Document:

Exhibit
10.1

EXECUTION COPY

COMMON UNIT PURCHASE
AGREEMENT

BY AND AMONG

TC PIPELINES, LP

AND

THE PURCHASERS SET FORTH
ON EXHIBIT A

DATED

FEBRUARY
20, 2007

COMMON UNIT PURCHASE
AGREEMENT

COMMON UNIT PURCHASE AGREEMENT, dated as of February
20, 2007 (this “Agreement”), by and among TC PIPELINES, LP, a Delaware
limited partnership (the “Partnership”), and each of the Purchasers set
forth on Exhibit A, acting individually (each, a “Purchaser” and,
collectively, the “Purchasers”).

WHEREAS, (i) TC Pipelines GP, Inc., a Delaware
corporation (the “General Partner”), is a wholly owned subsidiary of
TransCanada PipeLines Limited, a Canadian corporation (“TransCanada”);
(ii) the General Partner is the general partner of the Partnership, TC
Tuscarora Intermediate Limited Partnership, a Delaware limited partnership (“TCT
Intermediate Partnership”), and TC PipeLines Intermediate Limited
Partnership, a Delaware limited partnership (“TCP Intermediate Partnership”)
and TC GL Intermediate Partnership, a Delaware limited partnership (“TCGL
Intermediate Partnership” and, together with TCT Intermediate Partnership
and TCP Intermediate Partnership, the “Intermediate Partnerships”); (iii)
the Partnership owns all of the limited partner interests in each of the
Intermediate Partnerships; (iv) TCT Intermediate Partnership owns a 98% general
partner interest in Tuscarora Gas Transmission Company, a Nevada general
partnership (“Tuscarora”); and (v) TCP Intermediate Partnership owns a
50% general partner interest in Northern Border Pipeline Company, a Texas
general partnership (“NBPC”).  The
Partnership, the General Partner and the Intermediate Partnerships are
collectively referred to herein as the “TCP Parties;”

WHEREAS, TCGL Intermediate Partnership has entered
into an agreement to purchase a 46.45% general partner interest in Great Lakes
Gas Transmission Limited Partnership (the “Acquisition”), which is
expected to close on or about February 22, 2007;

WHEREAS, the Partnership desires to pay a portion of
the purchase price related to the Acquisition out of the proceeds of the sale
of an aggregate of approximately $600,000,000 of Common Units representing
limited partner interests in the Partnership (“Common Units”), and the
Purchasers desire to purchase an aggregate of approximately $600,000,000 of
Common Units from the Partnership, each in accordance with the provisions of
this Agreement; and

WHEREAS, the Partnership has agreed to provide the
Purchasers with certain registration rights with respect to the Common Units
acquired pursuant to this Agreement; and

NOW THEREFORE, in consideration of the mutual
covenants and agreements set forth herein and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Partnership and each of the Purchasers, severally and not jointly, hereby
agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1                   Definitions.  As
used in this Agreement, and unless the context requires a different meaning,
the following terms have the meanings indicated:

“8-K Filing” shall have the meaning specified
in Section 5.4.

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“Acquisition” shall have the meaning specified
in the recitals.

“Acquisition Agreement” means that certain
Purchase and Sale Agreement among El Paso Great Lakes Company, L.L.C., TCGL
Intermediate Limited Partnership and TransCanada PipeLine USA Ltd. dated as of
December 22, 2006, as amended to date.

“Action” against a Person means any lawsuit,
action, proceeding, investigation or complaint before any Governmental
Authority, mediator or arbitrator.

“Affiliate” means, with respect to a specified
Person, any other Person, whether now in existence or hereafter created,
directly or indirectly controlling, controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition, “control”
(including, with correlative meanings, “controlling,” “controlled by” and “under
common control with”) means the power to direct or cause the direction of the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise.

“Agreement” shall have the meaning specified in
the introductory paragraph.

“Basic Documents” means, collectively, this
Agreement, the Registration Rights Agreement, the Escrow Agreement and any and
all other agreements or instruments executed and delivered by the Parties to
evidence the execution, delivery and performance of this Agreement, and any
amendments, supplements, continuations or modifications thereto.

“Board of Directors” means the board of
directors of the General Partner.

“Business Day” means any day other than a
Saturday, a Sunday, or a legal holiday for commercial banks in New York, New
York.

“Closing” shall have the meaning specified in
Section 2.2.

“Closing Date” shall have the meaning specified
in Section 2.2.

“Code” means the Internal Revenue Code of 1986,
as amended from time to time.

“Commission” means the United States Securities
and Exchange Commission.

“Commitment Amount” means the dollar amount set
forth opposite each Purchaser’s name on Exhibit A to this Agreement.

“Common Units” shall have the meaning specified
in the recitals.

“DGCL” shall have the meaning specified in
Section 3.2(a).

“DRULPA” shall have the meaning specified in
Section 3.2(a).

“Escrow
Agent” shall have the meaning specified in the Escrow Agreement.

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“Escrow
Agreement” means that certain Escrow Agreement dated as of February 20,
2007, by and among the Partnership, Citigroup Global Markets Inc., and the
Escrow Agent in substantially the form attached hereto as Exhibit B.

“Exchange Act” means the Securities Exchange
Act of 1934, as amended from time to time, and the rules and regulations of the
Commission promulgated thereunder.

“GAAP” means generally accepted accounting
principles in the United States of America in effect from time to time.

“General Partner” shall have the meaning
specified in the recitals.

“Governmental Authority” shall include the
country, state, county, city and political subdivisions in which any Person or
such Person’s property is located or that exercises valid jurisdiction over any
such Person or such Person’s property, and any court, agency, department,
commission, board, bureau or instrumentality of any of them and any monetary
authorities that exercise valid jurisdiction over any such Person or such
Person’s property. Unless otherwise specified, all references to Governmental
Authority herein shall mean a Governmental Authority having jurisdiction over,
where applicable, the Partnership, its Subsidiaries or any of their property or
any of the Purchasers.

“Incentive Distribution Rights” shall have the
meaning specified in Section 3.5.

“Indemnified Party” shall have the meaning
specified in Section 8.3.

“Indemnifying Party” shall have the meaning
specified in Section 8.3.

“Intermediate Partnership Agreements” shall
have the meaning specified in Section 3.4.

“Intermediate Partnerships” shall have the
meaning specified in the recitals.

“Law” means any federal, state, local or
foreign order, writ, injunction, judgment, settlement, award, decree, statute,
law, rule or regulation.

“Lien” means any mortgage, claim, encumbrance,
pledge, lien (statutory or otherwise), security agreement, conditional sale or
trust receipt or a lease, consignment or bailment, preference or priority or
other encumbrance upon or with respect to any property of any kind.

“Lock-Up Date” means the earlier of
(i) 90 days from the Closing Date or (ii) the date that a
registration statement under the Securities Act to permit the resale of the
Units is declared effective by the Commission.

“NBPC” shall have the meaning specified in the
recitals.

“Partnership” shall have the meaning specified
in the introductory paragraph.

“Partnership Agreement” shall have the meaning
specified in Section 2.1(a).

“Partnership Material Adverse Effect” shall
have the meaning specified in Section 3.2.

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“Partnership Related Parties” shall have the
meaning specified in Section 8.2.

“Partnership SEC Documents” shall have the
meaning specified in Section 3.1.

“Party” or “Parties” means the
Partnership and the Purchasers, individually or collectively, as the case may
be.

“Person” means any individual, corporation,
company, voluntary association, partnership, joint venture, trust, limited
liability company, unincorporated organization or government or any agency,
instrumentality or political subdivision thereof, or any other form of entity.

“Purchase Price” means the aggregate of the
Purchasers’ Commitment Amount.

“Purchaser” shall have the meaning specified in
the introductory paragraph.

“Purchaser Material Adverse Effect” means any
material and adverse effect on (i) the ability of a Purchaser to meet its
obligations under the Basic Documents on a timely basis or (ii) the ability of
a Purchaser to consummate the transactions under any Basic Document.

“Purchaser Related Parties” shall have the
meaning specified in Section 8.1.

“Purchasers” shall have the meaning specified
in the introductory paragraph.

“Registration Rights Agreement” means the
Registration Rights Agreement, substantially in the form attached to this
Agreement as Exhibit C, to be entered into at the Closing, among
the Partnership and the Purchasers, acting individually.

“Representatives” of any Person means the
officers, directors, employees, Affiliates, control persons, counsel,
investment banker, agents and other representatives of such Person.

“Securities Act” means the Securities Act of
1933, as amended from time to time, and the rules and regulations of the
Commission promulgated thereunder.

“Subsidiary” means, as to any Person, any
corporation or other entity of which a majority of the outstanding equity
interest having by the terms thereof ordinary voting power to elect a majority
of the board of directors of such corporation or other entity (irrespective of
whether or not at the time any equity interest of any other class or classes of
such corporation or other entity shall have or might have voting power by
reason of the happening of any contingency) is at the time directly or
indirectly owned or controlled by such Person or one or more of its
Subsidiaries.

“TCGL Intermediate Partnership” shall have the
meaning specified in the recitals.

“TCP Intermediate Partnership” shall have the
meaning specified in the recitals.

“TCP Parties” shall have the meaning specified
in the recitals.

“TCT Intermediate Partnership” shall have the
meaning specified in the recitals.

“TransCanada” shall have the meaning specified
in the recitals.

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“TransCanada Purchaser” means any Purchaser
that is TransCan Northern Ltd. or an Affiliate of TransCanada.

“Tuscarora” shall have the meaning specified in
the recitals.

“Unit Price” shall have the meaning specified
in Section 2.1(b).

“Unitholders” means the Unitholders of the
Partnership (within the meaning of the Partnership Agreement).

“Units” means the Units to be issued and sold
to the Purchasers pursuant to this Agreement.

Section 1.2                   Accounting Procedures and
Interpretation. Unless otherwise specified in this Agreement, all accounting
terms used herein shall be interpreted, all determinations with respect to
accounting matters under this Agreement shall be made, and all financial
statements and certificates and reports as to financial matters required to be
furnished to the Purchasers under this Agreement shall be prepared, in
accordance with GAAP applied on a consistent basis during the periods involved
(except, in the case of unaudited statements, as permitted by Form 10-Q
promulgated by the Commission) and in compliance as to form in all material
respects with applicable accounting requirements and with the published rules
and regulations of the Commission with respect thereto.

ARTICLE
II

SALE AND PURCHASE

Section 2.1                   Sale and Purchase.  Subject
to the terms and conditions of this Agreement, at the Closing, the Partnership
hereby agrees to issue and sell to each Purchaser, and each Purchaser hereby
agrees, severally and not jointly, to purchase from the Partnership, the number
of Units set forth opposite its name on Exhibit A hereto.  Each Purchaser agrees to pay the Partnership
the Unit Price for each Unit.  The
respective obligations of each Purchaser under this Agreement are several and
not joint with the obligations of any other Purchaser, and no Purchaser shall
be responsible in any way for the performance of the obligations of any other
Purchaser under this Agreement.  The
failure or waiver of performance under this Agreement by any Purchaser, or on
its behalf, does not excuse performance by any other Purchaser. Nothing contained
herein or in any other Basic Document, and no action taken by any Purchaser
pursuant thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by
any Basic Document.  Except as otherwise
provided in this Agreement or the other Basic Documents, each Purchaser shall
be entitled to independently protect and enforce its rights, including the
rights arising out of this Agreement or out of the other Basic Documents, and
it shall not be necessary for any other Purchaser to be joined as an additional
party in any proceeding for such purpose.

(a)                 Units.  The number of Units to be issued and sold to
each Purchaser is set forth opposite such Purchaser’s name on Exhibit A
hereto.  The Units shall have those
rights, preferences, privileges and restrictions governing the Common Units as
set forth in the

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agreement of limited partnership of the Partnership, as amended to date
(the “Partnership Agreement”).

(b)                 Consideration. The amount per
Unit each Purchaser will pay to the Partnership to purchase the Units (the “Unit
Price”) shall be $34.57.

(c)                 Funding into Escrow by Purchasers
(other than TransCanada Purchasers). 
Each Purchaser (other than a TransCanada Purchaser) shall deposit its
Commitment Amount into an escrow account as provided in the Escrow Agreement on
the date which is two Business Days prior to the Closing Date.  On the Closing Date, upon receipt of
satisfactory evidence that the conditions set forth in ARTICLE VI have been
satisfied, each Purchaser (other than a TransCanada Purchaser) shall deliver
notice to the Escrow Agent to promptly and timely release the funds escrowed
under the Escrow Agreement to the Partnership.

(d)                 Funding by TransCanada Purchasers.  On the Closing Date, upon receipt of
satisfactory evidence that the conditions set forth in Article VI have been
satisfied, each TransCanada Purchaser shall pay the amount of its Commitment by
wire transfer of immediately available funds to an account directed by the
Partnership.

Section 2.2                   Closing.  The
execution and delivery of the Basic Documents (other than this Agreement), the
delivery of certificates representing the Units, the release of the funds
escrowed under the Escrow Agreement to the Partnership pursuant to the terms of
the Escrow Agreement, the payment by each TransCanada Purchaser of its
Commitment Amount, and execution and delivery of all other instruments,
agreements and other documents required by this Agreement (the “Closing”)
shall take place concurrently with the closing of the Acquisition on February
22, 2007 (the “Closing Date”) at the offices of Vinson & Elkins
L.L.P., 1001 Fannin Street, Suite 2500, Houston, Texas 77002.

Section 2.3                   Termination.  Notwithstanding
anything to the contrary, in the event that (i) 100% of the Purchase Price is
not received by the Partnership on the purported Closing Date, or (ii) the
Closing has not occurred prior to February 28, 2007, this Agreement shall
automatically terminate and any payments of a Purchaser’s Commitment Amount
received by the Escrow Agent or the Partnership shall be returned to such
Purchaser within one Business Day.

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP

The Partnership represents and warrants to the
Purchasers, on and as of the date of this Agreement and on and as of the
Closing Date, as follows:

Section 3.1                   Partnership SEC Documents.  The
Partnership 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 as filed,
collectively, the “Partnership SEC Documents”).  The Partnership SEC Documents prior to the
date hereof, when they were filed, conformed in all material respects to the
requirements of the Exchange Act and did not, as of the time each such document
was filed, contain an untrue

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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 made not
misleading.

Section 3.2                   Formation and Qualification of
the TCP Parties.  The Partnership and
each of its Subsidiaries has been duly formed and is validly existing in good
standing as a corporation or limited partnership under the Delaware General
Corporation Law (“DGCL”) or the Delaware Revised Uniform Limited
Partnership Act (“DRULPA”), as the case may be, with full corporate or
partnership power and authority to own or lease its properties and to conduct
the businesses in which it is engaged, in each case in all material respects,
and has all material governmental licenses, authorizations, consents and
approvals as described in the Partnership SEC Documents.  Each of the General Partner, the Partnership
and its Subsidiaries is or, at the Closing Date will, be duly registered or
qualified as a foreign corporation or limited partnership, as the case may be,
for the transaction of business under the laws of each jurisdiction in which
the character of the business conducted by it or the nature or location of the
properties owned or leased by it makes such registration or qualification
necessary, except where the failure so to register or qualify would not (i)
have a material adverse effect on (A) the condition (financial or
otherwise), business, prospects, assets, liabilities, affairs or results of
operations of the Partnership and its Subsidiaries, taken as a whole, (B) the
ability of the Partnership and its Subsidiaries, taken as a whole, to carry out
their business as of the date of this Agreement or to meet their obligations
under the Basic Documents on a timely basis or (C) the ability of the
Partnership to consummate the transactions under any Basic Document (any of the
foregoing a “Partnership Material Adverse Effect”) or (ii) subject the
limited partners of the Partnership to any material liability or disability.

Section 3.3                   Formation and Qualification of
NBPC and Tuscarora.  Each of NBPC and
Tuscarora has been duly formed and is validly existing in good standing as a
general partnership under the laws of the State of Texas and the laws of the
State of Nevada, respectively, with full partnership power and authority to own
or lease its properties and to conduct its businesses in which it is engaged,
in each case in all material respects as described in the Partnership SEC
Documents.  Each of NBPC and Tuscarora is
or, at the Closing Date will be duly registered or qualified as a foreign
general partnership for the transaction of business under the laws of each
jurisdiction in which the character of the business conducted by it or the
nature or location of the properties owned or leased by it makes such
registration or qualification necessary, except where the failure so to
register or qualify would not (i) have a Partnership Material Adverse Effect or
(ii) subject the limited partners of the Partnership to any material liability
or disability.

Section 3.4                   Ownership of the General Partner
Interests.  The General Partner is
the sole general partner of the Partnership and each of the Intermediate
Partnerships with a 1.0% general partner interest in the Partnership and a
1.0101% general partner interest in each of the Intermediate Partnerships; such
general partner interests have been duly authorized and validly issued in
accordance with the Partnership Agreement, or the partnership agreements of
each of the Intermediate Partnerships, each as amended to date (collectively,
the “Intermediate Partnership Agreements”); and the General Partner owns
such general partner interests free and clear of all Liens (except restrictions
on transferability as described in the Partnership SEC Documents).

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Section 3.5                   Capitalization.  (a) As of the date hereof and prior to
the issuance and sale of the Units, the issued and outstanding limited partner
interests of the Partnership consist of 17,500,000 Common Units and the
Incentive Distribution Rights (as defined in the Partnership Agreement, the “Incentive
Distribution Rights”).  All
outstanding Common Units and Incentive Distribution Rights and the limited
partner interests represented thereby have been duly authorized and validly
issued in accordance with the Partnership Agreement and are fully paid (to the
extent required under the Partnership Agreement) and nonassessable (except as
such nonassessability may be affected by Section 17-607 of the DRULPA and as
otherwise disclosed in the Partnership SEC Documents).

(b)                 The Partnership
has no equity compensation plans that contemplate the issuance of Common Units
(or securities convertible into or exchangeable for Common Units).  The Company has no outstanding indebtedness
having the right to vote (or convertible into or exchangeable for securities having
the right to vote) on any matters on which the Unitholders may vote.  Except as contemplated by this Agreement or
as are contained in the Partnership Agreement, there are no outstanding or
authorized (i) options, warrants, preemptive rights, subscriptions, calls or
other rights, convertible securities, agreements, claims or commitments of any
character obligating the Partnership or any of its Subsidiaries to issue,
transfer or sell any equity interests in the Partnership or any of its
Subsidiaries or securities convertible into or exchangeable for such equity
interests, (ii) obligations of the Partnership or any of its Subsidiaries to
repurchase, redeem or otherwise acquire any equity interests in the Partnership
or any of its Subsidiaries or any such securities or agreements listed in
clause (i) of this sentence or (iii) voting trusts or similar agreements to
which the Partnership or any of its Subsidiaries is a party with respect to the
voting of the equity interests of the Partnership or any of its Subsidiaries.

Section 3.6                   Authorization and Rights of Units.  The offer and sale of the Units and the
limited partnership interests represented thereby will be duly authorized by
the Partnership pursuant to the Partnership Agreement prior to the Closing and,
when issued and delivered to the Purchasers against payment therefor in
accordance with the terms of this Agreement, will be validly issued, fully paid
(to the extent required under the Partnership Agreement) and nonassessable
(except as such nonassessability may be affected by Section 17-607 of the
DRULPA and as otherwise disclosed in the Partnership SEC Documents) and will be
free of any and all Liens and restrictions on transfer, other than restrictions
on transfer under the Partnership Agreement, the Registration Rights Agreement
and applicable state and federal securities Laws and other than such Liens as
are created by the Purchasers.  The Units
shall have those rights, preferences, privileges and restrictions governing the
Units as set forth in the Partnership Agreement.  A true and correct copy of the Partnership
Agreement, as amended through the date hereof, was filed by the Partnership
with the Commission on as Exhibit 10.3 to the Partnership’s Annual Report on
Form 10-K for the year ended December 31, 1999.

Section 3.7                   Ownership of the Limited Partner
Interests in the Intermediate Partnerships. 
The Partnership owns a 98.9899% limited partner interest in each of the
Intermediate Partnerships; such limited partner interests have been duly
authorized and validly issued in accordance with the applicable Intermediate
Partnership Agreement and are fully paid (to the extent required under the
applicable Intermediate Partnership Agreement) and nonassessable (except as
such nonassessability may be affected by Section 17-607 of the

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DRULPA); and the Partnership owns such limited partner interests free
and clear of all Liens or claims.

Section 3.8                   Ownership of Interest in NBPC.  TCP Intermediate Partnership owns a 50%
general partner interest in NBPC; such general partner interest has been duly
authorized and validly issued in accordance with the partnership agreement of
NBPC, as amended to date; and TCP Intermediate Partnership owns such general
partner interest free and clear of all Liens or claims.

Section 3.9                   Ownership of Interest in
Tuscarora.  TCT Intermediate
Partnership owns a 98% general partner interest in Tuscarora; such general
partner interest has been duly authorized and validly issued in accordance with
the partnership agreement of Tuscarora, as amended to date; and TCT
Intermediate Partnership owns such general partner interest free and clear of
all Liens or claims.

Section 3.10                No Other
Subsidiaries.  Other than (i) the
Partnership’s ownership interest in the Intermediate Partnerships and (ii) the
Intermediate Partnerships’ ownership interests in each of NBPC and Tuscarora,
as applicable, neither the Partnership nor the Intermediate Partnerships own,
directly or indirectly, any equity or long-term debt securities of any
corporation, partnership, limited liability company, joint venture, association
or other entity.  Other than its
ownership of its partnership interests in the Partnership and each of the
Intermediate Partnerships, the General Partner does not own, directly or
indirectly, any equity or long-term debt or other securities of any
corporation, partnership, limited liability company, joint venture, association
or other entity.

Section 3.11                No Preemptive
Rights, Registration Rights or Options. 
Except as described in the Partnership SEC Documents, there are no
preemptive rights or other rights to subscribe for or to purchase, nor any
restriction upon the voting or transfer of, any partnership or equity interests
of the Partnership.  None of the execution
of this Agreement, the filing of the registration statement relating to the
Units pursuant to the Registration Rights Agreement nor the issuance or sale of
the Units as contemplated by this Agreement gives rise to any rights for or
relating to the registration of any Common Units or other securities of the
Partnership other than as provided in the Partnership SEC Documents.  There are no outstanding options or warrants
to purchase any Common Units.

Section 3.12                MLP Status.  The Partnership met for the taxable years
ended December 31, 2005 and 2006, and the Partnership expects to meet for the
taxable year ending December 31, 2007, the gross income requirements of Section
7704(c)(2) of the Code, and accordingly the Partnership is not, and does not
reasonably expect to be, taxed as a corporation for U.S. federal income tax
purposes or for applicable state tax purposes.

Section 3.13                Offering.  Assuming the accuracy of the representations
and warranties of the Purchasers contained in this Agreement, the sale and
issuance of the Units pursuant to this Agreement are exempt from the
registration requirements of the Securities Act, and neither the Partnership
nor, to the Partnership’s knowledge, any authorized Representative acting on
its behalf has taken or will take any action that would cause the loss of such
exemption.

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Section 3.14                Certain Fees.  No fees or commissions, other than those
payable to Citigroup Global Markets Inc. (or its affiliate), will be payable by
the Partnership to brokers, finders or investment bankers with respect to the
sale of any of the Units or the consummation of the transactions contemplated
by this Agreement.

Section 3.15                No Side
Agreements.  Except for the
confidentiality agreements entered into by and between some of the Purchasers
and the Partnership and the Registration Rights Agreement, there are no other
agreements by, among or between the Partnership or its Affiliates, on the one
hand, and any of the Purchasers or their Affiliates, on the other hand, with
respect to the transactions contemplated hereby nor promises or inducements for
future transactions between or among any of such parties.

Section 3.16                Authorization
and Enforceability of Basic Documents and Other Agreements.  The Partnership has all necessary limited
partnership power and authority to execute, deliver and perform its obligations
under the Basic Documents and the Acquisition Agreement to which it is a party
and to consummate the transactions contemplated thereby.  The Basic Documents and the Acquisition
Agreement have been duly authorized, validly executed and delivered and are
valid and legally binding agreements, enforceable against the Partnership in
accordance with their terms; provided that, with respect to each such
agreement, the enforceability thereof may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws relating to or
affecting creditors’ rights generally and by general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law); and, provided further, that the indemnity, contribution and
exoneration provisions contained in any of such agreements may be limited by
applicable laws and public policy.  No
approval of the Unitholders is required as a result of the Partnership’s
issuance and sale of the Units pursuant to this Agreement.

Section 3.17                No Conflicts.  None of the sale by the Partnership of the
Units, the execution, delivery and performance of the Basic Documents or the
Acquisition Agreement by the Partnership and all other agreements and
instruments in connection with the transactions contemplated by the Basic
Documents or the Acquisition Agreement, or the consummation of the transactions
contemplated hereby or thereby by the Partnership (i) conflicts or will
conflict with or constitutes or will constitute a violation of the Partnership
Agreement, (ii) conflicts or will conflict with or constitutes or will
constitute a breach or violation of, or a default under (or an event that, with
notice or lapse of time or both, would constitute such a default), any
indenture, mortgage, deed of trust, loan agreement, lease or other agreement or
instrument to which the Partnership or any of its Subsidiaries is a party or by
which any of them or any of their respective properties may be bound, (iii) violates
or will violate any statute, law or regulation, including exchange regulation,
or any order, judgment, decree or injunction of any court or governmental
agency or body directed to any of the Partnership or its Subsidiaries or any of
their properties in a proceeding to which any of them or their property is a
party, or (iv) results or will result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Partnership or
any of its Subsidiaries, which conflicts, breaches, violations, defaults or
liens, in the case of clauses (ii), (iii) or (iv), would, individually or in
the aggregate, have a Partnership Material Adverse Effect or would materially
impair the ability of the Partnership to perform its obligations under the
Basic Documents or the Acquisition Agreement.

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Section 3.18                No Consents.  No permit, consent, approval, authorization,
waiver, license, declaration, order, registration, filing or qualification (“consent”)
of or with any court, governmental agency or body having jurisdiction over the
Partnership or any of its properties is required in connection with the
offering and sale by the Partnership of the Units, the execution, delivery and
performance of the Basic Documents and the Acquisition Agreement by the
Partnership, or the consummation by the Partnership of the transactions
contemplated by the Basic Documents and the Acquisition Agreement, except for
such consents required under the Securities Act or state securities or “Blue
Sky” laws.

Section 3.19                Independent
Registered Public Accounting Firm. 
The independent registered public accounting firm, KPMG LLP, who has
audited the financial statements of the Partnership, the General Partner and
NBPC included in the Partnership SEC Documents is a registered independent
public accounting firm with respect to the Partnership, the General Partner and
NBPC, as required by the Exchange Act or the Securities Act, as applicable, and
has not resigned or been dismissed as independent registered public accountants
of the Partnership as a result of or in connection with any disagreement with
the Partnership on any matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedures.

Section 3.20                Financial
Statements.  At September 30, 2006,
the Partnership had a capitalization as indicated in the Partnership’s
Quarterly Report on Form 10-Q for the three months ended September 30,
2006.  The historical financial
statements (including the related notes and supporting schedules) of the
Partnership, the General Partner and NBPC included in the Partnership SEC
Documents comply as to form in all material respects with the requirements of
Regulation S-X under the Exchange Act or the Securities Act, as applicable, and
present fairly in all material respects the financial position, results of
operations and cash flows of the Partnership, the General Partner and NBPC on
the basis stated therein at the respective dates or for the respective periods
which have been prepared in accordance with GAAP consistently applied through
the periods involved, except to the extent disclosed therein.

Section 3.21                No Material
Adverse Change.  None of the
Partnership or any of its Subsidiaries or NBPC has sustained, since the date of
the latest financial statements included in the Partnership’s Quarterly Report
on Form 10-Q for the three months ended September 30, 2006, any material
loss or interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor dispute or
court or governmental action, investigation, order or decree, otherwise than as
set forth or contemplated in the Partnership SEC Documents.  Except as disclosed in the Partnership SEC
Documents, subsequent to the respective dates as of which such information is
given in the Partnership SEC Documents, (i) none of the Partnership or any of
its Subsidiaries has incurred any liability or obligation, indirect, direct or
contingent, or entered into any transactions, not in the ordinary course of
business, that, individually or in the aggregate, is material to the
Partnership and its Subsidiaries, taken as a whole, (ii) there has not been any
material change in the capitalization or material increase in the short-term
debt or long-term debt of the Partnership and its Subsidiaries, taken as a
whole, except for debt incurred to finance the Acquisition, (iii) there has
been no acquisition or disposition of any material asset by the Partnership or
any of its Subsidiaries or any contract or arrangement therefor, otherwise than
for fair value in the ordinary course of business, (iv) there has been no
material change in the Partnership’s accounting principles, practices or
methods and (v) there has not been any material adverse change, or any
development

 11
 

involving, individually or in the aggregate, that has had or would be
reasonably expected to have a Partnership Material Adverse Effect.

Section 3.22                Investment
Company.  The Partnership is not now,
and after issuance and sale of the Units to be issued and sold by the
Partnership hereunder and application of the net proceeds from such sale as
described in Section 5.5 hereof will not be, an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.

Section 3.23                Litigation.  Except as described in the Partnership SEC
Documents or the forms, reports, schedules and statements filed with the
Commission by NBPC under the Exchange Act or the Securities Act, there is (i)
no action, suit or proceeding before or by any court, arbitrator or
governmental agency, body or official, domestic or foreign, now pending or, to
the best of the Partnership’s knowledge, threatened, to which the Partnership
or any of its Subsidiaries or NBPC is or may be a party or to which the
business or property of any of the Partnership or its Subsidiaries or NBPC is
or may be subject, (ii) no statute, rule, regulation or order that has been
enacted, adopted or issued by any governmental agency or that has been formally
proposed by any governmental agency, and (iii) no injunction, restraining
order or order of any nature issued by a federal or state court or foreign
court of competent jurisdiction to which any of the Partnership or its
Subsidiaries or NBPC is or may be subject, that, in the case of clauses (i),
(ii) and (iii) above, is reasonably expected to (A) individually or in the
aggregate have a Partnership Material Adverse Effect, (B) prevent or result in
the suspension of the offering and sale of the Units, or (C) in any manner draw
into question the validity of this Agreement.

Section 3.24                Listing.  The Common Units are listed on the Nasdaq
Global Select Market.  The Units will be
issued in compliance with all applicable rules of The Nasdaq Market.  Prior to the Closing, the Partnership will
have submitted to The Nasdaq Market a “Notification Form: Listing of Additional
Shares” with respect to the Units.  The
Partnership has not received a notice of delisting with respect to the Common
Units.

Section 3.25                Acknowledgment
Regarding Certificates.  Any
certificate signed by any officer of any of the General Partner on behalf of
the Partnership and delivered to the Purchasers or counsel for the Purchasers
in connection with the offering of the Units shall be deemed a representation
and warranty by the Partnership as to matters covered thereby to each
Purchaser.

Section 3.26                Insurance.  The Partnership and its Subsidiaries are
insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as the Partnership believes are prudent for its
businesses.  The Partnership does not
have any reason to believe that it or any Subsidiary will not be able to renew
its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its
business.

Section 3.27                Form S-3
Eligibility.  The Partnership is
eligible to register the Units for resale by the Purchasers on a registration
statement on Form S-3 under the Securities Act.

 12
 

Section 3.28                No Integration.
Neither the Partnership, nor any of its Affiliates, nor any Person acting on
its or their behalf has, directly or indirectly, made any offers or sales of
any security or solicited any offers to buy any security, under circumstances
that would cause this offering of the Units to be integrated with prior
offerings by the Partnership for purposes of the Securities Act or any
applicable stockholder approval provisions, including, without limitation,
under the rules and regulations of the exchange on which the Units are
currently listed or quoted.

Section 3.29                Taxes.  Each of the Partnership and its Subsidiaries
has filed all necessary federal, state and foreign income and franchise tax
returns and has paid or accrued all taxes shown as due thereon except for taxes
being contested in good faith by the Partnership for which adequate reserves
have been established, and neither the Partnership nor any of its subsidiaries
has knowledge of a tax deficiency which has been asserted in writing against it
which would reasonably be expected to have a Material Adverse Effect.

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF EACH PURCHASER

Each Purchaser, severally and not jointly, represents
and warrants to the Partnership with respect to itself, on and as of the date
of this Agreement and on and of the Closing Date, as follows:

Section 4.1                   Valid Existence. Such
Purchaser (i) is duly organized, validly existing and in good standing
under the Laws of its respective jurisdiction of organization and (ii) has
all requisite power, and has all material governmental licenses,
authorizations, consents and approvals, necessary to own its properties and
carry on its business as its business is now being conducted, except where the
failure to obtain such licenses, authorizations, consents and approvals would
not have and would not reasonably be expected to have a Purchaser Material
Adverse Effect.

Section 4.2                   No Breach. The execution,
delivery and performance by such Purchaser of the Basic Documents to which it
is a party and all other agreements and instruments in connection with the
transactions contemplated by the Basic Documents to which it is a party, and
compliance by such Purchaser with the terms and provisions hereof and thereof
and the purchase of the Units by such Purchaser do not and will not
(a) violate any provision of any Law, governmental permit, determination
or award having applicability to such Purchaser or any of its properties,
(b) conflict with or result in a violation of any provision of the
organizational documents of such Purchaser or (c) require any consent
(other than standard internal consents), approval or notice under or result in
a violation or breach of or constitute (with or without due notice or lapse of
time or both) a default (or give rise to any right of termination, cancellation
or acceleration) under (i) any note, bond, mortgage, license, or loan or
credit agreement to which such Purchaser is a party or by which such Purchaser
or any of its properties may be bound or (ii) any other such agreement,
instrument or obligation, except in the case of clauses (a) and
(c) where such violation, default, breach, termination, cancellation,
failure to receive consent or approval, or acceleration with respect to the
foregoing provisions of this Section 4.2 would not, individually or in the
aggregate, reasonably be expected to have a Purchaser Material Adverse Effect.

 13

Section 4.3                   Investment. The Units are
being acquired for such Purchaser’s own account, or the accounts of clients for
whom such Purchaser exercises discretionary investment authority (all of whom
such Purchaser represents and warrants are “accredited investors” within the
meaning of Rule 501 of Regulation D promulgated by the Commission
pursuant to the Securities Act), not as a nominee or agent, and with no present
intention of distributing the Units or any part thereof, and such Purchaser has
no present intention of selling or granting any participation in or otherwise
distributing the same in any transaction in violation of the securities Laws of
the United States of America or any state, without prejudice, however, to such
Purchaser’s right at all times to sell or otherwise dispose of all or any part
of the Units under a registration statement under the Securities Act and
applicable state securities Laws or under an exemption from such registration
available thereunder (including, if available, Rule 144 promulgated
thereunder). If such Purchaser should in the future decide to dispose of any of
the Units, such Purchaser understands and agrees (a) that it may do so
only (i) in compliance with the Securities Act and applicable state
securities Law, as then in effect, or pursuant to an exemption therefrom or
(ii) in the manner contemplated by any registration statement pursuant to
which such securities are being offered, and (b) that stop-transfer
instructions to that effect will be in effect with respect to such securities.
Notwithstanding the foregoing, each Purchaser may at any time enter into one or
more total return swaps with respect to such Purchaser’s Units with a third
party provided that such transactions are exempt from registration under the
Securities Act.

Section 4.4                   Nature of Purchaser. Such
Purchaser represents and warrants to, and covenants and agrees with, the
Partnership that (a) it is an “accredited investor” within the meaning of
Rule 501 of Regulation D promulgated by the Commission pursuant to the
Securities Act and (b) by reason of its business and financial experience
it has such knowledge, sophistication and experience in business and financial
matters so as to be capable of evaluating the merits and risks of the
prospective investment in the Units, is able to bear the economic risk of such
investment and, at the present time, would be able to afford a complete loss of
such investment.

Section 4.5                   Receipt of Information;
Authorization. Such Purchaser acknowledges that it has (a) had access to
the Partnership SEC Documents, (b) had access to information publicly
disclosed regarding the Acquisition and its potential effect on the Partnership’s
operations and financial results and (c) been provided a reasonable
opportunity to ask questions of and receive answers from Representatives of the
Partnership regarding such matters.

Section 4.6                   Restricted Securities. Such
Purchaser understands that the Units it is purchasing are characterized as “restricted
securities” under the federal securities Laws inasmuch as they are being
acquired from the Partnership in a transaction not involving a public offering
and that under such Laws and applicable regulations such securities may be
resold without registration under the Securities Act only in certain limited
circumstances. In this connection, such Purchaser represents that it is
knowledgeable with respect to Rule 144 of the Commission promulgated under
the Securities Act.

Section 4.7                   Certain Fees. No fees or
commissions will be payable by such Purchaser to brokers, finders or investment
bankers with respect to the sale of any of the Units or the consummation of the
transactions contemplated by this Agreement.

 14
 

Section 4.8                   Legend. It is understood that
the certificates evidencing the Units initially will bear the following legend:
“These securities have not been registered under the Securities Act of 1933, as
amended. These securities may not be sold, offered for sale, pledged or
hypothecated in the absence of a registration statement in effect with respect
to the securities under such Act or pursuant to an exemption from registration
thereunder and, in the case of a transaction exempt from registration, unless
sold pursuant to Rule 144 under such Act or the issuer has received
documentation reasonably satisfactory to it that such transaction does not
require registration under such Act.”

Section 4.9                   No Side Agreements. Except
for the confidentiality agreements entered into by and between such Purchaser
and the Partnership and the Registration Rights Agreement, there are no other
agreements by, among or between the Partnership or its Affiliates, on the one
hand, and such Purchaser or its Affiliates, on the other hand, with respect to
the transactions contemplated hereby nor promises or inducements for future transactions
between or among any of such parties.

ARTICLE V

COVENANTS

Section 5.1                   Subsequent Offerings. Without
the written consent of the holders of a majority of the Units (other than the
Units held by TransCanada or its Affiliates), taken as a whole, from the date
of this Agreement until the Lock-Up Date, the Partnership shall not, and shall
cause its directors, officers and Affiliates not to, grant, issue or sell any
Common Units or other equity or voting securities of the Partnership, any
securities convertible into or exchangeable therefor or take any other action
that may result in the issuance of any of the foregoing, other than (i) the
issuance or sale of up to an aggregate of 15 million Common Units issued
or sold in a registered public offering to finance future acquisitions that are
accretive to cash flow per Common Unit (or the repayment of indebtedness
incurred in connection with such accretive acquisitions) at a price no less
than 110% of the Unit Price, or in a private offering to finance future acquisitions
that are accretive to cash flow per Common Unit (or the repayment of
indebtedness incurred in connection with such accretive acquisitions) at a
price no less than 105% of the Unit Price, (ii) the issuance of up to 5
million Common Units as purchase price consideration in connection with future
acquisitions that are accretive to cash flow per Common Unit, and (iii) the
sale of restricted Common Units or general partner interests to TransCanada or
its Affiliates at the Unit Price; provided,
however, that any recipient of
Common Units issued or sold in reliance on this Section 5.1 (other than
in a registered public offering) shall agree in writing to be bound by Section
5.2 below as if such recipient was a Purchaser.  Notwithstanding the foregoing, the
Partnership shall not, and shall cause its directors, officers and Affiliates
not to, sell, offer for sale or solicit offers to buy any security (as defined
in the Securities Act) that would be integrated with the sale of the Units in a
manner that would require the registration under the Securities Act of the sale
of the Units to the Purchasers.

Section 5.2                   Purchaser Lock-Up. Without
the prior written consent of the Partnership, each Purchaser agrees that from
and after the Closing it will not sell any of its Units prior to the Lock-Up
Date; provided, however, that
each Purchaser may (i) enter into one or more total return swaps or similar
transactions at any time with respect to the Units purchased by such Purchaser,
or (ii) transfer its Units to an Affiliate of such Purchaser or

 15
 

to any other Purchaser or an Affiliate of such other Purchaser provided
that such Purchaser or Affiliate agrees to the restrictions in this
Section 5.2.

Section 5.3                   Taking of Necessary Action.
Each of the Parties hereto shall use its commercially reasonable efforts
promptly to take or cause to be taken all action and promptly to do or cause to
be done all things necessary, proper or advisable under applicable Law and
regulations to consummate and make effective the transactions contemplated by
this Agreement. Without limiting the foregoing, the Partnership and each
Purchaser will, and the Partnership shall cause each of its Subsidiaries to,
use its commercially reasonable efforts to make all filings and obtain all
consents of Governmental Authorities that may be necessary or, in the
reasonable opinion of the Purchasers or the Partnership, as the case may be,
advisable for the consummation of the transactions contemplated by this
Agreement, the other Basic Documents and the Acquisition Agreement.

Section 5.4                   Non-Disclosure; Interim Public
Filings. The Partnership shall, on or before 8:30 a.m., New York time, on
the first Business Day following execution of this Agreement, issue a press
release reasonably acceptable to the Purchasers disclosing the transactions
contemplated hereby.  Before 8:30 a.m.,
New York Time, on the second Business Day following the Closing Date, the
Partnership shall file a Current Report on Form 8-K with the Commission (the “8-K
Filing”) describing the terms of the transactions contemplated by this
Agreement, the other Basic Documents and the Acquisition Agreement and
including as exhibits to such Current Report on Form 8-K this Agreement, the
other Basic Documents and the Acquisition Agreement, in the form required by
the Exchange Act.  Thereafter, the
Partnership shall timely file any filings and notices required by the
Commission or applicable Law with respect to the transactions contemplated
hereby.  Except with respect to the 8-K
Filing and the press release referenced above (a copy of which will be provided
to the Purchasers for their review as early as practicable prior to its
filing), the Partnership shall, at least two Business Days prior to the filing
or dissemination of any disclosure required by this Section 5.4, provide a
copy thereof to the Purchasers for their review.  The Partnership and the Purchasers shall
consult with each other in issuing any press releases or otherwise making
public statements or filings and other communications with the Commission or
any regulatory agency or The Nasdaq Stock Market (or other exchange on which
securities of the Partnership are listed or traded) with respect to the
transactions contemplated hereby, and neither Party shall issue any such press
release or otherwise make any such public statement, filing or other
communication without the prior consent of the other, except if such disclosure
is required by Law, in which case the disclosing Party shall promptly provide
the other Party with prior notice of such public statement, filing or other
communication.  Notwithstanding the
foregoing, the Partnership shall not publicly disclose the name of any
Purchaser, or include the name of any Purchaser in any press release, without
the prior written consent of such Purchaser except to the extent the names of
the Purchasers are included in this Agreement as filed as an exhibit to the 8-K
Filing and the press release referred to in the first sentence above.  The Partnership shall not, and shall cause
each of its respective Representatives not to, provide any Purchaser with any
material non-public information regarding the Partnership from and after the
issuance of the above-referenced press release without the express written
consent of such Purchaser.

 16
 

Section 5.5                   Use of Proceeds. The
Partnership shall use the collective proceeds from the sale of the Units to
provide funds to TCGL Intermediate Partnership to partially fund the purchase
price set forth in the Acquisition Agreement.

Section 5.6                   Tax Information. The
Partnership shall provide the Purchasers with any reasonably requested tax
information related to their ownership of the Units.

Section 5.7                   Certain Special Allocations of
Book and Taxable Income.  To the
extent that the Unit Price is less than the trading price of the Common Units
of the Partnership on the Nasdaq Global Select Market as of the Closing Date,
the General Partner intends to specially allocate items of book and taxable
income to the Purchasers so that their capital accounts in their Units are
consistent, on a per-Unit basis, with the capital accounts of the other holders
of Common Units (and thus to assure fungibility of all Common Units).  The Purchasers acknowledge and agree to such
special allocations.

ARTICLE
VI

CONDITIONS TO CLOSING

Section 6.1                   Mutual Conditions.  The respective obligation of each Party to
consummate the purchase and issuance and sale of the Units shall be subject to
the satisfaction on or prior to the Closing Date of each of the following
conditions (any or all of which may be waived by a particular Party on behalf
of itself in writing, in whole or in part, to the extent permitted by
applicable Law):

(a)                 no Law shall have been enacted or
promulgated, and no action shall have been taken, by any Governmental Authority
of competent jurisdiction which temporarily, preliminarily or permanently
restrains, precludes, enjoins or otherwise prohibits the consummation of the
transactions contemplated by this Agreement or makes the transactions
contemplated by this Agreement illegal; and

(b)                 there shall not be pending any Action
by any Governmental Authority seeking to restrain, preclude, enjoin or prohibit
the transactions contemplated by this Agreement.

Section 6.2                   Each Purchaser’s Conditions.  The respective obligation of each Purchaser
to consummate the purchase of its Units shall be subject to the satisfaction on
or prior to the Closing Date of each of the following conditions (any or all of
which may be waived by a particular Purchaser on behalf of itself in writing,
in whole or in part, to the extent permitted by applicable Law):

(a)                 the Partnership shall have performed
and complied in all material respects with the covenants and agreements
contained in this Agreement that are required to be performed and complied with
by it on or prior to the Closing Date;

(b)                 the representations and warranties of
the Partnership contained in this Agreement that are qualified by materiality
or Partnership Material Adverse Effect shall be true and correct when made and
as of the Closing Date and all other representations and warranties shall be
true and correct in all material respects when made and as of the Closing Date,
in each

 17
 

case as though made at and as of the Closing Date (except that
representations made as of a specific date shall be required to be true and
correct as of such date only);

(c)                 since the date of this Agreement, no
Partnership Material Adverse Effect shall have occurred and be continuing;

(d)                 the Partnership shall have delivered,
or caused to be delivered, to the Purchasers at the Closing, its closing
deliveries described in Section 7.1;

(e)                 each TransCanada Purchaser shall have
purchased from the Partnership, pursuant to this Agreement, its Units and paid
to the Partnership its Commitment Amount (provided that this condition may not
be asserted by any TransCanada Purchaser); and

(f)                  the Partnership shall have submitted
to The Nasdaq Market a “Notification Form: Listing of Additional Shares” with
respect to the Units and no notice of delisting from The Nasdaq Market shall
have been received by the Partnership with respect to the Common Units.

Section 6.3                   The Partnership’s Conditions.   The obligation of the Partnership to
consummate the sale of the Units to each of the Purchasers shall be subject to
the satisfaction on or prior to the Closing Date of each of the following
conditions with respect to each Purchaser individually and not the Purchasers
jointly (any or all of which may be waived by the Partnership in writing, in
whole or in part, to the extent permitted by applicable Law):

(a)                 each Purchaser shall have performed
and complied in all material respects with the covenants and agreements
contained in this Agreement that are required to be performed and complied with
by that Purchaser on or prior to the Closing Date;

(b)                 the representations and warranties of
each Purchaser contained in this Agreement that are qualified by materiality or
Purchaser Material Adverse Effect shall be true and correct when made and as of
the Closing Date and all other representations and warranties of such Purchaser
shall be true and correct in all material respects when made and as of the
Closing Date, in each case as though made at and as of the Closing Date (except
that representations or warranties made as of a specific date shall be required
to be true and correct as of such date only);

(c)                 each Purchaser (other than the
TransCanada Purchasers) shall have delivered, or caused to be delivered, such
Purchaser’s closing deliveries described in Section 7.2(a); and

(d)                 each TransCanada Purchaser shall have
delivered, or caused to be delivered, its closing deliveries described in
Section 7.2(b) (including payment of its Commitment Amount as provided in
Section 7.2(b)(ii) and Section 2.1(d)).

 18
 

ARTICLE
VII

CLOSING DELIVERIES

Section 7.1                   The Partnership Deliveries.
At the Closing, subject to the terms and conditions of this Agreement, the
Partnership shall have delivered, or caused to be delivered, to each Purchaser:

(a)                 the Units by delivering certificates
(bearing the legend set forth in Section 4.8) evidencing such Units, all
free and clear of any Liens, encumbrances or interests of any other party;

(b)                 an opinion from each counsel listed on
Exhibit D, substantially similar in substance to such counsel’s
form of opinion attached to this Agreement as Exhibit D;

(c)                 the Registration Rights Agreement in
substantially the form attached to this Agreement as Exhibit C,
which shall have been duly executed by the Partnership;

(d)                 the Escrow Agreement fully executed by
all parties thereto;

(e)                 a certificate signed on behalf of the Partnership
by the Chairman of the Board of Directors or the President and the principal
financial or accounting officer of the General Partner, dated the Closing Date,
to the effect that:

(i)                    the
representations and warranties of the Partnership in this Agreement are true
and correct on and as of the Closing Date with the same effect as if made on
the Closing Date and the Partnership has performed and complied with all the
agreements and satisfied all the conditions on its part to be performed or
satisfied at or prior to the Closing Date;

(ii)                 since the date of
the most recent financial statements included or incorporated by reference in
the Partnership SEC Documents, there has been no Partnership Material Adverse
Effect, except as set forth in or contemplated in the Partnership SEC
Documents; and

(iii)                the conditions to
the closing of the Acquisition set forth in the Acquisition Agreement (other
than the payment of the purchase price by the Partnership) have been satisfied
or waived;

(f)                  a certificate dated as of a recent
date of the Secretary of State of the State of Delaware with respect to the due
organization and good standing in the State of Delaware of the Partnership; and

(g)                 a receipt, dated the Closing Date,
executed by the Partnership and delivered to each Purchaser certifying that the
Partnership has received the Purchase Price with respect to the Units issued
and sold to such Purchaser.

 19
 

Section 7.2                   Purchaser Deliveries.

 

(a)                 Deliveries by Purchasers
Other Than the TransCanada Purchaser. Subject to the terms and
conditions of this Agreement, each Purchaser (other than the TransCanada
Purchasers) will deliver, or cause to be delivered to the Partnership:

(i)                   at least two
Business Days prior to Closing, payment of such Purchaser’s Commitment Amount by
wire transfer(s) of immediately available funds to an account designated in the
Escrow Agreement;

(ii)                 at the Closing,
notice to the Escrow Agent instructing the Escrow Agent to release the funds
escrowed pursuant to the Escrow Agreement in respect of such Purchaser to the
Partnership;

(iii)                at the Closing,
the Registration Rights Agreement in substantially the form attached to this
Agreement as Exhibit C, which shall have been duly executed by such
Purchaser; and

(iv)               at the Closing, an
Officer’s Certificate substantially in the form attached to this Agreement as Exhibit
E.

(b)                 Deliveries by the
TransCanada Purchasers. 
Subject to the terms and conditions of this Agreement, each TransCanada
Purchaser will deliver, or cause to be delivered, at the Closing:

(i)                   an Officer’s
Certificate substantially in the form attached to this Agreement as Exhibit
E; and

(ii)                 payment to the
Partnership of such TransCanada Purchaser’s Commitment Amount by wire
transfer(s) of immediately available funds to an account designated by the
Partnership.

ARTICLE
VIII

INDEMNIFICATION, COSTS AND EXPENSES

Section 8.1                   Indemnification by the
Partnership. The Partnership agrees to indemnify each Purchaser and its
Representatives (collectively, the “Purchaser Related Parties”) from,
and hold each of them harmless against, any and all actions, suits, proceedings
(including any investigations, litigation or inquiries), demands and causes of
action, and, in connection therewith, and promptly upon demand, pay and
reimburse each of them for all costs, losses, liabilities, damages or expenses
of any kind or nature whatsoever, including the reasonable fees and
disbursements of counsel and all other reasonable expenses incurred in
connection with investigating, defending or preparing to defend any such matter
that may be incurred by them or asserted against or involve any of them as a
result of, arising out of or in any way related to (i) any actual or
proposed use by the Partnership of the proceeds of the sale of the Units,
(ii) the breach of any of the representations, warranties or covenants of
the Partnership contained herein or (iii) in connection with any payment to the
escrow agent pursuant to Section 5(b) of the Escrow Agreement; provided that such claim for
indemnification relating to a breach of a representation or warranty is made
prior to the expiration of such representation or warranty;

 20
 

provided further, that
no Purchaser Related Party shall be entitled to recover special, consequential
(including lost profits or diminution in value) or punitive damages.

Section 8.2                   Indemnification by Purchasers.
Each Purchaser agrees, severally and not jointly, to indemnify the Partnership
and its Representatives (collectively, the “Partnership Related Parties”)
from, and hold each of them harmless against, any and all actions, suits,
proceedings (including any investigations, litigation or inquiries), demands
and causes of action, and, in connection therewith, and promptly upon demand,
pay and reimburse each of them for all costs, losses, liabilities, damages or
expenses of any kind or nature whatsoever, including the reasonable fees and
disbursements of counsel and all other reasonable expenses incurred in
connection with investigating, defending or preparing to defend any such matter
that may be incurred by them or asserted against or involve any of them as a
result of, arising out of or in any way related to the breach of any of the
covenants of such Purchaser contained herein; provided
further, that  no
Partnership Related Party shall be entitled to recover special, consequential
(including lost profits or diminution in value) or punitive damages.

Section 8.3                   Indemnification Procedure.
Promptly after any the Partnership Related Party or Purchaser Related Party
(hereinafter, the “Indemnified Party”) has received notice of any
indemnifiable claim hereunder, or the commencement of any action or proceeding
by a third party, which the Indemnified Party believes in good faith is an
indemnifiable claim under this Agreement, the Indemnified Party shall give the
indemnitor hereunder (the “Indemnifying Party”) written notice of such
claim or the commencement of such action or proceeding, but failure to so
notify the Indemnifying Party will not relieve the Indemnifying Party from any
liability it may have to such Indemnified Party hereunder except to the extent
that the Indemnifying Party is materially prejudiced by such failure. Such
notice shall state the nature and the basis of such claim to the extent then
known. The Indemnifying Party shall have the right to defend and settle, at its
own expense and by its own counsel who shall be reasonably acceptable to the
Indemnified Party, any such matter as long as the Indemnifying Party pursues
the same diligently and in good faith. If the Indemnifying Party undertakes to
defend or settle, it shall promptly notify the Indemnified Party of its
intention to do so, and the Indemnified Party shall cooperate with the
Indemnifying Party and its counsel in all commercially reasonable respects in
the defense thereof and the settlement thereof. Such cooperation shall include
furnishing the Indemnifying Party with any books, records and other information
reasonably requested by the Indemnifying Party and in the Indemnified Party’s
possession or control. Such cooperation of the Indemnified Party shall be at
the cost of the Indemnifying Party. After the Indemnifying Party has notified
the Indemnified Party of its intention to undertake to defend or settle any
such asserted liability, and for so long as the Indemnifying Party diligently pursues
such defense, the Indemnifying Party shall not be liable for any additional
legal expenses incurred by the Indemnified Party in connection with any defense
or settlement of such asserted liability; provided,
however, that the Indemnified
Party shall be entitled (i) at its expense, to participate in the defense
of such asserted liability and the negotiations of the settlement thereof and
(ii) if (A) the Indemnifying Party has failed to assume the defense
or employ counsel reasonably acceptable to the Indemnified Party or (B) if
the defendants in any such action include both the Indemnified Party and the
Indemnifying Party and counsel to the Indemnified Party shall have concluded
that there may be reasonable defenses available to the Indemnified Party that
are different from or in addition to those available to the Indemnifying Party
or if the interests of the Indemnified Party reasonably may be deemed to
conflict with the interests of the 

 21
 

Indemnifying Party, then the Indemnified Party shall have the right to
select a separate counsel and to assume such legal defense and otherwise to
participate in the defense of such action, with the expenses and fees of such
separate counsel and other expenses related to such participation to be
reimbursed by the Indemnifying Party as incurred. Notwithstanding any other
provision of this Agreement, the Indemnifying Party shall not settle any
indemnified claim without the consent of the Indemnified Party, unless the
settlement thereof imposes no liability or obligation on, involves no admission
of wrongdoing or malfeasance by, and includes a complete release from liability
of, the Indemnified Party.

ARTICLE
IX

MISCELLANEOUS

Section 9.1                   Interpretation. Article,
Section, Schedule and Exhibit references are to this Agreement, unless
otherwise specified.  All references to
instruments, documents, contracts and agreements are references to such
instruments, documents, contracts and agreements as the same may be amended,
supplemented and otherwise modified from time to time, unless otherwise
specified. The word “including” shall mean “including but not limited to”.
Whenever the Partnership has an obligation under the Basic Documents, the
expense of complying with such obligation shall be an expense of the
Partnership unless otherwise specified. Whenever any determination, consent or
approval is to be made or given by a Purchaser under this Agreement, such
action shall be in such Purchaser’s sole discretion unless otherwise specified.
If any provision in the Basic Documents is held to be illegal, invalid, not
binding or unenforceable, such provision shall be fully severable and the Basic
Documents shall be construed and enforced as if such illegal, invalid, not
binding or unenforceable provision had never comprised a part of the Basic
Documents, and the remaining provisions shall remain in full force and effect.
The Basic Documents have been reviewed and negotiated by sophisticated parties
with access to legal counsel and shall not be construed against the drafter.

Section 9.2                   Survival of Provisions. The
representations and warranties set forth in Sections 3.2, 3.3, 3.4, 3.5, 3.6,
3.7, 3.8, 3.9, 3.11, 3.12, 3.14, 3.15, 3.16, 3.22, 3.23, 4.1, 4.3, 4.4, 4.6,
4.7, 4.8 and 4.9 of this Agreement shall survive the execution and delivery of this
Agreement indefinitely, and the other representations and warranties set forth
in this Agreement shall survive for a period of twelve (12) months following
the Closing Date regardless of any investigation made by or on behalf of the
Partnership or any Purchaser.  The
covenants made in this Agreement or any other Basic Document shall survive the
closing of the transactions described herein and remain operative and in full
force and effect regardless of acceptance of any of the Units and payment
therefor and conversion, exercise or repurchase thereof.  All indemnification obligations of the
Partnership and the Purchasers pursuant to Article VIII of this Agreement
shall remain operative and in full force and effect unless such obligations are
expressly terminated in a writing by the Parties referencing the particular
Article or Section, regardless of any purported general termination of this
Agreement.

Section 9.3                   No Waiver; Modifications in
Writing.

(a)                 Delay.  No failure or delay on the part of any Party in
exercising any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or
remedy preclude any other or further exercise thereof or the

 22
 

exercise of any right, power or remedy. 
The remedies provided for herein are cumulative and are not exclusive of
any remedies that may be available to a Party at law or in equity or otherwise.

(b)                 Specific Waiver. Except as
otherwise provided in this Agreement or the Registration Rights Agreement, no
amendment, waiver, consent, modification or termination of any provision of
this Agreement or any other Basic Document shall be effective unless signed by
each of the Parties or each of the original signatories thereto affected by
such amendment, waiver, consent, modification or termination.  Any amendment, supplement or modification of
or to any provision of this Agreement or any other Basic Document, any waiver
of any provision of this Agreement or any other Basic Document and any consent
to any departure by the Partnership from the terms of any provision of this
Agreement or any other Basic Document shall be effective only in the specific
instance and for the specific purpose for which made or given.  Except where notice is specifically required
by this Agreement, no notice to or demand on any Party in any case shall
entitle any Party to any other or further notice or demand in similar or other
circumstances.

Section 9.4                   Binding Effect; Assignment.

(a)                 Binding Effect. This Agreement
shall be binding upon the Partnership, each Purchaser, and their respective
successors and permitted assigns.  Except
as expressly provided in this Agreement, this Agreement shall not be construed
so as to confer any right or benefit upon any Person other than the Parties to
this Agreement and as provided in Article VII, and their respective
successors and permitted assigns.

(b)                 Assignment of Units. All or any
portion of a Purchaser’s Units purchased pursuant to this Agreement may be
sold, assigned or pledged by such Purchaser, subject to compliance with
applicable securities Laws, Section 5.2 of this Agreement and the
Registration Rights Agreement.

(c)                 Assignment of Rights. Each
Purchaser may assign all or any portion of its rights and obligations under
this Agreement without the consent of the Partnership (i) to any Affiliate
of such Purchaser or (ii) in connection with a total return swap or
similar transaction with respect to the Units purchased by such Purchaser, and
in each case the assignee shall be deemed to be a Purchaser hereunder with
respect to such assigned rights or obligations and shall agree to be bound by
the provisions of this Agreement.  Except
as expressly permitted by this Section 9.4(c), such rights and obligations
may not otherwise be transferred except with the prior written consent of the
Partnership (which consent shall not be unreasonably withheld), in which case
the assignee shall be deemed to be a Purchaser hereunder with respect to such
assigned rights or obligations and shall agree to be bound by the provisions of
this Agreement.

Section 9.5                   Aggregation of Units. All
Units held or acquired by Persons who are Affiliates of one another shall be
aggregated together for the purpose of determining the availability of any
rights under this Agreement.

Section 9.6                   Confidentiality and
Non-Disclosure. Notwithstanding anything herein to the contrary, each
Purchaser that has executed a confidentiality agreement in favor of the
Partnership with respect to the transactions contemplated by this Agreement
shall continue to

 23
 

be bound by such confidentiality agreement in accordance with the terms
thereof until such time as the Partnership discloses on Form 8-K with the
Commission the transactions contemplated hereby.

Section 9.7                   Communications. All notices
and demands provided for hereunder shall be in writing and shall be given by
regular mail, registered or certified mail, return receipt requested,
facsimile, air courier guaranteeing overnight delivery, electronic mail or
personal delivery to the following addresses:

(a)                 If to a Purchaser, to the address set
forth on Exhibit A;

(b)                 If to the Partnership:

TC Pipelines, LP

450 – 1st Street S.W.

Calgary, Alberta, Canada T2P 5H1

Attention: Mark
Zimmerman

Facsimile: (403) 920-2363

with a copy to:

Attention: Donald
DeGrandis

Facsimile: (403) 920-2460

with a copy to:

Orrick, Herrington
& Sutcliffe LLP

The Orrick Building

405 Howard Street

San Francisco, California 94105

Attention: Alan Talkington

Facsimile: (415) 773-5759;

or to such other address as the Partnership or such
Purchaser may designate in writing. All notices and communications shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; upon actual receipt if sent by registered or certified mail, return
receipt requested, or regular mail, if mailed; when receipt acknowledged, if
sent via facsimile; and upon actual receipt when delivered by an air courier
guaranteeing overnight delivery or via electronic mail.

Section 9.8                   Removal of Legend. The
Partnership shall remove the legend described in Section 4.8 from the
certificates evidencing the Units at the request of a Purchaser submitting to
the Partnership such certificates, together with such other documentation as
may be reasonably requested by the Partnership or required by its transfer
agent, unless the Partnership, with the advice of counsel, reasonably
determines that such removal is inappropriate; provided that no opinion of
counsel shall be required in the event a Purchaser is effecting a sale of such
Units pursuant to Rule 144 or an effective registration statement (unless
required by the

 24
 

Partnership’s transfer agent). 
The Partnership shall cooperate with such Purchaser to effect removal of
such legend.  The legend described in
Section 4.8 shall be removed and the Partnership shall issue a certificate
without such legend to the holder of Units upon which it is stamped, if, unless
otherwise required by state securities Laws, (i) such Units are sold
pursuant to an effective Registration Statement, (ii) in connection with a
sale, assignment or other transfer, such holder provides the Partnership with
an opinion of a law firm reasonably acceptable to the Partnership, in a
generally acceptable form, to the effect that such sale, assignment or transfer
of such Units may be made without registration under the applicable
requirements of the Securities Act, or (iii) such holder provides the
Partnership with reasonable assurance that such Units can be sold, assigned or
transferred pursuant to Rule 144 or Rule 144A under the Securities
Act.

Section 9.9                   Expenses. The Partnership
shall pay up to $50,000 of legal fees of one counsel to the Purchasers in
connection with the preparation of and performance under this Agreement.  Such payment shall be made promptly following
receipt by the Partnership of a satisfactory written invoice for such
expenses.  Each Purchaser (other than the
TransCanada Purchasers) shall be responsible for its pro rata share, based on
its Commitment Amount, of the total legal fees of such counsel to the
Purchasers beyond the amount to be reimbursed by the Partnership pursuant to
this Section 9.9.

Section 9.10                Entire
Agreement. This Agreement and the other Basic Documents are intended by the
Parties as a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the Parties hereto
and thereto in respect of the subject matter contained herein and therein.  There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein or
therein with respect to the rights granted by the Partnership or a Purchaser
set forth herein or therein.  This
Agreement and the other Basic Documents supersede all prior agreements and
understandings between the Parties with respect to such subject matter.

Section 9.11                Governing Law.
This Agreement will be construed in accordance with and governed by the Laws of
the State of New York without regard to principles of conflicts of Laws.

Section 9.12                Execution in
Counterparts. This Agreement may be executed in any number of counterparts
and by different Parties hereto in separate counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an original
and all of which counterparts, taken together, shall constitute but one and the
same Agreement.

Section 9.13                Expenses.
If any action at law or equity is necessary to enforce or interpret the terms
of the Basic Documents, the prevailing Party shall be entitled to reasonable
attorney’s fees, costs and necessary disbursements in addition to any other
relief to which such Party may be entitled.

Section 9.14                Termination.

(a)                 Notwithstanding anything herein to the
contrary, this Agreement may be terminated at any time at or prior to the
Closing by the mutual written consent of the Purchasers entitled to purchase a
majority of the Units and the Partnership.

 25
 

(b)                 Notwithstanding anything herein to the
contrary, this Agreement shall automatically terminate at any time at or prior
to the Closing:

(i)                   if a Law shall
have been enacted or promulgated, or if any action shall have been taken by any
Governmental Authority of competent jurisdiction which permanently restrains,
precludes, enjoins or otherwise prohibits the consummation of the transactions
contemplated by this Agreement or makes the transactions contemplated by this
Agreement illegal;

(ii)                 if the Closing
shall not have occurred on or before February 28, 2007;

(iii)                in accordance with
Section 2.3 of this Agreement; or

(iv)               if the Acquisition
Agreement shall have been terminated in accordance with its terms.

(c)                 In the event of the termination of
this Agreement as provided in Section 9.14(a) or Section 9.14(b), this
Agreement shall forthwith become null and void. 
In the event of such termination, there shall be no liability on the
part of any Party hereto, except as provided in Article VIII and with
respect to the requirement to comply with any confidentiality agreement in
favor of the Partnership; provided that
nothing herein shall relieve any Party from any liability or obligation with
respect to any willful breach of this Agreement.

Section 9.15                Recapitalization,
Exchanges, Etc. Affecting the Units. The provisions of this Agreement shall
apply to the full extent set forth herein with respect to any and all units or
other equity interests of the Partnership or any successor or assign of the
Partnership (whether by merger, consolidation, sale of assets or otherwise)
which may be issued in respect of, in exchange for or in substitution of, the
Units, and shall be appropriately adjusted for combinations, unit splits,
recapitalizations and the like occurring after the date of this Agreement.

Section 9.16                Obligations
Limited to Parties to Agreement. Each of the parties hereto covenants,
agrees and acknowledges that no Person other than the Purchasers (and their
permitted assignees) and the Partnership shall have any obligation hereunder
and that, notwithstanding that one or more of the Purchasers may be a
corporation, partnership or limited liability company, no recourse under this
Agreement or the other Basic Documents or under any documents or instruments
delivered in connection herewith or therewith shall be had against any former,
current or future director, officer, employee, agent, general or limited
partner, manager, member, stockholder or Affiliate of any of the Purchasers or
the Partnership or any former, current or future director, officer, employee,
agent, general or limited partner, manager, member, stockholder or Affiliate of
any of the foregoing, whether by the enforcement of any assessment or by any
legal or equitable proceeding, or by virtue of any applicable Law, it being
expressly agreed and acknowledged that no personal liability whatsoever shall
attach to, be imposed on or otherwise be incurred by any former, current or
future director, officer, employee, agent, general or limited partner, manager,
member, stockholder or Affiliate of any of the Purchasers or the Partnership or
any former, current or future director, officer, employee, agent, general or
limited 

 26
 

partner, manager, member, stockholder or Affiliate of any of the
foregoing, as such, for any obligations of the Purchasers and the Partnership
under this Agreement or the other Basic Documents or any documents or
instruments delivered in connection herewith or therewith or for any claim
based on, in respect of or by reason of such obligation or its creation.

[The
remainder of this page is intentionally left blank.]

 27

IN WITNESS WHEREOF, the Parties hereto execute this
Agreement, effective as of the date first above written.

 

	
  

  	
  PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TC PipeLines, LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: TC PipeLines GP, Inc., its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Mark Zimmerman

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Mark Zimmerman

  
	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Donald
  DeGrandis

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Donald DeGrandis

  
	
   

  	
   

  	
   

  	
  Title: Secretary

  

 

[Signature page to Common Unit Purchase Agreement]

 

	
  

  	
  PURCHASERS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TransCan Northern Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Donald J.
  DeGrandis

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Donald J. DeGrandis

  
	
   

  	
   

  	
   

  	
  Title: Secretary

  

 

[Signature page to Common Unit Purchase Agreement]

 

	
  

  	
  Kayne Anderson MLP Investment Company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/James C.
  Baker

  	
   

  
	
   

  	
   

  	
  Name: James C. Baker

  
	
   

  	
   

  	
  Title: Vice President

  

 

[Signature page to Common Unit Purchase Agreement]

 

	
  

  	
  Kayne Anderson Energy Total Return Fund, Inc.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/James C.
  Baker

  	
   

  
	
   

  	
   

  	
  Name: James C. Baker

  
	
   

  	
   

  	
  Title: Vice President

  

 

[Signature page to Common Unit Purchase Agreement]

 

	
  

  	
  Kayne Anderson MLP Fund,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By: Kayne Anderson Capital Advisors, LP, its

  
	
   

  	
  general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/David
  Shladovsky

  	
   

  
	
   

  	
   

  	
  Name: David Shladovsky

  
	
   

  	
   

  	
  Title: General Counsel

  

 

[Signature page to Common Unit Purchase Agreement]

 

	
  

  	
  Kayne Anderson Capital Income Partners (QP),

  
	
   

  	
  L.P.

  
	
   

  	
   

  
	
   

  	
  By: Kayne Anderson Capital Advisors, LP, its

  
	
   

  	
  general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/David
  Shladovsky

  	
   

  
	
   

  	
   

  	
  Name: David Shladovsky

  
	
   

  	
   

  	
  Title: General Counsel

  

 

[Signature page to Common Unit Purchase Agreement]

 

	
  

  	
  Strome MLP Fund, LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Strome Investment Management, its general

  
	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Peter Davies

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Peter Davies

  
	
   

  	
   

  	
   

  	
  Title: Chief Executive Officer

  

 

[Signature page to Common Unit Purchase Agreement]

 

	
  

  	
  Royal Bank of Canada

  
	
   

  	
   

  
	
   

  	
  By: RBC Capital Markets Corporation, its agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Josef
  Muskatel

  	
   

  
	
   

  	
   

  	
  Name: Josef Muskatel

  
	
   

  	
   

  	
  Title: Director and Senior Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Steven Milke

  	
   

  
	
   

  	
   

  	
  Name: Steven Milke

  
	
   

  	
   

  	
  Title: Managing Director

  

 

[Signature page to Common Unit Purchase Agreement]

 

	
  

  	
  Tortoise Energy Infrastructure Corporation

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/David J.
  Schulte

  	
   

  
	
   

  	
   

  	
  Name: David J. Schulte

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  Tortoise Energy Capital Corporation

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/David J.
  Schulte

  	
   

  
	
   

  	
   

  	
  Name: David J. Schulte

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  Tortoise North American Energy Corporation

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/David J.
  Schulte

  	
   

  
	
   

  	
   

  	
  Name: David J. Schulte

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  GPS Income Fund LP

  
	
   

  	
   

  
	
   

  	
  By: GPS Partners LLC,

  
	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Brett Messing

  	
   

  
	
   

  	
   

  	
  Name: Brett Messing

  
	
   

  	
   

  	
  Title: Managing Partner

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  GPS High Yield Equities Fund

  
	
   

  	
   

  
	
   

  	
  By: GPS Partners LLC,

  
	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Brett Messing

  	
   

  
	
   

  	
   

  	
  Name: Brett Messing

  
	
   

  	
   

  	
  Title: Managing Partner

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  HFR RVAGPS Master Trust

  
	
   

  	
   

  
	
   

  	
  By: GPS Partners LLC,

  
	
   

  	
  its trading manager

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Brett Messing

  	
   

  
	
   

  	
   

  	
  Name: Brett Messing

  
	
   

  	
   

  	
  Title: Managing Partner

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  GPS New Equity Fund LP

  
	
   

  	
   

  
	
   

  	
  By: GPS Partners LLC,

  
	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Brett Messing

  	
   

  
	
   

  	
   

  	
  Name: Brett Messing

  
	
   

  	
   

  	
  Title: Managing Partner

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  TPG-Axon Partners, LP

  
	
   

  	
   

  
	
   

  	
  By: TPG-Axon GP, LLC, its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Mary Ailee

  	
   

  
	
   

  	
   

  	
  Name: Mary Ailee

  
	
   

  	
   

  	
  Title: Vice President

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  Lehman Brothers Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Walter G.
  Maloney

  	
   

  
	
   

  	
   

  	
  Name: Walter G. Maloney

  
	
   

  	
   

  	
  Title: Managing Director

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  Structured Finance
  Americas, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Sunil Hariani

  	
   

  
	
   

  	
   

  	
  Name: Sunil Hariani

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Jill Rathjen

  	
   

  
	
   

  	
   

  	
  Name: Jill Rathjen

  
	
   

  	
   

  	
  Title: Vice President

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  The Cushing MLP
  Opportunity Fund I, LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Jerry V.
  Swank

  	
   

  
	
   

  	
   

  	
  Name: Jerry V. Swank

  
	
   

  	
   

  	
  Title: Managing Partner

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  Swank MLP Convergence
  Fund, LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Jerry V.
  Swank

  	
   

  
	
   

  	
   

  	
  Name: Jerry V. Swank

  
	
   

  	
   

  	
  Title: Managing Partner

  

 

[Signature
page to Common Unit Purchase Agreement]

 

	
  

  	
  Citigroup Global Markets,
  Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Daniel P.
  Breen

  	
   

  
	
   

  	
   

  	
  Name: Daniel P. Breen

  
	
   

  	
   

  	
  Title: Managing Director

  

 

[Signature
page to Common Unit Purchase Agreement]

GUARANTEE

TransCanada PipeLines
Limited (“Guarantor”) guarantees each and every representation,
warranty, covenant, agreement and other obligation of its indirect, wholly
owned subsidiary, TransCan Northern Ltd., and any other TransCanada Purchaser,
and/or any of their respective permitted assigns, and the full and timely
performance of their respective obligations under the provisions of the
foregoing Agreement. This is a guarantee of payment and performance, and not of
collection, and Guarantor acknowledges and agrees that this guarantee is
unconditional, and no release or extinguishment of any TransCanada Purchaser’s
obligations or liabilities (other than in accordance with the terms of the
Agreement), whether by decree in any bankruptcy proceeding or otherwise, shall
affect the continuing validity and enforceability of this guarantee, as well as
any provision requiring or contemplating performance by Guarantor.

Without limiting in any
way the foregoing guarantee, Guarantor covenants and agrees to take all actions
to enable TransCan Northern Ltd. and any other TransCanada Purchaser to adhere
to the provisions of Section 2.1(d) of the Agreement.

We understand that the
Partnership is relying on this guarantee in entering into the Agreement and may
enforce this guarantee as if Guarantor were a party thereto.

This Guarantee may be
executed in any number of counterparts, each of which counterparts, when so
executed and delivered, shall be deemed to be an original and all of which
counterparts, taken together, shall constitute but one and the same Guarantee.

	
  

  	
  TransCanada PipeLines Limited

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Mark
  Zimmerman

  	
   

  
	
   

  	
  Name: Mark Zimmerman

  
	
   

  	
  Title: Vice President Commercial

  
	
   

  	
  Transactions

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Donald J. DeGrandis

  	
   

  
	
   

  	
  Name: Donald J. DeGrandis

  
	
   

  	
  Title: Corporate Secretary

  

 

[Guarantee
Relating to Common Unit Purchase Agreement]

Exhibit A

to Common Unit Purchase Agreement

	
  Purchaser

  	
   

  	
  Number of

  Units

  	
   

  	
  Commitment

  Amount

  	
   

  
	
  TransCan
  Northern Ltd.

  

  TC Pipelines, LP

  450 – 1st Street S.W.

  Calgary, Alberta, Canada T2P 5H1

  

  Attention: Mark Zimmerman

  	
   

  	
  8,678,045

  	
   

  	
  $

  	
  300,000,015.65

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kayne Anderson MLP Investment Company

  

  1800 Avenue of the Stars, 2nd Floor

  Los Angeles, California 90067

  Attention: David Shladovsky, Esq.

  	
   

  	
  867,804

  	
   

  	
  $

  	
  29,999,984.28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kayne Anderson Energy Total Return Fund, Inc.

  

  1800 Avenue of the Stars, 2nd Floor

  Los Angeles, California 90067

  Attention: David Shladovsky, Esq.

  	
   

  	
  144,634

  	
   

  	
  $

  	
  4,999,997.38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kayne Anderson MLP Fund, L.P.

  

  1800 Avenue of the Stars, 2nd Floor

  Los Angeles, California 90067

  Attention: David Shladovsky, Esq.

  	
   

  	
  723,170

  	
   

  	
  $

  	
  24,999,986.90

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kayne
  Anderson Capital Income Partners (QP), L.P.

  

  1800 Avenue of the Stars, 2nd Floor

  Los Angeles, California 90067

  Attention: David Shladovsky, Esq.

  	
   

  	
  72,317

  	
   

  	
  $

  	
  2,499,998.69

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Strome
  MLP Fund, LP

  

  Strome Investment Management

  100 Wilshire Blvd., Suite 1750

  Santa Monica, California 90401

  Phone 310-752-1487

  Fax 310-752-1483
 Attention: Casey Borman

  	
   

  	
  144,634

  	
   

  	
  $

  	
  4,999,997.38

  	
   

  

 

 

	
  Royal
  Bank of Canada

  

  Royal Bank of Canada

  c/o Dan Weinstein

  One Liberty Plaza

  2nd Floor

  New York, NY 10006

  	
   

  	
  650,853

  	
   

  	
  $

  	
  22,499,988.21

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tortoise
  North American Energy Corporation

  

  10801 Mastin Boulevard

  Suite 222

  Overland Park, Kansas 66210

  	
   

  	
  216,951

  	
   

  	
  $

  	
  7,499,996.07

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tortoise
  Energy Capital Corporation

  

  10801 Mastin Boulevard

  Suite 222

  Overland Park, Kansas 66210

  	
   

  	
  867,804

  	
   

  	
  $

  	
  29,999,984.28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tortoise
  Energy Infrastructure Corporation

  

  10801 Mastin Boulevard

  Suite 222

  Overland Park, Kansas 66210

  	
   

  	
  1,229,390

  	
   

  	
  $

  	
  42,500,012.30

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Structured
  Finance Americas, LLC

  

  c/o Deutsche Bank Securities, Inc.

  60 Wall Street

  NY, NY 10005

  Attn: Sunil Hariani, 4th Floor

  with a copy to

  Attn: Colleen Crooks, 14th Floor

  	
   

  	
  867,804

  	
   

  	
  $

  	
  29,999,984.28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citigroup
  Global Markets, Inc.

  

  390 Greenwich Street, 3rd Fl

  New York, NY 10013

  Attn: Pat Borst

  	
   

  	
  289,268

  	
   

  	
  $

  	
  9,999,994.76

  	
   

  

 

 

	
  GPS
  Income Fund LP

  

  GPS Partners LLC

  100 Wilshire Blvd., Suite 900

  Santa Monica, California 90401

  	
   

  	
  453,411

  	
   

  	
  $

  	
  15,674,418.27

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GPS
  High Yield Equities Fund

  

  GPS Partners LLC

  100 Wilshire Blvd., Suite 900

  Santa Monica, California 90401

  	
   

  	
  139,485

  	
   

  	
  $

  	
  4,821,996.45

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HFR
  RVAGPS Master Trust

  

  GPS Partners LLC

  100 Wilshire Blvd., Suite 900

  Santa Monica, California 90401

  	
   

  	
  77,515

  	
   

  	
  $

  	
  2,679,693.55

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GPS
  New Equity Fund LP

  

  GPS Partners LLC

  100 Wilshire Blvd., Suite 900

  Santa Monica, California 90401

  	
   

  	
  57,945

  	
   

  	
  $

  	
  2,003,158.65

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lehman
  Brothers Inc.

  

  Lehman Brothers Inc.

  745 Seventh Avenue

  New York, New York 10019-6801

  Attention: Walter Maloney

  Telephone: 212-526-1955

  Facsimile: 212-526-6327

  with a copy to:

  Attention: Tim Collins

  Telephone: 212-526-1027

  Facsimile: 646-834-0996

  	
   

  	
  717,984

  	
   

  	
  $

  	
  24,820,706.88

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The
  Cushing MLP Opportunity Fund I, LP

  

  3300 Oak Lawn, Suite 650

  Dallas, Texas 75219

  Phone 214.635.1676

  Fax 214.219.2353

  Attention: Dan Spears

  	
   

  	
  636,390

  	
   

  	
  $

  	
  22,000,002.30

  	
   

  

 

 

	
  Swank
  MLP Convergence Fund, LP

  

  3300 Oak Lawn, Suite 650

  Dallas, Texas 75219

  Phone 214.635.1676

  Fax 214.219.2353

  Attention: Dan Spears

  	
   

  	
  86,780

  	
   

  	
  $

  	
  2,999,984.60

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TPG
  -Axon Capital Management, LP

  888 Seventh Avenue - 38th Floor

  New York, New York 10019

  Attention: Mary Lee, Esq. or Legal Department

  Facsimile: (212) 479-2001

  	
   

  	
  433,902

  	
   

  	
  $

  	
  14,999,992.14

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  17,356,086

  	
   

  	
  $

  	
  599,999,893.02Exhibit 10.1

SECOND AMENDMENT TO THIRD AMENDED AND

RESTATED CREDIT AGREEMENT

THIS SECOND AMENDMENT TO THIRD AMENDED AND RESTATED
CREDIT AGREEMENT (“Amendment”), dated effective as of December 15, 2006,
is made and entered into by and among WHOLE FOODS MARKET, INC. (the “Company”),
a Texas corporation, the banking institutions from time to time a party to the
Credit Agreement (as hereinafter defined), as amended by this Amendment (each,
together with its successors and assigns, a “Bank” and collectively, the
“Banks”), and JPMORGAN CHASE BANK, N.A., a national banking association
formerly known as JPMorgan Chase Bank, as agent for the Banks (in such
capacity, together with its successors in such capacity, the “Agent”).

RECITALS:

WHEREAS, the Company, the Agent and certain Banks
are parties to a Third Amended and Restated Credit Agreement dated as of
October 1, 2004, as previously amended pursuant to the terms of that certain
First Amendment of Third Amend and Restated Credit Agreement dated November 7,
2005, executed by and among the Company, the Agent and the Banks (hereinafter
referred to as the “Credit Agreement”); and

WHEREAS, in connection with the Company’s request to
increase the aggregate permitted amount of Letters of Credit under the Credit
Agreement and to add additional negative covenant exceptions to the Credit
Agreement for cash secured letters of credit issued for worker’s compensation
insurance coverage, the Company, the Agent and the Banks have agreed, on the
terms and conditions herein set forth, that the Credit Agreement be further
amended in certain respects.

AGREEMENTS:

NOW, THEREFORE, in consideration of the premises and
the mutual agreements, representations and warranties herein set forth, and for
other good and valuable consideration, the receipt and sufficiency which are
hereby acknowledged and confessed, the Company, the Agent and the Banks do
hereby agree as follows:

General
Definitions.  Capitalized terms used herein which are
defined in the Credit Agreement shall have the same meanings when used herein.

Increase
of Letter of Credit Limit. The Letter of Credit sublimit amount set forth in Section
2.4(a)(i) of the Credit Agreement is hereby increased as of the from
$50,000,000 to $100,000,000.

 

Additional
Negative Covenant Exceptions for Worker’s Compensation Obligations.

(a)           A new Section 6.1(o) is hereby
added to the Credit Agreement to hereafter be and read in its entirety as
follows:

any obligation under or in respect of outstanding
letters of credit (excluding the Letters of Credit) or other worker’s
compensation coverage payment or reimbursement obligations secured by cash or
cash equivalents created for the account of the Company or any of its
Subsidiaries as fiscal security for, or otherwise in connection with, worker’s
compensation coverage secured for the Company and/or any of its Subsidiaries
(it being agreed that any letters of credit or other such payment or
reimbursement obligations issued in accordance with the provisions of this Section
6.1(o) shall not be included within letters of credit for purposes of
determining compliance with Section 6.1(k) hereof or included within
Contingent Obligations for purposes of determining compliance with Section
6.3 hereof).

(b)           A new Section 6.2(h) is hereby
added to the Credit Agreement to hereafter be and read in its entirety as
follows:

Liens against cash or cash equivalents of the
Company and/or any of its Subsidiaries securing the obligations of, under or in
respect of outstanding letters of credit or other worker’s compensation coverage
payment or reimbursement obligations otherwise permitted pursuant to Sections
6.1(o) hereof.

Representations
and Warranties.  The Company represents and warrants to the
Agent and the Banks that the representations and warranties contained in
Section 4 of the Credit Agreement and in all of the other Loan Documents are
true and correct in all material respects on and as of the effective date
hereof as though made on and as of such effective date.  The Company hereby certifies that, after
giving effect to the execution and delivery of this Amendment, no event has
occurred and is continuing which constitutes a Default or an Event of Default
under the Credit Agreement or which, upon the giving of notice or the lapse of
time, or both, would constitute a Default or an Event of Default.  Additionally, the Company hereby represents
and warrants to the Agent and the Banks that the resolutions or authorizations
of the Board of Directors (or other governing parties) of the Company and its
Subsidiaries which are set out in the following described Secretary’s
Certificates or Authorizations remain in full force and effect as of the
effective date hereof and have not been modified, amended, superseded or
revoked:

That certain Secretary’s Certificate dated June 25,
1999, executed and delivered to the Agent by the Secretary of Whole Foods
Market, Inc.;

 

That certain Secretary’s Certificate dated June 25,
1999, executed and delivered to the Agent by the Assistant Secretary of Mrs.
Gooch’s Natural Foods Market, Inc., The Sourdough: A European Bakery, Inc., WFM
Beverage Corp., Whole Food Company, Inc., Whole Foods Market California, Inc.,
Whole Foods Market Services, Inc., Whole Foods Market Distribution, Inc., Whole
Foods Market Southwest I, Inc. (now known as Whole Foods Market Rocky
Mountain/Southwest I, Inc.), Allegro Coffee Company, Whole Foods Market Group,
Inc., Nature’s Heartland, Inc. and Whole Foods Market Southwest Investments,
Inc.;

That certain Authorization dated June 28, 1999,
executed and delivered to the Agent by the Members of Whole Foods Market Brand
365, LLC;

That certain Secretary’s Certificate dated February
19, 2001, executed and delivered to the Agent by the Secretary of Whole Foods
Market IP, Inc. (now known as Whole Foods Market IP, L.P.);

That certain Secretary’s Certificate dated February
19, 2001, executed and delivered to the Agent by the Secretary of Whole Foods
Market Finance, Inc.;

That certain Secretary’s Certificate dated February
19, 2001, executed and delivered to the Agent by the Secretary of Whole Foods
Market Purchasing, Inc. (now known as Whole Foods Market Procurement, Inc.);

That certain Secretary’s Certificate dated March 6,
2003, executed and delivered to the Agent by the Secretary of WFM IP
Investments, Inc.;

That certain Secretary’s Certificate dated March 6,
2003, executed and delivered to the Agent by the Secretary of WFM Gift Card,
Inc.;

That certain Secretary’s Certificate dated March 6,
2003, executed and delivered to the Agent by the Secretary of WFM IP
Management, Inc.;

That certain LLC Authorization dated March 6, 2003,
executed and delivered to the Agent by the Sole Member of WFM Cobb Property
Investments, LLC;

That certain Officer’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Secretary of Whole Foods
Market, Inc.;

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Secretary of WFM Beverage
Holding Company;

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Secretary of WFM Nevada,
Inc. (now known as WFM Southern Nevada, Inc.);

 

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Secretary of WFM Private
Label, L.P.;

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Secretary of
[*CONFIDENTIAL*];

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Assistant Secretary of WFM
Procurement Investments, Inc.;

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Secretary of
[*CONFIDENTIAL*];

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Secretary of
[*CONFIDENTIAL*];

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Assistant Secretary of
[*CONFIDENTIAL*];

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Assistant Secretary of
[*CONFIDENTIAL*];

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Secretary of
[*CONFIDENTIAL*];

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Secretary of WFM
Purchasing, L.P.;

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Secretary of WFM
Purchasing Management, Inc.;

That certain Secretary’s Certificate dated September
30, 2004, executed and delivered to the Agent by the Secretary of WFM Select
Fish, Inc.;

That certain Secretary’s Certificate dated April 11,
2005, executed and delivered to the Agent by the Secretary of Whole Foods
Market Pacific Northwest, Inc.;

That certain Secretary’s Certificate dated July 1,
2005, executed and delivered to the Agent by the Secretary of [*CONFIDENTIAL*];

That certain Secretary’s Certificate dated July 1,
2005, executed and delivered to the Agent by the Secretary of [*CONFIDENTIAL*];

That certain Secretary’s Certificate dated July 1,
2005, executed and delivered to the Agent by the Secretary of [*CONFIDENTIAL*];

 

That certain Secretary’s Certificate dated July 1,
2005, executed and delivered to the Agent by the Secretary of [*CONFIDENTIAL*];

That certain Secretary’s Certificate dated July 1,
2005, executed and delivered to the Agent by the Secretary of WFM Northern
Nevada, Inc.;

 That certain
Secretary’s Certificate dated April 10, 2006, executed and delivered to the
Agent by the Secretary of [*CONFIDENTIAL*];

That certain Secretary’s Certificate dated April 10,
2006, executed and delivered to the Agent by the Secretary of [*CONFIDENTIAL*];

That certain Secretary’s Certificate dated April 10,
2006, executed and delivered to the Agent by the Secretary of [*CONFIDENTIAL*];

That certain Secretary’s Certificate dated April 10,
2006, executed and delivered to the Agent by the Secretary of [*CONFIDENTIAL*];

That certain Secretary’s Certificate dated April 10,
2006, executed and delivered to the Agent by the Secretary of [*CONFIDENTIAL*];

That certain Secretary’s Certificate dated April 10,
2006, executed and delivered to the Agent by the Secretary of [*CONFIDENTIAL*];
and

That certain Secretary’s Certificate dated April 10,
2006, executed and delivered to the Agent by the Secretary of [*CONFIDENTIAL*].

Section
4.  Limitations.  The amendments set forth herein are limited
precisely as written and shall not be deemed to (a) be a consent to, or waiver
or modification of, any other term or condition of the Credit Agreement or any
of the other Loan Documents, or (b) except as expressly set forth herein,
prejudice any right or rights which the Banks may now have or may have in the
future under or in connection with the Credit Agreement, the Loan Documents or
any of the other documents referred to therein. 
Except as expressly modified hereby or by express written amendments
thereof, the terms and provisions of the Credit Agreement, the Notes and any other
Loan Documents or any other documents or instruments executed in connection
with any of the foregoing are and shall remain in full force and effect.  In the event of a conflict between this
Amendment and any of the foregoing documents, the terms of this Amendment shall
be controlling.

Section
5.  Payment of Expenses.  The Company agrees, whether or not the
transactions hereby contemplated shall be consummated, to reimburse and save
the Agent and each of the Banks harmless from and against liability for the
payment of all reasonable substantiated out-of-pocket costs and expenses
arising in connection with the preparation, execution, delivery, amendment,
modification, waiver and enforcement of, or the preservation of any rights
under this Amendment, including, without limitation, 

the reasonable fees and
expenses of counsel for the Agent and other charges which may be payable in
respect of, or in respect of any modification of, the Credit Agreement and the
Loan Documents.  The provisions of this
Section shall survive the termination of the Credit Agreement and the repayment
of the Loans.

Section
6.  Descriptive Headings, etc.  The descriptive headings of the several
Sections of this Amendment are inserted for convenience only and shall not be
deemed to affect the meaning or construction of any of the provisions hereof.

Section
7.  Entire Agreement.  This Amendment and the documents referred to
herein represent the entire understanding of the parties hereto regarding the
subject matter hereof and supersede all prior and contemporaneous oral and
written agreements of the parties hereto with respect to the subject matter
hereof, including, without limitation, any commitment letters regarding the
transactions contemplated by this Amendment.

Section
8.  Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties on separate counterparts and all of
such counterparts shall together constitute one and the same instrument.  Complete sets of counterparts shall be lodged
with the Company and the Agent.

Section
9.  References to Credit Agreement.  As used in the Credit Agreement (including
all Exhibits thereto) and all other Loan Documents, on and subsequent to the
effective date hereof, the term “Agreement” shall mean the Credit Agreement, as
amended by this Amendment.

 

 

 

 

[Remainder of page left intentionally blank]

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed and delivered by
their respective duly authorized offices as of the date first above written.

NOTICE PURSUANT TO TEX. BUS. & COMM. CODE §26.02

THIS
AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED BY ANY OF THE PARTIES BEFORE OR
SUBSTANTIALLY CONTEMPORANEOUSLY WITH THE EXECUTION HEREOF TOGETHER CONSTITUTE A
WRITTEN CREDIT AGREEMENT AND REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES.  THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

	
   

  	
  WHOLE FOODS MARKET, INC.

  
	
   

  	
  a Texas corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Glenda Chamberlain

  
	
   

  	
   

  	
  Executive Vice President and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Addresses for Notices:

  
	
   

  	
   

  
	
   

  	
  Whole Foods Market, Inc.

  
	
   

  	
  550 Bowie Street

  
	
   

  	
  Austin, Texas 78703

  
	
   

  	
  Attention: Ms. Glenda Chamberlain

  

 

 

	
  

  	
  JPMORGAN CHASE BANK, N.A., individually

  
	
   

  	
  and as Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMorgan Chase Bank, N.A.

  
	
   

  	
  700 Lavaca, 2nd Floor

  
	
   

  	
  Post Office Box 550

  
	
   

  	
  Austin, Texas 78789

  
	
   

  	
  Attention: Manager/Commercial Lending Group

  
	
   

  	
   

  
	
   

  	
  with copies to:

  
	
   

  	
   

  
	
   

  	
  JPMorgan Chase Bank, N.A.

  
	
   

  	
  Loan and Agency Services

  
	
   

  	
  111 Fannin, 10th Floor

  
	
   

  	
  Houston, Texas 77002

  
	
   

  	
  Attention: Rese Comley

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK,

  
	
   

  	
  NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Wells Fargo Bank, National Association

  
	
   

  	
  111 Congress, Suite 300

  
	
   

  	
  Austin, Texas 78701

  
	
   

  	
  Attention: Ms. Susan Coulter

  

 

 

	
  

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Wachovia Bank, National Association

  
	
   

  	
  1339 Chestnut Street, PA 48

  
	
   

  	
  Philadelphia, Pennsylvania 19107

  
	
   

  	
  Attention: Ms. Beth Rue

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A. (FORMERLY KNOWN AS FLEET
  NATIONAL BANK)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Bank of America, N.A.

  
	
   

  	
  901 Main Street, 64th Floor

  
	
   

  	
  Dallas, Texas 75202

  
	
   

  	
  Attention: Mr. Dan Killian

  

 

 

 

	
  

  	
  LASALLE BANK
  NATIONAL ASSOCIATION (FORMERLY KNOWN AS STANDARD FEDERAL BANK, N.A.)

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  Address for Notices:

  	 

	
   

  	
  LaSalle Bank National Association

  	 

	
   

  	
  40 Pearl Street NW

  	 

	
   

  	
  P.O. Box 1707

  	 

	
   

  	
  Grand Rapids, Michigan 49501

  	 

	
   

  	
  Attention: Mr. Matthew R. Kline

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  US BANK, NATIONAL ASSOCIATION

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  Address for Notices:

  	 

	
   

  	
   

  	 

	
   

  	
  US Bank

  	 

	
   

  	
  One US Bank Plaza

  	 

	
   

  	
  Mail Code: SL-MO-T12M

  	 

	
   

  	
  St. Louis, Missouri 63101

  	 

	
   

  	
  Attention: 

  	
  Mr. Gregory L. Dryden and

  	 

	
   

  	
   

  	
  Ms. Veronica Morrissette

  	 

					

 

 

 

The undersigned Guarantors (a) acknowledge and
consent to the execution of the foregoing Amendment, (b) confirm that the
Guaranties previously executed or joined in by each of the undersigned
Guarantors apply and shall continue to apply to all Indebtedness evidenced by
or arising pursuant to the Credit Agreement or any other Loan Documents,
notwithstanding the execution and delivery of this Amendment by the Company,
the Agent and each of the Banks, and (c) acknowledge that without this consent
and confirmation, the Banks and the Agent would not agree to the modifications
of the Credit Agreement which are evidenced by the foregoing Amendment.

WHOLE
FOODS MARKET SERVICES, INC.,

a Delaware corporation

WHOLE FOODS MARKET DISTRIBUTION, INC.,

a Delaware corporation

WFM GIFT CARD, INC.,

a Nevada corporation

WFM SELECT FISH, INC.,

a Delaware corporation

WHOLE FOODS MARKET FINANCE, INC.,

a Delaware corporation

WHOLE FOODS MARKET PROCUREMENT, INC.,

a Delaware corporation (formerly known as Whole Foods

Market Purchasing, Inc.)

[*CONFIDENTIAL*]

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Glenda Chamberlain, President

  	
   

  	
   

  

 

 

 

THE
SOURDOUGH: A EUROPEAN BAKERY, INC.

a Texas corporation

WFM IP MANAGEMENT, INC.,

a Delaware corporation

[*CONFIDENTIAL*]

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Glenda Chamberlain, Vice President

  	
   

  	
   

  

 

WFM
BEVERAGE HOLDING COMPANY, a Texas corporation

WFM BEVERAGE CORP., a Texas corporation

WHOLE FOODS MARKET GROUP, INC.,

a Delaware corporation

NATURE’S HEARTLAND, INC.,

a Massachusetts corporation

WHOLE FOODS MARKET ROCKY MOUNTAIN/SOUTHWEST I, INC.,

a Delaware corporation

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Roberta Lang, President

  	
   

  	
   

  

 

 

WHOLE
FOODS MARKET CALIFORNIA, INC.,

a California corporation

MRS. GOOCH’S NATURAL FOOD MARKETS, INC.,

a California corporation

WHOLE FOODS MARKET PACIFIC NORTHWEST, INC.,

a Delaware corporation

WFM NORTHERN NEVADA, INC. ,

a Delaware corporation

ALLEGRO COFFEE COMPANY, a Colorado corporation

WHOLE FOOD COMPANY, INC., a Louisiana corporation

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Roberta Lang, Vice
  President

  	
   

  	
   

  

 

 

WHOLE
FOODS MARKET SOUTHWEST INVESTMENTS, INC.,

a Delaware corporation

WFM IP INVESTMENTS, INC.,

a Delaware corporation

WFM PROCUREMENT INVESTMENTS, INC.,

a Delaware corporation

[*CONFIDENTIAL*]

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Patrick Bradley, President

  	
   

  	
   

  

 

 

WFM SOUTHERN NEVADA, INC.

a Delaware corporation

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Patrick Bradley, Vice
  President

  	
   

  	
   

  

 

WFM
COBB PROPERTY INVESTMENTS, LLC,

a Delaware limited liability company

	
  By:

  	
  Whole Foods Market Group,
  Inc.

  	
   

  	
   

  
	
   

  	
  a Delaware corporation,
  its sole Member

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Roberta Lang, President

  	
   

  	
   

  

 

 

WHOLE
FOODS MARKET BRAND 365, LLC,

a California limited liability company

	
  By:

  	
  Whole Foods Market
  Services, Inc.,

  	
   

  	
   

  
	
   

  	
  a Delaware corporation,
  its sole Member

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Glenda Chamberlain,
  President

  	
   

  	
   

  

 

 

WHOLE
FOODS MARKET ROCKY MOUNTAIN/SOUTHWEST, L.P.,

a Texas limited partnership

	
  By:

  	
  Whole Foods Market Rocky
  Mountain/Southwest I, Inc.,

  	
   

  
	
   

  	
  a Delaware corporation,
  its General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Roberta Lang, President

  	
   

  	
   

  

 

 

WHOLE
FOODS MARKET IP, L.P.,

a Delaware limited partnership

	
  By:

  	
  WFM IP Management, Inc.,

  	
   

  
	
   

  	
  a Delaware corporation,
  its General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Glenda Chamberlain, Vice
  President

  	
   

  	
   

  

 

 

WFM
PRIVATE LABEL, L.P.,

a Delaware limited partnership

 

	
  By:

  	
  WFM Private Label
  Management, Inc.,

  	
   

  
	
   

  	
  a Delaware corporation,
  its General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Glenda Chamberlain,
  President

  	
   

  	
   

  

 

[*CONFIDENTIAL*]

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Glenda Chamberlain,
  President

  	
   

  	
   

  

 

 

WFM
PURCHASING, L.P.,

a Delaware limited partnership

	
  By:

  	
  WFM Purchasing Management,
  Inc.,

  	
   

  
	
   

  	
  a Delaware corporation,
  its General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Glenda Chamberlain,
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]