia, Director, Division of Mineral Mining for the account of Saltville LLC in the amount of $81,640 and the bond issued by Travelers Casualty and Surety Company of America to the U.S. Environmental
Protection Agency for the account of Duke Virginia Gas Pipeline Company (predecessor in interest to SE Virginia Pipeline) in the amount of $90,000. 
  

 - 35 – 
 Schedules to Contribution Agreement 

 Execution Version 
 Privileged and Confidential Attorney-Client Work Product 
  

 Schedule 6.10 to Contribution Agreement – Excluded Assets 
 1. The Common Units, General Partner Units and cash conveyed to East Tennessee Natural Gas, LLC under the Asset Purchase Agreement. 
  

 - 36 – 
 Schedules to Contribution Agreement 

 Exhibit A to Contribution Agreement – Omnibus Amendment 
 FIRST AMENDMENT TO 
 OMNIBUS
AGREEMENT 
 THIS FIRST AMENDMENT TO OMNIBUS AGREEMENT (“First Amendment”) is entered into on, and effective as of,
                 , 2008, and is by and among Spectra Energy Corp, a Delaware corporation (“Spectra”), Spectra Energy Partners GP, LLC, a Delaware
limited liability company (“GP LLC”), Spectra Energy Partners (DE) GP, LP, a Delaware limited partnership (the “General Partner”) and Spectra Energy Partners, LP, a Delaware limited partnership (the
“Partnership”). The above-named entities are sometimes referred to in this First Amendment each as a “Party” and collectively as the “Parties.” 
 R E C I T A L S: 
 1. The Parties
entered into that certain Omnibus Agreement, dated and effective as of the Closing Date (as defined therein) (the “Current Agreement”), to (i) evidence their agreement with respect to the amount to be paid by the Partnership
for certain general and administrative services to be performed by Spectra and its Affiliates (as defined in the Current Agreement) as well as direct expenses, including operating expenses, incurred by Spectra and its Affiliates for and on behalf of
the Partnership Group (as defined in the Current Agreement) and (ii) evidence their agreement with respect to certain indemnification obligations of the Parties. 
 2. The Parties desire to amend the Current Agreement to, among other things, reflect the contribution of Saltville LLC (as defined herein) to the Partnership Group from certain Affiliates of Spectra and the extension
of the reimbursement obligations of Article III of the Current Agreement for expenses made by Spectra and its Affiliates on behalf of Saltville LLC. 
 In consideration of the agreements contained herein, and for other good and valuable consideration, the Parties hereby agree as follows: 
 ARTICLE I 
 Definitions 
 1.1 Defined Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Current
Agreement. Unless otherwise indicated, all section references in this First Amendment refer to sections of the Current Agreement. 
 ARTICLE II 
 Amendment to Current Agreement 
 2.1 Amendments to Section 1.1 
 (a) The following definition is hereby amended in its entirety to read as follows: 
 “Agreement” means this Omnibus Agreement as amended by the First Amendment, as it may be further amended, modified or supplemented from time to time in accordance with the terms hereof. 

 (b) The definition of “Partnership Assets” is hereby amended by adding the following
proviso to the end of such definition prior to the period: 
 “; provided, however, that with respect to Article III
only, Partnership Assets shall also include Saltville LLC” 
 (c) The following definitions are hereby added where alphabetically
appropriate to read as follows: 
 “First Amendment” means the First Amendment to Omnibus Agreement dated as
of                  , 2008 among Spectra, GP LLC, the General Partner and Partnership. 
 “Saltville LLC” means Saltville Gas Storage Company L.L.C., a limited liability company organized under the Laws of the
[Commonwealth of Virginia]. 
 ARTICLE III 
 Miscellaneous 
 3.1 Confirmation. The provisions of the Current
Agreement, as amended by this First Amendment, shall remain in full force and effect following the execution of this First Amendment. 
 3.2 Choice of Law; Submission to Jurisdiction. This First Amendment shall be subject to and governed by the laws of the State of Texas, excluding any conflicts-of-law rule or principle that might refer the construction
or interpretation of this First Amendment to the laws of another state. Each Party hereby submits to the jurisdiction of the state and federal courts in the State of Texas and to venue in Houston, Texas. 
 3.3 Entire Agreement. This First Amendment constitutes the entire agreement of the Parties relating to the matters contained herein,
superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein. 
 3.4
Counterparts. This First Amendment may be executed in any number of counterparts, including facsimile counterparts, with the same effect as if all signatory Parties had signed the same document. All counterparts shall be construed
together and shall constitute one and the same instrument. 
 3.5 Severability. If any provision of this First Amendment
or the application thereof to any Person or circumstance shall be held invalid or unenforceable by a court or regulatory body of competent jurisdiction, the remainder of this First Amendment and the application of such provision to other Persons or
circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 
 [The remainder of this page
is left blank intentionally.] 
  

 - 2 - 

 IN WITNESS WHEREOF, the Parties have executed this First Amendment on, and effective as of, the date
first written above. 
  

			
	SPECTRA ENERGY CORP
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	SPECTRA ENERGY PARTNERS GP, LLC
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	SPECTRA ENERGY PARTNERS (DE) GP, LP
		
	By:	 	 Spectra Energy Partners GP, LLC,
 its general
partner

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	SPECTRA ENERGY PARTNERS, LP
		
	By:	 	 Spectra Energy Partners (DE) GP, LP,
 its
general partner

		
	By:	 	 Spectra Energy Partners GP, LLC,
 its general
partner

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

 [Signature Page to the First Amendment to Omnibus Agreement]East Tennessee Natural Gas, LLC Note Purchase Agreement dated December 15, 2002

 EXHIBIT 10.11 
 EXECUTION COPY 
 EAST TENNESSEE NATURAL
GAS COMPANY 
 $150,000,000 
 5.71% Senior Notes due December 18, 2012 
 NOTE PURCHASE
AGREEMENT 
 Dated as of December 15, 2002 

 TABLE OF CONTENTS 
  

					
	 SECTION
	  	 HEADING
	  	PAGE
	 SECTION 1.
	  	AUTHORIZATION OF NOTES	  	1
			
	 SECTION 2.
	  	SALE AND PURCHASE OF NOTES	  	1
			
	 SECTION 3.
	  	CLOSING	  	2
			
	 SECTION 4.
	  	CONDITIONS TO CLOSING	  	2
			
	 Section 4.1.
	  	Representations and Warranties	  	2
	 Section 4.2.
	  	Performance; No Default	  	2
	 Section 4.3.
	  	Compliance Certificates	  	2
	 Section 4.4.
	  	Opinions of Counsel	  	2
	 Section 4.5.
	  	Purchase Permitted by Applicable Law, etc.	  	3
	 Section 4.6.
	  	Sale of Other Notes	  	3
	 Section 4.7.
	  	Payment of Special Counsel Fees	  	3
	 Section 4.8.
	  	Private Placement Number	  	3
	 Section 4.9.
	  	Changes in Corporate Structure	  	3
	 Section 4.10.
	  	Funding Instructions	  	3
	 Section 4.11.
	  	Proceedings and Documents	  	4
			
	 SECTION 5.
	  	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	4
			
	 Section 5.1.
	  	Organization; Power and Authority	  	4
	 Section 5.2.
	  	Authorization, etc.	  	4
	 Section 5.3.
	  	Disclosure	  	4
	 Section 5.4.
	  	Organization and Ownership of Shares of Subsidiaries	  	4
	 Section 5.5.
	  	Financial Statements	  	5
	 Section 5.6.
	  	Compliance with Laws, Other Instruments, etc.	  	5
	 Section 5.7.
	  	Governmental Authorizations, etc.	  	5
	 Section 5.8.
	  	Litigation; Observance of Statutes and Orders	  	5
	 Section 5.9.
	  	Taxes	  	6
	 Section 5.10.
	  	Title to Property; Leases	  	6
	 Section 5.11.
	  	Licenses, Permits, etc.	  	6
	 Section 5.12.
	  	Compliance with ERISA	  	6
	 Section 5.13.
	  	Private Offering by the Company	  	7
	 Section 5.14.
	  	Use of Proceeds; Margin Regulations	  	7
	 Section 5.15.
	  	Existing Indebtedness	  	8
	 Section 5.16.
	  	Foreign Assets Control Regulations, etc.	  	8
	 Section 5.17.
	  	Status under Certain Statutes	  	8
			
	 SECTION 6.
	  	REPRESENTATIONS OF THE PURCHASER	  	8

  

 - i - 

					
	 SECTION
	  	 HEADING
	  	PAGE
	 Section 6.1.
	  	Purchase for Investment	  	8
	 Section 6.2.
	  	Source of Funds	  	9
			
	 SECTION 7.
	  	INFORMATION AS TO COMPANY	  	10
			
	 Section 7.1.
	  	Financial and Business Information	  	10
	 Section 7.2.
	  	Officer’s Certificate	  	12
	 Section 7.3.
	  	Inspection	  	13
			
	 SECTION 8.
	  	PREPAYMENT OF THE NOTES	  	13
			
	 Section 8.1.
	  	Maturity	  	13
	 Section 8.2.
	  	Optional Prepayments with Make-Whole Amount	  	13
	 Section 8.3.
	  	Change in Control	  	14
	 Section 8.4.
	  	Allocation of Partial Prepayments	  	16
	 Section 8.5.
	  	Maturity; Surrender, etc.	  	16
	 Section 8.6.
	  	Purchase of Notes	  	16
	 Section 8.7.
	  	Make-Whole Amount	  	16
			
	 SECTION 9.
	  	AFFIRMATIVE COVENANTS	  	18
			
	 Section 9.1.
	  	Compliance with Law	  	18
	 Section 9.2.
	  	Insurance	  	18
	 Section 9.3.
	  	Maintenance of Properties	  	18
	 Section 9.4.
	  	Payment of Taxes	  	18
	 Section 9.5.
	  	Legal Existence, etc.	  	19
			
	 SECTION 10.
	  	NEGATIVE COVENANTS	  	19
			
	 Section 10.1.
	  	Consolidated Funded Debt	  	19
	 Section 10.2.
	  	Restriction on Liens	  	19
	 Section 10.3.
	  	Consolidated Funded Debt	  	19
	 Section 10.4.
	  	Restriction on Asset Sales	  	20
	 Section 10.5.
	  	Restriction on Consolidation, Merger, Etc.	  	20
	 Section 10.6.
	  	Business of Company	  	20
	 Section 10.7.
	  	Transactions with Affiliate	  	20
			
	 SECTION 11.
	  	EVENTS OF DEFAULT	  	21
			
	 SECTION 12.
	  	REMEDIES ON DEFAULT, ETC.	  	23
			
	 Section 12.1.
	  	Acceleration	  	23
	 Section 12.2.
	  	Other Remedies	  	23
	 Section 12.3.
	  	Rescission	  	24
	 Section 12.4.
	  	No Waivers or Election of Remedies, Expenses, etc.	  	24
			
	 SECTION 13.
	  	REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES	  	24
			
	 Section 13.1.
	  	Registration of Notes	  	24

  

 - ii - 

					
	 SECTION
	  	 HEADING
	  	PAGE
	 Section 13.2.
	  	Transfer and Exchange of Notes	  	24
	 Section 13.3.
	  	Replacement of Notes	  	25
			
	 SECTION 14.
	  	PAYMENTS ON NOTES	  	25
			
	 Section 14.1.
	  	Place of Payment	  	25
	 Section 14.2.
	  	Home Office Payment	  	25
			
	 SECTION 15.
	  	EXPENSES, ETC.	  	26
			
	 Section 15.1.
	  	Transaction Expenses	  	26
	 Section 15.2.
	  	Survival	  	26
			
	 SECTION 16.
	  	SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT	  	26
			
	 SECTION 17.
	  	AMENDMENT AND WAIVER	  	27
			
	 Section 17.1.
	  	Requirements	  	27
	 Section 17.2.
	  	Solicitation of Holders of Notes	  	27
	 Section 17.3.
	  	Binding Effect, etc.	  	27
	 Section 17.4.
	  	Notes Held by Company, etc.	  	28
			
	 SECTION 18.
	  	NOTICES	  	28
			
	 SECTION 19.
	  	REPRODUCTION OF DOCUMENTS	  	28
			
	 SECTION 20.
	  	CONFIDENTIAL INFORMATION	  	29
			
	 SECTION 21.
	  	SUBSTITUTION OF PURCHASER	  	30
			
	 SECTION 22.
	  	MISCELLANEOUS	  	30
			
	 Section 22.1.
	  	Successors and Assigns	  	30
	 Section 22.2.
	  	Payments Due on Non-Business Days	  	30
	 Section 22.3.
	  	Severability	  	30
	 Section 22.4.
	  	Construction	  	30
	 Section 22.5.
	  	Counterparts	  	31
	 Section 22.6.
	  	Governing Law	  	31
	 Section 22.7.
	  	Jurisdiction	  	31
			
	 Signature
	  		  	32

  

 - iii - 

					
	 SCHEDULE A
	 	— INFORMATION RELATING TO PURCHASERS	  	
			
	 SCHEDULE B 
	 	— DEFINED TERMS	  	35
			
	 SCHEDULE 5.3 
	 	— Disclosure Materials	  	42
			
	 SCHEDULE 5.4 
	 	— Subsidiaries of the Company and Ownership of Subsidiary Stock	  	43
			
	 SCHEDULE 5.5 
	 	— Financial Statements	  	44
			
	 SCHEDULE 5.14
	 	— Use of Proceeds	  	45
			
	 SCHEDULE 5.15
	 	— Existing Indebtedness	  	46
			
	 EXHIBIT 1 
	 	— Form of 5.71% Senior Note due December 18, 2012	  	47
			
	 EXHIBIT 4.4(a) 
	 	— Form of Opinion of Special Counsel for the Company	  	
			
	 EXHIBIT 4.4.(b)
	 	— Form of Opinion of Special Tennessee Counsel to the Company	  	
			
	 EXHIBIT 4.4(c) 
	 	— Form of Opinion of Special Counsel for the Purchasers	  	

  

 - iv - 

 EAST TENNESSEE NATURAL GAS
COMPANY 
 5400 WESTHEIMER CT. 
 WO-8L27 
 HOUSTON, TX 77056 
 5.71% Senior Notes due December 18, 2012 
  

			
	 TO THE PURCHASER LISTED
IN
 THE ATTACHED SCHEDULE A
 WHICH IS A SIGNATORY HERETO:
	  	Dated as of December 15, 2002

 Ladies and Gentlemen: 
 EAST TENNESSEE NATURAL GAS COMPANY, a Tennessee corporation (the “Company”), agrees with you as follows: 
 SECTION 1. AUTHORIZATION OF NOTES. 
 The Company will authorize the issue and sale of $150,000,000 aggregate principal amount of its 5.71% Senior Notes due December 18, 2012 (the
“Notes”, such term to include any such notes issued in substitution therefor pursuant to Section 13 of this Agreement or the Other Agreements (as hereinafter defined)). The Notes shall be substantially in the form set
out in Exhibit 1, with such changes therefrom, if any, as may be approved by you and the Company. Certain capitalized terms used in this Agreement are defined in Schedule B; references to a “Schedule” or an
“Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement. 
 SECTION 2.
SALE AND PURCHASE OF NOTES. 
 Subject to the terms and
conditions of this Agreement, the Company will issue and sell to you and you will purchase from the Company, at the Closing provided for in Section 3, Notes in the principal amount specified opposite your name in Schedule A
at the purchase price of 100% of the principal amount thereof. Contemporaneously with entering into this Agreement, the Company is entering into separate Note Purchase Agreements (the “Other Agreements”) identical with this
Agreement with each of the other purchasers named in Schedule A (the “Other Purchasers”), providing for the sale at such Closing to each of the Other Purchasers of Notes in the principal amount specified opposite its
name in Schedule A. Your obligation hereunder, and the obligations of the Other Purchasers under the Other Agreements, are several and not joint obligations, and you shall have no obligation under any Other Agreement and no liability to
any Person for the performance or nonperformance by any Other Purchaser thereunder. 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 SECTION 3.
CLOSING. 
 The sale and purchase of the Notes to be purchased by you and the Other Purchasers shall occur at the offices
of Chapman and Cutler, 111 West Monroe Street, Chicago, Illinois 60603, at 10:00 A.M. Chicago time, at a closing (the “Closing”) on December 18, 2002. At the Closing the Company will deliver to you
the Notes to be purchased by you in the form of a single Note (or such greater number of Notes in denominations of at least $1,000,000 as you may request) dated the date of the Closing and registered in your name (or in the name of your nominee),
against delivery by you to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to account number 323-8-87171 at JPMorgan
Chase Bank, New York, NY, ABA 021000021. If at the Closing the Company shall fail to tender such Notes to you as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled
to your satisfaction, you shall, at your election, be relieved of all further obligations under this Agreement, without thereby waiving any rights you may have by reason of such failure or such nonfulfillment. 
 SECTION 4. CONDITIONS TO CLOSING. 
 Your obligation to purchase and pay for the Notes to be sold to you at the Closing is subject to the fulfillment to your satisfaction, prior to or at the
Closing, of the following conditions: 
 Section 4.1. Representations and Warranties. The representations and
warranties of the Company in this Agreement shall be correct when made and at the time of the Closing. 
 Section 4.2.
Performance; No Default. The Company shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing, and after giving effect
to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Schedule 5.14), no Default or Event of Default shall have occurred and be continuing. 
 Section 4.3. Compliance Certificates.  
 (a) Officer’s Certificate. The Company shall have delivered to you an Officer’s Certificate, dated the date of the Closing, certifying that the conditions specified in Sections 4.1, 4.2 and 4.9 have been
fulfilled. 
 (b) Secretary’s Certificate. The Company shall have delivered to you a certificate certifying as to the resolutions
attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and the Agreements. 
 Section 4.4. Opinions of Counsel. You shall have received opinions in form and substance satisfactory to you, dated the date of the Closing (a) from Robinson, Bradshaw & Hinson, P.A., counsel for the
Company, covering the matters set forth in Exhibit 4.4(a) and 
  

 -2- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 covering such other matters incident
to the transactions contemplated hereby as you or your counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to you), (b) from Waller, Landsen, Dortch & Davis, special Tennessee counsel
for the Company, covering the matters set forth in Section 4.4(b) and (c) from Chapman and Cutler, your special counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(c) and
covering such other matters incident to such transactions as you may reasonably request. 
 Section 4.5. Purchase Permitted by
Applicable Law, etc. On the date of the Closing your purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which you are subject, without recourse to provisions (such as
Section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including,
without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject you to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was
not in effect on the date hereof. If requested by you, you shall have received an Officer’s Certificate certifying as to such matters of fact as you may reasonably specify to enable you to determine whether such purchase is so permitted.

 Section 4.6. Sale of Other Notes. Contemporaneously with the Closing, the Company shall sell to the Other
Purchasers, and the Other Purchasers shall purchase, the Notes to be purchased by them at the Closing as specified in Schedule A. 
 Section 4.7. Payment of Special Counsel Fees. Without limiting the provisions of Section 15.1, the Company shall have paid on or before the Closing the fees, charges and disbursements of your special
counsel referred to in Section 4.4 to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing. 
 Section 4.8. Private Placement Number. A Private Placement Number issued by Standard & Poor’s CUSIP Service
Bureau (in cooperation with the Securities Valuation Office of the National Association of Insurance Commissioners) shall have been obtained for the Notes. 
 Section 4.9. Changes in Corporate Structure. The Company shall not have changed its jurisdiction of incorporation or been a party to any merger or consolidation and shall not have succeeded
to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5. 
 Section 4.10. Funding Instructions. At least three Business Days prior to the date of the Closing, you shall have received
written instructions executed by a Responsible Officer of the Company directing the manner of the payment of funds and setting forth (a) the name and address of the transferee bank, (b) such transferee bank’s ABA number and
(c) the account name and number into which the purchase price for the Notes is to be deposited. 
  

 -3- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 Section 4.11. Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall
be satisfactory to you and your special counsel, and you and your special counsel shall have received all such counterpart originals or certified or other copies of such documents as you or they may reasonably request. 
 SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 The Company represents and warrants to you that: 
 Section 5.1. Organization; Power and Authority. The Company is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is
duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business
it transacts and proposes to transact, to execute and deliver this Agreement and the Other Agreements and the Notes and to perform the provisions hereof and thereof. 
 Section 5.2. Authorization, etc. This Agreement, the Other Agreements and the Notes have been duly authorized by all necessary corporate action on the part of the Company, and this Agreement
constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by
(a) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (b) general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law). 
 Section 5.3. Disclosure. The Company, through its agent,
Wachovia Securities, Inc., has delivered to you and each Other Purchaser a copy of a Private Placement Memorandum dated November 2002 (the “Memorandum”), relating to the transactions contemplated hereby. This Agreement, the
Memorandum, the documents, certificates or other writings identified in Schedule 5.3 and the financial statements listed in Schedule 5.5, taken as a whole, do not contain any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. Since December 31, 2001, there has been no change in the financial condition, operations, business or
properties of the Company or any of its Subsidiaries except changes that individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect. 
 Section 5.4. Organization and Ownership of Shares of Subsidiaries. (a) Schedule 5.4 is (except as noted
therein) a complete and correct list of the Company’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock or similar
equity interests outstanding owned by the Company and each other Subsidiary. 
  

 -4- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 (b) All of the
outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the
Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.4). 
 (c) Each
Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or
other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it
transacts and proposes to transact. 
 Section 5.5. Financial Statements. The Company has delivered to each
Purchaser copies of the financial statements of the Company and its Subsidiaries listed on Schedule 5.5. All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects
the consolidated financial position of the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been
prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). 
 Section 5.6. Compliance with Laws, Other Instruments, etc. The execution, delivery and performance by the Company of this
Agreement and the Notes will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of
trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other Material agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective
properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or
any Subsidiary or (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary. 
 Section 5.7. Governmental Authorizations, etc. No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with
the execution, delivery or performance by the Company of this Agreement or the Notes. 
 Section 5.8. Litigation; Observance of
Statutes and Orders. (a) There are no actions, suits or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in
any court or before any arbitrator of any kind or before or by any Governmental Authority that, 
  

 -5- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 individually or in the aggregate,
would reasonably be expected to have a Material Adverse Effect. 
 (b) Neither the Company nor any Subsidiary is in default under any
order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including without limitation Environmental Laws) of any Governmental Authority, which
default or violation, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. 
 Section 5.9. Taxes. All income tax returns that the Company and its Subsidiaries are required to file have been filed, and all taxes shown to be due and payable on such returns and all other taxes and assessments
payable by them have been paid, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (a) the amount of which is not individually or in the aggregate
Material or (b) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in
accordance with GAAP. The Federal income tax liabilities of the Company and its Subsidiaries have been determined by the Internal Revenue Service and paid for all fiscal years up to and including the fiscal year ended December 31, 2001.

 Section 5.10. Title to Property; Leases. The Company and its Subsidiaries have good and sufficient title to
their respective Material properties, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after said date (except
as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement, except for those defects in title and Liens that, individually or in the aggregate, would not have a Material
Adverse Effect. All Material leases are valid and subsisting and are in full force and effect in all material respects. 
 Section 5.11. Licenses, Permits, etc. The Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, service marks, trademarks and trade names, or rights
thereto, that are Material, without known conflict with the rights of others, except for those conflicts that, individually or in the aggregate, would not have a Material Adverse Effect. 
 Section 5.12. Compliance with ERISA. (a) The Company and each ERISA Affiliate have operated and administered each Plan in
compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any
liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that would
reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case
pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to 
  

 -6- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 section 401(a)(29) or 412 of the Code,
other than such liabilities or Liens as would not be individually or in the aggregate Material. 
 (b) The present value of the
aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such
Plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities. The term “benefit liabilities” has the meaning specified in section
4001 of ERISA and the terms “current value” and “present value” have the meanings specified in section 3 of ERISA. 
 (c) The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans
that individually or in the aggregate are Material. 
 (d) The expected post-retirement benefit obligation (determined as of the last
day of the Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of
the Company and its Subsidiaries is not Material. 
 (e) The execution and delivery of this Agreement and the issuance and sale of the
Notes hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by the Company
in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of your representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the Notes to be
purchased by you. 
 Section 5.13. Private Offering by the Company. Neither the Company nor anyone acting on its
behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than you, the Other Purchasers and not more than
65 other Institutional Investors, each of which has been offered the Notes at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes
to the registration requirements of Section 5 of the Securities Act. 
 Section 5.14. Use of Proceeds; Margin
Regulations. The Company will apply the proceeds of the sale of the Notes as set forth in Schedule 5.14. No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of
buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to
involve the Company in a violation of Regulation X of said Board (12 CFR 224). Margin stock does not constitute more than 2% of the value of the consolidated assets of the Company and its Subsidiaries and the Company does not have any present
intention that margin stock will constitute more than 2% of the value of such assets. As 
  

 -7- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 used in this Section, the terms
“margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U. 
 Section 5.15. Existing Indebtedness. Other than Indebtedness of a Subsidiary owed to another Subsidiary, Schedule 5.15 sets forth a complete and correct list of all outstanding
Indebtedness of the Company and its Subsidiaries as of September 30, 2002, since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company
or its Subsidiaries. Neither the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary and no event or condition
exists with respect to any Indebtedness of the Company or any Subsidiary the outstanding principal amount of which exceeds $1,000,000 that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause
such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment. 
 Section 5.16. Foreign Assets Control Regulations, etc. Neither the sale of the Notes by the Company hereunder nor its use of the proceeds thereof will violate the Trading with the Enemy Act, as amended, or any of
the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto. Without limiting the foregoing, neither the Company nor
any Subsidiary (a) is or will become a person whose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) or (b) engages or will engage in any dealings or transactions, or be otherwise associated, with any such person. 
 Section 5.17. Status under Certain Statutes. Neither the Company nor any Subsidiary is an “investment company”
registered or required to be registered under the Investment Company Act of 1940, as amended, or is subject to regulation under the Public Utility Holding Company Act of 1935, as amended, the ICC Termination Act of 1995, as amended, or the Federal
Power Act, as amended. 
 SECTION 6. REPRESENTATIONS OF THE PURCHASER.
 
 Section 6.1. Purchase for Investment. You represent that (a) you are purchasing the Notes for your own
account or for one or more separate accounts maintained by you or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of your or their property shall at all
times be within your or their control; (b) this Agreement constitutes the legal, valid and binding obligation enforceable against you in accordance with the terms hereof, except as enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of such enforceability is considered in equity or at law);
and (c) you, and any other account for which you are purchasing the Notes, are an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act. You understand that the Notes have not

  

 -8- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 been registered under the Securities
Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and
that the Company is not required to register the Notes. 
 Section 6.2. Source of Funds. You represent that at
least one of the following statements is an accurate representation as to each source of funds (the “Source”) to be used by you to pay the purchase price of the Notes to be purchased by you hereunder: 
 (a) the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited
Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the National Association of Insurance Commissioners (the
“NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any
other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account
(exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with your state of domicile; or 
 (b) the Source is a separate account that is maintained solely in connection with your fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in
such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or 
 (c) the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment
fund, within the meaning of the PTE 91-38 and, except as you have disclosed to the Company in writing pursuant to this paragraph (c), no employee benefit plan or group of plans maintained by the same employer or employee organization
beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or 
 (d) the Source
constitutes assets of an “investment fund” (within the meaning of Part V of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of
Part V of the QPAM Exemption), no employee benefit plan’s assets that are included in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate
(within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and
(g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM (applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 5% or more interest in the Company

  

 -9- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 and (i) the identity of such QPAM
and (ii) the names of all employee benefit plans whose assets are included in such investment fund have been disclosed to the Company in writing pursuant to this paragraph (d); or 
 (e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of PTE 96-23 (the “INHAM Exemption”))
managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV of the INHAM exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a
person controlling or controlled by the INHAM (applying the definition of “control” in Section IV(h) of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s)
of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or 
 (f) the Source is a governmental plan; or 
 (g) the Source is one or more employee benefit plans, or a
separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this paragraph (g); or 
 (h) the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA. 
 As used in this Section 6.2, the terms “employee benefit plan”, “governmental plan”, and “separate account”
shall have the respective meanings assigned to such terms in Section 3 of ERISA. 
 SECTION 7. INFORMATION
AS TO COMPANY.  
 Section 7.1. Financial and Business Information.
The Company shall deliver to each holder of Notes that is an Institutional Investor: 
 (a) Quarterly Statements — within
60 days after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year) or, if earlier, within 15 days after such date as the Company is required to
file a Quarterly Report with the Securities and Exchange Commission, duplicate copies of: 
 (i) a consolidated balance sheet
of the Company and its Subsidiaries as at the end of such quarter, and 
 (ii) consolidated statements of income, changes in
shareholders’ equity and cash flows of the Company and its Subsidiaries for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, 
  

 -10- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 setting forth in each case in
comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as
fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments; 
 (b) Annual Statements — within 105 days after the end of each fiscal year of the Company or, if earlier, within 15 days of such
date as the Company is required to file an Annual Report with the Securities and Exchange Commissions, duplicate copies of: 
 (i) a consolidated balance sheet of the Company and its Subsidiaries, as at the end of such year, and 
 (ii)
consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such year, 
 setting forth
in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon of independent certified public accountants of recognized national standing,
which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with
GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the
circumstances; 
 (c) SEC and Other Reports — to the extent provided or filed by the Company or any Subsidiary, promptly upon
their becoming available, one copy of (i) each financial statement, report, notice or proxy statement sent by the Company or any Subsidiary to public securities holders generally, and (ii) each regular or periodic report, each registration
statement that shall have become effective (without exhibits except as expressly requested by such holder), and each final prospectus and all amendments thereto filed by the Company or any Subsidiary with the Securities and Exchange Commission;

 (d) Notice of Default or Event of Default — promptly, and in any event within five days after a Responsible Officer becoming
aware of the existence of any Default or Event of Default, a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto; 
 (e) ERISA Matters — promptly, and in any event within five days after a Responsible Officer becoming aware of any of the following, a written
notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto: 
  

 -11- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 (i)
with respect to any Plan, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof; or 
 (ii) the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such
Multiemployer Plan; or 
 (iii) any event, transaction or condition that could result in the incurrence of any liability by
the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company
or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, would reasonably be expected to have a Material
Adverse Effect; and 
 (f) Requested Information — with reasonable promptness, such other data and information relating to the
business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries or relating to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be
reasonably requested by any such holder of Notes. 
 Section 7.2. Officer’s Certificate. Each set of financial
statements delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) hereof shall be accompanied by a certificate of a Senior Financial Officer setting forth: 
 (a) Covenant Compliance — the information (including detailed calculations) required in order to establish whether the Company was in
compliance with the requirements of Section 10.1 through Section 10.5 hereof, inclusive, during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section, where
applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and 
 (b) Event of Default — a statement that such officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or
her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review
shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including, without 
  

 -12- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 limitation, any such event or
condition resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.

 Section 7.3. Inspection. The Company shall permit the representatives of each holder of Notes that is an
Institutional Investor: 
 (a) No Default — if no Default or Event of Default then exists, at the expense of such holder and upon
reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers, and, with the consent of the Company
(which consent will not be unreasonably withheld) to visit the other offices and properties of the Company and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and 
 (b) Default — if a Default or Event of Default then exists, at the expense of the Company, to visit and inspect any of the offices or
properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their
respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be
requested. 
 SECTION 8. PREPAYMENT OF THE NOTES. 
 Section 8.1. Maturity. The Notes shall not be subject to a scheduled prepayment prior to the final maturity date thereof.

 Section 8.2. Optional Prepayments with Make-Whole Amount. The Company may, at its option, upon notice as
provided below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less than 10% of the aggregate principal amount of the Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount
so prepaid, together with interest accrued thereon to the date of such prepayment, plus the Make-Whole Amount determined for the prepayment date with respect to such principal amount. The Company will give each holder of Notes written notice of each
optional prepayment under this Section 8.2 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date, the aggregate principal amount of the Notes to be
prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.4), and the interest to be paid on the prepayment date with respect to such principal amount being
prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth
the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes a certificate of a Senior Financial 
  

 -13- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 Officer specifying the calculation of
such Make-Whole Amount as of the specified prepayment date. 
 Section 8.3. Change in Control. (a) Notice
of Change in Control or Control Event. The Company will, within five Business Days after any Responsible Officer has knowledge of the occurrence of any Change in Control or Control Event, give written notice of such Change in Control or Control
Event to each holder of Notes unless notice in respect of such Change in Control (or the Change in Control contemplated by such Control Event) shall have been given pursuant to subparagraph (b) of this Section 8.3. If a
Change in Control has occurred, such notice shall contain and constitute an offer to prepay Notes as described in subparagraph (c) of this Section 8.3 and shall be accompanied by the certificate described in subparagraph
(g) of this Section 8.3. 
 (b) Condition to Company Action. The Company will not take any action that
consummates or finalizes a Change in Control unless (i) at least 30 days prior to such action it shall have given to each holder of Notes written notice containing and constituting an offer to prepay Notes as described in subparagraph
(c) of this Section 8.3, accompanied by the certificate described in subparagraph (g) of this Section 8.3, and (ii) contemporaneously with such action, it prepays all Notes required to be prepaid in
accordance with this Section 8.3. 
 (c) Offer to Prepay Notes. The offer to prepay Notes contemplated by
subparagraphs (a) and (b) of this Section 8.3 shall be an offer to prepay, in accordance with and subject to this Section 8.3, all, but not less than all, the Notes held by each holder (in this case
only, “holder” in respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”). If
such Proposed Prepayment Date is in connection with an offer contemplated by subparagraph (a) of this Section 8.3, such date shall be not less than 30 days and not more than 120 days after the date of such offer (if
the Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment Date shall be the first Business Day after the 45th day after the date of such offer). 
 (d) Rejection. A holder of Notes may accept the offer to prepay made pursuant to this Section 8.3 by causing a notice of such
acceptance to be delivered to the Company not later than 15 days after receipt by such holder of the most recent offer of prepayment. A failure by a holder of Notes to respond to an offer to prepay made pursuant to this Section 8.3
shall be deemed to constitute a rejection of such offer by such holder. 
 (e) Prepayment. Prepayment of the Notes to be
prepaid pursuant to this Section 8.3 shall be at 100% of the principal amount of such Notes, together with interest on such Notes accrued to the date of prepayment, but without Make-Whole Amount or other premium. The prepayment shall be
made on the Proposed Prepayment Date except as provided in subparagraph (f) of this Section 8.3. 
 (f) Deferral Pending Change in Control. The obligation of the Company to prepay Notes pursuant to the offers required by subparagraph (c) and accepted in accordance with subparagraph (d) of this
Section 8.3 is subject to the occurrence of the Change in Control in 
  

 -14- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 respect of which such offers and
acceptances shall have been made. In the event that such Change in Control has not occurred on the Proposed Prepayment Date in respect thereof, the prepayment shall be deferred until, and shall be made on, the date on which such Change in Control
occurs. The Company shall keep each holder of Notes reasonably and timely informed of (i) any such deferral of the date of prepayment, (ii) the date on which such Change in Control and the prepayment are expected to occur, and
(iii) any determination by the Company that efforts to effect such Change in Control have ceased or been abandoned (in which case the offers and acceptances made pursuant to this Section 8.3 in respect of such Change in Control
shall be deemed rescinded). 
 (g) Officer’s Certificate. Each offer to prepay the Notes pursuant to this Section 8.3
shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated the date of such offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is made pursuant to this
Section 8.3; (iii) the principal amount of each Note offered to be prepaid; (iv) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed Prepayment Date; (v) that the conditions of this
Section have been fulfilled; and (vi) in reasonable detail, the nature and date or proposed date of the Change in Control. 
 (h) Certain Definitions. “Change in Control” shall be deemed to have occurred if any person (as such term is used in Section 13(d) and Section 14(d)(2) of the Exchange Act as in effect on the date of the
Closing) or related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange Act), other than Duke Energy Corporation, a North Carolina corporation, or an Affiliate thereof which is Controlled (as defined in the
definition of “Affiliate”) by Duke Energy Corporation, 
 (i) become the “beneficial owners” (as
such term is used in Rule 13d-3 under the Exchange Act as in effect on the date of the Closing), directly or indirectly, of more than 50% of the total voting power of all classes then outstanding of the Company’s Voting Stock, or

 (ii) acquire after the date of the Closing (x) the power to elect, appoint or cause the election or appointment of at
least a majority of the members of the board of directors of the Company, through beneficial ownership of the capital stock of the Company or otherwise, or (y) all or substantially all of the properties and assets of the Company. 
 “Control Event” means: 
 (i) the execution by the Company or any of its Restricted Subsidiaries or Affiliates of any agreement or letter of intent with respect to any proposed transaction or event or series of transactions or events which,
individually or in the aggregate, may reasonably be expected to result in a Change in Control, or 
 (ii) the execution of any
written agreement which, when fully performed by the parties thereto, would result in a Change in Control. 
  

 -15- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 Section 8.4. Allocation of Partial Prepayments. In the case of each partial prepayment of the Notes, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding
in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof. All partial prepayments made pursuant to Section 8.3 shall be applied only to the Notes of the holders who have elected to participate in such
prepayment. 
 Section 8.5. Maturity; Surrender, etc. In the case of each prepayment of Notes pursuant to this
Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment, together with interest on such principal amount accrued to such date and the applicable Make-Whole
Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to
accrue. Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note. 
 Section 8.6. Purchase of Notes. The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise
acquire, directly or indirectly, any of the outstanding Notes except (a) upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes or (b) pursuant to an offer to purchase made by the Company
or an Affiliate pro rata to the holders of all Notes at the time outstanding upon the same terms and conditions. Any such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such
offer, and shall remain open for at least 20 Business Days. If the holders of more than 25% of the principal amount of the Notes then outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the
expiration date for the acceptance by holders of Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least ten Business Days from its receipt of such notice to accept such offer. The Company
will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes.

 Section 8.7. Make-Whole Amount. The term “Make-Whole Amount” means, with respect to any Note,
an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no event
be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings: 
 “Called
Principal” means, with respect to any Note, the principal of such Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the
context requires. 
 “Discounted Value” means, with respect to the Called Principal of any Note, the amount obtained by
discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with 
  

 -16- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 respect to such Called Principal, in
accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal. 
 “Reinvestment Yield” means, with respect to the Called Principal of any Note, the sum of (a) 0.50% plus (b) the yield
to maturity implied by (i) the yields reported, as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” on the
Bloomberg Financial Markets System (or such other display as may replace Page PX1 on the Bloomberg Financial Markets System) for actively traded on-the-run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called
Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable, the Treasury Constant Maturity Series Yields reported, for the latest day for which
such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded
on-the-run U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill
quotations to bond-equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the actively traded on-the-run U.S. Treasury security with the maturity closest to and greater than the
Remaining Average Life and (2) the actively traded on-the-run U.S. Treasury security with the maturity closest to and less than the Remaining Average Life. The Reinvestment Yield shall be rounded to that number of decimal places as appears in
the coupon of the Note. 
 “Remaining Average Life” means, with respect to any Called Principal, the number of years
(calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such
Called Principal by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

 “Remaining Scheduled Payments” means, with respect to the Called Principal of any Note, all payments of such Called
Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a
date on which interest payments are due to be made under the terms of the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on
such Settlement Date pursuant to Section 8.2 or 12.1. 
 “Settlement Date” means, with respect to
the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has 
  

 -17- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 become or is declared to be
immediately due and payable pursuant to Section 12.1, as the context requires. 
 SECTION 9. AFFIRMATIVE
COVENANTS. 
 The Company covenants that so long as any of the Notes are outstanding: 
 Section 9.1. Compliance with Law. The Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances
or governmental rules or regulations to which each of them is subject, including, without limitation, Environmental Laws, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations
necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or
failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not reasonably be expected, individually or in the aggregate, to have a materially adverse effect on the business,
operations, affairs, financial condition, properties or assets of the Company and its Subsidiaries taken as a whole. 
 Section 9.2. Insurance. The Company will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses
against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of
established reputations engaged in the same or a similar business and similarly situated. 
 Section 9.3. Maintenance of
Properties. The Company will, and will cause each of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and
tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section shall not prevent the Company or any Subsidiary from discontinuing the operation and the maintenance of any of
its properties if such discontinuance is desirable in the conduct of its business and the Company has concluded that such discontinuance would not, individually or in the aggregate, have a materially adverse effect on the business, operations,
affairs, financial condition, properties or assets of the Company and its Subsidiaries taken as a whole. 
 Section 9.4. Payment
of Taxes. The Company will, and will cause each of its Subsidiaries to, file, or cause to be filed, all income tax or similar tax returns required to be filed in any jurisdiction and to pay and discharge, or cause to be paid and
discharged, all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies payable by any of them, to the extent such taxes and assessments have become due and payable and before they have
become delinquent, provided that neither the Company nor any Subsidiary need pay, or cause to be paid, any such tax or assessment if (a) the amount, applicability or validity thereof is contested by, or on behalf of, the Company or such
Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary 
  

 -18- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 has established adequate reserves
therefor in accordance with GAAP on the books of the Company or such Subsidiary or (b) the nonpayment of all such taxes and assessments in the aggregate would not reasonably be expected to have a materially adverse effect on the business,
operations, affairs, financial condition, properties or assets of the Company and its Subsidiaries taken as a whole. 
 Section 9.5. Legal Existence, etc. Subject to Section 10.5, the Company will at all times preserve and keep in full force and effect its legal existence. Subject to Sections 10.4 and
10.5, the Company will at all times preserve and keep in full force and effect the legal existence of each of its Subsidiaries and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the
Company, the termination of or failure to preserve and keep in full force and effect such legal existence, right or franchise would not, individually or in the aggregate, have a materially adverse effect on the business, operations, affairs,
financial condition, properties or assets of the Company and its Subsidiaries taken as a whole. 
 SECTION 10. NEGATIVE
COVENANTS. 
 The Company covenants that so long as any of the Notes are outstanding: 
 Section 10.1. Consolidated Funded Debt. The Company will not permit Consolidated Funded Debt to exceed 65% of Total Adjusted
Consolidated Capitalization. 
 Section 10.2. Restriction on Liens. The Company will not, and will not permit any
of its Subsidiaries to, directly or indirectly, create, incur, assume or suffer to exist any Lien (other than Permitted Liens) upon any of its property, assets or revenues, whether owned at the date of the Closing or hereafter acquired, to secure
any Indebtedness, without making effective provision whereby the Notes and any other Indebtedness of the Company and its Subsidiaries then entitled thereto shall be secured by such Lien equally and ratably with the Indebtedness thereby secured so
long as such Indebtedness shall be so secured. 
 Section 10.3. Restriction on Subsidiary Indebtedness. The Company
will not permit any of its Subsidiaries to, directly or indirectly, create, incur, assume or suffer to exist any Indebtedness, unless, at the time of incurrence of such Indebtedness, the aggregate amount of Indebtedness of Subsidiaries, together
with (without duplication) the aggregate amount of Indebtedness secured by Liens permitted by clause (k) of the definition of “Permitted Liens” in Schedule B, shall not exceed 15% of Total Adjusted
Consolidated Capitalization. 
 The foregoing first paragraph of this Section 10.3 shall not apply to (a) Indebtedness owed
by a Subsidiary of the Company to the Company or to another Subsidiary of the Company, (b) Indebtedness in existence on the date hereof and set forth on Schedule 5.15 hereto, (c) Indebtedness of any Person at the time it
becomes a Subsidiary of the Company, (d) Indebtedness secured by Permitted Liens (or which, if secured by Liens, would be Permitted Liens) under clauses (a) through (g) or (j) of the definition of
“Permitted Liens” in Schedule B, and (e) any extension, renewal or refunding (or successive extension, renewal or refunding) of any such Indebtedness of any Subsidiary without any increase in principal amount of
such Indebtedness and subject in each case to Section 10.1. 
  

 -19- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 Section 10.4. Restriction on Asset Sales. Except as provided in Section 10.5, the Company will not, and will not permit any of its Subsidiaries to, make any Asset Sale during any fiscal year of the
Company, unless within one year of such Asset Sale, an amount equal to the Net Proceeds of such Asset Sale is (a) applied to the purchase, prepayment or repayment of Indebtedness of the Company or its Subsidiaries or (b) invested by the
Company or any of its Subsidiaries in the Business of the Company (as defined in Section 10.6). 
 Section 10.5.
Restriction on Consolidation, Merger, Etc. Without limiting the rights of the holders of the Notes under Section 8.3, the Company agrees that it will not consolidate with or merge into any other Person (including, without
limitation, any of its Subsidiaries or Affiliates) or sell, lease or otherwise dispose of the Pipeline or sell, lease or otherwise dispose of its properties and assets as an entirety or substantially as an entirety to any Person (including, without
limitation, any of its Subsidiaries or Affiliates), unless (a) the Person formed by such consolidation or surviving such merger or the Person which acquires by sale, lease or other disposition the Pipeline or the properties and assets of the
Company as an entirety or substantially as an entirety shall be a Person organized and existing under the laws of the United States of America or any State thereof or the District of Columbia, and shall expressly assume, by written instrument, the
due and punctual payment of the principal of, and premium (if any) and interest on, the Notes and the performance of every covenant herein and the Notes on the part of the Company to be performed or observed; (b) immediately after giving effect
to such transaction, no Default or Event of Default shall have occurred and be continuing; and (c) immediately after giving effect to such transaction, such successor or surviving Person or such Person which acquires by sale, lease or other
disposition the Pipeline or the properties and assets of the Company as an entirety or substantially as an entirety could incur $1 of additional Funded Debt. Upon any consolidation or merger, or any transfer by the Company of the Pipeline or its
properties and assets as an entirety or substantially as an entirety to any Person, in accordance with the foregoing, the successor corporation formed by such consolidation or into which the Company is merged or the Person to which such transfer is
made shall succeed to, and be substituted for, the Company hereunder and under the Notes. 
 Section 10.6. Business of the
Company. The Company will not, and will not permit any of its Subsidiaries to, engage in any material line of business other than the lines of business in which the Company and its Subsidiaries are engaged on the date hereof and other
energy related lines of business (collectively, the “Business of the Company”). 
 Section 10.7. Transactions
with Affiliate. The Company will not, and will not permit any Subsidiary to, enter into directly or indirectly any Material transaction or Material group of related transactions (including, without limitation, the purchase, lease,
sale or exchange of property of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except pursuant to the reasonable requirements of the Company’s or such Subsidiary’s business and
upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person that is not an Affiliate of the Company or such Subsidiary; provided that
none of the following shall be deemed a violation of this Section 10.7: (a) any agreement or transaction by the Company or any of its Subsidiaries which is in compliance with all laws, ordinances or governmental rules or regulations
to which the Company or such Subsidiary is subject and is not 
  

 -20- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 prohibited by any Governmental
Authority, (b) any transaction permitted by Section 10.3, (c) any declaration of a dividend by the Company or any of its Subsidiaries in compliance with all laws, ordinances and governmental rules and regulations to which the
Company or such Subsidiary, as the case may be, is subject, (d) direct or indirect advances by the Company or any of its Subsidiaries to Duke Capital Corporation, a Delaware corporation (“Duke Capital”), in accordance with
customary practice and in the ordinary course of business of the Company, its Subsidiaries and their Affiliates, including, without limitation, the advance by the Company of the proceeds from the issuance of the Notes as set forth
Schedule 5.14, and (e) compensation, fee, indemnification, vacation, health and life insurance, deferred compensation, retirement and/or savings plans and other similar programs, plans or arrangements pertaining to directors,
officers and employees of the Company or any of its Subsidiaries entered into in accordance with customary practice and in the ordinary course of a business of the Company, its Subsidiaries and their Affiliates. 
 SECTION 11. EVENTS OF DEFAULT. 
 An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing: 
 (a) the Company defaults in the payment of any principal or Make-Whole Amount, if any, on any Note when the same becomes due and payable, whether at
maturity or at a date fixed for prepayment or by declaration or otherwise; or 
 (b) the Company defaults in the payment of any interest on
any Note for more than five Business Days after the same becomes due and payable; or 
 (c) the Company defaults in the performance of or
compliance with any term contained in Sections 10.1 through 10.5; or 
 (d) the Company defaults in the performance of or
compliance with any term contained herein (other than those referred to in paragraphs (a), (b) and (c) of this Section 11) and such default is not remedied within 30 days after the earlier of
(i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and
to refer specifically to this paragraph (d) of Section 11); or 
 (e) any representation or warranty made in writing
by or on behalf of the Company or by any Responsible Officer of the Company in this Agreement or in any certificate furnished in connection with this Agreement proves to have been false or incorrect in any material respect on the date as of which
made; or 
 (f) (i) the Company or any Significant Subsidiary is in default (as principal or as guarantor or other surety) in the
payment of any principal of or premium or make-whole amount or interest on any Indebtedness that is outstanding in an aggregate principal amount of at least $25,000,000 beyond any period of grace provided with 
  

 -21- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 respect thereto, or (ii) the
Company or any Significant Subsidiary is in default in the performance of or compliance with any term of any evidence of any Indebtedness in an aggregate outstanding principal amount of at least $25,000,000 or of any mortgage, indenture or other
agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been declared due and payable before its stated maturity or before its regularly scheduled dates of
payment; or 
 (g) the Company or any Significant Subsidiary (i) is generally not paying, or admits in writing its inability to pay, its
debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any
bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer
with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or 
 (h) a court or governmental authority of competent jurisdiction enters an order appointing, without consent by the Company or any of its Significant
Subsidiaries, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or
any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any of its Significant Subsidiaries, or any
such petition shall be filed against the Company or any of its Significant Subsidiaries and such petition shall not be dismissed within 60 days; or 
 (i) a final judgment or judgments for the payment of money aggregating in excess of $25,000,000 are rendered against one or more of the Company and its Significant Subsidiaries and which judgments are not, within
60 days after entry thereof, bonded, discharged or stayed pending appeal; or 
 (j) if (i) any Plan shall fail to satisfy the
minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under section 412 of the Code, (ii) a notice of intent to terminate any
Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or
any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the aggregate “amount of unfunded benefit liabilities” (within the meaning of section 4001(a)(18) of ERISA) under all Plans, determined in accordance
with Title IV of ERISA, shall exceed $25,000,000, (iv) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the
Code relating to 
  

 -22- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 employee benefit plans, (v) the
Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any Subsidiary establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that would increase
the liability of the Company or any Subsidiary thereunder; and any such event or events described in clauses (i) through (vi) above, either individually or together with any other such event or events, would reasonably be
expected to have a Material Adverse Effect. 
 As used in Section 11(j), the terms “employee benefit plan” and “employee
welfare benefit plan” shall have the respective meanings assigned to such terms in section 3 of ERISA. 
 SECTION 12.
REMEDIES ON DEFAULT, ETC. 
 Section 12.1. Acceleration.
(a) If an Event of Default with respect to the Company described in paragraph (g) or (h) of Section 11 (other than an Event of Default described in clause (i) of paragraph (g) or
described in clause (vi) of paragraph (g) by virtue of the fact that such clause encompasses clause (i) of paragraph (g)) has occurred, all the Notes then outstanding shall automatically become immediately
due and payable. 
 (b) If any other Event of Default has occurred and is continuing, any holder or holders of more than 51% in
principal amount of the Notes at the time outstanding may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable. 
 (c) If any Event of Default described in paragraph (a) or (b) of Section 11 has occurred and is continuing, any
holder of Notes at the time outstanding affected by such Event of Default may at any time, at its option, by notice or notices to the Company, declare all the Notes held by it to be immediately due and payable. 
 Upon any Note’s becoming due and payable under this Section 12.1, whether automatically or by declaration, such Note will forthwith
mature and the entire unpaid principal amount of such Note, plus (i) all accrued and unpaid interest thereon and (ii) the Make-Whole Amount determined in respect of such principal amount (to the full extent permitted by applicable law),
shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right
to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for), and that the provision for payment of a Make-Whole Amount by the Company in the event that the Notes are prepaid or are
accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances. 
 Section 12.2. Other Remedies. If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under
Section 12.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any
agreement contained 
  

 -23- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 herein or in any Note, or for an
injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise. 
 Section 12.3. Rescission. At any time after any Notes have been declared due and payable pursuant to clause (b) or (c) of Section 12.1, the holders of not
less than 66-2/3% in principal amount of the Notes then outstanding, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal
of and Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable
law) any overdue interest in respect of the Notes, at the Default Rate, (b) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived
pursuant to Section 17, and (c) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 12.3 will extend to or affect any
subsequent Event of Default or Default or impair any right consequent thereon. 
 Section 12.4. No Waivers or Election of
Remedies, Expenses, etc. No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or
remedies. No right, power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute
or otherwise. Without limiting the obligations of the Company under Section 15, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred
in any enforcement or collection under this Section 12, including, without limitation, reasonable attorneys’ fees, expenses and disbursements. 
 SECTION 13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES. 
 Section 13.1. Registration of Notes. The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes. The name and address of
each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register. Prior to due presentment for registration of transfer, the Person in whose name any Note
shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall give to any holder of a Note that is an
Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes. 
 Section 13.2. Transfer and Exchange of Notes. Upon surrender of any Note at the principal executive office of the Company for registration of transfer or exchange (and in the case of a surrender for registration of
transfer, duly endorsed or accompanied by a written instrument of transfer duly executed by the registered holder of such Note or its attorney duly authorized in writing and accompanied by the address for notices of each transferee of such Note or
part thereof), the Company shall execute and deliver, at the Company’s expense (except as 
  

 -24- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 provided below), one or more new Notes
(as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be
substantially in the form of Exhibit 1. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have
been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $1,000,000,
provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $1,000,000. Any transferee of a Note, or purchaser of a participation therein, shall,
by its acceptance of such Note be deemed to make the same representations to the Company regarding the Note or participation as you and the Other Purchasers have made pursuant to Section 6.2, provided that such entity may (in
reliance upon information provided by the Company, which shall not be unreasonably withheld) make a representation to the effect that the purchase by such entity of any Note will not constitute a non-exempt prohibited transaction under section
406(a) of ERISA. 
 Section 13.3. Replacement of Notes. Upon receipt by the Company of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft,
destruction or mutilation), and 
 (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided
that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $50,000,000, such Person’s own unsecured agreement of indemnity shall be deemed to be
satisfactory), or 
 (b) in the case of mutilation, upon surrender and cancellation thereof, the Company at its own expense shall execute and
deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no
interest shall have been paid thereon. 
 SECTION 14. PAYMENTS ON NOTES. 

Section 14.1. Place of Payment. Subject to Section 14.2, payments of principal, Make-Whole Amount, if any, and
interest becoming due and payable on the Notes shall be made in New York, New York at the principal office of JPMorgan Chase Bank in such jurisdiction. The Company may at any time, by notice to each holder of a Note, change the place of payment of
the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction. 
 Section 14.2. Home Office Payment. So long as you or your nominee shall be the holder of any Note, and notwithstanding anything
contained in Section 14.1 or in such Note to the 
  

 -25- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 contrary, the Company will pay all
sums becoming due on such Note for principal, Make-Whole Amount, if any, and interest by the method and at the address specified for such purpose below your name in Schedule A, or by such other method or at such other address as you
shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or
reasonably promptly after payment or prepayment in full of any Note, you shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most
recently designated by the Company pursuant to Section 14.1. The Company will afford the benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by you under
this Agreement and that has made the same agreement relating to such Note as you have made in this Section 14.2. 
 SECTION 15. EXPENSES, ETC.  
 Section 15.1. Transaction
Expenses. Whether or not the transactions contemplated hereby are consummated, the Company will pay all reasonable costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required, local
or other counsel) incurred by you and each Other Purchaser or holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not such
amendment, waiver or consent becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement or the Notes or
in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or the Notes, or by reason of being a holder of any Note and (b) the costs and expenses, including financial
advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes. The Company will pay, and
will save you and each other holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those retained by you). 
 Section 15.2. Survival. The obligations of the Company under this Section 15 will survive the payment or transfer
of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement. 
 SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT. 
 All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or transfer by
you of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of you or any other holder of a Note. All
statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement. Subject to the preceding sentence,
this Agreement and the Notes embody the entire agreement and understanding between 
  

 -26- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 you and the Company and supersede all
prior agreements and understandings relating to the subject matter hereof. 
 SECTION 17. AMENDMENT AND
WAIVER. 
 Section 17.1. Requirements. This Agreement and the Notes may be amended, and the
observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of the
provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be effective as to you unless consented to by you in writing, and (b) no such amendment or waiver may, without the written
consent of the holder of each Note at the time outstanding affected thereby, (i) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of,
or reduce the rate or change the time of payment or method of computation of interest or of the Make-Whole Amount on, the Notes, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any
such amendment or waiver, or (iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20. 
 Section 17.2. Solicitation of
Holders of Notes.  
 (a) Solicitation. The Company will provide each holder of the Notes (irrespective of the amount of
Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in
respect of any of the provisions hereof or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 17 to each holder of
outstanding Notes promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes. 
 (b) Payment. The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security, to any holder
of Notes as consideration for or as an inducement to the entering into by any holder of Notes of any waiver or amendment of any of the terms and provisions hereof or of the Notes unless such remuneration is concurrently paid, or security is
concurrently granted, on the same terms, ratably to each holder of Notes then outstanding whether or not such holder consented to such waiver or amendment. 
 Section 17.3. Binding Effect, etc. Any amendment or waiver consented to as provided in this Section 17 applies equally to all holders of Notes and is binding upon them and upon
each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event
of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and the holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of
any rights of any holder of such Note. As used herein, the term “this 
  

 -27- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 Agreement” and references thereto
shall mean this Agreement as it may from time to time be amended or supplemented. 
 Section 17.4. Notes Held by Company,
etc. Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this
Agreement or the Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or
indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding. 
 SECTION 18. NOTICES.

 All notices and communications provided for hereunder shall be in writing and sent (a) by telefacsimile if the sender on the same
day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery
service (with charges prepaid). Any such notice must be sent: 
 (i) if to you or your nominee, to you or it at the address specified for such
communications in Schedule A, or at such other address as you or it shall have specified to the Company in writing, 
 (ii) if to
any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing, or 
 (iii)
if to the Company, to the Company at its address set forth at the beginning hereof to the attention of Treasurer, with a copy to the Company c/o Duke Capital Corporation at 422 South Church Street, Charlotte, NC 28201-1904, Attn: Treasurer and a
copy to the Company at 5400 Westheimer Ct., WO-8L27, Houston, TX 77056, Attn: General Counsel or at such other address as the Company shall have specified to the holder of each Note in writing. 
 Notices under this Section 18 will be deemed given only when actually received. 
 SECTION 19. REPRODUCTION OF DOCUMENTS. 
 This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by you at the Closing (except the Notes themselves),
and (c) financial statements, certificates and other information previously or hereafter furnished to you, may be reproduced by you by any photographic, photostatic, microfilm, microcard, miniature photographic or other similar process and you
may destroy any original document so reproduced. The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative
proceeding (whether or not the original is in existence and whether or not such reproduction was made by you in the regular 
  

 -28- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 course of business) and any
enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit the Company or any other holder of Notes from contesting any such reproduction to the same
extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction. 
 SECTION 20. CONFIDENTIAL INFORMATION. 
 For the purposes of this
Section 20, “Confidential Information” means information delivered to you by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that
is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by you as being confidential information of the Company or such Subsidiary, provided that such term does not include information
that (a) was publicly known or otherwise known to you prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by you or any Person acting on your behalf, (c) otherwise becomes known to
you other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to you under Section 7.1 that are otherwise publicly available. You will maintain the confidentiality of such
Confidential Information in accordance with procedures adopted by you in good faith to protect confidential information of third parties delivered to you, provided that you may deliver or disclose Confidential Information to (i) your
directors, trustees, officers, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by your Notes), (ii) your financial advisors and other professional
advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor to which you sell or offer
to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (v) any Person from
which you offer to purchase any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (vi) any federal or state
regulatory authority having jurisdiction over you, (vii) the National Association of Insurance Commissioners or any similar organization, or any nationally recognized rating agency that requires access to information about your investment
portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to you, (x) in response to any subpoena or other
legal process, (y) in connection with any litigation to which you are a party and in which you are legally required to deliver or disclose such information, based upon advice of your legal counsel, whose reasonable fees and expenses in
connection with such determination shall be for the account of the Company, or (z) if an Event of Default has occurred and is continuing, to the extent you may reasonably determine such delivery and disclosure to be necessary or appropriate in
the enforcement or for the protection of the rights and remedies under your Notes and this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this
Section 20 as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested
by such holder (other than a holder that is a party to this 
  

 -29- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 Agreement or its nominee or any other
holder that shall have previously delivered such a confirmation), such holder will confirm in writing that it is bound by the provisions of this Section 20. 
 SECTION 21. SUBSTITUTION OF PURCHASER. 
 You shall have the right to substitute any one of your Affiliates as the purchaser of the Notes that you have agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both you and such Affiliate, shall
contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such notice,
wherever the word “you” is used in this Agreement (other than in this Section 21), such word shall be deemed to refer to such Affiliate in lieu of you. In the event that such Affiliate is so substituted as a purchaser hereunder
and such Affiliate thereafter transfers to you all of the Notes then held by such Affiliate, upon receipt by the Company of notice of such transfer, wherever the word “you” is used in this Agreement (other than in this
Section 21), such word shall no longer be deemed to refer to such Affiliate, but shall refer to you, and you shall have all the rights of an original holder of the Notes under this Agreement. 
 SECTION 22. MISCELLANEOUS. 
 Section 22.1. Successors and Assigns. All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and
assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or not. 
 Section 22.2. Payments
Due on Non-Business Days. Anything in this Agreement or the Notes to the contrary notwithstanding, any payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other than a Business Day shall be made
on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that any payment of principal or interest due on the final maturity of
the Notes on a date other than a Business Day shall be made on the immediately preceding Business Day. 
 Section 22.3.
Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction. 
 Section 22.4. Construction. Each covenant contained herein shall be construed (absent express provision to the contrary) as
being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to
action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person. 
  

 -30- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 Section 22.5. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist
of a number of copies hereof, each signed by fewer than all, but together signed by all, of the parties hereto. 
 Section 22.6.
Governing Law. This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York, excluding choice-of-law principles of the law of such State that would
require the application of the laws of a jurisdiction other than such State.  
 Section 22.7. Jurisdiction.
The Company hereby (i) irrevocably submits and consents to the jurisdiction of the federal court located within the County of New York, State of New York (or if such court lacks jurisdiction, the State courts located therein), and
irrevocably agrees that all actions or proceedings relating to this Agreement may be litigated in such courts, and (ii) waives any objection which it may have based on improper venue or forum non conveniens to the conduct of any
proceeding in any such court and waives personal service of any and all process upon it, and (iii) consents that all such service of process be made by delivery to it at the address of such Person set forth in Section 18. Nothing
contained in this section shall affect the right of any holder of a Note to serve legal process in any other manner permitted by law or to bring any action or proceeding in the courts of any jurisdiction against the Company or to enforce a judgment
obtained in the courts of any other jurisdiction. 
 * * * * * 
  

 -31- 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 If you are in
agreement with the foregoing, please sign the form of agreement on the accompanying counterpart of this Agreement and return it to the Company, whereupon the foregoing shall become a binding agreement between you and the Company. 
  

					
	 Very truly yours,

	
	 EAST TENNESSEE NATURAL GAS COMPANY

		
	 By
	 	 /s/    Dorothy M. Ables

		 	Name:	 	Dorothy M. Ables
		 	Title:	 	 Senior Vice President and
 Chief Financial Officer

 The foregoing is hereby agreed to as of the date thereof. 
 [ADD PURCHASER SIGNATURE BLOCK] 
  

			
	 ALLSTATE LIFE INSURANCE COMPANY

		
	 By:
	 	 /s/    Jerry D. Zinkula

		 	Authorized Signatory
		
	 By:
	 	 /s/    Daniel C. Leimbach

		 	Authorized Signatory
	
	 ALLSTATE LIFE INSURANCE COMPANY
OF
 NEW YORK

		
	 By:
	 	 /s/    Jerry D. Zinkula

		 	Authorized Signatory
		
	 By:
	 	 /s/    Daniel C. Leimbach

		 	Authorized Signatory
	
	 AMERICAN UNITED LIFE INSURANCE
COMPANY

		
	 By:
	 	 /s/    Kent R. Adams

		 	Vice President Fixed Income Securities
	
	 CONNECTICUT GENERAL LIFE INSURANCE
COMPANY

		
	 By:
	 	 CIGNA Investments, Inc.
 (authorized
agent)

					
		 	By:	 	 /s/    Sean M. Feeley

		 		 	Vice President
	
	 FIRST COLONY LIFE INSURANCE
 COMPANY

		
	By:	 	 Prudential Private Placement
 Investors,
L.P.,
 as Investment Adviser

		
	By:	 	 Prudential Private Placement
 Investors,
Inc.,
 as General Partner

			
		 	By:	 	 /s/    Randall M. Kob

		 		 	Vice President
	
	 GENERAL ELECTRIC CAPITAL
 ASSURANCE COMPANY

		
	By:	 	 Prudential Private Placement
 Investors,
L.P.,
 as Investment Adviser

		
	By:	 	 Prudential Private Placement
 Investors,
Inc.,
 as General Partner

			
		 	By:	 	 /s/    Randall M. Kob

		 		 	Vice President
	
	HARTFORD FIRE INSURANCE COMPANY
		
	By:	 	 Hartford Investment Services, Inc.
 Its Agent
and Attorney-in-Fact

			
		 	By:	 	 /s/    Ronald A. Mendel

		 		 	Senior Vice President
	
	 HARTFORD LIFE AND ACCIDENT
 INSURANCE COMPANY

		
	By:	 	 Hartford Investment Services, Inc.
 Its Agent
and Attorney-in-Fact

			
		 	By:	 	 /s/    Ronald A. Mendel

		 		 	Senior Vice President
	
	NEW YORK LIFE INSURANCE COMPANY

					
	By:	 	 /s/    Ruthard C. Murphy II

		 	Investment Vice President
	
	 NEW YORK LIFE INSURANCE AND
 ANNUITY CORPORATION

		
	By:	 	 New York Life Investment
 Management LLC,

 its Investment Manager

			
		 	By:	 	 /s/    Ruthard C. Murphy II

		 		 	Vice President
	
	PIONEER MUTUAL LIFE INSURANCE COMPANY
		
	By:	 	American United Life Insurance
		 	Company, Its Agent
			
		 	By:	 	 /s/    Kent R. Adams

		 		 	 Vice President Fixed Income
 Securities

	
	 THE PRUDENTIAL INSURANCE COMPANY
 OF AMERICA

		
	By:	 	 /s/    Randall M. Kob

		 	Vice President
	
	 THE VARIABLE ANNUITY LIFE
 INSURANCE COMPANY 
  
 THE FRANKLIN LIFE INSURANCE COMPANY

		
	By:	 	AIG Global Investment Corp.,
		 	Investment Adviser
			
		 	By:	 	 /s/    Sarah M. Helmich

		 		 	Vice President

 INFORMATION RELATING TO PURCHASERS 

  

					
	 NAME AND ADDRESS OF
PURCHASER
	  	PRINCIPAL AMOUNT OF
NOTES TO BE PURCHASED
	ALLSTATE LIFE INSURANCE COMPANY	  	$10,000,000
	 3075 Sanders Road, STE G5D
	  	$3,600,000
	 Northbrook, Illinois 60062-7127
	  	$2,000,000
	 Attention:
	 	Private Placements Department	  	
	 Telephone:
	 	(847) 402-7177	  	
	 Telecopy:
	 	(847) 402-3092	  	

 Payments 
 All
payments on or in respect of the Notes to be made by Fedwire transfer of immediately available funds, identifying the name of the Issuer, the Private Placement Number preceded by “DPP” and the payment as principal, interest or premium, in
the format as follows: 
 [account information] 
 Notices 
 All notices of scheduled payments and written confirmation such wire transfer to be addressed to: 
 Allstate Insurance Company 
 Investment Operations—Private Placements 
 3075 Sanders Road, STE G4A 
 Northbrook, Illinois 60062-7127 

	 	Telephone:	(847) 402-6672 Private Placements 

 (847) 402-3802 Bank
Loans 

	 	Telecopy:	(847) 326-7032 

 All financial reports, compliance certificates and all
other written communications, including notice of prepayments to be addressed as first provided above. 
 Name of Nominee in which Notes are to be issued:
None 
 Taxpayer I.D. Number: 36-2554642 
  

 SCHEDULE A 
 (to Note Purchase Agreement) 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

					
	 NAME AND ADDRESS OF
PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
		
	 Allstate Life Insurance Company of New York
	  	$5,000,000
	 c/o Allstate Life Insurance Company
	  	
	 3075 Sanders Road, STE G5D
	  	
	 Northbrook, Illinois 60062-7127
	  	
	 Attention:
	 	Private Placements Department	  	
	 Telephone:
	 	(847) 402-7177	  	
	 Telecopy:
	 	(847) 402-3092	  	

 Payments 
 All
payments on or in respect of the Notes to be made by Fedwire transfer of immediately available funds, identifying the name of the Issuer, the Private Placement Number preceded by “DPP” and the payment as principal, interest or premium, in
the exact format as follows: 
 [account information] 
 Notices 
 All notices of scheduled payments and written confirmation of each such payment, to be addressed: 
 Allstate Insurance Company 
 Investment Operations—Private Placements 
 3075 Sanders Road, STE G4A 
 Northbrook, Illinois 60062-7127 

	 	Telephone:	(847) 402-6672 Private Placements 

 (847) 402-3802 Bank
Loans 

	 	Telecopy:	(847) 326-7032 

 All financial reports, compliance certificates and all
other written communications, including notice of prepayments to be addressed as first provided above. 
 Name of Nominee in which Notes are to be issued:
None 
 Taxpayer I.D. Number: 36-2608394 
  

 A-2 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	AMERICAN UNITED LIFE INSURANCE COMPANY	  	$5,000,000
	 One American Square
	  	
	 Post Office Box 368
	  	
	 Indianapolis, Indiana 46206-0368
	  	
	 Attention: Christopher D. Pahlke, Securities Department
	  	
	 Overnight mailing address:
	  	
	 One American Square
	  	
	 Indianapolis, Indiana 46282
	  	

 Payments 
 All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “East Tennessee Natural Gas Company; 5.71% Senior Notes due December, 2012; PPN 275515 A@ 3”
and identifying the breakdown of principal and interest and the payment date) to: 
 [account information] 
 Notices 
 All notices and communications, including notices with respect to
payments and written confirmation of each such payment, to be addressed as first provided above. 
 Name of Nominee in which Notes are to be issued: None

 Taxpayer I.D. Number: 35-0145825 
  

 A-3 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	CONNECTICUT GENERAL LIFE INSURANCE COMPANY	  	$15,500,000
	 c/o CIGNA Retirement & Investment Services
	  	$12,000,000
	 Attention: Private and Alternative Investments, H16B
	  	
	 280 Trumbull Street
	  	
	 Hartford, Connecticut 06103
	  	
	 Fax No.: (860) 534-7203
	  	

 Payments 
 All
payments on or in respect of the Notes to be by Federal Funds Wire Transfer to: 
 [account information] 
 Address for Notices Related to Payments: 
 CIG & Co. 
 c/o CIGNA Investments, Inc. 
 Attention: Securities Processing, H05P 
 280 Trumbull Street 
 Hartford, Connecticut 06103 
 CIG & Co. 
 c/o CIGNA Retirement & Investment Services 
 Attention: Private and Alternative Investments, H16B

 280 Trumbull Street 
 Hartford, Connecticut 06103 
 Fax: (860)534-7203 
 with a copy to: 
 J.P. Morgan Chase Bank 
 Private Placement Servicing 
 P.O. Box 1508 
 Bowling Green Station 
 New York, New York 10081 
 Attention: CIGNA Private Placements 
 Fax: (212)552-3107 / 1005 
  

 A-4 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 Address for All Other Notices:

 CIG & Co. 
 c/o CIGNA Retirement & Investment Services 
 Attention: Private and Alternative
Investments, H16B 
 280 Trumbull Street 
 Hartford, Connecticut 06103 
 Fax: (860)534-7203 
 Name of Nominee in which Notes are to be issued: CIG & Co. 
 Taxpayer I.D. Number for CIG & Co.: 13-3574027 
  

 A-5 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

					
	 NAME AND ADDRESS OF
PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	FIRST COLONY LIFE INSURANCE COMPANY	  	$4,000,000
	 c/o GE Financial Assurance
	  	
	Account:	 	FCL	  	
	 3003 Summer Street
	  	
	 Stamford, Connecticut 06904
	  	
	Attention:	 	Investment Operations	  	
	Fax No.:	 	(203) 356-4688	  	

 Payments 
 All
payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: 
 [account
information] 
 Each such wire transfer shall set forth the Company and a reference to for the “East Tennessee Natural Gas Company; 5.71% Senior Notes
due December, 2012; PPN 275515 A@ 3”. Specify due date and application (as among principal, interest and Yield-Maintenance Amount) of the payment being made. 
 Notices 
  

	1.	All notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above. 

  

	2.	Address for all other communications and notices (including copies of all notices relating to payments): 

 Prudential Private Placement Investors, L.P. 
 4 Gateway Center, 100 Mulberry Street 
 Newark, New Jersey 07102 

	 	Attention:	Albert Trank, Managing Director 

	 	Phone No.:	(973) 802-8608 

	 	Fax No.:	(973) 624-6432 

 Name of Nominee in which Notes are to be issued:
Salkeld & Co. 
 Taxpayer I.D. Number: 54-0596414 
  

 A-6 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	THE FRANKLIN LIFE INSURANCE COMPANY	  	$9,500,000
	 c/o AIG Global Investment Corporation
	  	
	 Attention: Private Placement Department, A36-04
	  	
	 P.O. Box 3247
	  	
	 Houston, Texas 77253-3247
	  	
	 Facsimile Number: (713) 831-1072
	  	
	 Overnight Mailing Address:
	  	
	 2929 Allen Parkway, A36-04
	  	
	 Houston, Texas 77019-2155
	  	

 Payments 
 All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “East Tennessee Natural Gas Company; 5.71% Senior Notes due December, 2012; PPN 275515 A@ 3,
principal, premium or interest”) to: 
 [account information] 
 Notices 
 All notices of payment on or in respect of the Notes and written confirmation of each such payment to: 

The Franklin Life Insurance Company and PA 37 
 c/o State Street Bank Corporation 
 Insurance Services 
 801 Pennsylvania 
 Kansas City, Missouri 64105 
 Facsimile Number: (816)691-3619 
 Duplicate payment notices and all other correspondences to be addressed to The
Franklin Life Insurance Company and PA 37 as first provided above with a copy to: 
 AIG Global Investment Corp.

 Legal Department—Investment Management 
 2929 Allen Parkway, Suite A36-01 
 Houston, Texas 77019-2155 
 Facsimile Number: (713)831-2328 
 Name of Nominee in which Notes are to be issued: None 
 Taxpayer I.D.
Number: 37-0281650 
  

 A-7 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

					
	 NAME AND ADDRESS OF
PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY	  	$8,050,000
	 c/o GE Financial Assurance
	  	
	 Account:
	 	GECA	  	
	 3003 Summer Street
	  	
	 Stamford, Connecticut 06904
	  	
	 Attention:
	 	Investment Operations	  	
	 Fax No.:
	 	(203) 356-4688	  	

 Payments 
 All
payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: 
 [account
information] 
 Each such wire transfer shall set forth the Company and a reference to for the “East Tennessee Natural Gas Company; 5.71% Senior Notes
due December, 2012; PPN 275515 A@ 3”. Specify due date and application (as among principal, interest and Yield-Maintenance Amount) of the payment being made. 
 Notices 
  

	1.	All notices with respect to payments and written confirmation of each such payment, to be addressed as first provided above. 

  

	2.	Address for all other communications and notices (including copies of all notices relating to payments): 

 Prudential Private Placement Investors, L.P. 
 4 Gateway Center, 100 Mulberry Street 
 Newark, New Jersey 07102 
 Attention: Mr. Albert Trank, Managing Director 
 Phone No.: (973) 802-8608 
 Fax No.: (973)624-6432 
 Name of Nominee in which Notes are to be issued: Salkeld & Co. 
 Taxpayer I.D. Number: 91-6027719 
  

 A-8 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY	  	$12,000,000
	 c/o Hartford Investment Management Company
	  	
	 Investment Department-Private Placements
	  	
	 P.O. Box 1744
	  	
	 Hartford, Connecticut 06144-1744
	  	
	 Telefacsimile: (860) 297-8884
	  	

 Payments 
 All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “East Tennessee Natural Gas Company; 5.71% Senior Notes due December, 2012; PPN 275515 A@ 3”,
principal, interest or premium) to: 
 [account information] 
 Notices 
 All notices and communications to be addressed as first provided above, except notices with respect to payments,
and written confirmation of such wire transfers, to be addressed: 
 Hartford Investment Management Company 
 c/o Portfolio Support 
 P.O. Box 1744 
 Hartford, Connecticut 06144-1744 
 Telefacsimile: (860) 297-8875 / 8876 
 Name of Nominee in which Notes are to be issued: None 
 Taxpayer I.D. Number: 06-0838648 
  

 A-9 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	HARTFORD FIRE INSURANCE COMPANY	  	$12,100,000
	 c/o Hartford Investment Management Company
	  	
	 Investment Department-Private Placements
	  	
	 P.O. Box 1744
	  	
	 Hartford, Connecticut 06144-1744
	  	
	 Telefacsimile: (860) 297-8884
	  	

 Payments 
 All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “East Tennessee Natural Gas Company; 5.71% Senior Notes due December, 2012; PPN 275515 A@ 3”,
principal, interest or premium) to: 
 [account information] 
 Notices 
 All notices and communications to be addressed as first provided above, except notices with respect to payments,
and written confirmation of such wire transfers, to be addressed: 
 Hartford Investment Management Company 
 c/o Portfolio Support 
 P.O. Box 1744 
 Hartford, Connecticut 06144-1744 
 Telefacsimile: (860) 297-8875 / 8876 
 Name of Nominee in which Notes are to be issued: None 
 Taxpayer I.D. Number: 06-0383750 
  

 A-10 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

					
	 NAME AND ADDRESS OF
PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION	  	$9,600,000
	 c/o New York Life Investment Management LLC
	  	
	 51 Madison Avenue
	  	
	 New York, New York 10010-1603
	  	
	 Attention:
	  	Securities Investment Group,	  	
		  	Private Finance, 2nd Floor	  	
	 Fax Number:
	  	(212) 447-4122	  	

 Payments 
 All
payments on or in respect of the Notes to be by wire or intrabank transfer of immediately available funds to: 
 [account information]

 Notices 
 All notices with respect to payments and written
confirmation of each such payment, to be addressed: 
 New York Life Insurance and Annuity Corporation 
 c/o New York Investment Management LLC 
 51 Madison Avenue 
 New York, New York 10010-1603 

	 	Attention:	Financial Management and Operations Group 

 Securities Operations, 2nd Floor 

	 	Fax Number:	(212) 447-4160 

 All other notices and communications to be addressed
as first provided above, with a copy of any notices regarding defaults or Events of Default under the operative documents to: Office of the General Counsel, Investment Section, Room 1104, Fax Number (212) 576-8340. 
 Name of Nominee in which Notes are to be issued: None 
 Taxpayer I.D.
Number: 13-3044743 
  

 A-11 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

					
	 NAME AND ADDRESS OF
PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	NEW YORK LIFE INSURANCE COMPANY	  	$11,000,000
	 c/o New York Life Investment Management LLC
	  	
	 51 Madison Avenue
	  	
	 New York, New York 10010-1603
	  	
	 Attention:
	  	Securities Investment Group,	  	
		  	Private Finance, 2nd Floor	  	
	 Fax Number:
	  	(212) 447-4122	  	

 Payments 
 All
payments on or in respect of the Notes to be by wire or intrabank transfer of immediately available funds to: 
 [account information]

 Notices 
 All notices with respect to payments and written
confirmation of each such payment, to be addressed: 
 New York Life Insurance Company 
 c/o New York Investment Management LLC 
 51 Madison Avenue 
 New York, New York 10010-1603 

	 	Attention:	Financial Management and Operations Group 

 Securities Operations, 2nd Floor 

	 	Fax Number:	(212) 447-4160 

 All other notices and communications to be addressed
as first provided above, with a copy of any notices regarding defaults or Events of Default under the operative documents to: Office of the General Counsel, Investment Section, Room 1104, Fax Number (212) 576-8340. 
 Name of Nominee in which Notes are to be issued: None 
 Taxpayer I.D.
Number: 13-5582869 
  

 A-12 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	PIONEER MUTUAL LIFE INSURANCE COMPANY	  	$600,000
	 c/o American United Life Insurance Company
	  	
	 Post Office Box 368
	  	
	 Indianapolis, Indiana 46206-0368
	  	
	 Attention: Christopher D. Pahlke, Securities Department
	  	
	 Overnight Mailing Address:
	  	
	 One American Square
	  	
	 Indianapolis, Indiana 46282
	  	

 Payments 
 All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “East Tennessee Natural Gas Company; 5.71% Senior Notes due December, 2012; PPN 275515 A@ 3”
and identifying the breakdown of principal and interest and the payment date) to: 
 [account information] 
 Notices 
 All notices and communications, including notices with respect to
payments and written confirmation of each such payment, to be addressed as first provided above. 
 Name of Nominee in which Notes are to be issued: None

 Taxpayer I.D. Number: 45-0220640 
  

 A-13 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA	  	$12,050,000
	 c/o Prudential Capital Group
	  	
	 2200 Ross Avenue, Suite 4200E
	  	
	 Dallas, Texas 75201
	  	
	 Attention: Managing Director
	  	

 Payments 
 All
payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: 
 [account
information] 
 Notices 
  

	1.	Address for all communications and notices (including copies of all notices relating to payments) as first provided above. 

  

	2.	Address for all notices relating to payments: 

 The Prudential Insurance Company of America 
 c/o Investment Operations Group 
 Gateway Center Two, 10th
 Floor 
 100 Mulberry Street 
 Newark, New Jersey 07102-4077 
 Attention: Manager 
  

	3.	Recipient of telephonic prepayment notices: 

 Manager, Trade Management Group 

	 	Telephone:	(973) 367-3141 

	 	Fax Number:	(973) 224-2278 

 Name of Nominee in which Notes are to be issued:
None 
 Taxpayer I.D. Number: 22-1211670 
  

 A-14 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  

			
	 NAME AND ADDRESS OF PURCHASER
	  	PRINCIPAL AMOUNT
OF
NOTES TO BE PURCHASED
	THE VARIABLE ANNUITY LIFE INSURANCE COMPANY	  	$18,000,000
	 c/o AIG Global Investment Corporation
	  	
	 Attention: Private Placement Department, A36-04
	  	
	 P.O. Box 3247
	  	
	 Houston, Texas 77253-3247
	  	
	 Fax Number: (713) 831-1072
	  	
	 Overnight Mailing Address:
	  	
	 2929 Allen Parkway, A36-04
	  	
	 Houston, Texas 77019-2155
	  	

 Payments 
 All
payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “East Tennessee Natural Gas Company; 5.71% Senior Notes due December, 2012; PPN 275515 A@ 3”,
principal, premium or interest”) to: 
 [account information] 
 Notices 
 All notices of payment on or in respect of the Notes and written confirmation of each such payment to: 

The Variable Annuity Life Insurance Company and PA 54 
 c/o State Street Bank Corporation 
 Insurance Services 
 801 Pennsylvania 
 Kansas City, Missouri 64105 
 Facsimile Number: (816) 691-3619 
 Duplicate payment notices and all other correspondences to be addressed to
The Variable Annuity Life Insurance Company and PA 54 as first provided above with a copy to: 
  

 A-15 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 AIG
Global Investment Corporation 
 Legal Department—Investment Management 
 2929 Allen Parkway, Suite A36-01 
 Houston, Texas 77019-2155 
 Facsimile Number: (713) 831-2328 
 Name of Nominee in which Notes are to be issued: None 
 Taxpayer I.D.
Number: 74-1625348 
  

 A-16 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 DEFINED TERMS 
 Where the character or amount of any asset or liability or item of income or
expense is required to be determined or any consolidation or other accounting computation is required to be made for the purposes of this Agreement, the same shall be done in accordance with GAAP, to the extent applicable, except where such
principles are inconsistent with the express requirements of this Agreement. 
 Where any provision in this Agreement refers to action to be
taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether the action in question is taken directly or indirectly by such Person. 
 As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

 “Affiliate” means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly
through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person. As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an
Affiliate of the Company. 
 “Asset Sale” means any sale, transfer, lease or other disposition of any property or asset of
the Company or any of its Subsidiaries except a sale, transfer, lease or other disposition (a) of cash, (b) of temporary cash investments, (c) of trade receivables, (d) of inventories of gas and materials and supplies other than
(i) in connection with a sale, transfer, lease or other disposition of property, plant and equipment or (ii) for the primary purpose of financing the purchase, storage or transportation of such gas or materials and supplies by the Company
or any of its Subsidiaries, (e) by the Company to any of its Subsidiaries or by any Subsidiary of the Company to the Company or to another Subsidiary of the Company or (f) of other assets in the ordinary course of business; provided,
however, that any such sale, transfer, lease or other disposition in any fiscal year shall not be deemed to constitute an Asset Sale unless and until, and only to the extent that, such sale, transfer, lease or other disposition and all prior
sales, transfers, leases or other dispositions in such fiscal year (1) result in Net Proceeds exceeding 10% of Consolidated Net Worth determined as of the end of the immediately preceding fiscal year or (2) involve properties and assets
accounting for more than 10% of Consolidated Net Income for the immediately preceding fiscal year. 
 “Business Day” means
(a) for the purposes of Section 8.6 only, any day other than a Saturday, a Sunday or a day on which commercial banks in New York City are required or authorized to be closed, and (b) for the purposes of any other provision of
this Agreement, any day other than a Saturday, a Sunday or a day on which commercial banks in Houston, Texas, Charlotte, North Carolina or New York, New York are required or authorized to be closed. 
 SCHEDULE B 
 (to Note
Purchase Agreement) 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 “Business of
the Company” is defined in Section 10.6. 
 “Closing” is defined in Section 3. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder
from time to time. 
 “Company” means East Tennessee Natural Gas Company, a Tennessee corporation. 
 “Confidential Information” is defined in Section 20. 
 “Consolidated Funded Debt” means the Funded Debt of the Company and its Subsidiaries, determined on a consolidated basis in accordance
with GAAP. 
 “Consolidated Net Income” means the net income of the Company and its Subsidiaries, determined on a
consolidated basis in accordance with GAAP. 
 “Consolidated Net Worth” means the par or stated value of stock plus paid-in
capital plus retained earnings (or minus accumulated deficit) as shown on a consolidated balance sheet of the Company and its Subsidiaries prepared in accordance with GAAP. 
 “Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or
both, become an Event of Default. 
 “Default Rate” means that rate of interest that is the greater of (i) 1% per annum
above the rate of interest stated in clause (a) of the first paragraph of the Notes or (ii) 1% over the rate of interest publicly announced by JPMorgan Chase Bank in New York, New York as its “base” or “prime” rate.

 “Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules,
judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including but
not limited to those related to hazardous substances or wastes, air emissions and discharges to waste or public systems. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. 
 “ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as a single employer together with the
Company under section 414 of the Code. 
 “Event of Default” is defined in Section 11. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  

 B-2 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 “Funded
Debt” means any (a) Indebtedness maturing by its terms more than one year from the date of determination, including Indebtedness by its terms renewable or extendable at the option of the obligor to a date later than one year from the
date of determination and (b) any Indebtedness maturing by its terms in one year or less from the date of determination and not renewable or extendable at the option of the obligor to a date later than one year from the date of determination,
unless the obligor had no such Indebtedness outstanding for a period of at least 30 consecutive days during the 365-day period prior to the date of determination. Indebtedness secured by Permitted Liens shall be included in Funded Debt if such
Indebtedness otherwise meets the definitional requirements thereof. 
 “GAAP” means generally accepted accounting principles
as in effect from time to time in the United States of America. 
 “Governmental Authority” means 
 (a) the government of 
 (i)
the United States of America or any State or other political subdivision thereof, or 
 (ii) any jurisdiction in which the
Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or 
 (b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government. 
 “holder” means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company
pursuant to Section 13.1. 
 “Indebtedness” means, as to any Person, (a) indebtedness for borrowed money or
for the deferred purchase price of property or services purchased, (b) all indebtedness of others for borrowed money or for the deferred purchase price of property or services purchased secured by a Lien on any property owned by such Person,
whether or not such Indebtedness has been assumed by such Person (provided that the amount of such indebtedness not assumed shall in no event be deemed to exceed the fair market value of such property), (c) rental obligations required to be
capitalized under GAAP and (d) direct guarantees by such Person of the Indebtedness of others; provided that, in any event, “Indebtedness” shall not include current accounts payable incurred in the ordinary course of
business. 
 “Institutional Investor” means (a) any original purchaser of a Note, (b) any holder of a Note holding
more than 5% of the aggregate principal amount of the Notes then outstanding, and (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any
broker or dealer, or any other similar financial institution or entity, regardless of legal form. 
  

 B-3 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 “Lien”
means any mortgage, pledge, hypothecation, security interest, encumbrance, charge or lien (statutory or otherwise) (including, without limitation, any conditional sale or other title retention agreement and any capitalized lease having
substantially the same economic effect as any of the foregoing) or the filing of any financial statement under the Uniform Commercial Code or comparable law of any jurisdiction in respect of the foregoing. 
 “Make-Whole Amount” is defined in Section 8.7. 
 “Material” means material in relation to the business, operations, affairs, financial condition, assets, or properties of the Company
and its Subsidiaries taken as a whole. 
 “Material Adverse Effect” means a material adverse effect on (a) the
business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, or (b) the ability of the Company to perform its obligations under this Agreement and the Notes, or (c) the
validity or enforceability of this Agreement or the Notes. 
 “Memorandum” is defined in Section 5.3.

 “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in section
4001(a)(3) of ERISA). 
 “Net Proceeds” with respect to the sale or other disposition of any asset by the Company or any of
its Subsidiaries (including in connection with any sale-leaseback) means the excess, if any, of (a) the aggregate amount received in cash (including any cash received by way of deferred payment pursuant to a note receivable, other noncash
consideration or otherwise, but, for the purposes of Section 10.4, only as and when such cash is so received) in connection with such sale or other disposition of any asset, over (b) the sum of (i) the principal amount of and
premium, if any, on any Indebtedness which is secured by or which finances any such asset (other than Indebtedness assumed by the purchaser of such asset) and which is required to be, and is, repaid in connection with such sale or other disposition
thereof, (ii) the out-of-pocket expenses incurred by the Company or any of its Subsidiaries in connection with such sale or other disposition and (iii) all taxes, including taxes measured by income, calculated as if the Company and its
Subsidiaries were a separate consolidated group for tax purposes, and assuming such sale or other disposition of any such asset was the only transaction in which the Company and its Subsidiaries engaged during the relevant period without giving
effect to any carryforwards, carrybacks or credits. 
 “Notes” is defined in Section 1. 
 “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose
responsibilities extend to the subject matter of such certificate. 
 “Other Agreements” is defined in
Section 2. 
 “Other Purchasers” is defined in Section 2. 
  

 B-4 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 “PBGC”
means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto. 
 “Permitted
Liens” means: 
 (a) Liens incurred in connection with workmen’s compensation, unemployment insurance, old age pensions,
social security and public liability laws and similar legislation; 
 (b) Liens existing on any property of any Person at the time it
becomes a Subsidiary of the Company or existing prior to the time of acquisition upon any property acquired by the Company or any of its Subsidiaries through purchase, merger or consolidation or otherwise, whether or not assumed by the Company or
such Subsidiary, provided that such Lien shall not encumber any asset other than the assets which are being acquired and, at the time of such acquisition, the incurring of such Indebtedness secured by such Lien and permitting such
Indebtedness to exist does not violate Section 10.1; 
 (c) Liens on any property acquired, constructed or improved by the
Company or any of its Subsidiaries after the date hereof which are created or assumed contemporaneously with, or within 120 days after, such acquisition or completion of such construction or improvement, or within six months thereafter pursuant
to a firm commitment for financing arranged with a lender or investor within such 120-day period, to secure or provide for the payment of all or any part of the purchase price of such property or the cost of such construction or improvement incurred
after the date of hereof or, in addition to mortgages contemplated by clause (b) above, mortgages on any property existing at the time of acquisition thereof; provided, however, that the mortgages shall not apply to any property
theretofore owned by the Company or any of its Subsidiaries (including but not limited to the Pipeline) other than, in the case of any such construction or improvement, any theretofore unimproved real property on which the property so constructed or
the improvement is located; 
 (d) statutory liens of landlords and other liens imposed by law, such as carrier’s,
warehousemen’s, mechanic’s, materialmen’s and vendor’s liens, or contractual liens, all to the extent incurred in good faith in the ordinary course of business securing amounts not overdue for a period of more than 60 days
or which are being contested in good faith by appropriate proceedings diligently conducted; 
 (e) Liens securing the payment of taxes,
assessments and governmental charges or levies, either (i) not delinquent or (ii) being contested in good faith by appropriate proceedings diligently conducted; 
 (f) Liens upon deposits of cash in favor of banks or other depository institutions arising from customary rights of setoff; 
 (g) any judgment lien, unless the judgment it secures shall not, within 60 days after the entry thereof, have been discharged or execution thereof stayed pending appeal, or shall not have been discharged
within 60 days after expiration of any such stay; 
  

 B-5 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 (h) Liens in
existence on the date hereof and set forth on Schedule 5.15 hereto; 
 (i) Liens (excluding Liens on the Pipeline) in favor
of the Company or any of its Subsidiaries; 
 (j) any extension, renewal or refunding (or successive extension, renewal or refunding) of
any Lien referred to in clause (b), (c) or (h), provided that no such Lien is extended to cover additional property (other than replacement property) and that the amount of Indebtedness secured thereby is not increased; and

 (k) any Lien not otherwise permitted pursuant to clauses (a) through (j), provided that the aggregate
amount of Indebtedness secured by such Lien and all other existing Liens permitted pursuant to this clause (k), together with (without duplication) the aggregate amount of Indebtedness of Subsidiaries permitted pursuant to the first paragraph
of Section 10.3, shall not, at the time of incurrence of such Lien, exceed 15% of Total Adjusted Consolidated Capitalization. 
 “Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a government or agency or political subdivision thereof. 
 “Pipeline” means the Company’s natural gas pipeline system, including compressor stations, metering facilities and communication
systems, as it existed on September 30, 2002 and including subsequent replacements thereof. 
 “Plan” means an
“employee benefit plan” (as defined in section 3(3) of ERISA) that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to
be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability. 
 “property” or “properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate. 
 “QPAM Exemption” means Prohibited Transaction Class Exemption 84-14 issued by the United States Department of Labor. 
 “Required Holders” means, at any time, the holders of at least 51% in principal amount of the Notes at the time outstanding (exclusive
of Notes then owned by the Company or any of its Affiliates). 
 “Responsible Officer” means any Senior Financial Officer
and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement. 
 “Securities Act” means the Securities Act of 1933, as amended from time to time. 
  

 B-6 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 “Senior
Financial Officer” means any president, any vice president, the chief financial officer, principal accounting officer, treasurer or comptroller of the Company. 
 “Significant Subsidiary” means at any time any Subsidiary that would at such time constitute a “significant subsidiary” (as such term is defined in Regulation S-X of the Securities and
Exchange Commission as in effect on the date of the Closing) of the Company. 
 “Subsidiary” means, as to any Person, any
corporation, association or other business entity in which such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in
the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such entity, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such Person
or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless
the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company. 
 “Total Adjusted Consolidated Capitalization” means the excess of (a) the sum of (i) the par or stated value of stock plus paid-in capital plus retained earnings (or minus accumulated deficit) as
shown on a consolidated balance sheet of the Company and its Subsidiaries prepared in accordance with GAAP and (ii) Consolidated Funded Debt over (b) goodwill arising subsequent to the date of the Closing, as shown on such consolidated
balance sheet. 
  

 B-7 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 SCHEDULE 5.3 
 DISCLOSURE DOCUMENTS 
 None 
 SCHEDULE 5.3 
 (to Note Purchase Agreement) 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 SCHEDULE 5.4 
 ORGANIZATION AND OWNERSHIP OF
SHARES OF SUBSIDIARIES 
  

						
	 NAME OF SUBSIDIARY
	  	STATE OF INCORPORATION	  	PERCENTAGE OF SHARES
OWNED BY COMPANY OR A
WHOLLY 
OWNED SUBSIDIARY	 
	 Duke Energy Gas Transmission Investments, LLC
	  	Delaware	  	100	%
	 Duke Energy Gas Transmission Investments, Inc.
	  	Delaware	  	100	%
	 Duke Energy Gas Services Finance Corporation
	  	Delaware	  	100	%

 SCHEDULE 5.4 
 (to Note Purchase Agreement) 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 SCHEDULE 5.5 
 FINANCIAL STATEMENTS 
  

			
	1.	  	Company’s audited financial statements (March 14, 2000 — December 31, 2000 and 2001)
		
	2.	  	Company’s pro forma financial statements (2002-2004)

 SCHEDULE 5.5 
 (to Note Purchase Agreement) 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 SCHEDULE 5.14 
 USE OF PROCEEDS 
 Proceeds from the issuance of the Notes (the “Proceeds”) will be advanced to Duke Capital Corporation (“Duke Capital”),
which manages the cash of its subsidiaries, including the Company, on a centralized basis. Duke Capital will use these Proceeds for general corporate purposes, including, without limitation, the repayment of short-term debt, capital expenditures
(including the Company’s Patriot Project and maintenance projects), the repayment of subsidiaries’ debt and for its subsidiaries’ general corporate purposes. Proceeds advanced by the Company to Duke Capital will be netted with
existing parent advance accounts and the net amount will be recorded on the Company’s consolidated balance sheet as an asset entitled “Advances receivable – parent.” 
 SCHEDULE 5.14 
 (to Note Purchase Agreement) 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 SCHEDULE 5.15 
 EXISTING INDEBTEDNESS 
 None 
 SCHEDULE 5.15 
 (to Note Purchase Agreement) 

 [FORM OF NOTE] 
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER
SECURITIES LAWS. NEITHER THIS NOTE NOR ANY PORTION HEREOF MAY BE OFFERED OR SOLD EXCEPT IN COMPLIANCE WITH THE REGISTRATION PROVISIONS OF THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION PROVISIONS. 
 EAST TENNESSEE NATURAL GAS COMPANY 
 5.71% Senior Note due December 18, 2012 
  

			
	 No. [                    ]
	  	[Date]
	 $[                    ]
	  	PPN 275515 A@ 3

 FOR VALUE RECEIVED, the undersigned,
EAST TENNESSEE NATURAL GAS COMPANY (herein called the “Company”), a corporation organized and existing under the laws of the State of Tennessee, hereby
promises to pay to [                    ], or registered assigns, the principal sum of
[                    ] DOLLARS on December 18, 2012, with interest (computed on the basis of a 360-day year of twelve
30-day months) (a) on the unpaid balance thereof at the rate of 5.71% per annum from the date hereof, payable semiannually, on the eighteenth day of each June and December in each year, commencing with the June 18 or December 18
next succeeding the date hereof, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest and
any overdue payment of any Make-Whole Amount (as defined in the Note Purchase Agreements referred to below), payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand), at a rate per annum from time to time
equal to the greater of (i) 6.71% or (ii) 1% over the rate of interest publicly announced by JPMorgan Chase Bank from time to time in New York, New York as its “base” or “prime” rate. 
 Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America
at JPMorgan Chase Bank or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreements referred to below. 
 This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to separate Note Purchase Agreements, dated as
of December 15, 2002 (as from time to time amended, the “Note Purchase Agreements”), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be
deemed, by its acceptance hereof, (i) to have agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreements and (ii) to have made the representation set forth in Section 6.2 of the
Note Purchase Agreements, provided that such holder may (in reliance upon information provided by the Company, which shall not be unreasonably withheld) make a 
 EXHIBIT 1 
 (to Note Purchase Agreement) 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 representation to the effect that the
purchase by such holder of any Note will not constitute a non-exempt prohibited transaction under section 406(a) of ERISA. 
 This Note is a
registered Note and, as provided in the Note Purchase Agreements, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such
holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in
whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary. 
 This Note is subject to prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreements, but
not otherwise. 
 If an Event of Default, as defined in the Note Purchase Agreements, occurs and is continuing, the principal of this Note
may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreements. 
 [Remainder of Page Intentionally Blank] 
  

 E-1-2 

			
	 East Tennessee Natural Gas Company
	 	Note Purchase Agreement

  
 This Note shall be
construed and enforced in accordance with, and the rights of the parties shall be governed by the law of the State of New York, excluding choice-of-law principles of the law of such State that would require the application of laws of a jurisdiction
other than such State. 
  

			
	 EAST TENNESSEE NATURAL GAS COMPANY

		
	 By
	 	  

		 	Name:
		 	Title:

  

 E-1-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]